Recently, Pump.fun has broken through the siege and become the biggest dark horse in this bull market. The myths of Ai concept coins and a 10,000-fold surge in 5 days are emerging one after another.
However, the threshold for on-chain transactions is relatively high. This tutorial will teach novices how to use the on-chain aggregate trading platform to unlock the wealth code of Meme coins! This article will focus on new listings and mainly teach you how to find, analyze and trade Meme coins through data platform tools.
1. Quick literacy for beginners
1. What is the on-chain aggregation trading platform?
There are Ave.ai, GMGN and other on-chain aggregation trading platforms specifically for Meme. Taking Ave.ai as an example, it has more than 7 million users, supports the most public chain market conditions in the entire network, 130+ public chains, 300+ DEX, rich on-chain portrait data, smart money, KOL, mouse warehouse, whale and other real-time Dex trading data and analysis, providing real-time and comprehensive meme data dashboards, providing players with high-quality decision-making basis, and completing on-chain transactions smoothly. Integrated Bot trading functions, sniping, copying, and pending order services.
2. What is on-chain transaction?
Transactions conducted directly on the blockchain are called on-chain transactions. Your funds are stored in your own wallet and do not rely on any third party. Therefore, on-chain transactions are safer and more transparent. It is the first choice for many senior players.
3. Which wallet to use?
You can use Ave Wallet to better complete meme coin transactions. Ave Wallet uses Trust's wallet open source library to ensure customer funds security. Binance also uses Trust Wallet. Of course, Ave.ai is also integrated and compatible with mainstream wallets such as Metamask and OKX.
4. What is the Token Address (CA)?
There are many meme coins with the same name. If you accidentally buy a fake one, your capital will be wasted. The smart contract address of the token is the best way to accurately search and find the meme coin you are interested in. It is similar to the ID card of the meme coin.
The token address is a string of letters like "Df6yfrKC**NkrHERKzAetSxbrWeniQfyJY4Jpump". Paste this code in the Ave.ai search box to find the corresponding token. As shown in the figure below:
2. How to discover high-quality new projects
1. Follow the smart money
Tracking smart money means tracking the wallet addresses of users who have obtained higher returns on the chain and observing the investment objects they choose. This can help you screen out high-quality meme coin investment targets in the early stages.
After following smart money, you can track the movements of smart money and view the token information they buy and sell.
You can click on any smart money address interface to get more detailed information, including positions, profits and losses, trading activities, etc.
Hundreds of meme coins are launched on the chain every day, and there may be concentrated purchases by smart money. When choosing to follow, it is best to consider your own trading habits and avoid following too many wallets to cause information noise. It is recommended to choose wallets with similar styles to track to ensure the efficiency of information flow.
*Note that the step of checking the security of the contract cannot be ignored, because a lot of smart money will buy in without considering the security of the contract.
2. Follow the push and follow the chain
- Follow: Follow a lot of Chinese and English KOL accounts related to Meme Coin on Twitter, such as Musk, and join various discussion groups to get the latest information and trends. KOLs can be used to judge the popularity of memes and other information.
- Follow the chain: Pay close attention to the tokens that move from the inner market (small market) to the outer market (large market) to quickly evaluate whether these tokens are worth investing in.
On the Ave.ai platform, you can view the following three types of tokens:
- Newly created internal tokens (highest risk)
- Internal tokens that are about to be fully allocated
- Tokens that have entered the foreign market (lowest risk)
Explanation of internal/external disk:
When a new project is successfully deployed using the automatic token issuance tool pump.fun, users can use $SOL to purchase the project's tokens. When its market value reaches $69,000, the project's liquidity will be automatically added from pump.fun to Raydium.
Before reaching $69,000, it is called the inner market. At this time, the project is in a very early stage and the risk is extremely high;
After reaching $69,000 and successfully adding liquidity on Raydium, it is called the external market. At this point, the project has further developed and the risk has been reduced.
It is recommended to focus on the tokens that have entered the foreign market. Although there are still high risks in the foreign market, compared with the domestic market, the risk has been reduced a lot and is relatively friendly to novices. In addition, most of the foreign market has a market value of millions, and there is still a lot of room for profit.
Please note that the entry of tokens into the foreign market does not mean that they will 100% rise. There are also cases where a large number of tokens quickly return to zero after the foreign market opens. Please always be cautious during the investment process!
By patiently monitoring and analyzing the performance of these tokens, judging their potential and investment value, we can eventually achieve profits. But how to analyze them specifically? See the following for details.
Token Analysis
Now that you have learned how to use Ave.ai to find new coins on the chain, the next step is to analyze and select the ones worth buying from a bunch of Meme coins.
It depends on the hot spots, narratives, market value, community and market dynamics to determine whether it is worth buying. Different types of Meme coins have different strategies:
1. Hotspot
Most of these tokens are low-market-cap tokens that have become popular in the short term due to specific events or trends. They often show a higher increase in the initial stage, and the market value has the potential to increase from millions to tens of millions, and the increase can be 10 times or even higher.
