The Rise of Memecoins: Are They a Good Investment for Crypto Gamblers?

With the increasing popularity of crypto casinos and the introduction of new blockchain technologies on platforms, as well as the use of NFT, some users became interested in meme coins as well. As a result, coins like Shiba Inu and Dogecoin started to grow and appear in some casinos. But still, most players who are not really chasing cryptocurrency trends and new sensational coins have questions about whether meme coins are a good investment.

What is a memecoin?

Meme coins, or cryptocurrencies, which were created thanks to the art of memes as well as modern online trends, have their own special nature. Sometimes it happens that these coins go viral even though no one expected them to and because of this, they further attract a community of enthusiasts. Depending on how many people start showing interest in the coin, it can gain market value. This allows the coin to be traded on exchanges, sold, and bought just like any other popular and serious coin. 

In fact, if you look at it from the technical side, it's not always correct to use the term "meme coin". According to Decrypt, a token is a cryptocurrency that operates on top of another blockchain's infrastructure, while a coin exists inside its own blockchain." Thus, we can conclude that Dogecoin is a coin and Shiba Inu is a token.

Some meme coins can be considered a joke and it is unknown if they will ever be fully traded on the market, or if they will disappear with the decline in popularity of the meme on which the coin is based. But some meme coins do break through to the market and cease to seem like a joke, taking top positions and expanding their market capitalization. Shiba Inu and Dogecoin were a joke once too, and now they are capitalized at over $5 billion (SHIB) and $10 billion (DOGE).

The difference between cryptocurrencies and meme coins

Serious cryptocurrencies, such as Bitcoin and Ethereum, were created purposefully to raise and solve real problems. This cryptocurrency seeks to gain acceptance among users. Gives opportunities for fundamental investing, trading, and full-fledged earnings. They represent a new form of decentralized currency and are bringing significant changes to various industries.

Whereas meme coins, to date, have no particular purpose in society and they are not aimed at solving any problems. Most of the coins are created solely for quick money, the so-called speculation. 

Some of the meme coins gained sharp popularity from the fact that they were jokingly noticed and suddenly supported by influential personalities. For example, everyone knows how Dogecoin became popular thanks to Elon Musk and how now the rate, purchases, and sales go up and down depending on Ilon's activity. As a result, on DOGE we can clearly see how meme coins easily give in to a sharp rise in price and speculators thanks to these excellent and fast earnings.

Because meme coins and their rates are kept on info pods and have no real value, at high rates investors sell them in droves. And there is little chance that the price will hold its position for long. As soon as investors focus on other stocks or cryptocurrencies, then the meme coin rate drops sharply.

Serious cryptocurrency, in turn, also depends on newsflashes and the rate may fluctuate, but it will not be such big ups and downs and if you want not to lose money in the future, you should pay attention to safer investments, like Bitcoin, rather than risking and trying to get fast money on coins.

Memecoins in crypto gambling

First, it should be understood that meme coins have their own peculiar nature. They are often based on jokes, Internet memes, or popular trends, and their value can be highly dependent on market psychology. This means that meme coin prices can be subject to ups and downs that are not always driven by fundamentals.

Crypto gamblers should always keep in mind that meme coin prices are subject to rate fluctuations and there may be no good reason for it. Players should be aware that any investment in meme coins always comes with an increased level of risk. At times, there can be successes and large profits, but at other times, such investments can also lead to tangible losses. It is important to always be prepared for volatility.

Final Opinion

To sum up, the answer to the question of whether meme coins are a good investment solution for crypto gamblers should be based on your individual preferences, as well as your risk tolerance and awareness of the peculiarities of the meme coin market. It is recommended to conduct thorough research and study the market, consult with financial and investment experts, and only then decide whether to invest in meme coins and use them in crypto gambling.