Hunting coins on PumpFun is tricky due to the large number of constant listings, but it becomes much easier if you have proper guidance and a solid understanding of the crypto market. In this guide, I will explain simple steps you can follow to hunt coins on PumpFun and increase your winning percentage.
Trade New Trends
When you are trading meme coins, you must know what new trends are currently popular, whether it is a dog, cow, virus, AI, or something else. If you have bought that trend coin early, then hold it for a few days, and when you see that trend is now vanishing, then sell that coin and buy the new trend that is becoming more popular.
Stay Aware of News
Meme coin traders must be fully aware of all news that is gaining the attention of people around the world. This news can be related to sports, science, animals, technology, war, or the personal relationships of celebrities.
Creators who launch coins based on trending news are often not loyal to their projects, as they tend to act as opportunistic traders. When a new trend emerges, they may take profits from their existing coin and quickly create a new one to capitalize on the next opportunity.
When you enter a coin early and it is news-based, I recommend selling it at 2x to 3x profit.
Follow Renowned Persons and Institutions
You must follow renowned figures and institutions on social media platforms that affect the crypto market directly or indirectly. These could be public figures from the world’s top five strong countries or the institutions working under them.
If you find some hot information on social media, then go to Pump.Fun first and check whether a new coin has been created in response to that information or not. If you find a new coin related to that information, then before buying it, keep in mind my following points to avoid rug pulls:
Dev Credibility
A dev is a person who creates a coin. The dev must be a credible person who should have experience and has a large portfolio.
You can get information about the Dev by opening the coin and going to the “Coin Creator” section, then clicking on the creator’s account. By opening the account, you can find the following details:
- Followers: how many followers the dev has on PumpFun. For a reliable dev, they must have more than 5k followers.
- Creation: How many coins the dev has created.
- Stats: It includes Top Wins, Realized profit, Unrealized Profit and Win Rate.If the Dev has good past stats then you can buy that coin.
Dev Held %
Dev is the person who creates a coin. Before buying a coin, you should have knowledge about the Dev’s holdings. You can check the Dev’s holdings by going to the “Holders” section of the coin on Pump.fun.
According to my point of view, the ideal Dev holding is 2%–4%. However, in some situations, if a coin has a strong community, even up to 7% Dev holding can be acceptable. But if a Dev is holding 25% to 50%, it can be a serious threat to traders because the Dev can book profits at any time, and your $1K investment could turn into just a few cents.
Top 10 Holders
The major concern after Dev holdings is the top 10 holders of a coin. In my view, the top 10 holders should not collectively hold more than 23% of the total supply. If the fate of a coin is in the hands of only 10 people, it becomes dangerous for the other holders, as it increases the risk of price manipulation and sudden sell-offs.
Profit Taking
In crypto, you have to overcome greed. When your coin has increased by 2x to 3x from your entry price, it is always wise to take profit.
If you want to become a successful trader, you need to book profits regularly, as it helps grow your portfolio and opens up new and better opportunities.