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4 Lessons Learned in the Journey of Memecoin Speculation
Memecoin has become a fever in the cryptocurrency market, attracting many investors with stories of "x100", "x1000". However, is this really an opportunity to get rich easily or just a risky game? Below are 4 important lessons that anyone participating in Memecoin speculation should remember.
1. Capital Management and Emotions - Vital Factors
Entering the Memecoin market without a capital management strategy and controlling emotions can make you lose money quickly. Many investors often get caught up in the "could have earned more" mentality, leading to larger bets and falling into the greed trap. However, when the trend changes, the price of Memecoin can drop sharply, causing investors to lose control and be forced to cut losses.
A reasonable capital management strategy is to divide the investment portfolio into specific parts:
- 80% into stable platform coins such as BTC, ETH, SOL
- 15% into potential Altcoins
- 5% into Memecoin, to limit risks but still take advantage of opportunities
Maintaining discipline in capital management helps investors avoid emotional decisions and preserve opportunities in the long term.
2. Be Patient - Don't Let the Market "Lead"
Memecoin often has a short life cycle, lasting from a few days to a few weeks. Investors often monitor small time frames such as 5 minutes, 15 minutes or 1 hour, which can easily lead to impatience when seeing their coin moving sideways, while others are showing off profits.
This impatience can cause investors to leave their positions too early or jump from one coin to another without a clear strategy. It is important to maintain a longer-term vision instead of being influenced by the crowd psychology.
3. Money Flows in Memecoin Moves Very Fast
Memecoin is a highly volatile playground with money flows constantly moving through different trends. In just a short time, a series of new trends can appear, from Meme x AI, Election Memes, to random characters on social networks.
If you do not keep up with the trend, investors can buy at the peak of a trend that has just ended. To limit risks, it is necessary to closely monitor the market, evaluate projects with strong communities and sustainable development potential, instead of following the FOMO mentality.
4. Performance is More Important than Growth Percentage
A common misconception is that if a Memecoin grows 20-30 times, it will be profitable. However, the reality shows that:
- A 1 SOL order multiplied by 20 times only brings back 20 SOL
- While a **20 SOL** order on a safer project, just multiplying by 2 will already reach 40 SOL
Instead of taking risks with volatile coins, investors can achieve high performance by focusing on projects with solid foundations. Investing in knowledge and building a long-term strategy is more important than chasing dreams of getting rich quick.
Conclusion
Memecoin brings many opportunities, but also comes with great risks. Investors need to understand the factors that affect the market, from psychology to capital management, instead of focusing only on short-term profits. Names like **DOGE, SHIBA, FLOKI, PEPE** have proven that Memecoin is not just a "pump & dump game", but to be successful, you need a clear strategy and patience.
Staying disciplined, focusing on the long term and always prioritizing capital protection will help you survive in this volatile market.