The stories of meme coins skyrocketing thousands of times are flooding social media. "Don't miss the next Dogecoin after missing SHIB!" Do such provocative slogans make your heart race? But amidst the excitement, a core question arises: Can ordinary people actually buy these seemingly overnight wealth-generating meme coins? And how should they buy them?
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The answer is clear: meme coins can certainly be bought and traded! They are primarily active on cryptocurrency exchanges. This article will unveil the mystery of meme coin trading, providing a clear, actionable purchasing tutorial while explaining the risks involved.
Can meme coins be purchased, and how should they be traded? This article explains the purchasing tutorial and risks of meme coins.
Two main ways to purchase meme coins
There are two main avenues for purchasing meme coins: centralized exchanges (CEX) and decentralized exchanges (DEX). Each has its advantages and disadvantages, suitable for different needs and risk preferences of investors.
- Centralized Exchanges (CEX)
Representative platforms: Binance, OKX, Coinbase, Kraken, Bybit, Gate.io, etc.
Operation method: Similar to stock brokers, users register and deposit fiat or cryptocurrency into their exchange accounts, completing buy and sell orders within the exchange. The exchange holds users' funds.
Advantages:
Simple operation: The interface is intuitive, and the process is clear, especially suitable for cryptocurrency beginners.
Convenient deposits: Usually supports multiple fiat deposit channels (such as bank cards, third-party payments).
Good liquidity: The trading depth of coins listed on mainstream CEXs is usually good, with small buy-sell spreads.
Fast trading speed: High efficiency in order matching and execution.
Supports relatively mainstream coins: Typically chooses to list meme coins with certain market value, community foundation, and relatively "mature" status (such as DOGE, SHIB, PEPE, WIF, etc.).
Disadvantages:
Limited choices: Exchanges strictly control coin listings, and many newly issued, low-market-value meme coins cannot be purchased on CEXs.
KYC requirements: Usually requires identity verification (KYC). - Decentralized Exchanges (DEX)
Representative platforms:
Ethereum chain: Uniswap, Sushiswap
Solana chain: Raydium, Jupiter, Orca
Binance Smart Chain (BSC): PancakeSwap
Other chains: Almost every public chain has its mainstream DEX.
Operation method: Users connect to DEX directly through cryptocurrency wallets (such as MetaMask, Phantom, Trust Wallet). Transactions are conducted directly on the blockchain, with users always controlling their asset private keys. DEX achieves exchanges of trading pairs (such as ETH/PEPE) through an automated market maker (AMM) model.
Advantages:
Unlimited coins: The only place for the vast majority of new meme coins and low-market-value meme coins to debut and trade. Huge selection space.
No permission required: Anyone can create trading pairs without platform review for coin listings.
Self-custody: User assets are always in their own wallets, with security depending on the user's management of private keys. Eliminates the risk of exchange collapse.
Usually no KYC required: Just connect your wallet to trade, protecting privacy.
Disadvantages:
High operational threshold: Requires creating, backing up, and managing a cryptocurrency wallet, understanding concepts like Gas fees, slippage, token contract addresses, etc., which is not friendly for beginners.
Liquidity risk: Many low-market-value meme coins have extremely poor liquidity, which may prevent transactions at expected prices or encounter "Honeypot" situations (can only buy, cannot sell).
Gas fee costs: Trading on congested chains like Ethereum can incur extremely high Gas fees, eating into small profits.
High fraud risk: Filled with fake coins, scam contracts, Honeypots, and exit scams. - Selection advice
Beginners / only want to trade mainstream meme coins: Preferably choose reputable centralized exchanges (CEX).
Pursuing new projects / low-market-value potential coins / unafraid of high risks: Must master the use of decentralized exchanges (DEX).
Decentralized Exchange (DEX) tutorial for purchasing meme coins
For those new to Memecoins, how to purchase them is the first hurdle, as many Memecoins are not listed on exchanges. The purchasing process for most Memecoins is similar, and we will use $PEPE as an example.
First, you need to have a wallet, such as Metamask or OKX Wallet. Next, you can directly buy some ETH in the wallet or transfer ETH from another exchange to the wallet. Once you have ETH, just open Uniswap and connect your wallet to start purchasing Memecoins.
Decentralized Exchange (DEX) tutorial for purchasing meme coins
Next, copy and paste the $PEPE token address, then select Pepe Coin. Before signing the transaction, be sure to double-check that you have selected the correct currency. Then, enter the amount of ETH you want to exchange, and the corresponding amount of $PEPE will be displayed. Click the "Swap" button and sign the transaction.
Then, Pepe Coin will appear in your wallet.
