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What are Meme Coins?
What are Meme Coins?

Learn about meme coins in Best Wallet.

Updated over a week ago

Learn what a meme coin is, how to trade meme coins in Best Wallet, and key considerations for investing in this highly lucrative but risky category of cryptocurrency.

Meme coins have seen significant success in the crypto industry with the rise of Dogecoin ($DOGE) and Shiba Inu ($SHIB), which have proved to bring sizable returns for some investors.

Whilst investors can kick-start their meme coin investment strategy with Best Wallet, it is important to research meme coins as there are varied risks when buying and trading these types of cryptocurrencies.

Meme coins explained

A meme coin is a genre of cryptocurrencies that revolves around pop-culture references, internet memes, viral trends, or anything that can be mimicked. They are usually created as jokes and refer to characters, animals, or individuals.

A lot of successful meme coins have large and dedicated communities. Meme coins often offer high Returns on Investment (ROI) and have, occasionally, returned high profits for early investors.

The first ever meme coin was Dogecoin ($DOGE), a cryptocurrency launched in 2013 that was initially created to mimic Bitcoin, using the famous Doge meme as inspiration. Its widespread adoption and popularity have been attributed to a strong community and a series of celebrity endorsements, including from Elon Musk.

Other notable meme coins that are high up on the market capitalisation rankings include Shiba Inu ($SHIB), Pepe ($PEPE), and BONK ($BONK).

What are the risks of investing in meme coins?

While meme coins can offer high ROIs with sharp price surges, they can often also suddenly experience severe price drops.

This price volatility is seen as the most significant risk with meme coins. One moment their prices can be soaring and the next they can crash, leaving investors with sizable losses.

Additionally, meme coins do not have use cases or utility, including Dogecoin, meaning they are only used as speculative assets. This makes them vulnerable to market shifts from recent news and the latest trends.

Another risk to be wary of is scams, which are especially present in the meme coin subcategory. Many have criticised meme coins for their pump-and-dump tendencies, where investor communities bring up the price of the asset and then immediately sell at the top. This can leave many investors with sizeable losses.

Always make sure you research a project thoroughly before investing in a meme coin to avoid suffering avoidable losses.

How can I buy meme coins with Best Wallet?

You can own any meme coin built on the Ethereum, BNB Smart Chain, or Polygon networks in Best Wallet.

You may be able to buy a meme coin directly in Best Wallet, by going to the “Buy” option on the home screen and following the Onramper directions.

Buying meme coins on Best Wallet is just like buying any cryptocurrency on the platform.

However, most meme coins cannot be bought directly. Instead, you can swap your existing crypto funds for meme coins in Best Wallet. For example, you can buy Tether ($USDT), and then swap it for a meme coin like Shiba Inu ($SHIB), all within the Best Wallet app.

Best Wallet has many of the most popular meme coins available to trade on the Best Wallet platform. These include Shiba Inu ($SHIB), Pepe ($PEPE), Baby Doge Coin ($BABYDOGE), Tamadoge ($TAMA), Wall Street Memes ($WSM), and many others. If you can't find the meme coin you want to trade, you might have to find or import it into Best Wallet.

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