I understand the sentiment behind this question because, let's face it, a lot of meme coins spike up and then crash never to recover.
In fact, if you were to go on DexScreener and load up all the meme coins you can find, that's gonna be their chart.
You see a nice spike up almost immediately after launch, maybe the first 20 seconds, and then it crashes back down never to recover.
Now how do you identify credible meme coins that are worth investing in?
The idea is to get into a meme coin, pay close to $0, and then see that meme coin go on to stratospheric market caps like $100 million, $200 million, or even $1 billion, and then cash out.
This is how you make real money with meme coins.
And yes, people do make money with meme coins, but you have to have the right strategy.
Unfortunately, most people play the meme coin game through sniping.
They use bots to snipe a meme coin as it's going up and then unload just before it crashes to zero never to recover.
The idea behind this mindset is that a gain of a little is much better than risking zero in the hopes of gaining a lot more.
The good news is while the vast majority of meme coins launch and then quickly become worthless, you only need to look at the long-term charts of meme coins and look for a specific pattern to identify potential winners.
What I mean by this is that you're looking for a pattern where a meme coin would spike up, crash but never hit zero, and then spike up again way more than the first spike and then crash but not lower than the initial crash.
And then repeat this process again upward and upward over an extended period of time and over a journey to a $10–50 million market cap.
Once you reach that level and the holder base continues to grow and all the fundamentals are taken care of like burned liquidity pool and surrendered contract, meaning no more tokens will be minted, you may be on to something.
Of course, seeing this pattern is not a guarantee.
It can well turn out that a lot of that action is bot-driven.
I'm not gonna lie to you and say that this does not happen.
But assuming that this is all organic, your chances of buying in at very little money to see a small amount of cash turn into a whole lot of cash is much higher when you use this long-term strategy.
I would suggest getting in once the market cap has reached a decent level like $10 million and you see this pattern and enough time has passed.
A lot of the times, scam coins, rug pools, and all these other shenanigans tend to happen in the beginning.
They never get far past the launch.
Pay close attention to patterns.
But if you are sick of this up-and-down cycle and you're sick of spending hundreds of dollars on many different meme coin bets with the hope that at least one will be a moonshot and more than makeup for everything that you've lost, there is a less risky alternative.
This is called crypto arbitrage.
When people trade meme coins and crypto in general, they're actually trading on the coin or token.
What this means is that they are buying low and hoping to sell at a much higher price.
Maybe it's 2x or 10x.
It doesn't matter.
They're looking for that nice pump-up.
This does happen but more often than not, it doesn't so it's very risky.
What if you were to trade on the transaction instead of the coin itself?
By transaction, what I mean is this.
In many centralized exchanges as well as liquidity pools, there are slight differences in value in pricing.
Bitcoin might be selling at a much higher price in one centralized exchange and it's being sold at a lower price at another exchange.
What if you can "snipe" the difference between these two exchanges?
This is precisely what centralized platforms like ALO Finance do.
Instead of you buying all sorts of sophisticated software tracking these differences and being a member of all sorts of exchanges as well as liquidity pools to execute these trades in the blink of an eye, centralized crypto leverage platforms do it for you.
The downside (and there is always a downside) is that your return is gonna be much lower than if you were making money with meme coins.
With meme coins, we all know that you can 10x, 20x, 30x — at the very least 2x — your money.
With crypto arbitrage, we're talking maybe 70%. Tops. Max.
But the upside is it's less risky.
In fact, many of these crypto arbitrage platforms will only charge you money if you make a profit.
As always, do your own research when looking for a meme coin as well as explore different crypto trading strategies.
