Mandatory Warning
Memecoins are NOT investments. They are gambling. This guide is educational â not encouragement to gamble your life savings. Statistics show 90%+ of memecoin traders lose money. Only use funds you can afford to lose completely. If you're looking to build wealth, see our Crypto Trading for Beginners guide instead.
What you need
- Memecoins = Gambling â 99% go to zero. Treat every dollar as already gone.
- Rug Pulls Are Everywhere â Learn to spot red flags before you become exit liquidity
- Take Profits Ruthlessly â Paper gains mean nothing. Cash out or watch it evaporate
- Small Bets, Asymmetric Returns â Risk $100 for potential 100x, not $10,000 for potential 2x
- Community = Everything â No community, no pump. Dead Telegram = dead coin
- Speed Matters â In memecoin trading, being early is the only edge
Table of Contents
Welcome to the Memecoin Casino
Let me tell you about two traders.
Trader A put $500 into a dog-themed memecoin in 2021. Two weeks later, he had $2.3 million. He didn't sell. Three months later, it was worth $12,000. He's still holding.
Trader B put $200 into a frog memecoin. It 50x'd to $10,000. She took out $5,000 and let the rest ride. It crashed to zero. She kept her $5,000 profit.
Same market. Same game. Radically different outcomes.
"In the memecoin casino, the house always wins â unless you walk away from the table while you're still up."
â Every Memecoin Survivor
This guide won't tell you which memecoin to buy. Nobody knows. What it will teach you is:
- How to identify scams before they take your money
- How to manage risk in an asset class with no fundamentals
- When to take profits and when to cut losses
- The tools and techniques that separate survivors from casualties
Contrarian Take
Everyone's worried about Meta's metaverse spending. They should be. But what they miss is that Meta's AI advertising engine is so far ahead, they can burn $10B yearly on moonshots and still dominate.
What Are Memecoins? (The Honest Definition)
A memecoin is a cryptocurrency that derives its value entirely from:
- Internet memes and viral culture
- Community enthusiasm and social media hype
- Celebrity endorsements (hello, Elon)
- FOMO (Fear Of Missing Out)
- Pure speculation
Notice what's not on that list: Technology. Revenue. Utility. Problem-solving.
Pure Speculation
No fundamentals to analyze. Value = what someone else will pay
Extreme Volatility
100x gains and 99% crashes happen in days, not years
Whale Dominated
Insiders and early buyers can dump on retail anytime
Why Do People Trade Them?
Because they're the only asset class where a $100 bet can realistically turn into $100,000. You won't find that asymmetric upside in stocks, bonds, or even Bitcoin.
The math is simple: If 19 out of 20 memecoin bets go to zero, but the 20th one does 1000x, you're still massively profitable. The problem? Most traders can't handle watching 19 positions die.
The Memecoin Tier List (2026 Edition)
Not all memecoins are equally risky. Here's how to categorize them:
The "safest" memecoins â if that word even applies. Years of history, massive communities, CEX listings.
Dogecoin (DOGE)
The OG. Since 2013. Elon tweets about it. Listed everywhere. "Safest" memecoin bet.
Shiba Inu (SHIB)
2020 launch. Survived multiple cycles. Building actual ecosystem (Shibarium).
Survived at least one market cycle. Listed on major CEXes. Active communities.
PEPE
2023 launch. $1B+ market cap. The frog that won't die. Listed on Binance, Coinbase.
BONK
Solana's answer to dog coins. Community airdropped. Survived the Solana winter.
FLOKI
Elon's dog. Aggressive marketing. Building actual products (FlokiFi).
Recent launches with momentum. Could moon or die. Higher variance plays.
Various Animal Coins
WIF, POPCAT, BRETT, MOG â new wave memes with strong communities but unproven longevity.
Brand new launches. No track record. Pump.fun coins. Telegram launches. This is where fortunes are made and lost in hours.
New Launches Daily
99% rug pulls, honeypots, or slow deaths. 1% life-changing gains. Pure gambling.
How to Spot Rug Pulls Before They Happen
A rug pull is when developers or insiders drain liquidity, leaving holders with worthless tokens. Here's how to avoid becoming exit liquidity:
Red Flags Checklist
Unlocked Liquidity
If liquidity isn't locked or burned, developers can pull it anytime. Check on DEXScreener or GeckoTerminal.
Concentrated Holders
If top 10 wallets hold 50%+ of supply, they can dump and crash price. Check holder distribution.
Unverified Contract
If source code isn't verified on blockchain explorer, it could contain hidden malicious functions.
Anonymous Team
No faces, no names, no accountability. Easier to rug and disappear.
Honeypot Code
You can buy but can't sell. Check with honeypot detectors before buying.
Fake Volume
Bots trading with themselves to create illusion of activity. Real volume = real interest.
Guaranteed Returns Promises
"100x guaranteed" or "We're going to $1" â scammer language. Run.
