Meme Coin Investment Strategy: How to Achieve Financial Freedom on Ethereum

This article will share a specific execution strategy aimed at achieving financial freedom through memes in this cycle. This is not a simple idea, but a viable investment plan.

In the past year or two, I have been accumulating memes on Ethereum, adopting a buy-the-dip strategy, and I have no plans for short-term selling. Currently, memes account for 80% of my portfolio.

At the same time, I gradually sold off my holdings of memes on Solana. The liquidity of memes in the Solana ecosystem is decreasing. With a few exceptions, the return rate of memes on Solana has been declining since January.

Although the meme coin market on Solana will not disappear, with new coins surging and plummeting every day, we can find safer and more rewarding opportunities on Ethereum.

From a macro perspective, my memes strategy is very simple:

1. Stop making scattershot bets on illiquid Solana memes, and no longer pursue 100x returns.
2. Start pursuing 10-20 times returns on liquid Ethereum memes and invest more funds.

Why choose Ethereum memes?

The liquidity of the PEPE/ETH trading pair has reached $49 million. When the price of ETH doubles or triples, the price of PEPE may experience a more significant increase.

My view is simple: ETH will rise, and the increase of memes will be even greater.

In the past 1-2 years, we have seen excessive returns from meme coins such as PEPE, MOG, and SPX. These coins have outperformed ETH in price performance, and it is likely that this trend will continue in the future.

If an Ethereum meme coin meets the following conditions, it can be added to the watchlist and closely monitored:

• At least one year online
• The locked or burned liquidity exceeds $500,000
• Contract ownership has been relinquished
• The official website and social media are still operational.
• Holders maintain a certain level of activity on social media

These coins are expected to significantly outperform ETH in the upcoming altcoin season, and this moment may be closer than expected.

In addition, Ethereum memes have a hidden advantage: they are compatible with DeFi. This will be explained in detail later.

Price Target

Although no one can accurately predict price trends, reasonable assumptions can be made based on various indicators. Remember: whether you like a certain coin or agree with its memes culture, almost all memes will rise during a bull market.

First, let's start with the leading memes:

• PEPE
• MOG
• SHIB
• SPX

Top meme coins refer to those that have once reached a market value of 1 billion USD. At the current price level, their expected returns are between 5 to 10 times. Holding these coins can let you sleep peacefully, as a 90% drawdown is nearly impossible unless a catastrophic event occurs.

Next are the mainstream memes:

• APU
• BITCOIN (HarryPotterObamaSonic10Inu)
• BOBO
• JOE
• NPC
• WOJAK

These coins have once surpassed a market value of 100 million USD, typically listed on second-tier exchanges, and have active communities and loyal holders. It is expected that these mainstream memes have a potential for a 10-20 times increase.

Finally, it's the counterfeit memes:

• BUSINESS
• KEKEC
• LMI
• SMURFCAT

These are small-cap memes with a market value of just over $10 million, not listed on exchanges, with lower liquidity and trading volume, but greater volatility. Not all small-cap memes will skyrocket, but those that perform well may yield returns of 20-30 times.

The investment portfolio should focus on allocating blue-chip memes, moderately allocate mid-cap memes, and hold a small amount of small-cap memes as a speculative bet.

Spot Leverage

After buying memes, the next step is to use memes for DeFi. Certain protocols allow you to use memes as collateral for lending.

Why use meme coins to collateralize loans? I use it to increase spot leverage for my positions. Now, for every $1 increase in meme coins, I can earn $1.5.

The specific operation is as follows:

1. Buy $10,000 PEPE
2. Deposit PEPE into the protocol and borrow a loan of 5000 USDS.
3. Exchange USDS for PEPE
4. Deposit the remaining $5000 PEPE to lower the Loan-to-Value ratio (LTV)

The amount of PEPE you hold has increased by 1.5 times. You will only face liquidation if the price of PEPE drops 66% from the current level, and the likelihood of this happening is decreasing every day.

Moderate leverage can bring huge returns. A 1.5x PEPE exposure can help you sleep soundly. Additionally, after completing this transaction, you can also receive protocol rewards, making it a win-win situation.

At first, I didn't realize the potential of this strategy. But now, communities like MOG and JOE are buying more tokens and pushing the price up with new buy orders.

So what about trading futures or perpetual contracts on the exchange? I suggest proceeding with caution. The meme coins on Ethereum are more mature, and it takes longer for them to rise; this is a game of patience, and an increase is just a matter of time.

If you want to engage in swing trading, please stick to low leverage, long cycles, and never invest more than you can afford to lose.

Exit Strategy

The final step is the simplest.

The position has been established, and now it's not about waiting idly, but patiently waiting. The moment for Ethereum memes will eventually come. The market is cyclical, and the time for funds to rotate back to Ethereum memes is approaching.

Regardless, setting clear profit targets is crucial. Without a plan to sell a certain proportion or amount of memes, your position is like a roller coaster.

When your coin starts to rise, first pay off the loan and reduce the spot leverage. Then use DEX to gradually sell, exiting in multiple transactions.

Don't try to pinpoint the top. You need to take profits in batches as the coin price rises. The Gas fees on the Ethereum mainnet are low, so you can sell multiple times as needed.

After completing these steps, you have successfully seized the bull market and achieved financial freedom through memes.

Conclusion

I must admit and execute this trading strategy.

memes will exist for a long time.

Although I am optimistic about other crypto assets (including NFTs and some Solana memes), I firmly believe that Ethereum memes are like a beach ball underwater, and will eventually surface.

In a bearish market environment, we have seen the rise of MOG and JOE, rebounding from the lows in February. With DeFi protocols introducing lending and spot leverage features, a new season of memes is likely to be on the horizon.

This time, I will not trade new coins aggressively, but will stick to those time-tested old memes.