Meme coins have carved out a niche in the current market cycle, grabbing the attention of investors with their strong performance. Notably, these coins often rebound swiftly from market dips, outperforming tech altcoins.

Recognizing their potential, Miles Deutscher, a renowned crypto analyst, has unveiled a detailed four-step strategy for trading meme coins effectively.

4 Steps to Make the Most Out of Meme Coin Supercycle

According to Deutscher, the first step is deciding the portfolio allocation. He says the key to trading success is determining the right mix between long-term and short-term investments.

“Starting with your time horizon, you’ve got to work out what percentage you want split between long-term investing and short-term trading,” he stated.

For novices, he suggests a heavier lean towards long-term holdings, typically around 70 to 80%. However, he believes that experienced traders can gradually start moving towards short-term meme coin investing.

In the meme coin sector, long-term investing might mean holding positions for around six months. During this period, investors would engage in dollar-cost averaging into popular coins like Dogwifhat (WIF) and Pepe (PEPE) on market dips and taking profits on rallies. Conversely, short-term trading focuses on capitalizing on the frequent fluctuations of newer or existing meme coins.

However, other meme coin analysts like Murad have been vocal about solely focusing on holding meme coins for one year.

“I’m telling you straight up. Figure out what the top 3-5 most hardcore cults are. Bet big. Contribute. And just hold for one year. It really is that simple,” Murad said.

The second important point for trading meme coins is creating a watchlist.

Efficient investment tracking starts with a well-organized watchlist. Deutscher recommends using tools like TradingView to categorize potential and active investments. This strategy ensures that investors can quickly adapt to changing market conditions without missing opportunities.

“Create a watchlist split into two categories; tag them with certain colors so you know at a glance which coins you own and which you are considering,” he advises.

The third step is developing a dedicated meme coin feed on social media platforms like X, Telegram, and Discord

For dedicated traders, establishing a tailored feed of trusted crypto analysts and influencers is essential. Moreover, Deutscher warns about the risk of following advice from undisclosed paid promotions.

“Just keep this in mind; don’t just buy something because it gets shilled on your timeline,” he cautions.

The final step is to engage in active trading. Deutscher suggests setting up specific wallets, such as Phantom for Solana-based meme coins or MetaMask for Ethereum tokens, depending on one’s trading focus.

“Start small, learn the ropes, and expect to get rugged a few times” he mentions.

Deutscher also highlights the importance of flexibility in investment strategies. Regular rebalancing of the portfolio is vital as market conditions, investment theses, or individual outlooks evolve.