Holding meme coins long term isn’t a smart strategy for most people.

It’s unpredictable, emotional, and half the time it ends in losses.

But, scalping meme coins could be a trading strategy (with slightly less risk) that you could get into.

Smaller trades. Shorter holds.

In this guide, we’ll walk through how scalping meme coins works, how to spot decent trades, and how to avoid the common mistakes that end in losses.

How Does Meme Coin Scalping Work?

The core idea behind scalping is simple: identify small price movements, quickly enter a trade, then exit as soon as you've made a small profit (0.5%-1%).

The idea is simple:

• Spot a small price move

• Get in

• Get out with a small win

• Repeat

These profits might seem insignificant on their own, but when repeated dozens or even hundreds of times a day, they can add up to quite substantial returns.

Depending on how much you’re investing for each purchase and sale, you could certainly make enough money to live on, or enjoy a nice supplementary income. 

How To Scalp Meme Coins: A Step-by-Step Guide

Step 1: Choosing the Right Meme Coin

Not every meme coin is worth your time. Some are way too illiquid, some barely move, and some are just straight-up scams.

If you’re scalping, you need two things:

1. Liquidity – so you can get in and out fast without slippage

   
   

2. Volatility – so there’s actually price movement to profit from

   
   

What to look for:

1. High trading volume
If a coin isn’t moving at least a few million dollars a day, don’t bother. You’ll get stuck in trades or forced to sell at worse prices. Stick to coins listed on decent exchanges with active markets—places like Binance, Coinbase, or OKX.

2. Tight spreads
The smaller the gap between the buy and sell price, the better. You don’t want to lose 1% just for entering a trade.

3. Regular price movement
You want coins that move up and down in short bursts, not flatliners, and not ones doing insane 50% swings every five minutes. Look for coins with consistent intraday volatility you can actually trade on.

4. Avoid obvious pump-and-dumps
If a coin has gone up 800% in the last 3 hours because some influencer tweeted about it—leave it alone. You’re not early, and the dump is coming. Look for coins that move because of volume and trend, not hype alone.

Step 2: Setting Up Your Charting Tools

You'll need access to charting tools that provide up-to-the-second price data and access to decent technical indicators (here are some trading signals you might want to learn about)

• Real-time Charts: Use a charting platform that offers real-time price data. Delays WILL cost you money in scalping.

  
  

• Key Indicators: Focus on a few simple, beginner-friendly technical indicators to help you identify potential entry and exit points (here’s a guide to help), such as:

  
  

  • Volume: Volume confirms the strength of price movements. Look for increasing volume when the price moves in your desired direction. A price increase with low volume may be a false signal.

    
    

  • 9-day Exponential Moving Average (EMA): The 9 EMA helps identify short-term trends. If the price is consistently above the 9 EMA, it suggests an upward trend. If the price is consistently below the 9 EMA, it suggests a downward trend

    
    

  • Relative Strength Index (RSI): The RSI helps identify overbought and oversold conditions on short timeframes. An RSI above 70 suggests the coin may be overbought and due for a pullback. An RSI below 30 suggests the coin may be oversold and due for a bounce.

Don’t worry if these terms and ideas seem too technical, we have a genius solution you will find at the very end of this guide.

Step 3: Identifying Scalping Opportunities

Use your charting tools and indicators to identify potential scalping opportunities.

• Entry Signals: Look for specific technical signals that suggest a potential price movement, as explained in Step 2.

  
  

• Stop-Loss Orders: This is crucial. Protect your capital by setting a tight stop-loss order just below your entry point.

  
  

  For example, if you buy a coin at 0.001, set a stop loss at 0.00095 (a 0.05% loss).

  
  

  The exact percentage will depend on your risk tolerance and the volatility of the coin. You may be willing to lose more. Just remember that a coin might drop 1% before it pumps 5%. 

  
  

• Take-Profit Orders: Aim for small gains like 0.5% to 1% per trade.

  
  

  Set a take-profit order at your target price to automatically exit the trade when it reaches your desired profit.

  
  

In short, when you have the data to suggest a coin will rise in price, you buy it, then put in two orders - one to sell when it hits a price below your cost price, and one to sell when it hits a certain price above your cost price.

This way you either guarantee a tiny loss or a small profit.

If you repeat this over and over, and your chart analysis is solid and you execute trades fast, you’re likely to win more than you lose.

Step 4: Executing the Trade and Monitoring

With all of the above in mind, all that’s left to do is make sure you get your orders in fast and execute the deals smoothly. Errors and delays can be costly. 

• Fast Execution: Use limit orders to enter and exit trades quickly at your desired price. Market orders can result in slippage, especially with volatile meme coins.

  
  

• Constant Monitoring: Scalping requires constant attention. Monitor your trades and be ready to exit if the price moves against you. The SACRED LAW of trading is this: Don't let emotions cloud your judgment.

  
  

• Discipline: Stick to your trading plan. Don't get greedy and try to hold on for bigger gains. Remember, scalping is about small, consistent profits.

Risks in Meme Coin Scalping

Look, there’s no two ways about it: scalping meme coins is a high-risk activity. You can lose money quickly if you're not careful.

So, don't invest money you can't afford to lose. However, if you start scalping frequently and you get into a good routine with it, you can easily make enough money to live on and have a good life.

However, please consider the risks.

• Transaction Fees: Transaction fees can eat into your profits when scalping. Each trade incurs a fee, which can tally up quickly, especially if you're making frequent trades.

  
  

• Psychological Impact: Scalping can be stressful and emotionally draining. It requires constant focus and quick decision-making.

  
  

  It's also easy to get emotional if trades start going wrong, and humans are known to be extremely greedy. With scalping, to be successful, you must stick to your pre-planned exit points.

  
  

• Market Volatility: Meme coins are notorious for extreme volatility, which can lead to rapid losses. A sudden, unexpected price swing can wipe out your profits in seconds.

  
  

• Liquidity Issues: If liquidity dries up, you may not be able to exit your trades at your desired price, leading to losses. This is known as slippage.

  
  

  Imagine trying to sell a coin but there are no buyers at the price you want, so your sale won’t go through until it hits a buyer at an even lower price

• Scams and Rug Pulls: Be extremely cautious of new and unproven meme coins. Many are designed to scam investors.

  
  

  A "rug pull" is when the creators of a coin suddenly abandon the project and sell all their holdings, causing the price to crash to basically zero.

  
  

  
  

Let’s move on to the “where” of scalping.

Tools and Platforms for Effective Scalping

Having the right tools and platforms is essential to do the job! You’ll want to look for platforms that offer the big three of scalping: low fees, real-time charting, and fast order execution. Remember to always do your own research before using any platform.

Trading Platforms

• Choose reputable cryptocurrency exchanges like Telemetry, Binance, KuCoin, and Coinbase, but always research their specific features and fees first.

  
  

• Look for platforms with API access if you're an advanced trader who wants to automate your scalping strategies.

  
  

Charting Software

• Use reliable charting platforms like TradingView or Coinigy. These platforms offer advanced charting tools, a wide range of technical indicators, and customizable alerts.

  
  

Real-time Data Analysis

• Subscribe to services that provide real-time price and volume data. This information is crucial for making informed decisions and identifying scalping opportunities (you can try signals and Telegram trading groups too)

  
  

Due Diligence Tools

• Use resources like CoinGecko, CoinMarketCap, BullX, DappRadar, Dune Analytics, and Photon to research meme coins. Check their market capitalization, trading volume, community activity, and website to assess their legitimacy.

  
  

Remember to do your own research and due diligence before using any tool or platform.

The information in this guide is for educational purposes only and should not be considered financial advice.

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