When it comes to cryptocurrencies, the attention of most investors has always been on the biggest names in the market such as Bitcoin and Ethereum. However, many new coins have emerged in the market in recent years. Some of these newer coins are often regarded as “meme coins”.
What Are Meme Coins?
Meme coins are cryptocurrencies that are inspired by sarcasm, popular puns, and social media jokes. However, investors believe that they should be taken seriously even if they are often written off as a joke. This is because of how much popularity they have gained over a short time. Their acceptance has been mainly due to retail investors and influencers promoting them online.
Dogecoin, also a cryptocurrency, is the first meme coin. It was created back in 2013 as a joke based on a meme. However, it has been making waves in the crypto market. Its fame spiraled up when Elon Musk began tweeting about it. Since then, retail investors have made a lot of money from it.
Thousands of meme coins have since been created after Dogecoin. This is because almost any developer can create a new cryptocurrency. Some other meme coins in the crypto space include Shiba Inu, SafeMoon, DogelonMars, HogeFinance, and MonaCoin. Shiba Inu is dubbed “Doge killer”, and it aims to emulate the success of Dogecoin.
The Difference between Meme Coin and Cryptocurrency
Cryptocurrency and meme coins are not the same thing. Meme coins are regarded as a type of cryptocurrency. The major difference between cryptos like Bitcoin and Ethereum, and cryptos like Dogecoin and Shiba Inu comes down to utility.
Bitcoin and Ethereum are major cryptocurrencies that were developed to solve real-world problems. The goal was to create a new form of decentralized currency, one that is widely accepted by merchants. It is hoped that it will revolutionize a variety of industries.
In contrast, meme coins have no real-world purpose at the moment. Most of them were created as a means of making quick money. Additionally, many other meme coins have gained notoriety. This is because of how influential celebrities and retail investors have promoted them online.
Despite the shaky fundamentals of these coins, they tend to experience explosive growth due to this publicity. Many investors sell shortly after their prices surge.
Should You Invest In Meme Coins?
It is possible to make money through investing in meme coins. However, it is incredibly risky. Investing in meme coins is said to be more similar to gambling rather than true investing. You may make a profit from investing in meme coins when you sell and buy at precisely the right time.
Although, we have good meme coins. But always avoid pump and dump coins.
In reality, most meme coins flop. Even though their longevity is not well established, you can earn a lot of money when you invest in a meme token or coin that skyrockets. Some of such examples are Dogecoin, SafeMoon, and Shiba Inu.
Read more on how to make money with cryptocurrency here.
The crypto market is a highly volatile one. This volatility applies to meme coins too. For an investor, investing in a cryptocurrency that is likely to perform well, in the long run, is a better strategy. True, you can make money from meme tokens, however, if you choose to invest in crypto, ensure that you choose a currency with strong fundamentals.