Think of solana, think of low transaction fees. Here is a fact to make it stick, While Visa processes about 20,000 thousand transactions per second. Solana processes 50,000 transactions per second. 2x faster than visa which is faster than Ethereum and Bitcoin. Solana is an attempt to make the block chain faster, scalable and more secured.Looks good so far.
What are memes coins?
The concept of a meme coin is a fun one to unpack. Meme coins are special crypto currencies that are sought after for reasons that do not relate to their intrinsic value but rather because of humor, you know: memes. Meme coins are not based on technicalities but are actually lightweight crypto currencies with a following akin more to love you have for a Rock band. Think of it like buying your favorite rock band coin to show support and membership. They do not really solve problems but rather are a way to follow a popular trend started out as a joke, a fun idea or community project to support for example a popular dog breed.
Due to the fact that the solana block chain is cheap, fast, and scalable it has attracted a lot of memes coins developers.
Setting up to buy Meme Coins
Now that you understand the significance of Solana and why meme coins are built on its platform, let’s delve into preparing to purchase a meme coin.
Centralized Exchange
Firstly, you need to choose a crypto exchange platform.
To buy Solana coin, the easiest and most accessible method is through a cryptocurrency exchange. While there are numerous crypto exchanges available, our recommended picks are:
These exchanges are known for their user-friendly interfaces, advanced features, and wide access to various cryptocurrencies.
It’s important to note that conducting your research is crucial. Select an exchange that aligns with your preferences and needs. User experience plays a significant role, so experiment with different platforms before making a commitment.
Exchanges serve as the best means for converting fiat currency to cryptocurrencies.
We acquire Solana either by exchanging fiat currency directly or by using USDT (Tether) on these platforms.
Choosing a wallet
You need a Solana wallet to access the Solana ecosystem. There are numerous Solana wallets to choose from, each offering different features. When making a choice, you should prioritize security, ease of use, and accessibility. With this in mind, here are some of the top recommended wallets:
- Phantom:
- I personally use Phantom, which is one of the most popular Solana wallets. It is multi-chain, allowing access to other blockchain platforms like Ethereum and Polygon. However, it does not offer 24-hour customer support. Not sure if this has changed recently being in a bull market.
- Solaflex:
- Solaflex is user-friendly and accessible through both a mobile app and a browser extension. It offers 24-hour customer support. However, it supports only the Solana blockchain, limiting the range of cryptocurrencies available.
- Exodus:
- Exodus offers access to a wide range of different cryptocurrencies, making it a great choice for beginners. It is easy to use and regularly updated.
- Atomic Wallet:
- Atomic Wallet is another excellent choice for beginners. It boasts a large customer base and is available on all devices. It is considered secure and private, offering peace of mind to users.
Researching Meme coins
So now you have your Solana wallet and prefer decentralized exchange. The next question is, how do you know which meme coin to pick?
The trick is to identify the meme coin early.
It’s crucial to understand that investing in a meme coin entails grasping its psychological drivers, as memes are not typically based on technicalities or utility cases. So, what exactly are these psychological drivers?
Track the price
Your number one site to track solana memecoins is Dexscreener. Dexscreener shows you everything about memecoins. They provide valuable info such as market capitalization, trading volume, and other helpful market indicators that can be used to assess their performance against other meme coins. These platforms serve as invaluable resources for investors seeking to make informed decisions in the volatile world of meme coin investments.
Community [icons of twitter, reddit, discord]
The successful meme coins share one common trait: a strong culture. Since meme coins typically lack utility cases or technical problems they aim to solve, their attractiveness is often rooted in a robust culture. A meme coin with a strong culture appreciates in value due to the social proof effect, attracting more people who bring in more liquidity, thereby driving its value up.
A reliable method to gauge community sentiment is by checking if the meme coin is trending on popular social media platforms such as Twitter, Reddit, Discord, etc. Twitter is my number one go to for information on crypto.
An effective tool for gauging community sentiment is LunarCrush. LunarCrush helps track social media metrics while also providing access to market data, enabling investors to make more informed decisions based on both quantitative and qualitative factors.
Celebrity or Influential endorsement
Endorsements by popular figures can significantly boost the popularity and appeal of a meme coin. For instance, when Elon Musk endorsed Dogecoin, its value surged. Celebrity or influential endorsements serve as strong indicators of current popular appeal and attention. When considering whether to invest in a meme coin, such endorsements can be a positive sign to look out for. They often signal increased interest and may lead to a rise in the coin’s value.
Check for scams
Meme coins offer the potential for high rewards. A meme coin that becomes popular rapidly increases in value earning its holders a good profit. However, due to the success of meme coins in the past it has become highly attractive to both legitimate and illegitimate individuals. When searching for a meme coin to invest in, it is crucial to exercise caution and check for scams. If an opportunity seems too good to be true, it likely is.
- To help mitigate the risk of scams and ensure the legitimacy of a meme coin, you can utilize tools like Token Sniffer. This platform allows you to analyze and validate the authenticity of meme coins, helping you avoid potential scams and fraudulent projects.
- Additionally, Bubble Map is another useful tool that can assist in understanding market dynamics and the distribution of ownership within the meme coin ecosystem.
Follow the smart money
A good way to spot a potential lucrative meme coin is to follow whales and significant investors. Tools like Etherscan can be utilized to analyze the holdings of meme coin investors. Additionally, platforms like DeBank and Dune analytics offer comprehensive tools for analyzing on-chain data, providing valuable insights into the activities of large investors and the overall health of the meme coin ecosystem.
Conclusion:
In summary, purchasing meme coins on the Solana blockchain involves a few key steps: funding your Solana wallet, exchanging SOL for your chosen meme coin, and ensuring the security of your investment. While the process may seem straightforward, it’s important to approach meme coin investments with caution. The market is known for its volatility and unpredictability, and while there’s potential for high returns, there’s also a significant risk of loss. Always conduct thorough research, understand the risks involved, and never invest more than you can afford to lose. Stay informed and make decisions based on sound judgment and current market analysis.
