One trader just succeeded in converting an investment of $895 into $321,000 overnight by investing in meme coins, Kakashi, a blockchain data analyst, stated in a tweet on the X platform (formerly Twitter) that the trader invested $895 in BitWite (BTW) on the pump.fun protocol – a popular protocol for trading meme coins on the Solana blockchain – and then sold $51,000 worth of coins and kept coins worth more than $265,000 in his wallet, meaning that the sum of his realized gains The unrealized has exceeded $320,000.
You can view Solana’s trader’s portfolio here:
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The transaction listed above is just one example of how traders can turn their small initial investment into a fortune of memes, with the trader above making a gain of 358x.
Risks of investing in meme currencies
The temptation that accompanies the prospect of going from poverty to affluence in the LGBT currency markets is undeniable, but trading currencies like BTW is fraught with a lot of risk, as most of the newly launched cryptocurrencies are either scams or hikes and abandonments (raising the price and then lowering it suddenly), so the likelihood of losing the entire initial investment is greater than the probability of making significant gains.
A better risk-return investment strategy is to participate in meme coin IPOs, as traders often face the dilemma of missing out on new currencies on a decentralized platform such as Raydium, when they see a sharp rise in price, they rush to buy the currency at its peak without doing enough research.
By contrast, cryptocurrency IPOs typically last for a few weeks, giving traders enough time to conduct their own research on the project before participating in it, so the possibility of making an incorrect investment decision is reduced due to the fear of missing out on the opportunity (FOMO).
The advantages of IPOs not only avoid recklessness due to the fear of missing out on the opportunity, but also create a sensation that can raise the price of the coin significantly once it is officially launched.See original article
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