The Newest Meme Coins: Should You Invest In The Latest Crypto Trend?

One of the most popular features of crypto is its speculative nature. Since the sector’s inception, many assets have spiked exponentially and returned attractive gains to holders and investors. This is true of established crypto assets like Bitcoin (BTC), as well as many lesser-known options such as meme coins. 

Although there is a preference for large-cap options, meme coins are also popular because of potential returns and their expanding use cases in decentralized finance (DeFi). According to finance writer Michael Graw, meme coins are amongst the best crypto to invest in as, alongside AI cryptocurrencies, they’ve experienced significant growth over the last year. Since February 2024, these coin types have made high returns. 

Investing in New Meme Coins

There are several large and recognized meme coins in the market, including Dogecoin (DOGE) and Shiba Inu (SHIB). While DOGE is the world’s largest meme coin by market cap, and the eighth-largest of all cryptocurrencies, SHIB is the second and thirteenth largest, respectively. Consequently, making an argument for investing in the largest meme coins is easy because they are already established and boast impressive numbers. On the other hand, choosing new meme coins is a bit more tricky.

According to analysts, several meme coins in today’s crypto market could potentially pump up to 500x. For instance, Pepe (PEPE), a meme coin built on the Ethereum blockchain, successfully hit a $1.6 billion market cap in mid-2023. Its price also made a 708% increase in March of this year. The asset’s success drew the crypto community’s attention and seemed to renew interest in meme coins. In addition to the possibility of a price spike, PEPE has a mechanism that automatically burns coins to increase scarcity and ensure long-term value.

One more option is Dogwifhat (WIF), another dog-themed meme coin with a large supply. Like other meme coins, this Solana-based asset enjoys plenty of attention from crypto community members and has helped investors earn significantly despite its volatility. 

Dog-themed meme coins, on the whole, remain the most prosperous meme coin types. They boast a combined market cap of $46 billion. 

Along with many others, meme coins are shaping to be worthy investment tools that expand their use cases beyond pure speculation. However, investors must consider several factors before buying these assets for investments.

Tips to Investing in Meme Coins

• Research: All investment decisions require extensive research and should not be based on popularity or social media hype. Any decision requires evaluating the team behind the coin and finding information about the names and faces involved. Investors should also consider examining the project roadmap wherever available. This shows the project’s future plans and helps decide whether the creators are looking to quickly cash out. Other things to watch out for are overly aggressive marketing campaigns, as well as promising guaranteed returns.
• Invest Disposable Amount: A trusted rule of thumb with investing in meme coins is to deposit amounts that are okay to lose. While all decentralized cryptocurrencies are inherently volatile, the instability in meme coins may be more intense. Since price swings are unpredictable and the likelihood of loss is high, investors must not overextend themselves. After deciding on a safe amount, investors must limit their exposure by allocating a small percentage of their total portfolio to meme coins. In addition, investors must ensure to diversify by spreading the intended amount across multiple meme coins. Financial experts advise putting around 15% of your monthly income towards investments. 
• Create Exit Strategy: Every investor must create and stick to an exit strategy because meme coin activity can be exciting if price movement is upward. A plan is needed to avoid making emotional decisions and ensure investors quickly capture profits before a potential crash. This is possible by setting realistic profit targets and withdrawing these profits when the target is achieved.