New investors and risk-takers are focusing on cryptocurrencies with higher volatility. Meme coins have always been the main focus of new investors due to their high volatility and risk. However, unlike previous cycles, hundreds or thousands of new meme coins are being launched every day beyond DOGE and a few alternatives.
Cryptocurrency Investment Strategy
Meme coins attract investors with their high earning potential, and popular crypto analyst Miles Deutscher shared his four-step investment strategy. It’s not new that meme coins bring more profits compared to altcoins that stand out with their technology. So, how should one properly invest in meme coins?
Portfolio Allocation
The first step is to decide on the correct portfolio allocation. Investors need to create the right basket between long-term and short-term investments.
“Starting from your time horizon, determine what percentage distribution you want between long-term investment and short-term trading.”
The analyst recommends giving a 70%-80% weight to long-term products. However, he also mentions that experienced investors can gradually increase their budget for short-term meme coin investments.
For meme coins, long-term investment is six months. Popular meme coins like Dogwifhat (WIF) and Pepe (PEPE) can help maintain the basket compared to short-term meme coins.
Watchlist
Deutscher believes that alternatives should be closely monitored in changing market conditions. He wrote the following for this purpose:
“Create a watchlist divided into two categories; label them with specific colors so you can understand at a glance which coins you own and which you are considering.”
Content Flow
To catch hype assets, investors need to follow prominent channels, pages, and analysts in this area. Here, Deutscher also advises investors to be cautious of hidden sponsored ads while monitoring social media.
Active Trading
Deutscher recommends learning to use Phantom wallets for the Solana network and MetaMask wallets for Ethereum tokens with small transactions. He also mentions that rebalancing investments based on the market can be beneficial.
“Start small, learn the ropes, and expect to be challenged a few times.”
