May 12, 2023
By Murtuza Merchant
Investing in lesser-known digital coins before they hit mainstream exchanges can potentially yield substantial returns.
If you’re intrigued by the idea of purchasing ERC-20 meme tokens, we’ve prepared a comprehensive guide to help you get started.
However, before diving in, it’s essential to remember these three critical points: (1) invest only what you’re willing to lose, (2) conduct extensive research before making decisions, and (3) this article does not provide financial advice.
Now, let’s walk through the process of buying meme tokens, using $PEPE as an example:
Set up your Ethereum (ETH) wallet
To begin, make sure you have some ETH in a MetaMask wallet. If you haven’t created a wallet yet, search for a MetaMask setup tutorial online and follow the instructions.
After setting up your wallet, you’ll need to transfer ETH to it from a well-known exchange like Coinbase or Binance.
Access the Uniswap platform
Next, visit Uniswap’s website at https://app.uniswap.org/#/swap and connect your ETH wallet to the platform. Uniswap is a decentralized exchange (DEX) that allows users to swap one cryptocurrency for another without intermediaries.
Obtain the meme token’s contract address
One critical step in buying meme tokens is finding the correct contract address for the token you want to purchase. Contract addresses are typically available on the token’s official social media profiles or through reputable sites like DexTools.
Exercise caution in this step to avoid scams, counterfeit tokens, or malicious accounts attempting to deceive investors.
Initiate the token swap
Now that you have the contract address, it’s time to execute the token swap on Uniswap. First, enter the amount of ETH you want to exchange for the meme token in the input field.
Then, click “Select token” and paste the contract address into the search bar. Once the desired token appears, select it to view the exchange details.
The platform will display the number of meme tokens you’ll receive for the entered amount of ETH and the associated gas fees.
Gas fees are necessary for processing transactions on the Ethereum network and may fluctuate depending on network congestion.
If you’re satisfied with the displayed details, click “Swap” to proceed. You’ll have another opportunity to review the transaction details and confirm or cancel the swap.
Once confirmed, the platform will process the transaction, and you’ll receive a notification when it’s complete.
Converting meme tokens back to ETH follows the same procedure, only in reverse. This method is also useful for checking your tokens’ current value, as it provides a real-time estimate of their worth in ETH.
However, be aware that the value of meme tokens can be highly volatile, and investing in cryptocurrency carries inherent risks.
In conclusion, purchasing ERC-20 meme tokens can be relatively simple, but it’s crucial to exercise caution and conduct thorough research before committing to any investment.
Cryptocurrency investing is inherently risky, and it’s essential to approach it with a clear understanding of the potential losses involved.
By following the steps outlined in this guide and adhering to the principles of responsible investing, you can explore the world of meme tokens while minimizing potential risks.
Remember, always do your own research and exercise caution when investing in cryptocurrencies.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.
