What tools are the smart money using to play with memes? This is an advanced tutorial on memes

Author: Joyce, BlockBeats

Editor: Jack, BlockBeats

In the fluctuating market, the meme market has produced a few golden dogs. Screenshots of high returns from meme investments are circulating in the community again, but behind the few lucky ones are many who have repeatedly failed.

The meme market is a field full of opportunities and challenges. Beyond luck, traders need to possess comprehensive abilities such as market insight, the use of technical tools, psychological resilience, and flexibility to adapt to changes in order to achieve satisfactory returns. Among these, the ability to use tools can be improved relatively quickly. In this article, BlockBeats has compiled some on-chain analysis tools specifically designed for meme trading, suitable for smaller market cap and recently emerged meme coins, hoping to provide some assistance to traders looking to participate in the meme market.

Before reading this article, it is important to note that there are various tools available for meme trading in the market. Some tools, due to having loyal communities, prioritize maintaining existing communities and reduce their exposure on social media. Others are just starting out, with innovative features but potentially lacking stability. Additionally, some tools require a dialectical analysis of the signals they provide due to their large user base.

Moreover, readers need to recognize the characteristics of the meme market, which include fast trading rhythms and high returns accompanied by high risks. It is not a trading field suitable for everyone. Analysis tools can only play a supportive role, aiming to minimize the chances of falling into traps.

Getting Started: CA Address Analysis of Holdings

The most common scenario faced by novice meme traders is seeing a new meme coin in the community and analyzing the token from aspects such as security and chip structure to decide whether to trade. In this scenario, helpful resources include website-based tools and trading bots.

First, some basic information analysis is needed.

The security of the token contract is a concern, such as whether the token is a Pi Xiu pool, whether the contract is open source, whether token permissions have been relinquished, and whether there are risks such as locked liquidity. Additionally, the token's market cap, number of holders, recent trading activity, and the holdings of the top 10 holders are important reference indicators for determining the safety of the token in the absence of other signals.

Furthermore, the line observation tool GMGN provides other information about meme coins on its website, such as whether the developer has run away, whether the team has paid for advertising on Dexscreener, and links to the token's official Twitter account and Telegram community. The significance of this information varies depending on the situation.

In the increasingly competitive meme market, a deeper analysis of the token's holding structure is necessary. Generally speaking, the trading activities of smart money, KOLs, and large holders provide more effective information than other traders. For example, GMGN categorizes token traders into smart money, KOLs, whales, new wallets, snipers, large holders, and wash traders.

In addition, some monitoring tools based on TGBOT can also provide this functionality. If speed is a priority, one can enter the CA in a group with TGBOT to instantly check the token's holding situation.

Observing the buying amounts, entry timing, and profit situations of these addresses, combined with discussions on social media, can help assess what stage the meme coin has reached. Currently, tools in the market have different advantages; for instance, some tools emphasize the holdings of KOLs and large holders more.

Advanced Play: Filtering Addresses to Increase Certainty

There are some publicly available smart money addresses in the meme market, such as high win-rate addresses circulated in the community, addresses marked by institutions, and KOL addresses. GMGN has marked some smart money addresses based on statistics, but the reference significance of officially marked addresses is limited, and blindly following publicly available KOL addresses is not advisable. Meme players need to establish their own smart money watchlist to survive better in the market. This need can currently be met through GMGN and other customized tools.

After spotting a meme coin with good gains, one can look for smart money among early large holders, high-yield traders, and early buyers. The most important factor is to consider the timing of the purchases; if an address bought before the meme coin's price surge, its reference value is greater.

Some tools offer a more straightforward and intuitive viewing experience, providing only three indicators: large holders, KOLs, and wash traders. By clicking on an address, users can instantly view the trading operations and profit situations of that address on the current token without needing to navigate away.

After filtering a batch of wallet addresses, it is necessary to observe the recent trading and profit situations of these wallet addresses. Many high-yield wallet addresses may not have tracking value and could simply be the result of a broad net cast after hitting the lottery.

Additionally, some players will search wallet addresses on solsCAn to check the initial funding sources of the wallets, thereby analyzing the "group" to which the wallet belongs. In the meme space, some smart money addresses with information asymmetry may operate through multiple addresses during trading.

Related Reading: 《From "Dog King" to "Mouse King": NEIRO's Wash Trading Share Reaches $130 Million, KOLs Rally》

Adding the final filtered wallet addresses to the watchlist and periodically observing their trading performance can help when encountering new meme coins. By using GMGN's "Followed" feature or tools with monitoring capabilities, one can check if any followed wallets hold meme coins, serving as a trading reference.

