Secrets of Meme Coins: Why Meme Coins Rule the Market 

Internet jokes have always been viral, but who could predict memes to be transformed into cryptocurrencies with multi-billion-worth markets? The most well-known and associated with this segment coins are most certainly Dogecoin (DOGE) and Shiba Inu (SHIB), both based on the Doge meme. Still, there are other tokens and even NFTs that have originated from some meme coins. 

This type is present and available at numerous reputable exchanges that allow trading many conversion pairs: DAI to BNB, ETH to DOGE, and more. But what makes meme coins so special and keeps them at the top of ratings? Are they a joke or not? In this short article, we aim to clarify this. 

Reasons Meme Coins Remain a Popular Investment Choice

First, we have to remember that meme coins are highly focused on the social side of growth, such as the support of celebrities and influencers. In other words, they rely on dedicated communities and are highly volatileю Еhey can quickly increase in price and sharply decline. Mixed with an appeal to social media culture, returns one can get actually seem promising. 

The value of meme coins is often fueled by events in the world and the attitudes and decisions of influencers supporting them. For instance, when Elon Musk promised that users would be able to purchase Tesla with Dogecoin, its price soared. As such assets get more utility to them, they are sent to heights. 

• Next, as more users start to buy meme coins and trading volumes rise, the value grows even more. Contrary to popular belief, they are as real as other cryptocurrencies. Technically, they are most often created on layer-one networks such as Solana or Ethereum. However, Dogecoin has its own blockchain network on which Shiba Inu and Floki Inu are built. 

We should speak about coin transparency to complete the list of valid reasons to buy meme coins. The more open about the projects and updates developing teams are and the wider their engaged communities are getting, the less chance of being scams there is. When all information, including that about security systems, is in the open for users to see, this builds trust and encourages investments.      

What Pitfalls to Be Aware of When Intending to Buy Meme Coins

Like every other digital token, a meme coin can be an object to fraud. The simplest of these is creating a brand-new meme currency with no real utility or value. Creators catch the short-lived hype and, having received revenues, delete the project. 

Another widely used scheme of fraudulent activity is a pump-and-dump scheme. Here, tokens’ prices are inflated artificially and, after coins are at the peak for some time, suddenly dump prices, making investors lose money. Similarly, there are rug pulls. This name is given to frauds that include currency developers withdrawing all existing coins from the liquidity pool all of a sudden and, hence, causing meme tokens’ value to drop. That means there would be no chance for users to sell their assets.  

Educating yourself about crypto markets and mechanisms is the key if you want to stay away from such schemes. Evaluating your risk tolerance is another point they should consider with the utmost seriousness. In a nutshell, the outcome of investment in meme coins depends on your cautiousness and managing risks, as well as picking only those crypto projects that are transparent and proven with time and people. 

In case you want to swap DOGE to BNB online, set foot at an instant exchange, LetsExchange.io, where over 3,870 different cryptocurrencies and tokens are available for trading at the best rates and with low fees.