Crypto Expert Reveals How To Find 'High-Risk High Reward' Meme Coins

Pseudonymous crypto researcher CryptoKoryo, in his latest YouTube video, offered valuable insights and strategies for traders looking to trade meme coins.

What Happened: The researcher highlights the potential of meme coins with stories of individuals turning $1,000 into a million dollars within a month. However, the reality is often different with many traders buying a meme coin thinking they are early but they land up at zero.

He cited the real example of someone who bought $600 worth of Pepe on the first day it was tradable, sold the same day for a $60 profit, but could have made $9 million if they had held on.

He recommends having a combination of two approaches for playing the game well:

• Meme coins tend to perform best during specific periods, such as Q1 2024 and Q2 2023.
• Studying parabolic moves and adoption waves, as meme coins often experience explosive growth followed by steep corrections.

He breaks down the adoption waves of meme coins into three distinct phases:

• Wave one: Riskiest but offers the highest potential rewards, early buyers positioned to make substantial gains. (Examples: Popcat, Grok, BOME)
• Wave two: More challenging, as traders must determine whether a meme coin will continue its upward trajectory or fade away. (Examples: Dogwifhat (CRYPTO: WIF), Pepe PEPE/USD, Bonk BONK/USD)
• Wave three: Least risky, as the meme coin is already established. Potential returns are lower compared to earlier waves. (Examples: Dogecoin (CRYPTO: DOGE), Shiba Inu SHIB/USD)

He cautions investors/traders of influencers and "shillers" who may have their agendas, but not to ignore them entirely, as they can provide valuable information.

Also Read: DOGE Is The ‘BTC Of Memes’ And These Two Meme Coins Are The ETH And A ‘Must Have,’ Trader Touts

Why It Matters: CryptoKoryo notes that trading meme coins requires discipline, patience and a long-term perspective. "Don’t try to become rich overnight," he advises. "Try to focus on longevity as a trader and just becoming a bit better every time with every coin trade."

In his meme coin narrative X post, the expert highlighted that the number of meme coins is too high and rising at a rapid pace, increasing supply, unlike in 2021 when demand exceeded supply.

He notes two strategies: a fully on-chain approach wherein risk/reward is great but the win rate is low. Alternatively, waiting for a narrative to take over Crypto Twitter, thus increasing the win rate but giving up some of the risk/reward ratio.

Kroyo opts for a combination of both approaches, as few of the thousand meme coins will be profitable. Compared to meme coins in 2021, Koryo thinks “It’s more like high-risk low-reward for most."

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: VanEck Meme Coin Index With DOGE And SHIB Would ‘Outperform 99% Of People If You Left It Alone,’ Says Trader

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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