What are meme coins and how do you buy them? Learn about Dogecoin, Shiba Inu, and other popular meme cryptos. Discover their unique characteristics, where to buy them, and what to consider before trading.
Meme coins are popular cryptocurrencies, typically worth pennies or fractions of pennies, that are often embraced by online communities. But what are they? And how do you buy them? In this article, we will explore the largest meme coins and what makes them unique from other cryptos.
Introduction to meme coins
By definition, meme coins are cryptocurrency tokens that are derived from viral internet phrases and images, also known as memes. They tend to have a devoted online following and are designed to be more light-hearted than utilitarian.
Dogecoin (DOGE), released in 2013, popularized the meme crypto format and is also the largest meme coin by market capitalization. It was inspired by the viral Shiba Inu dog. Hundreds of other meme coins have been developed since.
What are meme coins?
Meme coins, like other cryptos, operate using blockchain technology. However, they tend to have limited functionality and instead serve as trading instruments. Their value is often linked to enthusiasm from online communities, celebrity endorsements, and conceptual popularity.
There are three key characteristics of meme coins. They often trade at low price points, sometimes as low as a fraction of a cent. They are extremely volatile. And they often have either no supply limits or very high ones, making them vulnerable to inflation and all the more volatile.
Popular meme coins
Although new meme coins are constantly being released with the hopes of generating popularity and a large following, many of them remain obscure. These are some of the most popular and valuable ones on the market.
Dogecoin (DOGE)
Dogecoin (DOGE), an intentional misspelling of the word “dog,” was developed by Billy Markus and Jackson Palmer as a way to poke fun at Bitcoin and other mainstream cryptos. It quickly amassed an avid online following in forums like Reddit and gained further popularity from its charity fundraising efforts. For example, the DOGE community donated $30,000 to help send the Jamaican Bobsled team to the 2014 Winter Olympics. But its value really skyrocketed in 2021, when celebrities like Mark Cuban, Elon Musk, and Snoop Dog began endorsing it.
Today, Dogecoin is still very popular. Its unlimited supply makes it accessible but also highly susceptible to inflation. Dogecoin owners also use it for micro-tipping as a gesture of appreciation for content creators and community members alike.
Shiba Inu (SHIB)
The second largest meme coin by market cap is Shiba Inu (SHIB). It was released in 2020 and was directly inspired by Dogecoin, hence why its name and logo reference the same dog breed. This has given rise to the nickname “Dogecoin Killer.” Still, Shiba Inu differs from its competitor in a few key ways. While Dogecoin runs on its own native blockchain, Shiba Inu runs on the Ethereum blockchain network. It is also completely decentralized and governed by its own community members. And finally, Shiba Inu has a supply limit, though it is extremely high: nearly one quadrillion.
Floki (FLOKI)
Floki (FLOKI) was inspired by the name of Elon Musk’s pet Shiba Inu. It is part of a newer trend of meme coins, offering its users more functionality than just trading. Floki’s developers aim to create an entire ecosystem, including an NFT gaming metaverse, a crypto education platform, and a merchandise marketplace. It is one of the largest meme coins by market cap.
Pepe (PEPE)
Pepe (PEPE) was released in 2023 as a tribute to the Pepe the Frog internet meme. It has no utility and is a meme coin in the purest sense. Pepe runs on the Ethereum blockchain platform and has rapidly become one of the largest meme coins by market cap.
dogwifhat (WIF)
dogwifhat (WIF) is another Shiba Inu-inspired meme coin, based on an internet trend from 2019. Like Pepe and Dogecoin, it was designed for community engagement and functions as a trading instrument. dogwifhat operates on the Solana blockchain platform and unlike some of its meme coin peers, it has traded for extended periods for over $1 during 2024, though this may be subject to change.
How to find new meme coins
Many buyers discover meme coins once they have already surged in popularity, making it difficult to find trading opportunities. A good place to discover emerging meme coins could be by checking social media, reputable price tracking websites, and online platforms.
Another way to find the next meme coin could be to identify early buyers of other successful meme coins and see what else they are buying. This can be done using tools like blockchain explorers that allow users to see the wallet addresses of any transaction on the platform. Regardless of your chosen research method, remember that there are no guarantees when buying meme coins.
Where to buy meme coins
If you are considering buying meme coins, you can do so using crypto exchanges or Web3 wallets.
Crypto exchanges
A crypto exchange is a platform where you can buy and sell cryptocurrencies using convenient payment methods. There are two kinds of exchanges: centralized (CEX) and decentralized (DEX). The former are typically managed by a known business entity. This is where most crypto trading takes place. Binance.US is an example of a centralized exchange that offers U.S. customers access to 150+ cryptocurrencies, including popular meme coins.
Decentralized exchanges function without intermediaries, in that anyone who joins can trade directly with another user, and transactions are enforced by code. Unlike centralized exchanges, DEXs require the user to take on the additional responsibility of managing and maintaining self-custody over their funds, which advanced users may prefer.
Web3 wallets
Web3 wallets allow you to hold and transfer digital assets like cryptocurrencies. They are “non-custodial,” meaning the owner is the only person who can control them. There are two main types of Web3 wallets: software and hardware. The former are always connected to the internet, either through mobile apps or web browsers. They emphasize convenience over security.
By contrast, hardware wallets are physical devices that are mostly “cold”, or disconnected from the internet. They emphasize security over convenience. In order to make a transaction, the individual must first connect their device to the internet and then transfer their assets to a software wallet.
How to buy meme coins
The best way to buy meme coins is to do careful research and consider whether they meet your individual trading goals and risk appetite. Many meme coins are volatile and subject to large price swings, so it is important to refrain from making decisions based on emotion; instead, try to track engagement through online forums to anticipate price changes.
Conclusion
Meme coins are a fun way to find communities online and tap into trending memes and cultural moments. While meme coins often trade at low prices and offer the possibility of large price swings, their potential volatility is something traders will have to contend with.
We hope this article helped to demystify meme coins. If reading this has motivated you to start your crypto journey, register for a Binance.US account or download the Binance.US app today.
Download the Binance.US app to trade on the go: iOS | Android
Follow us to stay up to date with Binance.US news and announcements:
Legal disclaimer: This material has been prepared for general informational purposes only and should NOT be: (1) considered an individualized recommendation or advice; or (2) relied upon for any investment activities. All information is provided on an as-is basis and is subject to change without notice. We make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, reliability, availability, or completeness of any such information. Binance.US does NOT provide investment, legal, or tax advice in any manner or form. The ownership of any investment decision(s) exclusively vests with you after analyzing all possible risk factors and by exercising your own independent discretion. Binance.US shall not be liable for any consequences thereof.
Risk warning: Buying, selling, and holding cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in a significant loss. Binance.US is not responsible for any loss that you may incur from price fluctuations when you buy, sell, or hold cryptocurrencies. Please refer to our Terms of Use for more information.
Binance.US reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.