Ben Armstrong recently shared insightful tips and strategies for navigating the volatile landscape of meme coin trading. The CoinSpeech team has collected the most important takeaways from his recent appearance. You can find Ben Armstrong’s new video below.
Understanding the Volatile Meme Coin Market
Meme coin trading is a high-risk, high-reward endeavor. According to Armstrong, “thousands of new meme coins are created every single day, and a lot of them are rug pulls, pump and dumps, or headed straight to zero.” However, when these coins perform well, they can deliver returns of “10, 100, and even 1,000x if you’re lucky.”
Essential Tools for Meme Coin Traders
Armstrong emphasizes the importance of using the right tools, referring to Deckscreener as vital for meme coin traders. He explains, “Deckscreener provides real-time data on new token launches and trading activity,” which is crucial for spotting potential opportunities.
A variety of telegram bots like Pepe SoBot, Bong Bot, and BuX can streamline the trading process. “Using these bots allows you to execute trades within the telegram interface,” Armstrong notes, making the entire process more efficient.
Identifying Promising Meme Coins
Spotting a good meme coin project requires diligent research. Armstrong advises checking for “coins that are gaining traction with significantly higher buy volume than sell volume.” He also suggests using tools like Soul Scanner to analyze token ownership and distribution, looking for a wide range of holders and locked liquidity.
“Verify the liquidity is locked,” Armstrong insists, as this prevents blatant rug pulls. Additionally, anything that suggests large portions of the supply were airdropped or sniped by the developers should be approached with caution.
The Risks: Rug Pulls and Pump-and-Dump Schemes
Armstrong warns about the various tricks developers use in this risky market. For instance, he describes how some “set up multiple wallets and strategically sell tokens to create the illusion of community-driven selling pressure,” thereby attracting unsuspecting investors. Once significant liquidity is accrued, these funds can be swiftly withdrawn, rendering the tokens worthless.
Trading Strategy: Get In and Get Out
“Think of trading a salon meme coin like jumping into an ice bath—get in and get out, and you might just be okay,” Armstrong advises. He emphasizes the importance of taking early profits to ensure capital preservation. “Every profit is a good profit, and even small wins add up over time,” he says.
Armstrong recommends aiming for quick profits by pulling out initial capital and a small gain shortly after entering a trade. This approach reduces emotional attachments to the outcome and helps in making rational decisions.
Conclusion
While Armstrong is still uncertain whether meme coin trading is “for dorks,” he is clear that “capital preservation is always for winners.” According to him, the safest strategy might be to buy and hold some Solana, as this approach focuses on consistent, sustainable gains rather than unrealistic moon shots.