Author: Biteye core contributor Viee
Editor: Biteye core contributor Crush
The recent surge in on-chain traffic, the 60,000% surge in trading volume of mascot concept coins, and the rise of the DeSci narrative have made MEME coins the biggest dark horse of this bull market!
On-chain operations are quite difficult, so in this tutorial, Biteye will teach beginners step-by-step how to use GMGN to play with MEME coins!
There will also be an advanced edition, so please stay tuned.
This article will focus on new project launches, mainly teaching you how to find, analyze and trade new MEME coins.
01 Beginner's Quick Crash Course
1. What is GMGN?
A website that combines a MEME coin data dashboard and a trading tool.
2. What is on-chain trading?
Activities and transactions directly on the blockchain, without relying on centralized exchanges like Binance or OKX.
3. What wallet to use?
Mainstream wallets like Phantom and OKX. You can search for installation and usage tutorials on Youtube, which will not be covered here.
4. What is a token address (CA)?
A string of letters like "GJtJuWD9q*****wMBmtY1tpapV1sKfB2zUv9Q4aqpump". Paste it into the GMGN search box to find the token.
As shown in the image below:
02 Discovering New Projects
1. Follow the smart money
Track the smart money, which means tracking the wallet addresses of users who have achieved relatively high returns on-chain, and observe the investment targets they choose. The three links below are lists of smart money on different chains, as well as corresponding icon explanations:
ETH chain https://gmgn.ai/discover?chain=ethSolana chain https://gmgn.ai/discover/?chain=solBlast chain https://gmgn.ai/discover?chain=blast
After following the smart money, when there are new dynamics, a red bubble and sound notification (can be turned off or on) will appear in the bottom left corner of "Following".
GMGN also provides the function of binding Telegram notifications, so that you can receive notifications immediately whenever the wallets you follow make any transactions.
Click on "Following" to view the real-time transaction dynamics of the smart money, including buying, selling, adding positions, increasing positions, opening positions, and closing positions.
You can also click on any smart money address interface to get more detailed information, including position analysis, profit and loss distribution, and transaction activities.
Hundreds or even thousands of MEME coins are launched on the chain every day, and there may be concentrated buying by smart money. When choosing the objects to follow, it is best to consider your own trading habits to avoid following too many wallets, which can lead to information noise. It is recommended to choose wallets with similar styles to your own for tracking, to ensure the efficiency of the information flow.
Note that checking contract security cannot be ignored, as many smart money also have the habit of buying recklessly without considering contract safety.
2. Scan Twitter and chains
Scan Twitter: Heavily follow Chinese and English KOL accounts related to MEME coins on Twitter, and join various discussion groups to obtain the latest information and dynamics.
Scan chains: Closely follow the tokens that are moving from the inner market (small market) to the outer market (large market), and quickly assess whether these tokens are worth investing in.
On the GMGN platform, you can view the following three types of tokens:
The first type: newly created inner market tokens (highest risk)
The second type: inner market tokens that are about to be filled
The third type: tokens that have entered the outer market (lowest risk)
Explanation of inner market/outer market:
When a new project successfully deploys using the automatic token issuance tool pump.fun, users can use SOL to purchase the project's tokens. When its market cap reaches $69,000, the project's liquidity will automatically be added to Raydium from pump.fun.
Before reaching $69,000, we call it the inner market. At this stage, the project is in a very early stage and the risk is extremely high;
After reaching $69,000 and successfully adding liquidity to Raydium, we call it the outer market. At this stage, the project has had further development, and the risk has been reduced.
It is recommended to focus mainly on tokens that have entered the outer market. Although the outer market still has relatively high risk, the risk has been greatly reduced compared to the inner market, and it is more friendly to beginners.
Moreover, most of the outer market tokens that have reached the hundred million dollar level in market cap are still a minority, and there is still a lot of room for profit.
Note that a token entering the outer market does not mean it will 100% rise, and there are also many cases of tokens quickly going to zero after opening on the outer market, so please always be cautious in the investment process!
By patiently monitoring and analyzing the performance of these tokens, judging their potential and investment value, we can ultimately achieve profitability. But how exactly do we analyze them? Let's see the detailed explanation below.
03 Token Analysis
After you have learned how to use GMGN to find new on-chain tokens, the next step is to analyze and select the targets worth buying from the pile of MEME coins.
Specifically, you need to judge whether to buy based on hot spots, narratives, market cap, community, and market dynamics. The strategies for different types of MEME coins are also different:
1. Hot spot type
Many of these tokens have quickly become popular due to a specific event or trend within a short period of time, and they may have very high initial growth, with potential upside of over 10 times, from a market cap of hundreds of thousands to tens of millions.
