Memecoin Research: How to Identify a Good Memecoin – Part 2

 If you’ve got some capital to spend on memecoins, you do not want to miss the information below. 

Before we proceed, let’s talk about DexScreener. Unlike CoinGecko or CoinMarketCap

DexScreener – A Must-Have Tool For Memecoin Hunters

DexScreener lists many coins that are new and serve mainly for L1 and L2 chains. That’s where memecoins are created the most. So naturally, DexScreener is your best friend as a memecoin gem hunter. Next, let’s run through what token metrics are important to you on DexScreener. These are:

• Liquidity.
• FDV. (Fully Diluted Valuation)
• Pair Age.
• Volume.
• Transactions.

Most of this info can be found easily on the DexScreener main page. An example is shown below:

Note: You can toggle between 5 min/1H/6H/24H tabs to view transactions and volume data in the differing time ranges.

DexScreener Filters For Hidden Gems

Now that you know what to look out for in a memecoin on DexScreener, it’s time to check out the filters to spot gems. In summary, these are, at a minimum:

1. Very Degen:
   1. Liquidity: $10K
   2. Minimum FDV: $100K
   3. Pair Age: 0-48 hours
   4. 1H Transactions: 30
2. Degen:
   1. Liquidity: $15K
   2. Minimum FDV: $100K
   3. Pair Age: 1-72 hours
   4. 1H Transactions: 100
3. Mid-Caps:
   1. Liquidity: $100K
   2. Minimum FDV: $1M
   3. 24H Volume: $1.2M
   4. 24H Transactions: 30
4. Old Mid-Caps:
   1. Liquidity: $100K
   2. Minimum FDV: $200K-$100M
   3. Pair Age: 720-2800 hours
   4. 24H Volume: $200K
   5. 24H Transactions: 2000
5. Larger Mid-Caps:
   1. Liquidity: $200K
   2. Minimum Market Cap: $1M
   3. 6H Volume: $150K

By looking at the above criteria, you’re able to categorize what kind of memecoin you’re investing in. Hence, you can also effectively gauge its risk level. Moreover, the above criteria improve the odds that you’re picking a memecoin with a good upside. For instance, you don’t want to buy into a memecoin with poor liquidity (could be a honeypot/scam) or with low transactions (no interest from retail).

Other Factors to Look Out For

Of course, DexScreener isn’t the be-all and end-all for memecoin hunting. There are other considerations as well. When the stars align, your chances are good that you’re holding a multi-bagger. These considerations include:

• The number of fresh wallets (for new memecoins).
• Amount of smart money that’s accumulating said memecoins.
• Wallet tracking activity.

Conclusion

This concludes this quick guide on how to spot memecoin gems on DexScreener. Now, before you start withdrawing your stablecoins and trading them for memecoins, do manage your risk as the memecoin space is not only volatile but full of scams as well. Do not risk too much of your capital on each trade, and be alert when approving contracts on your wallet. Here is the first part.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.