How to Detect the Earliest Potential Meme Coin and Minimize Risks

In the context of the increasingly developing meme coin market, finding projects with early potential before they explode is a goal that most investors desire. However, not everyone knows how to identify promising meme coins while minimizing significant risks from fake or scam projects.

Although the recent case of PEPE coin has attracted significant community attention, if you missed it, there’s no need to worry. In the world of cryptocurrency, countless other opportunities are waiting for you. The key is not to let FOMO (Fear Of Missing Out) dominate your investment decisions. Instead, build a rational strategy to systematically search for potential meme coins, while still adhering to your long-term investment plan with BTC and ETH.

Useful Tools for Early Screening of Potential Meme Coins

Discovering promising meme coins is not just about luck; it also requires support from specialized tools. Currently, many platforms allow you to monitor and analyze newly issued tokens.

Use DEXTools or Dex Screener to filter new projects

DEXTools and Dex Screener are two leading tools for exploring the latest meme coins. The process is straightforward: access DEXTools, then sort by the “Created” column to see tokens recently created. However, be warned that about 90% of projects on this list may be scams.

To filter out worthwhile projects, pay attention to the following factors:

• Liquidity: Only consider tokens with actual existing liquidity. Tokens without liquidity are a primary sign of scam.

• Number of holders: If a token has fewer than 100 holders, you should avoid it. A higher number of holders indicates greater distribution, reducing the risk of price manipulation.

• DEXT Score: This is an aggregated score calculated from blockchain data and external sources. The score ranges from 1-99, where:

  • High (>80): Relatively safe
  • Medium (50-80): Moderate risk
  • Low (10-50): High risk
  • Very low (<10): Should be avoided

Always prioritize tokens with higher DEXT Scores.

Check community activity with Tweetscout

After finding a promising meme coin that meets basic criteria, the next step is to evaluate community quality. If the project lacks an official website or active community, the likelihood of it being a scam is very high.

Look for projects with:

• Over 1,000 followers on Twitter
• A professionally designed, user-friendly official website
• Active Telegram/Discord communities (not bots)

Tweetscout.io is a powerful tool to assess a project’s Twitter activity. Simply paste the Twitter account link into the search bar, and you’ll get an overview of engagement levels, credibility, and the potential of that account.

Find trending meme coins on Blockchaincenter

While discovering meme coins when they are already trending might seem “late,” in many cases, it still presents good opportunities. A token can continue to increase in price for days after it starts trending.

Websites like LunarCrush, CoinMarketCap, CoinGecko all feature trending sections. However, Blockchaincenter.net stands out because it aggregates trending data from multiple sources, giving you a more comprehensive picture of the hottest meme coins currently.

There is a famous challenge called the “Trending Coin Challenge” on this platform, where investors test the theory of buying trending tokens daily with equal amounts. Results often show that this approach doesn’t outperform simply buying BTC daily, reminding us of the importance of diversification.

Check token safety with Token Sniffer

Before trading, you should verify the token address on Token Sniffer (tokensniffer.com). This tool analyzes smart contracts and displays the safety level of the token. The higher the score, the safer the token.

Some important indicators to watch:

• Honeypot: Only fake tokens that you cannot sell
• Buy/Sell Taxes: Check carefully before trading to avoid unwanted losses
• Ownership of the contract: Should be renounced or not assigned to third parties
• Holder distribution: Owners and other participants should hold less than 5% of the total supply

Strategies for Tracking Smart Money and Whales to Catch Meme Coin Trends

Another effective method is to monitor “whale wallets” and “smart money” — those who have a successful investment history with meme coins.

Identify early whale wallets

First, identify the wallets that participated early in successful meme coins like PEPE. You can access Etherscan, copy the smart contract address of the token, and check which wallets were the earliest buyers. These individuals tend to continue seeking similar opportunities in the future.

Identify smart money and track on DeBank

Once you’ve identified whale wallets, you can look for “smart money” — large investors with a successful investment track record. Following @lookonchain on Twitter is a great way to stay updated on their activities.

Then, use DeBank to monitor their portfolios. Visit DeBank, paste the wallet address into the search box, and you’ll see:

• The assets they hold
• Their transaction history
• New tokens they have purchased

This approach not only helps you discover promising meme coins early but also learn from the strategies of successful investors.

Basic Principles for Finding Promising Meme Coins

Before searching, you need to understand the nature of meme coins. These are not complex technological projects but tokens based on community and market attention.

Understand what meme coins are

Meme coins differ from traditional cryptocurrency projects in that they lack clear technological purposes. Instead, their value depends on humorous memes, a strong community, and social media interest.

Follow actual performance indicators

Look for meme coins showing positive price signals. Get in early, when there is initial interest but before a sudden price surge. Use DEXTools to track the most prominent projects.

Building a community is key

A strong community is the core strength of any meme coin. Seek out genuinely funny, easy-to-understand memes with viral potential. Check social metrics on LunarCrush, Twitter Trends, Telegram, Discord, or other tools to assess real engagement.

Analyze tokenomics

While not the most critical factor, examining aspects like development team, their experience, partnerships, and related ecosystems can help reduce risks.

Most Effective Meme Coin Investment Methods

Suppose you’ve found a promising meme coin and decided to invest. Now is the most crucial time — to build a plan to manage your capital wisely.

Treat meme coins like a lottery

Handle meme coins as if playing the lottery. Only invest an amount you can afford to lose entirely without affecting your personal finances. Always prepare mentally for the possibility of losing all your capital.

Use separate wallets for meme coin transactions

Separate your long-term holdings (BTC, ETH) from meme coin trading funds by using different wallets. This not only protects your main portfolio but also helps prevent emotional decision-making.

Apply technical analysis (TA)

Although TA on meme coins is more challenging due to liquidity and limited data, it remains a useful tool. Wait for significant price corrections and trade at resistance/support levels. You can also consider using Dollar-Cost Averaging (DCA) at predetermined levels to minimize market volatility.

Gradually withdraw profits

If you’re lucky and in profit, gradually take out your principal. For example, when profits double or triple your initial capital, withdraw part of it. Continue investing with the profits. As profits grow, withdraw a certain percentage. However, this strategy is only effective until the meme coin reaches its peak. After that, the market may decline sharply. To reduce risks, monitor indicators signaling market top.

Conclusion: From Theory to Practice

Although investing in meme coins carries high risks, with the right tools and methods, you can identify promising projects early to maximize profit opportunities. One of the biggest advantages of meme coins is rapid return on investment — while traditional crypto investments may take months to years, meme coins can generate profits within days or even hours.

However, this does not mean you should abandon investment principles. Always follow a clear plan, know when to take profits, and when to exit. Understand your risk tolerance, set realistic goals, and implement a comprehensive strategy to protect your investments while enjoying the opportunities that promising meme coins can offer.

Hopefully, these guidelines will help you discover promising meme coins early, before they become mainstream trends and are listed on major exchanges.