Maximize Your Profits: Strategies for Trading Solana ($SOL) Memecoins!
Solana memecoins are a type of cryptocurrencies that have gained popularity due to their humorous or meme-related themes. A lot of people have benefited from this popularity and managed to profit from trading Solana memecoins. We at Boxmining have been trading Solana memecoins for almost a year. And from our own experiences, have discovered some personal strategies which have helped us maximize our profits trading Solana ($SOL) memecoins.
Check out our guide!
Nevertheless, while many have profited from trading Solana memecoins, it is essential to recognize that the crypto market can be highly volatile. Some individuals have experienced substantial gains, while others have faced losses. As with any investment, it’s crucial to conduct thorough research, stay informed, and exercise caution.
Most importantly, if you are considering trading memecoins, remember that prices can fluctuate rapidly, so always invest what you can afford to lose.
What are Solana ($SOL) memecoins?
Solana memecoins are a category of cryptocurrencies that have gained popularity due to their humorous or meme-related themes. These coins often playfully reference internet culture, animals, or other entertaining concepts. Here are some notable Solana memecoins:
- Dogwifhat (WIF): A trending Solana memecoin with a current price of approximately $3.72. It has seen significant gains in the last 24 hours.
- Bonk (BONK): Another memecoin on Solana, priced at around $0.00004144. It has experienced positive growth recently.
- Cat in a dogs world (MEW): Priced at approximately $0.004275, this coin has gained attention among meme enthusiasts.
- Jeo Boden (BODEN): With a price of about $0.2715, Jeo Boden is also part of the Solana memecoin scene.
Strategies for trading Solana ($SOL) memecoins
Here are some of the strategies we use for maximizing our profits when trading Solana ($SOL) memecoins!
Develop and stick to a risk management strategy
A risk management strategy that we developed is to decide how many Solana ($SOL) tokens you would only put into a particular memecoin. This is because in the event that you do lose that predetermined amount, you may get emotional and want to put in more Solana to recoup the losses. And who knows, if you hold onto the memecoin, it may suddenly recover and go back up again.
Be the first to get into a Solana memecoin by sniping
Use trading points to snipe Solana memecoins before the liquidity pool for it has launched. For example, Sol Trading Bot on Telegram is a helpful and free bot to help you snipe. However, there are more serious Solana memecoin traders that have their own nodes or trading bots set up. This however requires a lot of resources and a high barrier to entry. For example, some very efficient bots with a high number of Transactions Per Second (TPS) could cost around 43 $SOL (around US$7,370). How these trading bots work is that they would spam many transactions in the hopes their transaction would go through. This, however, would mean that a lot of transaction fees would be spent. But for these traders, they consider this cost worthwhile.
Unfortunately, it would be very difficult to compete against these traders by simply using free trading bots. But nevertheless, it could still help you turn a profit.
For more tips on how to snipe Solana memecoins early, check out our guide HERE.
Learn how to use Photon
Photon is a platform that allows you to snipe and sell Solana tokens. To find a good Solana token to buy on Photon, you would want to look at token pairs that will launch soon. Token pairs that may be worth considering would have passed an audit, have mint authorisation, disabled free authorisation and disabled LP burned. These factors tend to suggest a lesser chance of the token being rug pulled. You should also look at the list of top 10 holders of a token because you would want the token to be as decentralized as possible. This is because if the token supply is mostly in 1 persons’ hands, it gives them a lot of power and they may potentially sell large amounts of the token at once, pushing the price down to your detriment.
One other tip to using Photon effectively is to use with the PIRBViewBot. PIRBViewBot is a telegram bot that can give you more details on the spread of token holders compared to Photon.
Find other successful traders as reference
To find other successful Solana memecoin traders, you can go to Dexscreener and look at specific token pairs. Then, look for those wallets which have bought and sold a lot of the token. Afterwards, check their wallet and transaction history on Solscan. If that wallet has been trading a lot of memecoins, that is a good sign as it means they are active. On the other hand, a fresh wallet that has only been trading that 1 memecoin would not be worth looking at becuase it may mean it is a member of the memecoins’ development team or an insider.
Once you have identified the wallet of a potentially good trader, paste their address into Birdeye. Birdeye analyses the transactions in the wallet and by the default displays their PNL in 1 week. You can also track the activities of the wallet over time using Cielo. To use Cielo, add them on Telegram and add the wallet you wish to track. For these large holders, it may be a good idea to also sell when they are also selling. This is because they may push down the price of the token.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.