However, the hot spots on which these tokens rely lack sustainability, and their prices lack effective support. If there are no celebrities or KOLs to support their orders, if they fail to build a new and influential narrative framework, fail to form a large-scale and influential community, and if there are no small-probability major events that can stimulate market enthusiasm, then they are very likely to gradually lose market liquidity, causing prices to continue to fall.
Here are a few examples of so-called low-probability events:
The development team of $TOKENX sent all the liquidity pool tokens (LP), reserved tokens for community incentives, and unreleased coins to a destruction address. After this operation was discovered by community members, it caused a huge response on the chain. Many investors believe that this is a manifestation of the project's extreme responsibility, because the destruction of these tokens has reduced potential selling pressure to a certain extent. This sentiment quickly spread in the market, and many investors began to be bullish. The price of TOKENX has risen significantly due to the influx of a large number of investors.
There is also the recent $Mona. The Mona Lisa has been in the collection of the Louvre Museum in Paris since 1804. It is the most famous and expensive painting in the world. It is widely estimated that it would be worth $860 million today. On-chain sentiment is fermenting around the concept of "art meme" and more and more KOLs, including @dylanmints @JoshxKang @Bullrun_Gravano @SpiderCrypto0x @Crypto_1noX, are betting on the direction of art meme.
The following are suggestions for this type of token :
- Buy early, the market value of hundreds of thousands is the best. If you enter the market too late, and wait until the market value exceeds 10m (tens of millions) before chasing high, it is easy to get stuck;
- If you are optimistic about the sustainability of the hot spot, wait for the price to fall 80% before entering the market, which can reduce the risk.
2. Narrative
Such targets often do not rely on short-term hot spots to rise, but gradually grow from small market capitalization to large market capitalization around a certain narrative or community.
Unlike hot tokens that skyrocket in value instantly, they may go through multiple stages of stable growth, usually with a market value ranging from several million to tens of millions of dollars, and even exceeding 100 million at their highest.
For example, the birth background of $ACT token #AI+Crypto track is becoming the core driving force of the mainstream narrative in the crypto market. It is in the track of DeAI (decentralized artificial intelligence) and Meme integration. Through AI social scenarios to connect users and intelligent entities, the market imagination is unlimited. As the narrative heats up, its purchase orders continue to increase, and its position is gradually consolidated in the track leader.
The following are suggestions for this type of token:
Pay attention to projects with new narratives that are also good narratives, such as DeSci, and choose to build positions in steps at low market capitalizations (hundreds of thousands to small millions);
In the medium and long term, pay attention to the social media, community activity and capital inflow of these tokens to judge their sustainability and potential.
4. How to trade
The following figure is an overview of the Ave.ai trading system:
1. Left column interface
Popular coins, snap-up list, price increase list, smart money: quickly understand the tokens you collect, the price of popular tokens, snap-up list, price increase list, track smart money, and quickly view and trade at any time when watching the market.
Self-selected collection, watchlist: filter out the popular tokens that best suit your trading strategy by checking time, number of transactions, price, and price percentage. The watchlist makes it easy to follow orders and buy at any time while watching the market.
2. Middle main interface
Below the K-line is a large amount of relevant information about the token, including trading activities, traders, holders, blue-chip holders, etc., and is classified by smart money, KOL/VC, whales, new wallets, snipers, large coin holders, developers, followed, and insider trading.
When researching tokens, you also need to refer to this information and analyze the whales and smart money. For example:
- Mark suspected insider trading to determine whether the dealer wants to use small wallets to disperse tokens in an attempt to dump the market and run away.
- Mark suspected phishing wallets. If the transferred tokens are not purchased, they will be marked.
3. Trading interface on the right
Check indicators : Check token transaction volume, buy, sell, net buy, liquidity, minting data, blacklist and other indicators. It is also important to check the burning pool ratio and the probability of running away.
Set slippage and turn on Anti-MEV mode: Slippage refers to the maximum acceptable deviation in the number of tokens declared for a single transaction. The higher the slippage, the faster the transaction. Most of the time, a slippage of about 9% is recommended, and it can be increased to 20% in case of severe market fluctuations.
(Note: A MEV sandwich attack is when a MEV robot reads incoming transaction information and preemptively executes orders, thereby pushing up the price you buy in. Turning on the anti-sandwich mode can effectively prevent sandwich attacks.)
Select amount and buy/sell manually
V. Risk Warning
Hundreds of Meme coins appear on the chain every day, and most of them will return to zero. The probability of running out of a golden dog (market value of tens of millions/over 100 million) is extremely low, so you need to invest in Meme coins rationally.
In short, the higher the return, the higher the risk. Please be responsible for your assets!
