If you want to add to your crypto portfolio, or if you’re building a brand-new portfolio from scratch, knowing what assets to include can be tricky.
There are so many options out there, how can you know which is the right one for you?
If you spend time exploring the world of crypto, you’re undoubtedly going to come across memecoins.
While these may seem like a joke, and many are, they can also be excellent investment options.
We’ve written up a guide with some reasons why you should include memecoins in your investment portfolio.
We’ve looked at some of the most popular coins and analysed things like the Shiba Inu price.
Read on to learn more.
What Are Memecoins?
Everyone knows what memes are.
Those hilarious jokes we sent to each other on social media platforms.
They have an uncanny ability to summarise and satirise current events in a bitesize, shareable format.
What do memes have to do with crypto?
Well, as it turns out, crypto developers enjoy these internet gags just as much as the rest of us.
Maybe even more, given that there are several cryptocurrencies dedicated to memes.
Cryptocurrencies were originally created as alternative payment methods.
There’s nothing funny about Bitcoin, and nobody is laughing at Ethereum.
Memecoins, on the other hand, can be quite humorous, especially if you’re into internet culture.
However, that doesn’t mean memecoins aren’t viable assets.
Let’s take a look at the most popular memecoins and discuss the technology behind them.
The Most Well-Known Memecoins
There are countless memecoins out there, and new ones are being launched all the time.
Many of these immediately fade into obscurity and fail to make any impact.
Others, however, rise to the top and establish themselves as key crypto players.
The most well-known memecoin is Dogecoin.
This peer-to-peer digital currency is built on a blockchain network that is similar to Litecoin.
It gets its name from an internet meme that features a Shiba dog, which also features on the cryptocurrency’s branding.
The same dog inspired another memecoin, Shiba Inu.
This was launched in 2020 and is quickly becoming one of the most popular memecoins on the market.
Other popular memecoins worth mentioning include Pepe, Dogelon Mars, Bonk and Mog Coin.
Should You Add Memecoins to Your Portfolio?
When compared to more established assets, memecoins can seem gimmicky or even silly.
While the concepts behind them may be humorous in nature, that’s not to say they have nothing to offer.
In some cases, this couldn’t be further from the truth.
Shiba Inu is a perfect example.
It is powered by some truly incredible tech and offers an entire ecosystem for users where they can access unique assets and tokens and trade these on dedicated marketplaces.
This demonstrates why you should never discount memecoins.
Building a successful crypto portfolio is all about diversification.
While it’s fine to have established coins like Ethereum, as these will offer your portfolio stability and security, it’s always worth exploring new options.
It’s impossible to predict what might happen in the crypto markets.
Memecoins, in particular, can be extremely volatile.
While this might sound like a negative when it comes to investing, there is also the potential for big returns.
No risk, no reward, as the saying goes.
Keeping some memecoins in your portfolio can pay dividends in the future.
What Memecoin Should You Go For?
If you’ve decided that you want to move forward and include a memecoin in your crypto portfolio, which one should you choose?
At the end of the day, the decision is yours, but there are a few key things to keep in mind before you make your final choice.
As with any other kind of investment, research is absolutely critical.
For example, if you want to invest in Shiba Inu, dive deep into the history of the cryptocurrency and learn about the ethos behind it.
Read about the developers and their motivation for creating the asset.
This will help you decide whether or not it is a wise investment.
You also need to study the price of the asset.
The Shiba Inu price is extremely low.
Why is this?
Read into things like circulating supply and the Shiba Inu burn, as these will have a significant effect on the future price and performance of the coin.
What Else to Include?
As we mentioned earlier, diversification is key when putting together a portfolio.
Having one or two memecoins is fine, but you should also have an established coin like Bitcoin or Ethereum, as well as a second-generation asset like Tether.
This way, your portfolio will be secure and protected in the event of adverse asset performance, ensuriong you do not see significant losses.
Conclusion On Memecoins
Memecoins might seem a little bit strange if you don’t have much experience with cryptocurrencies.
It can be easy to brush them off as a joke, and of course there are some that are best overlooked.
However, you shouldn’t ignore them all, as many are excellent investment opportunities.
Including memecoins as part of your crypto portfolio can be a wise choice, but ensure you do due diligence and research thoroughly ahead of time.