I decided to experiment with $100 USD in SOL. I used Bonkbot (Telegram bot that's free). For what it's worth, the bot isn't a problem. If anything, it's actually kind of helpful. That said, my experimentation went horribly.
Tools I used in this experiment: Dex Screener and Bonkbot (Documentation can be found here)
I do recommend Bonkbot and Dex Screener. Both are incredible tools if you're doing any kind of trading whatsoever.
So, my experimentation went pretty good, until it didn't. I specifically targeted newly created coins that had verified liquidity and was already minted. I did also avoid liquidity under $30K.
This entire experiment was done in about an hour and a half or so. I want to say most of this time was spent searching for meme coins that weren't all bought up by basically one person. I invested in 3 coins overall. It's just $100, so I went all in on 3 coins (one by one of course). First coin, I made a profit. It wasn't much though. 12 bucks. This was after fees and all that. Second coin was prosperous. I got lucky and was able to get 160% increase. Had about $180 total after fees.
Third coin (and last coin), I didn't look at assets. The liquidity looked good. It was minted. Nothing alarming stood out for me. I went all in, got about a 190% increase, and then... It plummeted. Within a total of 4 seconds, there was a straight red line all the way down. Not only did I lose the +90% increase, but I was left with a grand total of $30 left worth of SOL. -70% from what I started with.
That last coin, I only held assets for about 25 seconds by the way. It might not have even been that long. The findings of my experiment are interesting. While you can technically make a whole lot of money on meme coins like some people do... You can also lose it all. My recommendation is if you're going to do this, you only need a very small investment. Since this is technically scalable, mess around with $5 and see what you can do. The potential is there to multiply it exponentially. What ever winning you get, I'd recommend keeping at least 75% in storage. Don't be greedy either. If the increase is 10%, then you just made a 9% profit, excluding the spread. Another thing to look out for is some meme coins have a very expensive spread that isn't worth attempting to trade on. Dex Screener will tell you this though.
Tools I used in this experiment: Dex Screener and Bonkbot (Documentation can be found here)
I do recommend Bonkbot and Dex Screener. Both are incredible tools if you're doing any kind of trading whatsoever.
So, my experimentation went pretty good, until it didn't. I specifically targeted newly created coins that had verified liquidity and was already minted. I did also avoid liquidity under $30K.
This entire experiment was done in about an hour and a half or so. I want to say most of this time was spent searching for meme coins that weren't all bought up by basically one person. I invested in 3 coins overall. It's just $100, so I went all in on 3 coins (one by one of course). First coin, I made a profit. It wasn't much though. 12 bucks. This was after fees and all that. Second coin was prosperous. I got lucky and was able to get 160% increase. Had about $180 total after fees.
Third coin (and last coin), I didn't look at assets. The liquidity looked good. It was minted. Nothing alarming stood out for me. I went all in, got about a 190% increase, and then... It plummeted. Within a total of 4 seconds, there was a straight red line all the way down. Not only did I lose the +90% increase, but I was left with a grand total of $30 left worth of SOL. -70% from what I started with.
That last coin, I only held assets for about 25 seconds by the way. It might not have even been that long. The findings of my experiment are interesting. While you can technically make a whole lot of money on meme coins like some people do... You can also lose it all. My recommendation is if you're going to do this, you only need a very small investment. Since this is technically scalable, mess around with $5 and see what you can do. The potential is there to multiply it exponentially. What ever winning you get, I'd recommend keeping at least 75% in storage. Don't be greedy either. If the increase is 10%, then you just made a 9% profit, excluding the spread. Another thing to look out for is some meme coins have a very expensive spread that isn't worth attempting to trade on. Dex Screener will tell you this though.