About Pump.Fun, everything you need to know (including how to identify the project tutorial)

Original Title: "PumpFun - your all-in-one guide for successful trading"

Author: Hermes

Translation: Deep Tide TechFlow

This market will provide the most fair on-chain PvP environment. If you want to stay ahead in the game, you must delve deep into the Pump.Fun trenches, otherwise, you won't be profitable.

This thread will cover:

1. Why choose Pump.Fun?
2. What makes a quality coin?
3. Trading strategies
4. Pre-Raydium
5. Post-Raydium
6. Reducing risks
7. Other relevant information

1. Why choose Pump.Fun?

To answer this question, you first need to understand how the product works.

Anyone can create a token in seconds with a fee of 0.02 $SOL, making it simple, fast, and cost-effective. If the creator wants a certain supply percentage, they need to buy at the moment of token creation. This makes tracking developers and team wallets easier, creating a fair market with no hidden wallets, no airdrops, and no farms. This is also why many coins on Pump.Fun can successfully have a Chief Troll Officer (CTO).

When trading on Pump.Fun, you will never be completely rug pulled because liquidity cannot be drained, and as mentioned earlier—no token airdrops.

Lastly, crucially, even if you miss the initial Pump.Fun stage, you can still seize early opportunities because a coin moving from Pump.Fun to Raydium takes about 5-20 minutes with a market value of around $60,000.

No other platform can provide such a favorable and fair on-chain market. All these reasons should convince you that Pump.Fun is worth a try.

2. What makes a quality coin?

People focus on different things when looking for the key to wealth. I try to keep it simple:

• Name—Does it make sense, is the meme narrative appealing, does it have meme potential (e.g., wif/michi has infinite meme potential)
• Token code—Should be relevant, concise, easy to remember
• Website—Is there a website? -> Is the website unique? -> Has effort and thought been put into the website?
• Twitter—Must have relevant profile picture and background image (you'd be surprised how important the background image is)
• Bonus points: Telegram with stickers, bot setup, prepay Dex, and non-anonymous developers/teams

Of course, just because a project meets all the above criteria does not guarantee its success, but it increases your chances of stumbling upon a good project and significantly reduces the time you spend browsing junk information.

3. Trading strategies

A) Pre-Raydium

When the coin has not yet left Pump.Fun, you should pay attention to the following market value levels:

$15K market value—This is the first price point that must be broken through. It's usually not difficult to break through, but you should realize it's a good re-entry point.

KOTH (around 30K)—This is a significant level where selling is the main position because reaching KOTH means you (or new buyers) will see it on the landing page, attracting more attention. Most coins encounter selling after reaching KOTH, so if you're on the sidelines, wait for this sell-off.

*Ruggers usually buy a large amount of their own tokens and push the price directly to KOTH, then sell off in one go. Be aware of this and don't rush into projects that reach this level in one candlestick.

$45k-55K—This is the last checkpoint before entering Raydium and the most difficult to pass. People sell in this range because 1. Raydium has thicker liquidity, 2. People anticipate "Raydium sell-off" (will be detailed later). I never buy in this range because the risk-reward ratio isn't worth it; many coins lack the strength to break through this level.

On Pump.Fun, unlike elsewhere, the earlier I enter a coin, the larger my bet position. Why? Because the downside risk is limited. For example, if you buy a coin at $10,000, the lowest it can drop to is $5,000, with much greater upside potential than downside risk.

B) Post-Raydium

Usually, tokens drop and bottom out in the first 5-10 minutes of trading on Raydium. Depending on the coin's strength, you typically see it bottoming out in the market value range of $50K (very strong) to $20K (very weak). My approach is to determine the amount I want to buy (e.g., 1 SOL) and deploy 50% when the coin is at 50K-40K, and the remaining 50% when it's at 20K-30K.

Why is the initial sell-off of a coin so brutal?

One reason is that liquidity is about three times lower than on Pump.Fun. Another reason is that people panic if the DEX is not updated (coins that prepay DEX usually perform better). Lastly, people anticipate this sell-off, so they hesitate to buy.

Usually, if I miss a coin on Pump.Fun, I wait for this initial drop. If it doesn't happen, 90% of the time I give up on it.

Crucially, coins released through Pump.Fun never truly disappear.

What does this mean? People like to be CTO of tokens on Pump.Fun because these coins are safe. We have many successful CTOs—$SC, $boy, $speed are just a few recent examples.

If a coin stands out among many coins, has shown strong performance, and built a community but later "dies," then be sure to pay attention to it. Usually, another team will seek to take over and drive it again (these are the most profitable plays and how I make most of my profits).

4. Reducing risks

In this section, I will discuss what I do and don't do when trading Pump.Fun coins.

On Pump.Fun

If I don't have information on the relevant team and their professional background, I won't enter coins with a market value exceeding $30,000. The risk-reward ratio isn't worth it because most coins fail to stand out from Pump.Fun (less than double).

I sell at the KOTH and 45-55K levels. If the narrative is strong enough, I keep a base position; otherwise, I sell out completely before Raydium and re-enter after the initial sell-off.

Outside Pump.Fun

I buy coins that have bottomed out or are in the accumulation range. What I consider the coin's "bottom" is a market value of 10K-20K.

Examples of bottoms (charts may look bad, but this is actually the case for most coins)

Accumulation range:

These coins are worth a try if:

a) the meme is good, and you expect others to notice it and CTO it

b) CTO is forming or has formed, and is handled properly

When you buy coins at prices that can't go any lower, you significantly reduce trading risks. The worst-case scenario is a 50% loss, the best-case scenario is a 100x gain—excellent risk-reward ratio.

5. Other relevant information

When trading tokens on Pump.Fun, I use Photon (they have integrated support for Pump.Fun), which is much smoother than manual trading.

To find a coin, I just need to watch the fluctuations on Pump.Fun and check what catches my attention, but if you're looking for a more organized approach, you can filter the types of coins you want to see through pumpmaster.fun.

I

Another tip is not to sell out for worthless things because they are very common CTOs. You wouldn't want to be the one who sells before a big rise.