Cryptocurrency is an attractive investment object today. The most popular cryptocurrencies among traders are Bitcoin and Ethereum. They are considered the most profitable investment options. However, the crypto world is actively developing and growing. Innovative technologies and developments are being introduced. New cryptocurrencies are emerging.
In recent years, the so-called memo tokens have attracted Internet users’ attention. They have shown explosive growth in value. As a result, people even far from the world of cryptocurrencies became interested in them. Images of adorable dogs symbolizing memo crypto coins can be seen on news sites, advertising boards, intros of popular programs, etc. Dogecoin was the first to gain popularity. The result of the growing interest of investors in it was the emergence of imitators:
- Shiba Inu;
- Doge Dash;
- Dogelon Mars;
- Samoyedcoin, etc.
Read below in more detail about memo coins and their role in the financial world. You will find out whether it is worth investing in these coins or is it better to prefer other more traditional cryptocurrencies and swap ETH to BTC, BTC to OMG, BTC to TRX, etc.
What Are Memo Coins, and What Features Do They Have?
Memo coins are digital memo currency. They differ from other cryptocurrencies in that popular Internet memes were the reason for their creation. Experts define memo crypto as a prime example of a financial asset that acquires value solely due to its value in the eyes of crypto market participants. Therefore, memo tokens do not have any fundamental basis at the creation time.
Most memo coins are inextricably linked to various media personalities. The most famous figure of this kind is the American entrepreneur Elon Musk. As a result, some investors consider these tokens to be unreliable assets. Others consider unusual cryptocurrencies as a get-rich-quick tool. Currently, there are more than 90 different memo tokens on the market, which have different prices and liquidity.
Most of the coins are sold through existing blockchains. But some currencies (for example, Doge) use their own distributed ledger. The cost of tokens depends largely on the mood of the public, more precisely, on the mood of members of online communities and social networks. There is always a lot of information noise around these currencies. This partly determines the instability of the cryptocurrency, especially compared to Bitcoin or Ethereum Classic. In this regard, many today prefer traditional cryptocurrencies and exchange BTC to ETC, ETH to BTC, etc.
Where to Buy Memo Coins and Is It Worth Investing in Them at All?
Memo assets with the largest capitalization can be purchased on major cryptocurrency exchanges, such as LetsExchange. Lesser known tokens are traded on a limited number of online marketplaces, including decentralized platforms. You will need an electronic wallet, fiat funds, or cryptocurrency to purchase assets.
Interest in memo assets often grows during times of stagnation in the traditional cryptocurrency market. During such periods, investors are looking for volatile tokens that can be used for active short-term trading. Unfortunately, novice investors often focus only on profitability. In the case of memo tokens, this approach can lead to a loss of funds.
So, the role of memo coins in the modern financial market is quite large. They expand the opportunities for investors in terms of making a profit. It is rather difficult to name all the reasons why the list of memo coins is constantly growing. There is an opinion that in this way retail investors try to protect their investments from inflation. Another reason is the cross-border nature of memo coins and the possibility of a quick transfer to fiat money. When investing in memo coins, you need to be prudent. To reduce investment risk, buying only well-known tokens with the highest capitalization is recommended.