9 Survival Rules When Trading Memecoin: Avoid Account Burnout & Keep Profits

95% of memecoin traders do not earn anything at all. It's not because the market is unfair... But because they trade without any plan. Read the article below before you place your next order 🧵👇 Rule 1: Risk Management Limit the amount of money spent on memecoins to 1–5% of your portfolio. Too many people YOLO their entire savings and end up getting "burned". Diversify your bets and set a loss limit so that one wrong order cannot ruin your entire account.

Rule 2: Plan Your Buy & Sell Set profit targets and exit points before buying. History shows that these coins often plummet sharply after major "hype" cycles. If you don't have an exit plan, it means you are planning… failure ( and giving back all the profits just made ).

Rule 3: Don't Chase the Hype If a coin has increased in value by 10 times, guess what – you are the one exiting the market. Traders who enter the market with FOMO mentality at the peak will have to hold their coins when insiders dump their holdings. Pumpers and dumpers take advantage of greed. Restrain those green candles and stick to your strategy.

Rule 4: Understand This Coin Clearly Many memecoins have no real value - buying them is basically gambling. So DYOR: Who is the developer? Who holds the supply? Can the founder dump tokens at will? If a project is just a pump ( or a few wallets hold most of the tokens ), you are playing with fire.

Rule 5: Be Cautious with Low Liquidity Scam tokens often soar and then collapse as soon as insiders sell off. Just one large order can cause the price to plummet if no one is buying in. Low liquidity also means high slippage and terrible execution price during trading. You might even not be able to withdraw any money from a coin that is "dying".

Rule 6: Use On-Chain Information Monitor effective trading wallets to see where smart money is flowing. On-chain analysis can reveal whether whales or the development team are quietly accumulating or dumping. If you trade blindly without monitoring the blockchain, you are playing with "insiders" holding loaded dice.

Rule 7: Pay Attention to Fees & Slippage Every time you buy/sell, there are fees ( on CEX, DEX, or bot fees ) that accumulate – just 10 quick transactions can "eat" away about 5% of your capital. Slippage ( with poor order matching ) can "scoop" an additional 5–10%. These hidden costs are a kind of "slow bleed"; trading too much will erode all your profits.

Rule 8: Avoid Rugpull & Honeypot If the liquidity is not locked, the dev can drain the pool and disappear. Some tokens may even not allow you to sell (honeypot warning – try selling a small amount to test!). Only participate in projects with verified source code, locked liquidity, and a team with public identities. Trust but always verify.

Rule 9: Control Emotions Greed and fear are your biggest enemies. If you panic and sell off every time the price drops, or cling tightly waiting for it to “moon” while profits gradually evaporate, you will be “toast”. Keep a cool head, stick to your plan, and ignore the noise on Twitter along with the “moon” calls from the moon-boys.