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Friday, December 27, 2024

3 Things You Should Know Before Investing In Memecoins

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One day, a person woke up in the morning, found out about the popular “Cheems” meme, and thought – why don’t I make Crypto of it? And, that’s how Dogecoin was born. 

Since Dogecoin was introduced, memecoins have come a long way. 

Even though they began their journey as… well, just another funny internet thingie, they have become quite important in the market. 

Apart from trading, you can also use them to buy stuff, acquire someone’s services, and much more. But, there’s still a lot that you don’t know about them.

So, as a memecoin enthusiast, I’ve decided to share a bit of my knowledge through this blog. Hopefully, as a person of culture, you’ll feel right at home here.

Memecoins – Looking Back At The Root

Before I start talking about the obvious, let’s learn a little about the history of the memecoins. Their humble beginnings, I mean.

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  • The first memecoin was introduced in the year of 2013. It was based upon a picture of a smiling Shiba Inu dog, known in the world of internet as Cheems. The Cryptocoin is known as Dogecoin, and is currently valued at 0.80 GBP.
  • After that, the “doge killer” Shiba Inu (SHIB) came to join the party. Its purpose was to lower the massive popularity of Dogecoin. And, during the first year, it succeeded to do so as well. However, it fell off massively after 2018.

Memecoins are pretty fun and utilitarian, to be honest. And, if you want, you can trade them on a platform like Bit Profit App. But, the problem with them is that their overall growth gets a little stalled after a while, especially when the hype dies down.

Hence, if you want to have a bit of fun or wish to get a specific service or two, you can surely trade them with people. However, if you are serious about your Crypto career, we’ll ask you to stay away from them. They’re not a good investment prospect at all.

Investing In Memecoin – Things To Consider

In this section, I’m going to take a serious note and talk about the considerations you need to make before investing in memecouns. Let’s get started with it, then.

Tip – 1: Learning To Spot A Fake Memecoin.

Yes, like any other Cryptocurrency, there are quite a few fakes available in the community of memecoins as well. And, there are two ways to distinguish them from the real ones.

The Goal Of The Project.

Even though they are community-made, almost every memecoin available out there comes with a goal. For example, the Shiba Inu coin was specifically launched to complete two aims – “kill” the Dogecoin and show appreciation to the Shiba Inu dogs.

The Development Team’s Track Record.

Before you invest in a memecoin, always check the background of the development team. It can help you find out more about their project, their track record, and much more. And, if the group has a decent and reliable backstory, it’ll be safe to opt for them.

Tip – 2: Developer And Coin Connection.

Sometimes, when you do some research regarding a memecoin, you’ll find that the developer team is holding more than 50% of the riches. In that case, we’ll ask you to avoid the coin. Or else, you might end up getting into a 51% attack, which may result in losing all your money.

Tip – 3: The Audit Status.

Like any other Cryptocurrency available out there, every memecoin should have a transparent audit status as well. So, go to their social media handle and check if they’ve shared something that will prove the above-mentioned point or not.

For example, HogeCoin has been audited by Certik.io. And, the developer team didn’t waste too much time to share on their Twitter.So, they’re a safer bet than the lot.

Wrapping It Up!

Investing in memecoin and all is quite okay. But, you should still be careful about making an investment in this aspect. After all, you might end up losing a lot of your money. So, keep an eye on everything else prior to taking a step in the market. Hopefully, that’ll help you out.

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