When purchasing other Memecoins, you can follow the same steps; just change the token's contract address. For example, if you want to buy $TURBO, first find Turbo's contract address on etherscan.
Some Memecoins, like $SHIB or $DOGE, can be purchased directly on exchanges like Coinbase. $PEPE can also be purchased directly through OKX or Binance.
Centralized Exchange (CEX) tutorial for purchasing meme coins
Registration and verification: Visit the Binance official website or download the app, complete registration, and pass KYC identity verification (usually requires ID card and facial recognition).
Fiat deposit:
Click on "Buy Coins" or the "C2C Trading" area.
Choose the fiat payment method you want to use (such as bank card, Alipay, WeChat Pay, etc.).
Select the cryptocurrency you want to purchase (usually stablecoins like USDT or BTC, ETH).
Follow the instructions to complete the payment, and USDT/BTC/ETH will be deposited into your Binance spot wallet.
Purchasing meme coins:
On the trading page, search for the meme coin code you want to buy (such as DOGE, SHIB, PEPE).
Enter the trading pair for that coin (usually DOGE/USDT, SHIB/USDT).
On the trading interface, choose "Limit Order" or "Market Order":
Limit Order: Set the price you are willing to buy at and wait for the market to reach that price (may not be executed immediately).
Market Order: Buy immediately at the best price available in the market (fast execution, but the price may be slightly higher due to fluctuations).
Enter the amount of USDT you want to spend or the amount of meme coins you want to buy.
Confirm the order information and click "Buy."
Asset view: After a successful purchase, the meme coins will appear in your Binance spot wallet asset list.
Centralized Exchange (CEX) tutorial for purchasing meme coins
Why are Memecoins popular?
One reason for the popularity of Memecoins is the rise of social media and internet culture. Memes have become an important part of online communities, and Memecoins are a natural extension of this trend. The rise of Reddit communities, Discord channels, and other online forums has made Memecoins more visible and attractive to investors than ever before.
Another factor is the speculative mindset of users. The appreciation of traditional tokens like ETH and USDC often takes time, but Memecoins can yield huge returns in a short period. Watcher Guru states that if someone invested $1,000 in $PEPE on April 17, 2023, by May 3, the value of those tokens would reach $36,541.
Risks of Memecoins
Extreme volatility:
The price of meme coins can skyrocket 100 times in a few hours or plummet 99.9% or even to zero in a shorter time. FOMO (fear of missing out) and speculative hype are the main drivers.
Consequences: It can easily lead to massive, rapid wealth evaporation. Countless people lose everything due to chasing highs and lows.
Fraud and scams are rampant:
Honeypot: A smart contract deployed by scammers that only allows users to buy in, but not sell out. Once you buy in, your funds are permanently locked.
Rug Pull: The project team suddenly withdraws all funds from the liquidity pool and runs away with the money. The token price instantly drops to zero. This is the most common form of scam in the meme coin space.
Presale scams: Fundraising through presales before the DEX officially launches, promising to give investors tokens after the launch. After fundraising is complete, they disappear.
Imposter Tokens: Faking the names and symbols of well-known projects, even creating fake websites and social media to lure users into buying worthless fake coins.
Malicious contracts: Contracts that contain hidden backdoors, allowing developers to mint more tokens, freeze accounts, charge high transaction fees, etc.
Liquidity depletion:
Many low-market-value meme coins have very small liquidity pool funds. When you try to sell, you may be unable to complete the transaction due to insufficient liquidity, or your selling action may instantly crash the price.
Consequences: "Paper wealth," unable to be realized.
Lack of project fundamentals:
The vast majority of meme coins have no real application scenarios, no core technology, no professional teams, and no clear roadmaps. Value support relies entirely on community sentiment, celebrity endorsements, and social media hype.
Consequences: Once the hype fades or negative news appears, collapse is the only outcome. Long-term holding has extremely low value.
"Going to zero" is the norm:
The harsh reality is that among the tens of thousands of meme coins that emerge in the market, only a few can survive and be remembered (like DOGE, SHIB). The vast majority of meme coins ultimately end up with their prices going to zero, becoming worthless.
Conclusion
The purchase and trading of meme coins are technically unobstructed, with CEX and DEX opening the door for us to participate in this frenzy. Clear tutorials can guide you through the operational steps. However, this article spends a lot of space revealing various risks.
In the world of meme coins, "one general's success comes at the cost of countless bones" is an eternal footnote. Behind the myth of a few lucky individuals becoming wealthy is the sigh of countless people whose wealth has evaporated. Technology has given us the ability to trade, but rationality, discipline, and a profound respect for risk are essential.