From Nasdaq:

The rise of memecoins has led to overwhelming options for retail investors. Qiao Wang, a crypto founder, tweeted about the importance of anticipating memes and narratives over a 3 to 18-month time horizon. This means the ability to recognize and ride trends, like those seen with GameStop and Dogecoin. These “memecoins” have no fundamental value beyond entertainment and speculation but have gained multi-billion-dollar valuations.

Wang dedicates an entire blog to “degen” traders, who are extremely high risk-tolerant and are the pioneers of the cryptocurrency space. Degens take risks by investing in unproven financial protocols and are first to test and find use cases for new meme coins. They profit big or suffer significant losses due to their extreme risk appetite.

While adopting degen status might be profitable, it’s not for the faint of heart. Significant profits are not typically made during the first bull run. It requires time, energy, and personal sacrifices. However, observing the moves and strategies of degens can be beneficial, as buying early is key to successful crypto investing, according to “Rich Dad Poor Dad” author Robert Kiyosaki.

So, despite the immense gains, it’s crucial to understand the risks and sacrifices associated with being a degen trader. While observing the strategies of degens can be instructive, novice investors should proceed with caution and understand the volatile nature of investing in meme coins.



Read more: GameStop, Dogwifhat And ‘Dogecoin Killers:’ How Memecoins Teach A ‘Skill To Succeed’ In Crypto