Trader Shares 3-Point Strategy To Win With Meme Coins—Here's Where Dogecoin, Shiba Inu Come In

Pseudonymous crypto trader Hoeem outlined a three-wave trading strategy to navigate the volatile meme coin markets.

What Happened: Hoeem took to X to outline his approach that categorizes trading into three distinct waves.

• Wave One: characterized by high risk and reward, a low win rate, and a significant number of rug pulls. Traders in this wave must possess advanced skills to identify smart contract vulnerabilities, wallet distributions and supply holders, as there are thousands of new coins launched daily.
• Wave Two: offers a balanced risk-reward ratio, an acceptable win rate, and fewer rug pulls. Success in this stage relies on a strong grasp of social metrics and holder behavior to assess a meme’s potential, making it the most challenging phase for traders.
• Wave Three: while the risk-reward ratio is lower, the win rate is higher. This stage is more accessible, with established memes and minimal rug pulls or smart contract complexities. If market conditions are favorable, established memes will likely increase in value.

Also Read: Crypto Trader Details ‘Plan To Make Millions: 2-3 Top Picks Per Sector Rather Than Dispersing Investments’

The trader noted, "Being early matters but wave three still offers an excellent opportunity."  His insights highlight that despite the meme coin market’s volatility, it presents unique opportunities for informed traders.

In this framework, meme coin leaders Dogecoin DOGE/USD and Shiba Inu SHIB/USD fall within wave three, unlikely to do a 100x from current prices. Hoeem cited Pepe PEPE/USD and Dogwifhat WIF/USD, which sparked many derivatives that could not emulate the leaders’ successes.

Goatseus Maximus GOAT/USD and SPX6900 SPX/USD are the latest entrants in wave one, while Popcat POPCAT/USD and Mog Coin MOG/USD could be classified as wave two meme coins.

What’s Next: The influence of meme coins is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• ‘Memecoin Supercycle’ Analyst Thinks 20-25 Meme ‘Cults’ Can Join Dogecoin, Shiba Inu And Reach Billion-Dollar Valuations

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