Get in on the meme coin action!
Meme coins are popular cryptocurrencies, often with comical or animated memes. They’re supported by enthusiastic online traders and followers but may be highly risky investments with little to no intrinsic value.
Meme coins, such as Dogecoin and Shiba Inu, may be more fun than practical. However, if you do choose to buy or trade these currencies, it is crucial that you comprehend the risks involved to help ensure against any losses due to sudden shifts in value.
Meme coins are a type of cryptocurrency that is associated with an online community that is enthusiastic about the currency’s growth. They are sometimes identified with animated characters or animal memes. During the recent cryptocurrency boom, some of the top currencies to gain meme coin status included Dogecoin and Shiba Inu. The category extends to lesser-known currencies such as Baby Doge and Dogelon Mars. While Baby Doge and Dogelon Mars don’t earn as many headlines, they still maintain nine-figure market capitalizations.
Meme coins use blockchain technology to track virtual assets, including cryptocurrencies and non-fungible tokens (NFTs).
Meme coins are generally only trading instruments, as opposed to Ethereum and other utility currencies which have specific purposes in mind. Some of the more well-known cryptocurrencies, such as Bitcoin or Ethereum, aren’t considered meme coins.
At any given time, there are over 300 meme-based cryptocurrencies listed on CoinMarketCap. However, many of these are not actively traded and effectively worthless. Dogecoin, Shiba Inu, Dogelon Mars, and Baby Dogecoin are the only currencies in the meme category with more than $1 million in daily trading volume. All of these assets are considered risky and volatile by most investors.
Although ether is needed in order to carry out transactions utilizing the Ethereum blockchain, most meme coins don’t provide extra value that goes beyond collecting and trading. Furthermore, other meme coins aren’t really coins but are tokens running on another blockchain entirely. Shiba Inu is a perfect example of an ERC-20 token operating on the Ethereum blockchain.
The media and some investors often dub meme coins as Ponzi schemes. However, this should only caution potential investors to do their own research before entering these markets.
Pros & Cons of Meme Coins
Pros
- This asset type is fun to use and helps you learn about cryptocurrency and blockchain technology.
- Potential for making money when prices increase
- Have the opportunity to join a group of likeminded individuals who actively invest and trade.
Cons
- Unpredictability and danger
- The accusation that we are a pump-and-dump scam is unfounded and baseless.
- Some users may find it technologically complex
Key Facts
- Meme coins are a form of cryptocurrency that is supported by online trading communities. However, Because this type of cryptocurrency is speculative, it’s value may be unstable.
- Meme coins are a type of cryptocurrency that includes Dogecoin and Shiba Inu, among others.
- When trading meme coins and other virtual currencies, it’s easy to rapidly make or lose a large sum of money.
