How to use GMGN to play with Meme coins (beginner's guide)

Recently, the on-chain traffic has exploded, the trading mascot concept coin has soared 60,000%, and the DeSci narrative has emerged. Meme coins have become the biggest dark horse in this round of bull market!

On-chain operations are difficult. In this tutorial, Biteye will teach novices how to get started and use GMGN to play Meme coins!

There will be advanced chapters later, welcome to follow.

This article will focus on new listings, mainly teaching everyone how to find, analyze and trade newly launched Meme coins.

01 Quick Literacy for Newbies

1. What is GMGN?

A website that combines Meme coin data dashboard + trading tools.

2. What is on-chain trading?

Activities and transactions conducted directly on the blockchain do not rely on centralized exchanges such as Binance and OKX.

3. What wallet to use?

Phantom, OKX and other mainstream wallets, installation and usage tutorials can be searched on Youtube, which will not be expanded here.

4. What is the token address (CA)?

A string of letters like "GJtJuWD9q*****wMBmtY1tpapV1sKfB2zUv9Q4aqpump" can be pasted in the GMGN search box to find this token.

As shown below:

02 New Project Discovery

1. Pay attention to smart money

Tracking smart money means tracking the wallet addresses of users who have obtained higher returns on the chain and observing the investment objects they choose. The following three links are a list of smart money on different chains of GMGN, and the corresponding icon explanations:

ETH chain https://gmgn.ai/discover?chain=eth

Solana chain https://gmgn.ai/discover/?chain=sol

Blast chain https://gmgn.ai/discover?chain=blast

After following the smart money, a red bubble and sound prompt will be displayed in the "Followed" in the lower left corner when there is a new development (which can be turned off or on).

GMGN also provides the function of binding Telegram notifications, so that once the wallet you follow performs any operation, you can receive a notification immediately.

Click "Followed" to view the real-time trading dynamics of smart money, including buy/sell/add positions/add positions/build positions/clear positions, etc.

You can also click on any smart money address interface for more detailed information, including position analysis, profit and loss distribution, trading activities, etc.

There are hundreds of Meme coins online every day, and there may be concentrated purchases by smart money. When choosing to follow, it is best to consider your own trading habits and avoid following too many wallets to cause information noise. It is recommended to choose a wallet with a similar style to your own to ensure the efficiency of information flow.

Note that checking the security of the contract cannot be ignored, because there are many smart money who buy at will regardless of the security of the contract.

2. Scan and push the chain

• Scan and push: Follow a large number of Chinese and English KOL accounts related to Meme coins on Twitter, and join various discussion groups to obtain the latest information and dynamics.

• Chain sweep: Pay close attention to the tokens that enter the outer market (large market) from the inner market (small market) and quickly evaluate whether these tokens are worth investing in.

On the GMGN platform, you can view the following three types of tokens:

• Category 1: Newly created internal tokens (highest risk)

• Category 2: Internal tokens that are about to be fully allocated

• Category 3: Tokens that have entered the external market (lowest risk)

Explanation of internal/external market:

When a new project is successfully deployed using the automatic coin issuance tool pump.fun, users can use sol to purchase the project's tokens. When its market value reaches US$69,000, the project's liquidity will be automatically added from pump.fun to Raydium.

• Before reaching $69,000, we call it the internal market. At this time, the project is in a very early stage and the risk is extremely high;

• After reaching $69,000 and successfully adding liquidity to Raydium, we call it the external market. At this time, the project has further developed and the risk has been reduced.

It is recommended to focus on tokens that have entered the external market. Although the external market still has a high risk, it has been reduced a lot compared to the internal market, and it is relatively friendly to novices.

And most of the external markets have a market value of millions, and there is still a lot of room for profit.

Note that the entry of tokens into the foreign market does not mean that they will rise 100%. There are also cases where a large number of tokens quickly return to zero after the opening of the foreign market. Please always be cautious during the investment process!

By patiently monitoring and analyzing the performance of these tokens, judging their potential and investment value, we finally achieved profitability. But how to analyze specifically? See the detailed explanation below.

03 Token Analysis

Once you have learned how to use GMGN to find new coins on the chain, the next step is to analyze and select the targets worth buying from a bunch of Meme coins.

Specifically, it depends on the hot spots, narratives, market value, community and market dynamics to determine whether to buy. Different types of Meme coin strategies are also different:

1. Hot spots

Many of these tokens are small-cap tokens that have become popular in a short period of time due to specific events or trends. They may have a high increase in the early stage, and the potential space can reach more than 10 times, from a market value of millions to a market value of tens of millions.

