Finance

Meme Coins: What is it And is it Worth Attention?

Memes to some extent can be considered one of the types of contemporary art. As a rule, these are photos or pictures with captions that make fun of a particular life situation. Particularly successful, witty or topical become viral. The hero of a meme can be anyone or anything: an animal, an architectural object, a famous person, a fictional character, etc. Memes originated as entertainment, but have become a powerful tool for influencing the general public. Not surprisingly, they also penetrated the cryptocurrency market, embodied in meme coins.

What are meme coins

It is quite logical that this is the name of coins created on the basis of popular memes. Actually, the first Dogecoin meme coin was created as a joke. All cryptocurrencies are unstable, but meme coins beat all volatility records. Against their background, the patriarchs of the market look like unshakable strongholds. Even the fact that when you exchange .33 ETH to USD today you get three times less than what was possible last fall is little impressive compared to the ups and downs of Dogi or Shiba.

Meme coins are very dependent on public opinion. There is a lot of noise around them, the price is sensitive to the mood in the community. As soon as Elon Musk started promoting Dogecoin, the coin quickly rose in price. Numerous imitators quickly appeared on the web.

Someone considers investing in meme coins as outright idiocy, someone considers it an opportunity to make huge profits. Paradoxically, both sides are partly right.

As a rule, meme coins at the time of launch have no clear goals and intrinsic value, and are often generally useless. In exceptional cases, attempts are still made to fill the existence of the project with meaning, but they can hardly be considered something special and significant.

There are about a hundred meme coins on CoinMarketCap. Some of them imitate Dogecoin in one way or another, some are associated with Elon Musk.

Why meme cryptocurrencies are so popular

Cryptocurrencies are a historically new phenomenon and still not very clear to the mass user. The popularity of digital assets is growing by leaps and bounds, legendary stories about the lucky ones getting rich are circulating on the Internet.

People aspire to become cryptocurrency holders, but simply get lost in the current market. Everyone knows about Bitcoin, but not everyone can afford a whole coin. And the prospect of buying a few thousandths or even hundredths of a coin does not look very impressive. Much more effective (but not necessarily more effective) is to buy several thousand tokens worth a fraction of a cent. Especially if the symbol of the coin is a recognizable and very popular dog face.

Instead of studying boring technical documents, the potential usefulness of the project, market analysis and other obscure things, the user makes a choice, guided by sympathy or fear of losing profit.

How to buy meme coins

The most popular meme coins Dogecoin and Shiba Inu are quite widely represented on many centralized cryptocurrency exchanges. Among them are Binance, KuCoin, Kraken, Huobi and others. The process of buying such assets is technically no different from buying other digital coins.

Is it worth paying attention to meme coins

Any cryptocurrency is considered a high-risk investment asset. In addition, one cannot seriously count on quick profits in this industry. Investing everything in cryptocurrency is a frankly bad idea, the only thing worse than it can be an exchange of already existing 6.9 ETH to USD for the sake of buying a meme coin for all the money.

Such assets are mostly unreliable and short-lived and as a long-term asset they are not suitable. If you really want to profit from them, it is better to choose tokens issued by popular developers and supported by influential people. And here it is more than appropriate to recall the golden rule of the investor: do not invest more than you can safely lose.

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