Mathematics of Memecoin Investing

Can you really gamble to win?

Image source - CoinQuora (Fair Use)

Edit: My YouTube video for this article is here.

Mass retail interest in memecoins has returned.

Attracted by the possibility of lucrative profits over a short amount of time, speculators are pouring into a smorgasbord of low-cap memecoins in the hope of getting rich quick.

Let’s explore just how high risk, high reward memecoins are. We’re going to compare the returns of two opposing strategies over a bull run:

• Buying $1,000 worth of quality cryptocurrencies;
• Speculating $1,000 into memecoins.

For memecoins, we’ll look at three different strategies:

1. “All-in” — put $1,000 into a single memecoin.
2. “Diversified” — spread $1,000 across multiple memecoins.
3. “Saturated” — buy a little bit of every memecoin.

Without spoiling too much — it all comes down to the simple question:

How much of a gambler are you?

Prefer playing it safe?

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