Memecoins, the new micro caps in the crypto world, have been attracting a lot of attention lately.
These speculative assets have resulted in massive gains for some, while others have been left holding the bag.
Solana, in particular, has become a hotbed for meme coin activity. If you're wondering how to get in on the action and avoid getting burned, you're in the right place.
In this article we'll show you how to find meme coins on Solana, what to look for when picking a meme coin, which tools to use to buy it, and when to sell and move on to the next one.

Understanding Meme Coins

Before we dive into the details, it's important to understand that meme coins are extremely high risk and volatile.
They are not traditional investments, but rather trades that can result in significant gains or losses within minutes.
With that said, there are some rules of thumb you can follow to minimize the chances of losing everything.

Types of Meme Coins

There are two main types of meme coins: coordinated meme coins and community-driven meme coins.
Coordinated meme coins are launched by crypto influencers and often have a specific price or market cap target.
On the other hand, community-driven meme coins are related to popular memes and do not have specific targets.
These coins rely on organic interest and often see significant gains.

Choosing Memes and Narratives

When picking meme coins, focus on memes and narratives that are likely to endure over time.
Coins related to specific events or catalysts may not perform as well. Look for meme coins that relate to the smart contract crypto they exist on, such as Solana.

Avoiding New Launches and First Pumps

It's generally best to avoid meme coins that have just launched or are in the middle of their first pump.
Look for coins that have been consolidating for some time, indicating stability and potential for future growth.
Make sure the community is still active on social media platforms like Twitter, Telegram, and Discord.

Expectations and Potential Returns

While most meme coins may not see the same level of growth as those hyped in the news or on social media, many can still go up by 10x or more in a short period.
These returns should not be underestimated, as they can be significant and fast.

Tools to Find Meme Coins on Solana

Now that we understand the basics, let's explore the tools you need to find meme coins on Solana.

DEXTools and DEXScreener

For tracking tokens that trade on decentralized exchanges, two popular websites are DEXTools and DEXScreener.
We'll focus on DEXTools today.
When using DEXTools, filter the list based on total market cap, rather than just the price tag.
This allows you to identify meme coins that have been around for a few weeks or months, indicating potential stability.

Due Diligence on Meme Coins

Once you find a meme coin that catches your interest, it's important to conduct some basic due diligence.
Check the long-term price action, including charts set to daily or weekly intervals. Look for consolidating trends or bullish patterns.
Additionally, verify the presence of a website, active Twitter and Telegram channels, and liquidity. Liquidity is essential for ease of buying and selling.

Buying Meme Coins on Solana

To buy meme coins on Solana, you'll need two additional tools: the Phantom wallet browser extension and the Radium DEX.
Set up your Phantom wallet and ensure it has enough Solana (SOL) for trading. Most meme coins on Solana trade against SOL.
The Raydium DEX is a popular platform for trading meme coins, but you can also use the built-in swap function in the Phantom wallet for selling.

Selling Memes and Taking Profits

Deciding when to sell meme coins and take profits is a critical step in the process. While there are no hard and fast rules, here's one approach you can consider:

1. Sell half of your holdings when the meme coin doubles in value to recoup your initial investment.
2. Sell half of the remaining half when the meme coin reaches a new all-time high or a 10x return, whichever comes sooner.
3. If the all-time high is reached sooner, sell the remaining half of the remaining half when the meme coin hits a 10x return or let it ride for potential further gains.

Taking a structured and conservative approach to selling helps secure your profits and minimize the risk of losing everything.
The goal is not always to make millions overnight, but to survive and grow your investments over time.

Managing Your Meme Coin Gains

Once you've made profits from meme coins, manage your newfound wealth wisely.
The statistic that 70% of lottery winners go bankrupt within a few years serves as a cautionary tale.
To avoid the same fate, consider the following:

Make Your Money Work for You

Instead of spending your gains on short-term pleasures, look for ways to make your money work for you.
Invest in stocks with high dividends or staking robust proof-of-stake cryptocurrencies.
By putting your money to work, you can preserve and grow your wealth over time.

Stacking BTC

If you're already involved in the crypto space, consider using your meme coin profits to stack Bitcoin (BTC).
This strategy is common among crypto investors seeking to preserve their wealth.
As Bitcoin's value continues to grow, you may eventually be able to borrow against your BTC holdings, providing a source of funds without incurring taxable events.

To sum it up

Finding meme coins on Solana can be an exciting and potentially lucrative endeavor.
However, as I always say in my articles "approach it with caution and an understanding of the risks involved."
By following the rules of thumb discussed in this article and using the right tools, you can increase your chances of finding profitable meme coins.