Since January 2023, the amount of NFT sold has been rapidly falling, and meme coins like $PEPE, $DOGE, and $TURBO have become the focus of attention in the cryptocurrency world. Meme coins lack any special utility connected to certain blockchain characteristics, such as Ethereum’s use of Dapps and DAOs, and are largely utilized as trading instruments, in contrast to traditional cryptocurrencies like Bitcoin and Ethereum.
Meme coins offer traders the chance to quickly make big sums of money, but they are also incredibly unstable and volatile. They should therefore be approached cautiously as a result.
Read on to learn more about meme coins, their types and how to start trading them on Uniswap.
Let’s Understand The Term Meme Coin!
Meme coins, often known as “shitcoins,” are a cryptocurrency that is based on a well-known internet meme or current cultural phenomenon. Meme coins are appealing due to their lighter and humorous tone as well as their potential to generate substantial income.
Meme coins are frequently made as jokes or as a method to ridicule the seriousness of conventional cryptocurrencies, but if they become popular, they may still be worth a lot of money. Meme coin trading and investment have greatly increased as a result, and some investors have seen significant gains.
The Types of Meme Coins
Dogecoin and Pepe Coin are two of the most well-known meme coins. Billy Markus and Jackson Palmer created Dogecoin in 2013 as a fun, but it has since developed into a major competitor in the cryptocurrency market. It reached an all-time high in May 2021 of almost $0.74, with a peak market valuation of more than $80 billion.
Pepe Coin, which is based on the well-known internet figure Pepe the Frog, recently made news when it cracked the top 100 cryptocurrencies and gained a market cap of $1 billion just three weeks after its inception. An anonymous user implemented the token’s contract, which at first acquired notoriety through messages on its official Twitter account.
Akita Inu (AKITA) and Shiba Inu (SHIB) are two other well-known meme coins.
What Makes Meme Coins So Popular?
The advent of social media and internet culture is one factor in meme coins’ current popularity. Meme coins are a logical progression of this trend since memes have grown to be a substantial component of online communities. Meme coins are more likely than ever to gain traction and draw investors thanks to the growth of Reddit communities, Discord channels, and other online forums.
The desire for quick earnings is another factor in meme coins’ popularity. Meme coins can experience huge rises in value quickly, in contrast to other coins like Ethereum and USDC, which may take some time to increase in value. If someone invested $1,000 in $PEPE on April 17, 2023, their tokens would be worth $36,541 by May 3, according to Watcher Guru.
Trading Meme Coins on Decentralized Exchanges Like Uniswap
To start trading meme coins on decentralized exchanges like Uniswap, you’ll need to follow a series of steps. Let’s start!
Choose Your Fiat Off/On Ramp
You’ll need to invest money in decentralized territory in order to withdraw your winnings from the meme coin casino. Creating a Coinbase or Binance account is the simplest method to achieve this. It merely serves as a bridge between different financial systems.
Now it’s time to create a Metamask wallet so you can use decentralized protocols now that you have an account set up with a tier 1 exchange.
Configuring Your Metamask
Your private keys, or seed phrase, are stored in a wallet called Metamask, which enables you to communicate with various blockchains like Ethereum. Either the mobile app or the chrome browser extension are options.
Here are the steps to get started:
- Simply visit the app store and download the Metamask mobile wallet.
- Go to “create a new wallet”.
- Your “seed phrase,” which consists of a string of 12 words arranged sequentially, will then be displayed to you. The keys to the safe that is your Metamask wallet are contained in this random string of words.
- Once you click the next button, you will be prompted to enter the seed phrase again into the wallet to ensure that it is accurate.
- After completing that, you will have a working wallet that is almost prepared to use decentralized protocols.
Fund Your Wallet
It’s time to send some Ethereum to your Metamask wallet now. You’ll need your public address system for that.
Here are the steps to fund your wallet:
- Clicking the Ethereum wallet in your metamask will open your Ethereum wallet, where you can find it.
- Now tap “Receive” after it is open.This will display your public address together with a wallet-linked QR code.
- When sending Ethereum from your centralized exchange account into your metamask wallet, you will paste this information into the “Address” field.
- Select “Copy” to add your public address to the clipboard now.
- Enter your exchange app now, and if you haven’t purchased any Ethereum yet, do so right away.
- Click “Withdraw” in your Ethereum wallet on your chosen exchange (for this lesson, I’ll use Binance as an example). You will then be directed to a page where you must enter the Ethereum recipient’s address.
- If you haven’t already, return to Metamask and touch on your public address to copy it to your phone’s clipboard. Then, return to Binance and paste the address into the appropriate area.
- Once you’ve copied and pasted your address into the recipient area, the “Continue” button will turn on.
- While you’re at it, make sure the top dropdown menu is set to the Ethereum network.
- After entering your address, click continue to advance to the following page, choose the amount to send, and then click preview.
- If you have two-factor authentication enabled, which you should do immediately after confirming the preview, you will receive a text message with a one-time code.
- You must click the link in the confirmation email that is provided to the email address you used to create your exchange account after entering that code to authorize the transfer of funds.
- Once you’ve finished, you may relax while you wait for your money to show up in your Metamask wallet.
Access and Utilizing Uniswap
- Open Metamask and locate the “Browser” icon in the bottom right corner to get started. When you click on that, a search engine page similar to this will be displayed.
- The next step is to type “uniswap.org” and press the “go” button.
- Make sure the url in the search result you click on is spelt correctly. Scammers create fake websites that closely resemble the uniswap.org URL.
- Now click “Launch App” once you are on the uniswap website; at the time of writing, it is a pink button with white text.
- Click the “Connect” button in the top right corner as soon as you see this screen.
- When a menu appears, simply tap on the metamask symbol to access it. After that, a screen alert will appear asking you to confirm that you wish to allow uniswap.org access to your wallet. You should touch “Connect” to proceed. You’ve just established a connection with a decentralized protocol.
- You merely need to paste the contract address of the token you wish to receive in return into the bottom dropdown menu after selecting “ETH” in the top dropdown menu, which is what you will be transferring.
- Hit “Swap” to confirm the transaction, and then wait for it to be completed. You are now a legitimate member of Defi.
Bottom Line
Like any trend, a financial bubble could pop at any time. However, despite the fact that meme coins are a distinctive and fascinating aspect of the cryptocurrency market, investors should approach them carefully and cautiously. Do extensive research before purchasing any meme coins. Consider factors like the project team, tokenomics, community engagement, and market sentiment.