Tuesday, June 22, 2021
Home The Capital Buying a memecoin ain’t so easy

Buying a memecoin ain’t so easy

May 13 · 6 min read

Crypto is never dull, but recently things have gotten really heated. I mean, when even parents start asking us to buy them some of this “Dogecoin,” and ex-boyfriends come around to shill me the next 10x Moonshot Tokens, is that the top?

So far, despite many adult tokens being launched like Pube Finance or $ASS it wasn’t and I couldn’t help but be a bit intrigued. Until now, I mainly stayed away from the whole Binance Smart Chain ecosystem because I believe it’s not decentralized with its very few validators (I mean 21 validators, that’s fewer than players on a football field during a match). It’s kind of like going to the dutch theme park in Japan and thinking it’s the same experience as the Netherlands. *No offense.

Anyway, since Ethereum Gas fees are still high, and everyone seems in on the fun, I decided to give it a go. After all, it’s on the blockchain, so what can go wrong.

The first step, I needed to find a random token that I consider at least cute enough to lose some money on it potentially. After browsing a few crypto telegram channels, I stumbled across Catecoin. Yeah, I know everyone was in on dogs, but I like cats.

It was cute enough, had already grown quite a community within a short amount of time, and the number of holders was above a few thousand. I was pretty impressed with how active their community channel was, so the decision was easy—buying $Cate to see how it goes.

Just like with anything you want to buy on PancakeSwap — which by the way, is a decentralized exchange on the Binance Smart Chain — you need to have an asset that is compatible with BSC. Also, you should get the one against which your Yolo token is trading. In my case, BUSD and BNB.

Nothing more straightforward than that. I headed to FTX to buy some BNB with my USDT.

You’d think things should be easy now; you transfer the BNB to Pancakeswap and buy your token.

If only the above were true. The next step was to exchange the BNB I received for BNB but on Binance Smart Chain. When Binance initially launched BNB, it was running on Binance Chain. Then they launched Binance Smart Chain to support smart contracts and made them interoperable. Great, two chains for two different things -but in this case, it also meant I had to withdraw BNB to my trust wallet to swap it to BNB but on Binance Smart Chain. Luckily there’s an option to do that easily in the wallet.

I was dedicated to getting that CateCoin and ready to go to great lengths for it. 🐱So when the pancakeswap dApp in the trust wallet didn’t want to load properly, I decided to do it all on my Desktop. It’s easier to check all those strings of numbers and decimals on a monitor anyway.

Next stop: Meta Mask.

Okay, but first, did you know that Binance Network isn’t added to Metamask by default? That’s something we have to add ourselves first. And for anyone who isn’t aware of Meta Mask, it’s a crypto wallet that can be installed in your browser as a plug-in, making it super easy to use.

After a little bit of searching, I had found the right links to add the Binance Smart Chain network to the networks on my Meta Mask. Want to know how I did it? Have a look here. It’s not rocket science. That being said, I’ve no idea of rocket science either. I hope catecoin rockets.🚀

Yet, I was still steps away from owning it. Since Meta Mask was now ready to receive, I sent my BNB from the Trust Wallet to Meta Mask and then went to pancakeswap. Getting closer to the goal. By that time, I had considered aborting the mission, but looking at that cute cat character gave me enough motivation to go through with it. And, of course, the learning aspect. We’re all in it for the technology, aren’t we?

Connecting MetaMask to PancakeSwap ✔️

Entering Amount, I want to buy ✔️

Hitting Swap now ✔️

What happens: Error message.

BSC Memecoins really don’t make it easy for people to buy. The error message seems to be common when you’ve not set the slippage tolerance high enough. As crypto in general and yolo tokens, in particular, are very volatile, you have to specify how much price movement you’re willing to tolerate. Just 1 % of slippage is often not enough. To get to my kitty tokens, I had to tolerate a 12% slippage, but then I finally had my CateCoin. 🎉

TLDR:

1. Decide on Meme Coin

2. Get BNB — you might have to buy some with fiat first and if you don’t have any crypto yet. This inserts an additional step including verification — ugh.

3. Swap BNB to BNB on BSC

(4. Transfer to Meta Mask — just if you have issues with the dApp as I did)

4. Connect with PancakeSwap and find the Token you want to buy.

5. Enter the amount and hit swap.

6. If you encounter an error message, adjust slippage tolerance. You might have to go really high.

7. Enjoy the ride 🎢

8. When you store CATE in your wallet, you might have to manually add the smart contract and name of the token. Much Fun.

Ha, did I mention that each transaction also costs some transaction fee? Luckily it’s Binance Smart Chain. On Ethereum, such transacting back and forth can easily cost a big chunk of the transferred amount.

Would I do it again? Most definitely. It goes to show that people who buy these tokens have done some experimenting with crypto. I also noticed that there’s still some way to go for it to be effortless to use for a mainstream newbie.

It was quite a fun experience, and unfortunately, now I’m kinda addicted to checking the chart and the telegram channel every few minutes. Gotta wrap it up and recheck the chart.

On a side note, it also requires me to do the math, as the price isn’t shown in a dollar amount in my wallet. I might not even notice when I am a millionaire, so wish me luck.

By no means does any of this constitute financial advice. I’ve only invested money I can afford to lose. If you want to be a bit more serious about trading low-cap cryptos, check out this sub-red.

At this moment, I think my Cate is going down, as FUD is spreading due to Vitalik Buterin selling a significant portion of his dog tokens, driving down prices. But I’m optimistic. Cats always come back strong. And even if I lose some, I gained some valuable experience with the BSC ecosystem.

Popular Articles