Understanding Meme Coins: My Top 5 Picks for 2024

Have you ever wondered how there's all these coins with just dog faces on them that don't seem to do anything, but they're making people millions of dollars? We're going to talk about all things meme coins today. What is a meme coin? Why are they as successful as they've been? And what are my top five meme coin picks for this bull market? Stay tuned. Okay. Well, first, what is a meme? Okay. You might be familiar with this, but maybe, you know, you're not millennial Gen Z. We know what memes are. Maybe you're not familiar, but a meme is basically just an image or a video. And it's usually funny in some way. And it usually has a point to it. Like it's trying to make a joke or a point about something in particular. So you've probably seen some of these. This is a really popular meme. And then you just put different words on it, but it's just this guy who's really stressed out. And then you can put any words about things that make you stressed out. This is another one. Leonardo. I almost said Leonardo da Vinci. That's not correct. Leonardo DiCaprio from the great Gatsby, I think holding up a glass and you can put any words with it, but that's a meme. Okay. That's the idea behind a meme. Memes tend to go viral. So like, if you show this image, most people have seen this in one form or another. So then what is a meme coin? Well, most coins have some purpose to it. Like Bitcoin is a store of value. Ethereum has smart contracts and you, you know, different coins that we've talked about on the channel. They have a purpose. There's something you're doing with them. But the point of meme coins is that they don't do anything like this meme. It doesn't do anything. It's just funny. It's just something out there. That's the idea behind these coins. So they're very community driven, but they don't really do anything. They're just a coin that you can buy and sell. And this concept of meme coin really started with Dogecoin. That was the first one. December of 2013, some software developers got together and they took Doge was, is a dog, a Shiba Inu dog who is just popular in a lot of these memes. And so these software developers just got together and said, Hey, this would be funny to just have a coin that's based on this Doge dog that's in all these memes. And so Dogecoin was created. That's the first one, 2013. And then what was found is that this Dogecoin had no purpose, blew up. It went viral. People were buying it left and right. You were probably part of the Dogecoin craze back in the day. And then that kind of led way to other meme coins. So Shiba Inu is another one that's again, based on that dog. Floki is a really popular one right now. So when you look at the top meme coins by market cap, and you see that the markets are all red today. So none of these meme coins are doing very well today. Dog with hat is down 8% today, but you can see Dogecoin has a $17 billion market cap. I mean, that shows the power of community driven things because there's no purpose for Dogecoin. It serves no utility. It does nothing, but it has $18 billion in its market cap, just from community. Shiba Inu is the second most popular at $10 billion. There's Pay, $5 billion market cap. Dog with hat, just ridiculous. Floki, Bonk. Brett is a big one right now. But these become big through their community driven. So they get these crazed communities who just love and will do anything for Dogecoin. They also tend to have virality around it. So people, especially when Dogecoin first came out, people just thought this is so ridiculous and it just catches on. People hear about it. In fact, most even non crypto people have heard about Dogecoin. Also, you often get celebrities, whether they be just Twitter influencers or like Elon Musk is a huge Dogecoin fan. He's talked about Dogecoin getting utility in the future and being a currency that you can pay with on Twitter or X. I'm rebellious. I still call it Twitter, but we'll talk about that more in a minute. One thing you need to know about these meme coins is they are highly speculative. Okay. Again, these are things that have no use and so they can go up and down very, very quickly. So you can see this is the chart for Dogecoin since its inception. And you can see it, it didn't really do much of anything. Even when Elon Musk declared Doge as his favorite meme coin, nothing really happened that Elon Musk went on Saturday night live in May of 2021 and mentioned Dogecoin. And you can see, I mean, we had this and when Elon Musk mentioned it on Saturday night live, I mean, there was a 500 X overnight almost, but then you can see Elon doesn't mention it on Saturday night live for a while. People take their profits. A lot of people, when it got up here, people take their profits. If you bought down here and you see it up here, you want to get some profits. And so then it goes down and it's kind of just been steady up and down since then. But it's the same as other coins that we've talked about, where if you go with a high market cap. So if you go with Dogecoin, there's not a lot of room for it to go up a ton. It's at 17 billion, eight, almost $18 billion market cap. It's not going to 10 X. It's not going up to 180 billion at least anytime soon. So you're, you've missed your 10 X. It's definitely not going to a hundred X. It'd be impossible for it to a thousand X. There's not that much money in the world, but Dogecoin isn't going anywhere. There was $618 million in volume traded just yesterday. So Dogecoin is going to be around for a while. Now you go down the list, you get to lower market caps. You get to something like meme coin. What a clever name. That's what I love about meme coins, honestly, but it has a $392 million market cap. So it has room that it could go up, although it's not doing well right now, but there's also a lot of risk to it. It could go away very easily as well. So how do you evaluate a meme coin? How