However, if the hot spot is not sustainable, the price has no support point, no one shill it, it does not reach a new narrative level, does not form a large influential community, and does not experience a thrilling low-probability event, it is very likely to gradually lose liquidity and the price will continue to decline.
Examples of so-called low-probability events:
The founder of $SLERF accidentally burned all the liquidity pool tokens (LP), airdrop reserved tokens, and minting tokens, triggering a bullish sentiment on-chain, causing $SLERF to quickly list on the exchange.
There is also the recent $BITCAT. When the on-chain sentiment was constantly fermenting around the "mascot" concept, the Bitcon official Twitter suddenly posted a black cat picture, and some people thought this hinted at the Bitcoin mascot. As the consensus continued to spread, the related token $BITCAT quickly pulled up, experiencing a price surge from a market cap of hundreds of thousands to one hundred million in just 3 hours, and maintained around 50 million market cap overnight.
For this type of token, the suggestions are as follows:
Buy in early, the best is when the market cap is in the hundreds of thousands, if you enter too late, don't wait until it reaches 10m (tens of millions) to chase the high, it's easy to get stuck;
If you are optimistic about the sustainability of the hot spot, wait for the price to pull back 80% and then enter, which can reduce the risk.
2. Narrative type
These targets often do not rely on short-term hot spots to rise, but rather gradually grow from a small market cap to a large market cap around a certain narrative or community.
Unlike the instant surge of hot spot tokens, they may go through multiple stages of stable growth, usually with a market cap between a few hundred thousand to a few million dollars, and even break through a hundred million at the highest point.
For example, $RIF, with a background of using antibiotics to treat tuberculosis, is currently the leader in the DeSci (decentralized science) + MEME track. The reason for its surge is that the on-chain attention to the DeSci narrative has increased, and as the first token issued by Pump science, its buy orders have been increasing as the narrative heat has risen, and its position has gradually been consolidated as the leader in the track.
For this type of token, my suggestions are:
Focusing on new narratives is also good storytelling, such as DeSci, where you can choose to build a position in low market cap (hundreds of thousands to a few million) in steps;
In the medium to long term, pay attention to the social media, community activity, and capital inflow of these tokens to assess their sustainability and potential.
04 How to Trade
The following diagram is an overview of the GMGN trading system:
1. Left Interface
Favorites, Holdings List
Quickly understand the price and profit changes of the tokens you have favorited and held, and you can also quickly sell them when monitoring the market.
Hot, Pump, Followed List
By checking the time, trading volume, price, and price percentage, you can filter out the hot tokens and Pump tokens that best fit your trading strategy. The followed list makes it easy to follow and buy with one click when monitoring the market.
2. Main Interface in the Middle
The area below the K-line covers a lot of relevant information about the token, including trading activity, traders, holders, blue-chip holders, and they are classified into smart money, KOL/VC, whales, new wallets, snipers, large holders, developers, followed, and old mouse warehouses.
When researching the token, you also need to refer to this information and analyze the large whales and smart money, for example:
Mark suspected old mouse warehouses to judge whether the boss wants to disperse the tokens with small wallets and try to dump and run.
Mark suspected phishing wallets, and if it is a token that is not purchased but transferred in, a mark will be given.
3. Trading Interface on the Right
Check Indicators
Check the token's trading volume, buy, sell, net buy, liquidity, minting data, blacklist, etc. It is also important to check the burn pool ratio and the probability of running away.
Set Slippage, Turn on Anti-MEV Mode
Slippage refers to the maximum acceptable deviation in the number of tokens per single transaction. The higher the slippage, the faster the transaction. Most of the time, it is recommended to use around 0.5% slippage, and when the market is highly volatile, it can be increased to 10%.
(Note: MEV sandwich attacks refer to MEV bots reading incoming transaction information and executing orders ahead of time, thereby driving up the token price when you buy. Turning on the Anti-MEV mode can effectively prevent sandwich attacks.)
Select Amount, Manual Buy/Sell
The advanced section will be written later, covering limit price auto-buy, order book auto-buy, etc. Please stay tuned.
05 Risk Warning
Hundreds or even thousands of Meme coins appear on the chain every day, most of which will go to zero, and the probability of a large MC meme coin (over 10 million or 100 million market cap) is extremely low, let alone being listed on a major exchange.
In short, the higher the return, the higher the risk, so please be responsible for yourself!
