One way to potentially book regular profits is by trading meme coins on Bitunix. This exchange doesn’t require KYC, and offers a margin trading function, so you buy and sell spot, or you can open long and short positions with leverage. Meme coin listings include GIGA, PEPE, and the new ME token, and we’ll look at all three of these in this guide as we walk through how to place various kinds of trade, with risk management in place.
If there’s one narrative you can’t escape this cycle, it’s meme coins. These kinds of tokens are everywhere, new ones appear all the time, and some of them are delivering returns not only for early buyers who can sell when the crowds rush in, but also for traders profiting from price volatility on exchanges like Bitunix.
That all in mind, let’s summarize why it makes sense to trade meme coins on Bitunix, and we’ll look at some different kinds of trade, using three different coins as examples.
What Makes Meme Coins Profitable?
Meme coins have no utility, anyone can spin up a new token, and the majority of them crash and burn, so… why would anyone think about trading them?
The answer is that what makes them unusual is also what makes them profitable–since they start from nothing and make gains on attention and virality, rather than on utility, they can go on huge price runs very quickly, and they trade reflexively, so as they make gains they get more attention, fuelling further gains, and so on.
But be warned, that all works both ways–if early-buyers cash in their chips the price can dip hard, fuelling further selling, and you then get a reflexive move back down.
So in other words, memes = volatility, and volatility is good for traders chasing quick profits, especially if you’re taking both long and short positions so you can gain from both bullish and bearish periods, keeping in mind that the overall structure of the crypto market, right now, is bullish.
Why Trade Meme Coins on Bitunix?
To trade meme coins–and all other kinds of crypto–Bitunix is a recommended go-to choice with a couple of key factors strongly in its favor:
- No KYC. It’s quick and easy to open a trading account on Bitunix because you don’t need to deal with a time-consuming KYC process, and with an account set up you can simply transfer crypto funds across and start trading.
Bitunix also has third-party partnerships in place if you need to buy crypto with fiat, but be aware that these services will require KYC. - Trading with leverage. On Bitunix you can trade crypto futures with leverage, using a margin trading account. This can allow–depending on the coin–up to 125X leverage, so you can increase your position size and take both long and short positions, which is essential to profit from both ups and downs in a volatile market.
Risk Management
Before you start trading meme coins on Bitunix, it’s critical to be aware of the risks and manage them carefully. Bitunix itself has strong security measures–you can read about them in this article–but as mentioned, meme coins are volatile. That creates profit potential but also the risk of losing money, and if you use leverage, the risks are amplified and there is the possibility of liquidation.
To manage risk, you should size accordingly so the further out along the risk curve you go, the smaller your bets should be. Also, allocate just a small part of your portfolio for meme coin trading, fence that off, and don’t trade meme coins with long-term holdings.
Additionally, when margin trading you can use stop losses, keep leverage levels reasonably low, and use Isolated margin, and we’ll cover all those factors in the sections below.
How to Spot Buy GIGA
First, let’s look at a meme coin on Bitunix called Gigachad, with the ticker GIGA. If you’re looking at this and wondering who is the Gigachad guy in the picture, then here’s a quick history lesson: the image is from the gigachad meme and dates back to 2017, giving the token a good level of virality among holders who, presumably, are into chad memes.
Either way, it’s become an established meme coin this cycle, with volume and a growing holder count, so let’s look first at the simplest kind of trade: buying spot.
This means there’s no leverage involved, you just buy and hold aiming to sell higher. To buy this way, click on spot, and then search for GIGA. Below the price chart, you can then place orders, and you can pick either a market order or a limit order.
For a market order, you just need to enter the amount to buy, and click Buy GIGA, while if you’re selling, it’s the same process but over on the sell side.
For a limit order, you can set a price at which to execute the order, so if you’re expecting a dip, then set an order at the entry point you’re waiting for, or just above that point if you want to increase the likelihood that the order gets hit. And again, this is a similar process when you’re selling, setting orders at specified price levels.
Limit orders are great for maintaining discipline, as they require you to map out a strategy in advance, figuring out entry and exit levels and then putting your orders in place.
How to Open a Long Position on PEPE
Next we’ll trade PEPE token. This one has been at a market cap around $10 billion, and if you’re wondering how to buy PEPE, you can make a spot buy as above, but we’re also going to look at trading with leverage.
To do that, you first need to transfer funds to your margin trading account, so go to your spot account, click on Transfer, and move some USDT to the USDT-M account, which is for margin trading.
That done, you can click on the Futures tab, search for PEPE, and what you’ll get is PEPE1000, which means you’re actually trading bundles of 1,000 PEPE tokens.
And now let’s check how to open a long position–so we’re betting on the price going up.
First, change the Margin Mode to Isolated, which means each trade is kept separate from all others. The alternative is Cross, which means your margin (your own funds that you’re trading with) is pooled across all trades, which can be useful but also means–in a worst case scenario–that your entire account could get liquidated from one trade going the wrong way. So for now, let’s choose the safest option: Isolated margin.
Next, set your leverage level. PEPE allows up to 50X leverage, but it’s best to be careful about risk management and use a 5X setting or lower. This means you are borrowing funds to control a position five times larger than the funds you put in, and both profits and losses are multiplied.
You can place either a market or a limit order, enter the quantity, and you’ll then see an estimated liquidation price.
That price is important because you can then click where it says Buy TP/SL, and set the trigger prices for a Take Profit (TP) and a Stop Loss (SL). A TP closes your position at a level higher than your entry, locking in profits, while an SL closes at a level below your entry in order to limit losses, and if you set the SL above your liquidation price, it can protect you from getting liquidated.
Setting stop losses is a key part of good risk management, while using a TP and SL together again makes you place a strategy in advance, which is good for discipline.
And so with that all done, you can then click on Open Long and confirm the trade.
How to Open a Short Position on ME
Finally, let’s open a short position on another coin, and this time we’ll use ME, which is the new token from Magic Eden. If you’re wondering what is Magic Eden?, it’s an NFT exchange, and the Magic Eden airdrop just delivered the ME token to platform users. Even if you never used the Magic Eden marketplace though, you can trade the Magic Eden token on Bitunix.
Opening a short position is exactly like opening a long, except now you’re betting on the price going down. Set the leverage and the amount, just as you would with a long, but this time click Sell TP/SL. The TP should then be set lower than your entry price, while the SL is higher than your entry but below the liquidation price, because in a short position you make a profit from the price moving down, and you make a loss if the price goes up.
You can then just click Open Short and confirm the trade.
When you’re margin trading, open positions are shown under the relevant price chart, and you can manually close them from there or make adjustments–for example altering the leverage level or adding more margin–and you can also make adjustments using the position markers that will be shown on the price chart.
Always Take Profits
Finally, we’re aiming for regular profits that add up over time, so make sure to take profits when they’re on the table by sticking to your plans and strategies!
There’s plenty more to explore when it comes to trading meme coins on Bitunix, but at first it’s good to try out some trades and get familiar with how it all works, and then you can take it from there.