do you pick which meme coin is going to do well, which meme coin is not going to do well. There's a few things that I look for. First off, don't put all your eggs in one basket. Okay. Your temptation is going to be to pick one meme coin and say, this is my meme coin. I'm putting all my money into it. First off, I would not consider meme coins. They are a speculative play. Don't risk money that you can't afford to lose because there's a big chance. There is a chance that you will make, you know, 10 X hundred X thousand X. There's also a chance that you're going to lose it all for every person who has made a thousand X and meme coins. There's 999 people who have lost all their money in meme coins. So a majority are going to lose money in these meme coins. So you just have to know that when you're going into something like this. But first thing I look at is the community because these are very community driven coins. What I mean is that even if this is a worthless coin that doesn't do anything, if there are enough people who are excited about it, then it's going to have some value value, especially of a cryptocurrency is just what people think it's worth. So there's a lot of people who think a certain coin is worth something, then it gives it value. So first thing you want to look at with a meme coin is you want to get to know the community. Is this a strong community? For example, Dogecoin has a very, very strong community with Elon Musk at the top of it. Shiba Inu has a rabid community. And sometimes with community, you know, you can kind of look at the volume to get a sense for how excited, how many people are looking at something like this. So actually, Shiba Inu only had $271 million in volume last yesterday. PayPay had $772 million. So Shiba Inu kind of is past its peak. And so PayPay is kind of taken over there. But you want to look at these communities. How did this coin start? Why are people excited about it? That's one thing you want to look at. Another thing that you want to look at is the team behind it. One common theme, a lot of people see these meme coins as a get rich quick scheme. So you have to be careful because if it's not a solid team to put this out, it could just be a money grab. It could easily be a rug pull where there's liquidity. A bunch of people start buying the coin and then they take the liquidity away. So there's no way for you to sell the coin. So again, if you look at these really low market cap meme coins, we'll say Peekaboss, $5 million market cap. This is going to be extremely risky or banana. $7 million market cap, 14,000 in volume yesterday. Now there's huge upside with something like banana. Again, if banana reaches the market cap of Dogecoin, if it becomes as popular as Dogecoin, that's a 2,600 times. So if you put in $500, it grows to the size of Dogecoin. Your $500 is going to be worth over a million dollars. But again, the odds of this just being a scam and you put in $500, you get nothing out are very, very high. So you want to know the team behind this. Who built this? Are they doxxed? Do we know who they are? Do they have anything to lose if they end up this just being a rug pull? Another thing you want to look at are potential use cases. So I'm going to go through my top picks for meme coins, but some of them have use cases that are coming out in the future. So for example, Dogecoin, Elon's talking about using Dogecoin in its payment systems for Twitter. That's a use case that to me gives Dogecoin some extra value rather than it just being a meme token. So you want to take that into consideration. And then the last thing you want to look at is really just market trends. What are people excited about right now? So again, looking at this volume, PayPay is something that people are really excited about right now. You know, following people on Twitter and just staying a part of the narrative is going to be helpful in you picking the winners. So what are my top meme coin picks? Drumroll. Well, this is kind of actually a trick because in full honesty, full transparency, I don't know that you should buy any meme coins. When I'm evaluating a business, I think, what problem does this solve? Who is going to pay for this, et cetera, et cetera. The answer for meme coins is nothing. So I think your best bet is to recognize that this is closer to a casino and a lottery ticket than it is to an investment. And that's totally fine. I don't mind if people go get lottery tickets. That's fine. But you just know what you're doing. You don't say I'm investing in PayPay. You can say I'm gambling in PayPay. If I had to pick my top meme coins, I honestly would look at the top volume. That's the trend right now. PayPay is the trend right now. Dogecoin, there's potential future use case. Elon's backing it. Dogecoin, that would be the only meme coin that I might consider an investment potentially because there is predicted real world use case for it. So PayPay just because of its volume. Dogecoin because of its potential future uses. Honestly, with the election coming up, any meme coin that has Trump in it in some way is probably going to do well unless it ends up being a scam. But just the MAGA people get really crazy. That's a very community driven thing. So some of these Trump coins, MAGA, that's got $340 million market cap. It's up 3000% already this year. That would be one that I would consider getting into. It's actually up 12% today. So I hope you don't feel misled, but my actual answer is probably for most people don't get into meme coins. So hopefully this was helpful for you in at least understanding what a meme coin is. Please let me know in the comments. Maybe you disagree with me. Maybe there are some meme coins that you're like, no, this is an investment and you're a fool for not getting in. Let me know in the comments. I would love to know. Appreciate you guys very much. God bless you all. Take care. Have a great rest of your day.