Memcoins have been some of the best performers in the industry in the current market cycle, outperforming many leading altcoins.
Renowned cryptocurrency analyst Miles Deutscher has shared a strategy for trading meme coins effectively that consists of just four steps.
Step one: sort out your portfolio
According to Deutscher, the key to success in trading meme coins is to have the right mix of long-term and short-term investments.
The analyst advises beginners to stick to long-term investment strategies. They should make up about 70-80% of the portfolio. Experienced traders, meanwhile, can gradually move on to short-term investments, including in memecoins.
In the meme coin sector, long-term investing can mean holding positions for about six months. During this six months, investors should buy popular coins like Dogwifhat (WIF) and Pepe (PEPE) during market dips and take profits during token price rallies. Conversely, short-term trading aims to profit from the frequent price fluctuations of new or existing meme tokens.
However, other analysts insist that memecoins should be held for at least a year. This is the opinion, for example, of an expert on “meme” coins under the nickname Murad on X (formerly Twitter).
Step two – make a list of coins to track
The second important thing about trading memecoins, according to Deutscher, is creating a list of coins you want to keep an eye on. This is where effective investment tracking begins.
The crypto analyst advises using tools like TradingView to categorize potential and active investments. This will allow you to adapt faster to changing market conditions without missing out on any opportunities.
The third step is to create a specialized news feed
Deutscher notes that it is also important to set up a feed on social networks. For example, in X, Telegram or Discord. To do this, you need to subscribe to well-known and trusted cryptoanalysts and influencers.
Deutscher advises to be extremely careful with paid promotions, as they are often a scam.
Step Four: Trade Actively
Finally, Deutscher advises to trade more actively. To do this, you need to set up several crypto wallets, for example, Phantom for Solana-based memcoins or MetaMask for Ethereum, depending on the direction of trading.
Another important point, Deutscher said, is the flexibility of investment strategies. Traders need to constantly rebalance their portfolios as market conditions change constantly.
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Source: Cryptocurrency
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