Meme coins are a category of crypto assets with unique peculiarities in the crypto space. By default, they have no inherent utility, other than being pushed by a community until they lose momentum and investors move on to others.
Meme coins are digital assets that are created with the intention of being humorous or satirical. They are often based on internet memes, pop culture references, or other forms of popular entertainment.
Meme coins are usually more common in bullish markets, as they are common for facilitating astronomical returns, even more than assets with high utility. As a result, crypto enthusiasts and investors often dedicate some section of their portfolios to meme coins.
With the crypto market showing strength over the last month, as Bitcoin breaks the $40k region resistance in December 2023 for the first time in 20 months, the market is overall positive, and signs of a bullish market being underway are more present than ever.
Below are three Memecoins you should consider investing in and adding to your portfolio this December.
Dogecoin (DOGE)
Dogecoin is based on the "Doge" meme, a misspelled version of “Dog” that became popular in the 2010s on social media platforms, particularly Reddit. When crypto started gaining little popularity, with the likes of Bitcoin and Litecoin making waves, Dogecoin was launched, riding on the “Doge” meme wave.
Doge is the first ever meme coin created, and since it thrives on community involvement, its high holder count saw its investors gain massively from its popularity. Dogecoin rewarded its investors with about 30x their investments in the 2017 bull run and about 90x their investments in the 2021 bull run.
Dogecoin’s success has seen several other meme coins created, including popular dog-themed ones like Shiba Inu and Floki Inu - yes, it has that much influence. So, if a new bull run is just around the corner, it could be smart to add Dogecoin to your portfolio.
Furthermore, Dogecoin's massive support from Elon Musk, one of the most influential people in the world, gives it an edge. The Twitter (now X) boss has hinted several times about giving Dogecoin a use case by allowing it to power crypto payments on the platform.
So, it’s safe to say that being the index meme coin, alongside its strong community support, and tentative institutional adoption, Dogecoin easily tops the list of meme coins to consider buying ahead of a new bull run.
DOGE is currently trading at around 0.09$ per token, having gained about 70% since the crypto market gained momentum in October. However, it’s still way off its all-time high price of $0.75.
With prospects of a fresh bull market, Dogecoin could hit $1 in a few months, giving investors over 10x returns on their investments.
Bonk INU (BONK)
Bonk INU (BONK) is one of the several dog-themed meme coins created on the back of Dogecoin’s success. It was launched around December 2022, during the bear market, while anticipating a new bull market at the turn of the year, so it quickly gained popularity.
Unfortunately, the general momentum around cryptocurrency was insufficient to give it enough push, so it was largely unprofitable for late investors. However, over the past two months, in line with the general crypto momentum, BONK INU has returned over 40x for investors, flipping the popular Ethereum ecosystem meme coin - $PEPE.
Over the past few weeks and months, BONK has been the best-performing meme coin, and given it’s still below $1 billion in market cap, there is much room for growth, and investors can still anticipate over 20x in returns.
SATS (Ordinals)
SATS is a meme coin on the new experimental BRC-20 token standard that allows the minting and transfer of fungible tokens via the ordinals protocol on the Bitcoin blockchain. In short, SATS is a meme coin on the Bitcoin blockchain network, as BONK is to Solana, and SHIB is to Ethereum.
What makes SATS and other tokens on the BRC-20 network interesting is that the Bitcoin network has never been one to support the creation of fungible tokens, but with this interesting update, the meme coins on the blockchain could provide huge returns for investors.
The first BRC-20 token deployed was called ORDI - short for ordinals. It is currently trading at over $60 per token and has produced over 20x for investors within the past three months.
Hence, other meme coins on the BRC-20 tokens, like SATS, could benefit from the seismic shift of interest towards the token standard.
SATS is currently over 8,000% above its all-time low price and still at a relatively low market capitalization of $1.3 billion. With fresh interest in BRC-20 tokes, it could be remarkably rewarding for investors.
However, it is important to remember that BRC-20 is still experimental, and you should be wary of investing heavily in tokens created on this standard.
Important Things To Consider Before Investing In Meme Coins
- Be Wary of Hype: It is easy to get caught up in the current hype surrounding meme coins due to their potential to provide astronomical returns, even better than tokens with utility. However, it is important to remain level-headed and not let your emotions cloud your judgment. Be sure to do deep research and make investment decisions based on reliable information rather than just following the crowd or investing due to the fear of missing out (FOMO).
- Diversify your portfolio: As with any investment, it is important to diversify your portfolio to spread your risk. This means you should invest only a small percentage of your investment capital in meme coins. You should invest in other crypto assets with known utility.
Don’t fill up your crypto portfolio with just meme coins; the hype could all die simultaneously, and while early investors and whales take out their gains, you could become a hopeless bagholder.
Consider investing in various assets, even beyond crypto, to reduce your risk. - Never Invest More Than You Are Willing To Lose: It is important to understand your risk appetite and never invest more than you can part with. Cryptocurrency is volatile, and investments are high-risk, so avoid greedily gambling away your life savings, rent, tuition, or pension in the bid to become a millionaire overnight - it almost never ends well.
Even if you have a huge amount of capital to invest, going all in at once is never advised. Instead, you should employ strategies like dollar-cost averaging to ensure that you minimize risks in the event of sudden price crashes.
End Note
Yes, meme coins offer the promise of astronomical price increases, even within short periods, and it won’t hurt to have the likes of DOGE, BONK, and SATS, among others, in your portfolio.
However, it is important that you invest with caution, conduct proper research, diversify your portfolio, and only invest what you can afford to lose.
Also, you can store your crypto assets like DOGE on Cwallet and enjoy zero transaction fees, as well as FREE instant cross-chain and on-chain swaps!
The above information is only for educational purposes and should not be construed as financial advice. For more beginner Tips, as well as detailed guides on Cryptocurrency and Blockchain Technology, do well to visit the Cwallet Blog and follow our social media communities:
