Written by: Viee, Core Contributor of Biteye

Edited by: Crush, Core Contributor of Biteye

Recently, there has been a massive surge in on-chain traffic, with trading mascot concept coins skyrocketing by 60,000%, the rise of DeSci narratives, and Meme coins becoming the biggest dark horse of this bull market!

On-chain operations can be quite challenging. In this tutorial, Biteye will guide beginners step by step on how to use GMGN to play with Meme coins!

There will be an advanced section later, so stay tuned.

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

01 Quick Introduction for Beginners

1. What is GMGN?

A website that combines a Meme coin data dashboard and trading tools.

2. What is on-chain trading?

Activities and transactions conducted directly on the blockchain, without relying on centralized exchanges like Binance or OKX.

3. What wallet should I use?

Mainstream wallets like Phantom and OKX. Installation and usage tutorials can be found on YouTube, so we won't elaborate here.

4. What is a token address (CA)?

A string of letters like "GJtJuWD9q*wMBmtY1tpapV1sKfB2zUv9Q4aqpump". You can paste it into the GMGN search box to find this token.

As shown in the image below:

02 Discovering New Projects

1. Follow Smart Money

Tracking smart money means following the wallet addresses of users who have achieved high returns on-chain and observing their chosen investment targets. The following three links are lists of smart money on different chains on GMGN, along with 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 smart money, any new updates will show a red bubble and sound notification (which can be turned off or on) in the lower left corner under "Followed."

GMGN also provides a feature to bind Telegram notifications, so once the followed wallet performs any operation, you will receive immediate notifications.

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

Every day, hundreds of Meme coins are launched on-chain, and there may be concentrated buying from smart money. When choosing whom to follow, it's best to consider your own trading habits to avoid information noise from following too many wallets. It is recommended to track wallets that are similar in style to yours to ensure the efficiency of the information flow.

Note that checking contract security cannot be overlooked, as many smart money wallets also buy recklessly without considering contract safety.

2. Scan Push and Scan Chain

• Scan Push: Follow a large number of Chinese and English KOL accounts related to Meme coins on Twitter and join various discussion groups to get the latest information and updates.
• Scan Chain: Closely monitor tokens entering the external market (large market) from the internal market (small market) and quickly assess whether these tokens are worth investing in.

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

• First type: Newly created internal market tokens (highest risk)
• Second type: Internal market tokens that are about to reach their cap
• Third type: Tokens that have entered the external market (lowest risk)

Explanation of internal/external market:

When a new project successfully deploys using the automatic token issuance tool pump.fun, users can use SOL to purchase the project's tokens. When its market cap reaches $69,000, the project's liquidity will automatically be added from pump.fun to Raydium.

• Before reaching $69,000, we call it the internal market. At this point, the project is in a very early stage, with extremely high risk;
• Once it reaches $69,000 and successfully adds liquidity on Raydium, we call it the external market. At this point, the project has made further progress, and the risk is somewhat reduced.

It is recommended to mainly focus on tokens that have entered the external market. Although there is still a high risk in the external market, it is significantly lower than in the internal market, making it relatively friendly for beginners.

Moreover, most external market tokens reaching a market cap of millions are still few, leaving considerable room for profit.

Note that entering the external market does not guarantee a 100% price increase; there are also many cases where tokens quickly drop to zero after opening in the external market. Always remain cautious during the investment process!

By patiently monitoring and analyzing the performance of these tokens, we can assess their potential and investment value to ultimately achieve profits. But how exactly do we analyze them? Let's look at the detailed explanation below.

03 Token Analysis

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

Specifically, you should judge whether to buy based on trends, narratives, market cap, community, and market dynamics. Different types of Meme coin strategies also vary:

1. Trend-based

These tokens often rapidly gain popularity due to specific events or trends in a short period. They may have high initial price increases, with potential growth exceeding 10 times, moving from a market cap of hundreds of thousands to tens of millions.

However, if the trend is unsustainable, the price lacks support, no celebrities are promoting it, it hasn't reached a new narrative level, hasn't formed a significant community, or hasn't experienced an exciting low-probability event, it may gradually lose liquidity and the price will continue to decline.

Examples of low-probability events include:

• The founder of $SLERF accidentally burned the liquidity pool tokens (LP), airdrop reserved tokens, and all minted tokens, triggering a surge in bullish sentiment on-chain, leading to $SLERF quickly listing on exchanges.
• Recently, $BITCAT. As on-chain sentiment was brewing around the "mascot" concept, Bitcoin's official Twitter suddenly posted a picture of a black cat, leading some to believe it hinted at a Bitcoin mascot. As the consensus spread, the related token $BITCAT quickly surged, experiencing a price increase from hundreds of thousands to a market cap of one hundred million within three hours that night, maintaining around fifty million in market cap later that night.

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

• Buy early, ideally at a market cap of hundreds of thousands. If you enter too late, do not wait until the market cap exceeds 10 million to chase high prices, as it is easy to get trapped;
• If you are optimistic about the sustainability of the trend, wait for the price to drop by 80% before entering, which can reduce risk.

2. Narrative-based

These targets often do not rely on short-term trends for price increases but gradually rise from small to large market caps around a certain narrative or community.

Unlike trend-based tokens that experience instant surges, they may go through multiple stages of stable growth, usually with market caps ranging from a few million to tens of millions of dollars, and at their peak, even exceeding one hundred million.

For example, $RIF, which is based on antibiotics used to treat tuberculosis, is currently a leader in DeSci + Meme. The price surge of this token is due to the increasing attention on the DeSci (Decentralized Science) narrative on-chain. As the first token to launch in the Pump science category, its buy orders have been continuously increasing as the narrative heats up, and its position has gradually solidified as a top player in the field.

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

• Pay attention to new narratives that are also good narratives, such as DeSci, and consider gradually building positions at low market caps (hundreds of thousands to small millions);
• Monitor the social media, community activity, and capital inflow of these tokens in the medium to long term to assess their sustainability and potential.

04 How to Trade

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

1. Left Column Interface

Favorites, Position List

Quickly understand the prices and profit changes of the tokens you have favorited and held, allowing for quick selling at any time while monitoring.

Hot, Pump, Followed List

Filter the hottest tokens and Pump tokens that best match your trading strategy by checking time, transaction count, price, and price percentage. The followed list allows for one-click buying while monitoring.

2. Main Interface in the Middle

The area below the K-line covers a wealth of information related to the token, including trading activities, traders, holders, blue-chip holders, etc., and is categorized by smart money, KOL/VC, whales, new wallets, snipers, large holders, developers, followed, and suspected wash trading.

When researching the token, it is also necessary to reference this information and analyze large whale holdings, smart money, etc. For example:

• Mark suspected wash trading to determine if the market maker is trying to use small wallets to disperse tokens in an attempt to dump and run.
• Mark suspected phishing wallets; if tokens are transferred in without purchase, a mark will be given.

3. Right-side Trading Interface

View Indicators

Check indicators such as token trading volume, buy, sell, net buy, liquidity, minting data, blacklist, etc. It is also important to check the burn pool ratio and the probability of running away.

Set Slippage and Enable Anti-MEV Mode

Slippage refers to the maximum acceptable deviation in the number of tokens for a single transaction. Increasing slippage allows for faster transaction speeds. It is generally recommended to set slippage around 0.5%, but it can be increased to 10% during periods of high market volatility.

Select Amount, Manual Buy/Sell

An advanced section will be written later to discuss operations such as limit orders and automatic buying, so stay tuned.

05 Risk Warning

Every day, hundreds of Meme coins appear on-chain, and most will go to zero. The probability of finding a golden dog (with a market cap of tens of millions or over one hundred million) is extremely low, let alone being listed on major exchanges.

In summary, the higher the potential return, the higher the risk. Please take responsibility for yourself!

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