The Psychology and Strategy Behind Meme Coin Trading
Meme coin trading is often dismissed as a reckless and impulsive endeavor, but the reality is far more nuanced. Traders who engage in this highly speculative and volatile corner of the cryptocurrency market have developed unique strategies and philosophies to navigate its risks and opportunities. For many, meme coins—often inspired by viral internet jokes or pop culture—represent a high-stakes gamble with the potential for massive gains or devastating losses. While outsiders might view these traders as thrill-seekers, those who spoke to Business Insider painted a picture of calculated risk-taking and levelheaded decision-making, challenging the stereotype of meme coin investors as irresponsible speculators.
The In-and-Out Trader: Vic Laranja and the Art of Timing
Vic Laranja, a 32-year-old self-taught day trader, exemplifies the fast-paced, high-risk approach to meme coin trading. He entered the meme coin space in early 2024, focusing on the Solana blockchain, and has since honed a method that revolves around timing. Laranja’s strategy is to invest large sums of money into a crypto project, only to exit the position in under a minute. His approach is not about long-term growth or fundamental analysis but about riding the wave of volatility and getting out before the token crashes. Despite the stress and unpredictability of this approach, Laranja has seen significant rewards, earning up to $500 in a single good session. He uses his profits to fund personal indulgences, such as a cruise with his wife and high-end computer equipment, and even hosts crypto giveaways for his social media followers.
Laranja is quick to distinguish himself from the stereotypical meme coin trader, emphasizing that his decisions are rooted in research and a keen eye for opportunity. However, he acknowledges the thrill and even the addictive nature of trading, likening it to watching a horse race as the numbers skyrocket. For Laranja, the risk is worth it, and his only regret is not holding on to certain meme coins longer, as he sometimes misses out on exponential gains. His philosophy? "You can’t get that playing small."
The Buy-and-Hold Lifer: Glauber Contessoto and the Long Game
Glauber Contessoto, a 37-year-old retail trader based in Nevada, represents the opposite end of the spectrum. He is one of the most notable success stories in the meme coin space, having ridden the wave of Dogecoin (often called the original meme coin) to life-changing wealth. Contessoto’s journey began on Reddit’s Wall Street Bets during the GameStop short squeeze in 2020, which sparked his interest in Dogecoin. After investing heavily and promoting the coin on his social media platforms, he found himself at the center of a meteoric rise when Elon Musk’s endorsements sent Dogecoin’s price soaring from $0.03 in early 2021 to $0.39 by April of that year.
Despite the intense volatility that followed, including a drop during the crypto winter of 2022 and 2023, Contessoto has remained committed to his long-term vision. He has held onto his Dogecoin stake through thick and thin, even as the price has seesawed. His decision to hold has not changed much about his daily life, but it has allowed him to help his family, buying cars for his mother and sister and assisting with rent payments. Contessoto’s motivation stems from a deep desire to build financial security, driven by his family’s struggles after moving to the U.S. from Brazil as a child. He has no plans to sell until Dogecoin reaches $1, a target that would represent a nearly 300% gain from current levels. For him, the hardest part—the crypto winter—is already behind him.
The Pragmatic Side-Hustler: Erik and the Balanced Approach
Erik, a 27-year-old founder of the trading tools firm MarketHQ, offers a more pragmatic perspective on meme coin trading. He entered the space in 2021, during the peak of the pandemic market boom, and has since dabbled in popular meme tokens like Dogecoin, Pepe, and even Trump and Melania coins. Like Laranja, Erik distances himself from the image of the "typical" meme coin trader, describing his involvement as a "whimsical side hobby." His approach is rooted in technical analysis, which he loves, and he trades sparingly while working his day job.
Erik’s strategy is marked by caution. He only invests money he can afford to lose, capping his potential losses. Despite this responsible approach, he has still managed to make around $10,000 trading meme coins. Erik’s only regret? Not making more money. This ambivalence underscores the duality of meme coin trading: while the risks are real, so are the rewards, and even the most pragmatists can’t help but wish they had pushed their luck further.
The Appeal of Meme Coins: Beyond the Memes
At their core, meme coins like Dogecoin represent a unique intersection of internet culture and financial speculation. They often begin as jokes or novelties, inspired by viral trends, but for many traders, they are no laughing matter. The potential for sudden, massive gains (and losses) is what draws investors in, even as they acknowledge the risks. While critics may label these tokens as "sh-tcoins," they offer something that traditional investments often don’t: the thrill of the unknown and the chance to participate in a movement that feels both personal and communal.
For traders like Laranja, Contessoto, and Erik, meme coins are more than just a gamble. They represent a way to challenge the status quo, to seize opportunities that traditional markets might miss, and to build wealth on their own terms. While not for the faint of heart, the meme coin market has proven that even the most unlikely tokens can create life-changing fortunes—and it’s this promise that keeps traders coming back, even in the face of uncertainty.