However, if the hot spots are not sustainable, the price has no support point, the celebrities do not shout orders, the new narrative level has not been reached, the community with great influence has not been formed, and the exciting low-probability events have not been experienced. It is likely to gradually lose liquidity and the price will continue to fall.

Here are a few examples of so-called low-probability events:

• The founder of $SLERF accidentally burned all the liquidity pool tokens (LP), airdrop reserved tokens, and minted coins, triggering a high bullish sentiment on the chain, which led to the rapid listing of $SLERF on the exchange.

• There is also the recent $BITCAT. When the sentiment on the chain was fermenting around the concept of "mascot", Bitcon's official Twitter suddenly posted a picture of a black cat. A group of people thought that this hinted at the Bitcoin mascot. As the consensus continued to spread, the related token $BITCAT quickly pulled up the market. Within 3 hours that night, the price soared from a market value of hundreds of thousands to a market value of 100 million, and maintained a market value of about 50 million in the second half of the night.

For this type of token, the following suggestions are made:

• Buy early, with a market value of hundreds of thousands being the best. If you enter the market too late, don't wait until the market value is over 10m (tens of millions of market value) to chase highs, as it is easy to get stuck;

• If you are optimistic about the sustainability of the hotspot, wait for the price to fall back by 80% before entering, which can reduce the risk.

2. Narrative

This type of target often does not rely on short-term hot spot increases, but gradually rises from small market value to large market value around a certain narrative or community.

Unlike hot tokens that skyrocketed instantly, they may experience multiple stages of stable growth, usually with a market value of millions to tens of millions of dollars, and even over 100 million at the highest.

For example, $RIF, with the background of antibiotics used to treat tuberculosis, is currently the leader of DeSci + Meme. The token is pulled up because of the increasing attention on the chain to the DeSci (decentralized technology) narrative. As the first token of Pump Science, as the narrative heats up, its purchase orders continue to increase, and its position is gradually consolidated as the leader of the track.

For this type of tokens, my suggestions are as follows:

• Pay attention to new narratives that are also good narratives, such as DeSci, and choose to build positions in steps with low market capitalization (hundreds of thousands to small millions);

• In the medium and long term, pay attention to the social media, community activity and capital inflows of these tokens to judge their sustainability and potential.

04 How to trade

The following figure is an overview of the GMGN trading system:

1. Left column interface

Collection and holding list

Quickly understand the price and profit changes of your collection and holding tokens, and you can also sell them quickly at any time when watching the market.

Hot, Pump, Watched List

Filter out the hot tokens and Pump tokens that best suit your trading strategy by checking time, number of transactions, price, and price percentage. The watched list is convenient for one-click follow-up buying at any time when watching the market.

2. Middle main interface

A lot of relevant information about the token is covered below the K-line, including trading activities, traders, holders, blue chip holders, etc., and is classified by smart money, KOL/VC, whales, new wallets, snipers, large coin holders, developers, followed, and rat warehouses.

When studying the token, you also need to refer to this information to analyze the holdings of whales and smart money. For example:

• Mark suspected insider trading to determine whether the dealer wants to use a small wallet to disperse tokens and try to smash the market and run away.

• Mark suspected phishing wallets. If the transferred tokens are not purchased, they will be marked.

3. The right trading interface

View indicators

View token transaction volume, buy, sell, net buy, liquidity, minting data, blacklist and other indicators. It is also important to check the burning pool ratio and the probability of running away.

Set slippage and turn on Anti-MEV mode

Slippage refers to the maximum acceptable deviation in the number of tokens declared for a single transaction. The higher the slippage, the faster the transaction. Most of the time, a slippage of about 0.5% is recommended, and it can be increased to 10% in case of severe market fluctuations.

(Note: MEV sandwich attack refers to the MEV robot reading the incoming transaction information and executing the order first, thereby pushing up the token price when you buy. Turning on the anti-sandwich mode can effectively prevent sandwich attacks.)

Select the amount and buy/sell manually

I will write an advanced article later, talking about limit price automatic buy, pending order automatic buy and other operations, welcome to follow.

05 Risk Warning

Hundreds of Meme coins will appear on the chain every day, and most of them will return to zero. The probability of running out of the Golden Dog (market value of tens of millions/hundreds of millions or more) is extremely low, not to mention being listed on a large exchange.

In short, the higher the return, the higher the risk, please be responsible for yourself!