Lucie, a prominent member of the Shiba Inu community, has shared her insights on the best approach to investing in highly volatile cryptocurrencies like memecoins.
Despite their slow and steady rise, memecoins have significantly impacted the crypto industry, with tokens such as Dogecoin and Shiba Inu leading the way.
While providing numerous opportunities that have made many crypto traders millionaires, memecoins have also caused substantial financial losses for others. Therefore, Lucie believes it is crucial to offer guidance on how the average crypto trader can navigate memecoin investments.
Details of How to Invest in Memecoins
Lucie, a prominent figure in the Shiba Inu community, outlined specific measures for both newcomers and seasoned traders to reduce losses when investing in memecoins.
In a post on Twitter, now X, she emphasized the importance of grasping the highly volatile nature of memecoins, which often results in significant price fluctuations.
"Dear investors, remember that memes are jokes, not serious investments. They usually involve pocket money that you can afford to lose. Don't sell serious investments to invest in memes. Be responsible and understand the risks. We can have fun, but fun is not a serious investment," she tweeted
Dear investors, remember that memes are jokes, not serious investments. They usually involve pocket money that you can afford to lose. Don't sell serious investments to invest in memes. Be responsible and understand the risks. 🙌🏻
— 𝐋𝐔𝐂𝐈𝐄 | SHIB.IO 🧜🏼♀️ (@LucieSHIB) March 18, 2024
We can have fun, but fun is not a serious… pic.twitter.com/MYXGfyus8G
The well-known meme marketer included a screenshot of a quick guide on how to navigate the meme market.
The initial suggestion outlined the highly unpredictable price fluctuations of memecoins. This indicates that traders should exercise caution when making investments.
Secondly, the meme coin market is heavily influenced by social media, particularly Twitter, where communities are often built around memes and internet humor. Therefore, the trending status of a memecoin on social media can significantly impact its price.
Additionally, it's crucial to conduct thorough research before investing in memecoins to avoid potential scams or unreliable projects.
When conducting this research, it's important to understand how memecoins operate, assess the community supporting them, and analyze their market trends.
The fourth point raised on how to invest in memecoins is that one should invest what they can afford to lose.
Since memecoins are characterized by rapid price movements, a $20,000 investment can rapidly turn to $500 within minutes. In the same way, a $200 investment on a memecoin can also turn into $10k.
The last point Lucie raised in the shared post is that one should always make informed decisions while investing in memecoins. Many people invest in the crypto market based on what people say on social media, such as Twitter.
In other scenarios, some invest due to FOMO (fear of missing out). It should not be this way. Instead, one should invest after they have done all the necessary research and are satisfied with what they see about the memecoin.
SHIB Market Performances
Shortly after sharing this advice on investing in memecoins, Lucie made a bold statement about Shiba Inu.
Despite giving advice on memecoins, she insists that Shiba Inu is not one of them. According to her recent tweets, Lucie claims that Shiba Inu is ranked among the top 11 alternative coins in the cryptocurrency market and functions more as a governance for their ecosystem.
Along with the broader cryptocurrency market, Shiba Inu is experiencing a significant decrease. Its market valuation has fallen to around $14 billion, and the weekly chart shows a more than 20% decline.