Introduction
Throughout my entire investment journey, I never took serious investing in meme coins, especially for the long term. But if I did, I would use only like 2% of my balance, but it was almost never successful. In my humble opinion, instead of gambling on meme coins, there are much safer options with real potential for growth, like cryptocurrencies with a real project behind them.
This post is not because I hate meme coins, here are the real consequences you could face with them. The reasons why you should avoid meme coins are:
High volatility
When we talk about meme coins, high volatility is not always meant to be good. There is other side of this coin. If you're lucky enough, you’ll see the price spike to the upside. The good practice is to sell after it touches the resistance level. As it pumps quickly, it can go down the same way. The price can go up to 50% in ten minutes, making investors believe this coin is going to the moon. Instead, it crashes later, leaving them with worthless coins. In most cases involving this coin, I experienced a loss due to a sudden price crash.
In my own experience, I often saw these sharp increases followed by a complete crash. It’s like a roller coaster, and if you don’t sell at the right time, you’re left at the bottom, holding onto a coin with no value. This happened to me a couple of times early on, and it taught me a valuable lesson: high volatility can be exciting, but it’s not worth the stress.
Lack of utility
It’s not a secret for many investors, these coins have no usability at all. The main purpose is for people to just buy and hold it for the short term while the hype around this coin is ongoing. The idea behind them is a joke or a parody without serious intentions for long-term success.
I remember a time when I bought a meme coin just for fun, thinking, “Hey, why not ride the wave?” But after the hype died down, I was stuck with a token that had no purpose and no potential for future growth. It was a wake-up call, and I quickly realized that if a coin doesn’t offer real value or solve a problem, it’s not worth my money.
Low liquidity and market manipulation
Compared to other cryptocurrencies, meme coin has lower liquidity. That means market makers can artificially pump it whenever they want, giving people the illusion that this coin is highly in demand. Investors may struggle seeing this coin go down with huge selling pressure. This makes the meme coin typical of a “ponzi scheme”, in other words, just people who hold it.
Potential scam
This is probably one of the scariest aspects of meme coins. Because they aren’t regulated, some meme coins turn out to be outright scams. Creators can drum up hype, get people to invest, and then vanish, leaving investors holding worthless tokens.
I haven’t personally fallen victim to a meme coin scam, but I’ve seen enough stories to know it’s a real risk. Meme coins can get delisted from reputable exchanges without warning, and when that happens, trading them becomes nearly impossible. You’re essentially stuck with tokens that no one wants to buy. The lack of regulation in this space means you always have to be cautious, especially when a new meme coin suddenly pops up with wild promises.
In Addition
While I haven’t been completely immune to the allure of meme coins, my overall experience has led me to avoid them in the long run. The high volatility, lack of real-world utility, low liquidity, and potential for scams just aren’t worth the gamble for me. If you’re thinking about investing in meme coins, be careful. Use only a tiny fraction of your portfolio and never invest more than you can afford to lose.
For me, I’d rather put my money into projects that have real growth potential, backed by solid technology or a strong use case. If you're going to dive into the crypto world, I believe it’s better to focus on long-term gains rather than short-term hype.
