Things to Consider Before Buying Meme Tokens
Meme tokens are a fun way to make money in the crypto world. There are a number of meme tokens available in the market and the number is growing every passing day. These mostly community-based crypto-assets don’t come without risks because of having any blockchain of their own, so in this article, we are going to talk about some things to take into consideration when choosing a meme token to invest in.
What are the most important criteria for choosing a meme token to include in your wallet? We only have to trust our instincts, or there is a map, a vademecum to follow in order to obtain results in a more consistent way. We start from the fact that – as already repeated several times – in reality we are venturing into an adventure world – with great fluctuations in value and that require a strong hair on the stomach to withstand moments of volatility.
We have put together some considerations that will help anyone approaching this market for the first time (but even if they already have some experience).
The fundamentals are important
And by fundamentals we mean the market capitalization already achieved, the distribution between the main wallets and any rules for burn and to limit rug pull, or mass sales operations that can quickly bring the value of the token to zero.
Studying tokenomics is also important. Let’s talk about the rules for issuing and distributing meme tokens among network participants. Those of the older generation tended to have more vertical schemes, while today almost all implement rewards for those who keep the tokens, progressive deflationary maneuvers and other mechanisms to preserve their value.
The group that animates the project
Anonymity is very popular – but by digging between official websites and social profiles we can be able to find out more about the group / organization that manages the token. And if someone puts his face to it, all the better, especially if it were a character who has built a certain reputation.
But beware – because token memes tend to take over even when it comes to recognized industry leaders or crypto. Elon Musk and his Dogecoin releases have helped to lower its credibility, rather than raise it.
Trust little gurus
The explosion of the world of cryptocurrencies has led many to become gurus and to open YouTube channels or other types of direct lines with the public, generally in order to tell the magnificent and progressive fate of this or that token meme.
We must not take anyone’s opinion at face value, particularly if that someone might have a direct economic interest in the matter.
Watch out for the big names too
It is not certain that the involvement of a big name is the guarantee of the goodness of a project. There have been dozens of famous names in the crypto world who have sacrificed all their credibility for projects that have never been followed up. In the world of cryptocurrencies, you have to learn, like it or not, to think for yourself. And putting together several pieces of the puzzle before coming to the conclusion.
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Ludopathy and betting
A sector that can earn triple digits in a few minutes also exposes you to the risk of gambling and gambling addiction. When our investments are dictated by instinct, by the desire to earn disproportionate amounts or simply to make the win that solves our life, we can have a problem.
Meme tokens, as well as many of the ultra-emerging cryptocurrencies, can confront the same mechanisms we know for gambling, slot machines and scratch cards. We must learn to control ourselves and to deal with the head – and not with the instinct – a sector that puts it to the test.