Several blockchains support the creation of meme coins. However, Solana seems to be the most preferred network by developers, as evidenced by the massive number of meme-inspired tokens launched daily.
Are you planning to start trading meme coins on Solana? If so, we recommend reading this guide to help you get started.
Solana Explained
Before we teach you how to make profits trading meme coins on Solana, understanding this blockchain is crucial. Solana is a decentralized network that allows anyone to launch tokens and decentralized apps. It is a go-to blockchain for many developers due to its impressive transaction processing speeds and considerably low costs.
Solana is powered by its native token, SOL, which, as of August 2024, is the fifth-largest cryptocurrency by market capitalization ($67.8 billion). Traders on Solana need SOL to buy meme coins and pay for gas fees.
Meme Coins Defined
Simply put, meme coins are cryptocurrencies inspired by popular internet memes, public figures, or political events. They lack utility and their values are driven by social media sentiments. Meme coins are known for their extreme price volatility, which can either cause massive rallies or crashes.
So, which are the biggest meme coins on Solana in 2024? According to data from CoinGecko, the top Solana-based meme coins are MEW, BOME, POPCAT, Dogwihat, and BONK.
How to Trade and Profit From Solana Meme Coins
Now that you understand meme coins, it is time to learn how to trade them on the Solana blockchain. Here are the easy steps to follow.
1. Research Trending Solana Meme Coins
Generally, the most trending meme coins on the Internet tend to garner investor interest, thus boosting their value by significant margins. Therefore, it is your duty to research and identify trending tokens on Solana. You can do so by joining crypto communities on Telegram and X.
Once you find these meme coins, research the developers behind them. You want to invest in tokens whose developers are committed to their long-term success. If you buy a token blindly, you will likely fall victim to rug pulls.
After choosing meme coins with solid developers, gauge the activeness of their communities. We recommend buying a meme coin with active community members who talk about it on social media platforms to increase its popularity.
2. Create a Solana Wallet
A non-custodial wallet compatible with Solana is a vital tool for meme coin traders as it stores tokens. While several Solana wallets are in the market, we advise using Phantom due to its stringent security features. This wallet can be downloaded as a browser extension from the Phantom.app website.
After installing it on your desktop browser, hit the “Create New Wallet” button to set up an account. Note that a recovery phase will be generated before accessing your new wallet. Store this phase in a safe place since you’ll need it to regain access to your tokens when you misplace your wallet password.
After setting up your Solana wallet, fund it with SOL to begin trading meme coins. To do this, click “Receive” and copy the displayed address. Next, paste it on the source of funds and enter the amount of SOL you want to transfer. After that, click “Send” or “Withdraw.” The SOL tokens should arrive in your Phantom wallet within a few minutes.
3. Buy a Meme Coin
You can now use your funded Solana wallet to invest in meme coins. But where do you buy them? Most meme coins are traded on leading Solana-based decentralized exchanges like Orca and Raydium. In this guide, we will demonstrate how to buy a meme coin on Raydium.
First, go to raydium.io and click “Connect Wallet.” You will be asked to link your Solana wallet to the trading platform. After that, choose SOL in the “From” section and pick the meme coin you want to buy in the “To” section. Now, specify the amount of SOL you wish to exchange for the selected meme coin. Once done, press “Swap.” If the transaction is successful, your meme coin will be available in your Phantom wallet in a few minutes.
Conclusion
While meme coins can be profitable, they can also bring severe losses. Therefore, do not invest more than what you are willing to lose.
