How to buy a memecoin?

Warning

Memecoins are speculative cryptocurrencies without solid fundamentals or real utility. The value of meme coins is often based on speculation, trends and fads, making them extremely volatile. Investing in these assets carries a very high risk, with a high probability of total loss of capital. This article is not financial advice, but a simple explanation of the steps to acquire them. Be careful and only invest what you are willing to lose.

Solana, the blockchain favored by memecoins

The same coins are found on many blockchains. However, Solana has established itself as the blockchain of choice for memecoins thanks to its extremely low transaction fees, high processing speed, and multitude of compatible protocols. That's why this guide focuses specifically on buying memecoins on Solana.

Before detailing all the steps to follow to buy memecoins, here is a quick summary of the actions to perform:

• Buy SOL on a secure and low-fee platform like Binance;
• Download the Phantom wallet on your browser;
• Transfer the SOL acquired on Binance to the Phantom wallet;
• Go to the GMGN platform and link your Phantom wallet;
• Buy the same desired coin on GMGN.

Here are now all the details on the steps to follow to acquire meme coins 👇

Buy SOL on Binance

The first step is to acquire SOL cryptocurrency from the Solana blockchain, as it will be used to pay transaction fees and purchase memecoins.

To do this, it is recommended to use a reliable platform with low fees, like Binance. To acquire SOL via Binance, start by creating an account there for free.

Open an account on Binance, the world's #1 crypto platform

Once your account is created and your identity verified (KYC procedure), follow these simple steps:

1. Go to the tab “Buy cryptos” then select “Fiat Deposit” ;
2. Follow Binance's instructions to deposit euros, either by credit card or bank transfer;
3. Once the funds are credited to your Binance account, go to the tab “Buying and selling” ;
4. Indicate either the amount in euros that you wish to invest in the SOL, or the quantity of SOL that you wish to purchase;
5. Make sure to select the available balance in your “EUR Spot Wallet”then validate your transaction by clicking on “Buy SOL”.

👉 Need more information? Here is our guide to buying Solana

Configure a Phantom wallet

To buy meme coins, it is essential to have a wallet compatible with the main platforms. On the Solana blockchain, the Phantom wallet is highly recommended due to its popularity and ease of use. You will also need to transfer your SOLs there, a step which will be detailed later in the guide.

Here are the steps to follow to configure a Phantom wallet:

• Download and install the Phantom browser extension from the official website (phantom.app);
• Create a new wallet by following the instructions provided;
• Write down your seed phrase carefully and keep it in a safe place.

👉 Read our full Phantom review to find out more

Transfer your SOL from Binance to Phantom

Now that your Phantom wallet is operational, here are the steps to follow to receive SOL from Binance:

• Access your Phantom wallet, click on the Receive button then click on the Solana tab. Then copy your address. If you use a phone, use the QR code;
• On Binance, go to the Wallet Overview tab, click the Withdraw button then select SOL as your cryptocurrency;
• Then enter the Solana address of your Phantom wallet and select the Solana network;
• Confirm the amount to send and review the details before validating the transaction by clicking Withdraw.

Connect your wallet to the GMGN platform

Now that your SOLs are on your Phantom wallet, you will be able to use a platform dedicated to trading meme coins like GMGN. This platform offers a clear interface and offers many options for placing orders.

GMGN: the platform to buy meme coins easily

In addition to the Solana blockchain, GMGN is also compatible with the Tron, Base and Ethereum blockchains. Regarding Solana, GMGN aggregates all the meme coins created on the Pump.fun platform and provides a lot of information on the tokens such as the number of holders, the presence of bots, the token's social networks, etc.

Here are the steps to follow to create an account on GMGN:

• Go to the GMGN website and click on the Connect button at the top right;
• Then click on Sign In With Wallet (it is possible to link a Telegram account to GMGN to access advanced features);
• Then select Phantom, authorize the connection from your wallet then confirm the connection;
• Now your Phantom wallet will be linked to GMGN and your SOLs can be used to purchase memecoins.

Buy a meme coin from GMGN

When you want to buy a memecoin on GMGN, 2 options are available to you: search for the token with its name (at the risk of coming across another token with the same name) or search for the token with the address of its smart contract.

There are many ways to find the address of a memecoin's smart contract, the safest being to refer to its page on Pump.fun (if it was launched from this platform). Otherwise, it is likely that the smart contract will be shared on social networks (this carries the risk that it is a copy).

If a memecoin is quite popular, like PNUT or BONK, a search using the name of the token will be sufficient (the 1st result will be the token with the highest liquidity). Here, several tokens called PNUT appear, and only the 1st is the one that interests us:

However, if it is a memecoin with a low capitalization, it is better to know the address of its smart contract. With this method, the exact token sought will be displayed, here the PNUT only:

Once you have found the desired memecoin, simply enter the amount in SOL of your purchase in the box on the right and then click on “Buy X SOL”.

It is also possible to place a limit order by clicking on “Buy Dip” and then indicating the price at which your order will be executed. To sell the memecoin, the operations are similar and are done in the “Sell” tab.

Note that it is best to leave the automatic option for slippage, otherwise your order may not go through. For memecoins with very low liquidity, slippage will be extremely high, on the order of 30-40%.

What to know before buying memecoins

If you are considering investing in memecoins, it is crucial to take some precautions and do some due diligence beforehand.

However, even following this advice, memecoins remain highly speculative assets and even if everything seems secure and promising, their price can suddenly collapse.

Here are some checks to carry out (all can be done from the GMGN platform).

Sufficient liquidity : Make sure the memecoin has a minimum liquidity of $15,000 for new tokens, and $100,000 for those with larger capitalization. Low liquidity can make selling difficult and amplify rapid price changes.

Token activity : Analyze transaction volume. If trading (buying and selling) is rare, this may indicate a lack of interest or potential manipulation by a small group of traders.

Presence on social networks : An active and engaging community is a good sign. However, be wary of projects solely supported by bots or purchased followers.

Developer Control : Check if the creator has sold their initial tokens. If it still holds a large part of the supply of a large-cap memecoin, it could cause a sharp fall by selling its tokens.

Concentration of holders : A supply highly concentrated between a few portfolios (top 10 holders) increases the risk of seeing the price collapse quickly in the event of a massive sale.

Security audits : Check that the smart contract has been audited. Platforms like Pump.fun offer a guarantee on certain memecoins (verification of critical functions like mint, blacklist, or burnt).

Presence of insiders : Identify the proportion of insiders (notified in red on GMGN) in the lists of traders and holders. An excessive presence of insiders indicates a high risk of market manipulation.

Beware of imitations : When searching for a memecoin, make sure it is the correct token. Check the address of the smart contract on the official website or social networks. When a memecoin becomes popular, it is also common for copies to appear to mislead investors.

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