Expert Shares Tips for Spotting Meme Coins Early
As the popularity of meme coins like Shiba Inu (SHIB) and Pepe (PEPE) continues to grow, crypto investors are eager to find opportunities for substantial returns. However, with the prevalence of scams and fraudulent projects in the crypto and decentralized finance (DeFi) space, spotting legitimate meme coins early can be a challenge. To address this, one crypto analyst has offered a guide on identifying potential winners before they gain traction on social media.
Utilizing Dexscreener for Early Detection
A prominent crypto analyst, known as BlackbeardXBT, recently took to social media to educate followers on methods to identify meme coins like SHIB and PEPE in their early stages, potentially offering significant returns. BlackbeardXBT highlighted the use of Dexscreener, a price analysis platform, as a valuable tool for this purpose.
By utilizing Dexscreener, users can access real-time data for both new and established projects, including pricing and contract information across various blockchain networks such as Ethereum, BSC, and Arbitrum.
Filtering and Analysis
BlackbeardXBT emphasized the importance of avoiding trending coins, as they are susceptible to manipulation. Instead, users are advised to utilize the ‘Filter’ feature on Dexscreener to refine their search based on attributes such as liquidity, project age, and trading volumes. By applying these filters, users can identify potential meme coins that may not yet be widely recognized.
“Liquidity – this is the amount the pair has in liquidity, many devs lock some initial liquidity & then liquidity providers usually top-up. FDV – Fully diluted valuation this is basically the mcap of the project. Pair age – This is the age of the project, was it launch 1h ago, 6h or 24h ago? 24h buy and sells – Very important setting if you don’t want to fall into honeypots.”
Additional Research and Caution
Once potential meme coins have been identified, BlackbeardXBT urged investors to conduct thorough research on the projects, including reviewing their websites, team members, community engagement, and social media presence. Despite the potential for significant returns, it is important for investors to exercise caution and avoid investing more than they can afford to lose, particularly with new, unproven meme coins in the market.
While these strategies can help identify promising meme coins early, it is essential for investors to remain vigilant and be wary of sophisticated crypto scammers who create seemingly legitimate projects. By following these methods and remaining cautious, investors can better position themselves in the volatile world of meme coins.
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