New investors and those who always love risk 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, thousands of new meme coins are launched every day beyond DOGE and a few alternatives.
Cryptocurrency Investment Strategy
Meme coins’ high earning potential attracts investors, and popular crypto analyst Miles Deutscher shared his four-step investment strategy. It is not new that meme coins bring more profit compared to altcoins that stand out with their technology. So, how should one invest in meme coins properly?
Portfolio Allocation
The first step is to decide the portfolio allocation correctly. Investors need to create the right basket between long-term and short-term investments.
“Starting from your time horizon, you should determine what percentage distribution you want between long-term investment and short-term trading.”
The analyst recommends giving 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 keep the basket stable 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;
“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 ones you are considering.”
Content Flow
To catch hype assets, investors need to follow prominent channels, pages, and analysts in this field. Here, Deutscher also mentions that investors should be careful about hidden sponsored ads while following social media.
Active Trade
Deutscher recommends that the use of Phantom wallets for the Solana network and MetaMask wallets for Ethereum tokens should be well learned through small transactions. He also mentions that rebalancing investments based on the market can be beneficial.
“Start small, learn the job, and expect to struggle a few times.”