High-Level Play: Chain Scanning + Copy Trading, Striving to Be One Step Ahead

The trading cycle in the meme market has been compressed to minutes, making speed crucial for profit outcomes. However, it is important to understand that fast trading does not necessarily guarantee high returns; sufficient judgment and analytical ability are needed to support this.

Players typically compete in three areas for speed: discovering alpha new coins (chain scanning), identifying smart money movements (copy trading), and executing buy and sell transactions (trading).

Chain Scanning

For "chain scanning," GMGN and Bullx are more commonly used.

GMGN displays a "Sniping New Coins" section at the bottom of the page, which shows a red alert when a signal appears, allowing users to click and view it instantly. By clicking "New Coins" on the GMGN homepage, users can browse the latest token information and set filtering conditions on the right side, including whether there are social media links, DEX holdings, circulating market cap, and number of holders. However, some users have reported that filtering conditions sometimes do not work, so they use it in conjunction with the TGBOT provided by GMGN.

Bullx is a decentralized trading platform covering six networks: Ethereum, Solana, BNB Chain, Arbitrum, Base, and Blast. Its uniqueness lies in offering both web and Telegram bot trading options, featuring key functionalities such as fast trading, limit order settings, smart MEV protection, new token sorting and filtering, and a Pump Fun scanner.

Users can click "Chain" to view new coin dynamics only on Solana and Ethereum chains. By clicking "New Pairs," the latest 30 tokens monitored for launch will be displayed, with the earliest tokens typically having launched just 2 minutes prior. The available indicators include token creation time, token liquidity, market cap, number of trades, trading volume, and basic contract security reports. Bullx highlights abnormal data to help users quickly discover alpha new coins.

Additionally, Bullx has a dedicated "Pump Vision" section, displaying token dynamics from Pump.fun and Moonshot under three categories: new pools, internal orders about to fill, and recently filled. Users can further filter tokens within each category based on dev holding ratios, number of holders, liquidity, trading volume, and market cap.

According to community user feedback, Bullx's advantages include smooth interaction, outstanding performance in viewing new coins that appeared within a few minutes, and support for order trading. However, it also has drawbacks, such as occasional lag and the lack of smart money recognition features, limiting it to basic holding structure analysis.

In terms of fees, BullX charges a 1% fee for each transaction. If users register through referrals from other users, they can enjoy a 10% fee discount, meaning Bullx deducts only 0.9%. BullX also has a token issuance plan, with the second quarter airdrop plan underway, allowing users to earn corresponding rewards based on accumulated early bird points. Recently, Whales Market announced the launch of BullX (BULLX) on its Pre-Market.

Copy Trading

Copy trading is a significant community phenomenon in the meme market, as many meme traders hope to grasp smart money trading situations in real-time. Both GMGN and NFT Sniper allow users to build their own watchlists.

On the GMGN page, clicking "Follow" allows users to view their followed wallet list, while clicking "Activity" displays the movements of followed addresses in chronological order. GMGN provides not only address movements but also the buying costs, realized profits, and unrealized profits of followed wallet addresses.

Additionally, GMGN has set up a "Followed" section in the lower left corner of the page to help users capture smart money movements promptly.

Some tools provide more concise feedback on address movements, offering users a more agile experience. Some tools have certain phase advantages, such as a more comprehensive identification of KOL addresses.

Trading

The tools mentioned above, GMGN and Bullx, both offer trading functionalities. The following images show the trading interfaces of GMGN, Bullx, and another tool. All three have basic features such as customizable slippage, small fixed buy amounts, and batch selling, though there are some differences in the specific user experience.

GMGN displays real-time profit situations near the trading operation buttons, assisting users in deciding when to sell based on profit levels. Another tool offers multi-wallet synchronization and random amount trading within a set range, suitable for users with more customized trading needs. Bullx allows users to place trading orders, but considering the generally insufficient liquidity of meme trading pairs, the order feature may not be very useful for some meme players.

For mobile trading needs, the aforementioned tools are equipped with corresponding TGBOT services. Some meme players also use specialized trading bots, such as Pepeboost, Bonkbot, MaestroBots, Trojan, and CAshbot.

Since using bot tools incurs an additional service fee, and most meme coins have smaller market caps, making them more suitable for small capital users, players need to balance speed and cost considerations.

In summary, the meme market demands higher sensitivity and quick reactions from traders. Utilizing tools can significantly improve traders' chances of survival and profitability in the meme market. However, learning to use these tools is just the first step. True success requires a significant amount of time and effort to cultivate a deep understanding of the meme market. Readers need to analyze and apply based on their specific situations and should not blindly copy others.

Finally, the cryptocurrency market is a high-risk, high-volatility market, and the meme market is especially so. This article only provides some reference information for readers with meme trading needs but cannot guarantee trading success rates. Traders should remain fully cautious and avoid investing beyond their risk tolerance.