Lookonchain APP

App Store

The 10 Rules for Investing in Memecoins

Alex Mason
/2025.08.28 16:57:11
An investor shares his rules for profiting from memecoins, arguing that success comes from understanding key market mechanics, not gambling. He highlights the importance of analyzing a token’s community strength and tokenomics, along with proper due diligence to avoid scams. The core advice is to manage risk, never risking more than 10% of your capital on a single trade.

Memecoins made me millions.

But only because I followed these 10 rules.

Here is the full list: 🧵

1. Picture Dogecoin or Shiba Inu—tokens that started as jokes but moved billions.

The memes are loud, but the mechanics matter.

If you understand what drives them, you stop chasing pumps—and start spotting them early:

2. Here’s the truth: Memecoins might start as jokes, but they follow real market rules.

Tokenomics, community strength, and timing drive the gains—or the collapse.

Ignore them, and you’re gambling. Understand them, and you’re early.

3. What separates a one-day chart spike from a long-term runner?

A loyal community, clear tokenomics, and some kind of vision—even if it’s wrapped in memes: ⏬

4 . Community is everything.

A loud, loyal group of holders can send a token flying—no utility needed:

Watch for active Telegrams, nonstop memes, and viral energy.

If the community’s obsessed, the chart usually follows.

5. Tokenomics decide who gets rich—and who gets dumped on.

Check total supply, how tokens are distributed, and whether whales can nuke the chart.

If one wallet controls everything, you’re not early—you’re exit liquidity. This is where smart research pays off.

6. Memecoins live and die by the meme.

One viral post or influencer mention can light the fuse—but that spark fades fast if there’s nothing behind it.

Ride the wave, but always ask: is this just noise, or is something real brewing underneath?

7. Timing is everything:

- Pay attention to Twitter chatter, meme velocity, and market mood.
- Too early, and you're stuck waiting.
- Too late, and you're exit liquidity.

Catch the wave—not the crash.

8. Due diligence is survival:

- Always verify contract addresses.

- Check if the devs are doxxed—or completely silent.

- Look at wallet distribution on Solscan, Etherscan, or BSCScan.

If it smells off or whales run the show, walk away. No meme is worth a rug.

9. Memecoins can 100x overnight—or nuke just as fast.

Set your entry and exit targets before you ape in. Treat every trade like it could go to zero.

If you can’t stomach the downside, you’re not ready for the upside.

10. For every Dogecoin that makes it, there are hundreds that vanish overnight.

Memecoins are pure high-risk, high-reward.

Never let FOMO drown out logic 👇

11. Follow a golden rule: never risk more than 10% of your bankroll on a single trade.

Protect your capital so you’ll always have firepower ready for the next opportunity.

Relevant content
Wiped Out, Not Broken: How I Lost $30M in the Biggest Crypto Liquidation Ever — and Why I’m Coming Back Stronger

After losing over $30M in the largest crypto liquidation event ever, a top trader reflects on what went wrong, the lessons learned about leverage and risk, and why he’s staying optimistic. It’s not the end — just the start of his next chapter.

Unipcs (aka 'Bonk Guy')/4 days ago

The Biggest Crypto Liquidation in History: $19B Wiped Out in 24 Hours

Crypto just experienced the largest liquidation event ever — over $19B in leveraged positions and 1.6M traders wiped out in a single day. Triggered by Trumps tariff shock, the cascade revealed extreme leverage but may set the stage for a strong rebound.

The Kobeissi Letter/5 days ago

Trump Sparks $1.2T Market Selloff — But This Might Be the Dip to Buy

Trump’s sudden cancellation of his China meeting and threat of “massive tariffs” wiped $1.2T from U.S. markets in minutes. But analysts argue this is a bargaining move — not the start of a trade war. With AI investment and rate cuts ahead, dips may be buying opportunities.

The Kobeissi Letter/5 days ago

Trump’s Tariff Shock Just Triggered the Biggest Crypto Crash — And a New Cycle Reset

Trump’s 100% China tariff announcement sparked a historic crypto crash — $1T wiped out, $20B+ liquidated, and whales profiting $200M. But history shows: every purge resets the market. Leverage flushed, panic peaked — the next leg may just be starting.

Bull Theory/5 days ago

Auto-Deleveraging Explained: Why Perps Markets Sometimes “Kick You Off the Plane”

Many traders woke up to closed positions due to Auto-Deleveraging (ADL) — the last line of defense in perps markets when liquidity dries up. This thread breaks down how ADL works, why it’s triggered, and why even winning traders can get forced out.

Doug Colkitt/5 days ago

The Calm Before the Crash: Why Bitcoin’s $125K Euphoria Might Signal the Next Liquidity Shock

Bitcoin’s surge to $125K masks growing macro fragility. Liquidity buffers are vanishing, insider selling is surging, and institutional cracks are widening. The report warns of a coming liquidity crunch — and a potential market reversal in Q4.

Doctor Profit/2025.10.06