Tools to Check Before Buying
DEXScreener
Chart, liquidity, holders, contract status all in one place
Token Sniffer
Automatic scam detection. Flags honeypots, mint functions, etc.
RugCheck
Analyzes Solana tokens for rug pull risk factors
Where to Find Memecoins
For "Safe" Memecoins (Tier 1-2)
- Centralized Exchanges: Binance, Coinbase, KuCoin, Gate.io list established memecoins
- Indian Exchanges: WazirX, CoinDCX, CoinSwitch list DOGE, SHIB
For New Memecoins (Tier 3-4)
- DEXScreener: Track new launches across all chains in real-time
- Pump.fun: Solana memecoin launchpad â most launches happen here
- Uniswap/Raydium: Ethereum and Solana DEXes for direct purchases
- Twitter/X: CT (Crypto Twitter) is where memes gain traction
- Telegram Groups: Alpha calls â but 90% are pump and dump schemes
Reality Check
Being "early" on a memecoin doesn't guarantee profits. You're competing against bots that buy in milliseconds, insiders who hold from launch, and developers who can pull the rug. The game is rigged â play accordingly.
How to Buy Memecoins (Step-by-Step)
Buying Established Memecoins (Easy Mode)
- Create account on Binance, Coinbase, or Indian exchange
- Complete KYC verification
- Deposit funds (UPI, bank transfer, etc.)
- Search for DOGE, SHIB, PEPE, etc.
- Buy with market or limit order
Buying New Memecoins (Degen Mode)
- Get a Web3 Wallet: Phantom (Solana), MetaMask (Ethereum), or Rabby
- Fund Your Wallet: Send SOL or ETH from exchange to wallet
- Find Token Contract: Get official contract address from DEXScreener
- Verify Token: Check on RugCheck or Token Sniffer first
- Connect to DEX: Raydium, Jupiter (Solana) or Uniswap (Ethereum)
- Swap: Exchange SOL/ETH for the memecoin
- Set Slippage: Usually 5-15% for memecoins due to volatility
The 10 Casino Rules for Memecoin Survival
The Degen's Commandments
If losing this money would affect your rent, food, or mental health â don't do it.
2x? Take initial out. 5x? Take 50% out. 10x? Take 80% out. Greed kills portfolios.
10 bets of $100 beats 1 bet of $1,000. Spread risk across multiple plays.
Decide before: "I'll only lose $X this month on memecoins." Stop when you hit it.
If it's up 500% today, you're late. Early buyers are selling to you.
5 minutes of research can save 100% of your investment. Use the tools.
Active Telegram/Discord = potential. Dead chat = dead coin. Check engagement.
It's a token, not your firstborn. If thesis is broken, sell.
If someone with 100K followers is "calling" a coin, they bought before telling you.
Keep 90%+ in BTC/ETH. Memecoins should be <10% of crypto portfolio.
When to Take Profits (The Hardest Part)
Nobody ever went broke taking profits. Here's a framework:
| Multiple | Action | Psychology |
|---|---|---|
| 2x | Take out initial | Now playing with house money |
| 5x | Take 50% profits | Locked in 2.5x gains |
| 10x | Take 70-80% | Life-changing gains secured |
| 50-100x | Take 90%+ | Generational wealth. Don't be greedy. |
"The memecoin that made me rich was also the one I sold 'too early.' Turns out selling at 50x before it went to 100x â then crashed to 0.5x â was the right call."
â Anonymous Memecoin Millionaire
Tax Implications (Don't Forget the Taxman)
In India
- 30% flat tax on all crypto gains (including memecoins)
- 1% TDS on every crypto-to-crypto swap
- No loss set-off â losses can't reduce taxes
- Track everything â you'll need records for ITR filing
In the US
- Short-term capital gains (held <1 year) taxed as income
- Long-term capital gains (held >1 year) taxed at 0-20%
- Every swap is taxable â even DOGE to SHIB
- Use crypto tax software: Koinly, CoinTracker, TokenTax
Final Thoughts: Should You Trade Memecoins?
Memecoins are the most honest form of gambling in crypto. There's no pretense of "revolutionary technology" or "disrupting finance." It's pure speculation based on memes, vibes, and momentum.
If you go in with eyes open â small position sizes, strict profit-taking rules, and the mental preparation to lose everything â memecoins can be an exciting (if chaotic) corner of the market.
If you're looking for long-term wealth building, stick to Bitcoin and Ethereum. Memecoins are the casino side-bet, not the core portfolio.
The Bottom Line
- Treat memecoins as entertainment, not investment
- Never risk more than 5-10% of your crypto portfolio
- Take profits ruthlessly â paper gains are meaningless
- Do your own research â never trust influencers
- If you hit a big win, consider your memecoin career complete
Welcome to the casino. The house always wins â unless you're smart enough to leave while you're ahead.