What Is a Memecoin? Differences from Shitcoins, Top Coins Compared, How to Buy & Risks [2026 Guide]

A memecoin is a cryptocurrency inspired by internet memes, jokes, or viral images. Dogecoin (DOGE) and Shiba Inu (SHIB) are the most well-known examples. Unlike Bitcoin or Ethereum, memecoins are not built to solve a specific technical problem — their value is driven by community enthusiasm and entertainment. As of March 2026, the total memecoin market cap has surpassed roughly $60 billion, making it a force that can no longer be ignored in the crypto space. This guide covers everything beginners need to know: what memecoins are, how they differ from shitcoins, a comparison of top coins, how to buy them, and the risks you need to understand before investing.

What you'll learn

• The definition of memecoins and how they differ from shitcoins and altcoins
• A comparison table of top coins including DOGE, SHIB, PEPE, and WIF
• How to buy memecoins (centralized exchanges and DEXs)
• Key risks to know before investing — including rug pulls and price crashes

Memecoins are cryptocurrencies born from internet culture. Unlike Bitcoin or Ethereum, which aim to advance technology, memecoins run on humor and community solidarity.

The Origin and History of Memecoins

The first memecoin was Dogecoin (DOGE), created in 2013 by software engineers Billy Markus and Jackson Palmer as a lighthearted joke based on the viral "Doge" Shiba Inu meme.

In 2021, however, Tesla CEO Elon Musk repeatedly tweeted his support for DOGE, sending its price surging and briefly pushing it into the top 10 cryptocurrencies by market cap. Inspired by DOGE's success, SHIB (Shiba Inu) launched in 2020 and PEPE (Pepe Coin) arrived in 2023, and the memecoin market has kept growing ever since.

Key Characteristics of Memecoins

Most memecoins share the following traits:

• Community-driven: Price is shaped more by social media buzz than by a technical roadmap
• High volatility: A coin can multiply dozens of times in days — or crash more than 90% in 24 hours
• Low barrier to entry: Individual coins are extremely cheap (SHIB trades in fractions of a cent), making small purchases easy
• Massive supply: SHIB has a supply of 1 quadrillion tokens; DOGE has no supply cap
• Highly sensitive to social media: A single post from a celebrity can send a price soaring

"Memecoin," "shitcoin," and "altcoin" are often confused, but they refer to different things. The table below breaks down the differences.

Shitcoins are broadly defined as low-cap, low-profile cryptos — and memecoins sometimes fall into that category. That said, memecoins like DOGE and SHIB have market caps worth tens of billions of dollars, so calling them shitcoins no longer makes sense. The relationship is: not all memecoins are shitcoins, but some shitcoins are memecoins. For more, see our altcoin guide.

Here is a comparison of the major memecoins actively traded as of March 2026.

DOGE and SHIB can be purchased directly with Japanese yen on domestic exchanges like OKJ, making them accessible to beginners. PEPE, WIF, and BONK are primarily available through DEXs (decentralized exchanges).

Several structural factors explain why memecoins have become such a prominent part of the crypto market.

Community Power and Viral Spread

The biggest driver of any memecoin is its community. DOGE's official Reddit community has over 2.5 million members, and SHIB's Twitter following exceeds 3.8 million (as of 2026).

Viral spread on social media has repeatedly produced explosive price gains in short periods. When PEPE launched in 2023, it went from zero to a $1.6 billion market cap in just three weeks.

Low Barrier to Entry and the "Lottery Ticket" Appeal

Because individual memecoin prices are so low — SHIB in fractions of a cent, BONK similarly cheap — anyone can buy massive quantities for just a few dollars. The idea that "$100 might turn into $10,000" is a powerful draw, especially for younger investors.

Celebrity Influence

When Elon Musk tweeted about DOGE in 2021, the price rose roughly 50% in 24 hours. In 2024, memecoins tied to former President Trump emerged, further demonstrating how much celebrity attention can move this market.

Memecoins are among the highest-risk assets in the crypto space. Make sure you understand the following risks before investing.

Rug Pulls

A rug pull is when a project's developers suddenly abandon it and run off with investor funds. Research on the memecoin launch platform Pump.fun found that approximately 98.6% of tokens issued there were either rug pulls or pump-and-dump schemes.

Extreme Price Swings

Because memecoins have little underlying technical value, a single social media post or celebrity comment can send prices swinging wildly. In February 2026, a token called "SANAE TOKEN" used a Japanese prime minister's name without permission; when she denied any involvement, the price collapsed immediately.

Liquidity Risk

Low-cap memecoins may have no buyers when you want to sell, leaving you stuck with tokens you cannot exit. Of the more than 7 million tokens in the crypto market, only around 97,000 (about 1.4%) reportedly maintain at least $1,000 in liquidity.

Regulatory Risk

Crypto regulations are tightening around the world, and memecoins could become a target. In Japan, crypto profits are taxed as miscellaneous income at rates up to approximately 55%. A December 2025 tax revision outline indicated a possible shift to a separate capital gains tax rate, but the implementation date has not been determined.

5 Ground Rules for Memecoin Investing

1. Only invest money you can afford to lose — aim to keep memecoins to 1–5% of your portfolio
2. Don't believe influencer hype — ignore "guaranteed 100x" posts on social media
3. Take profits when you have them — set your exit rules before you buy
4. Verify contract addresses through official sources — cross-check on CoinGecko or CoinMarketCap to avoid fake tokens
5. Diversify — never concentrate everything in one coin

There are three main ways to buy memecoins. Beginners should start with Method 1.

Method 1: Buy on a Centralized Exchange (Beginner-Friendly)

Memecoins listed on domestic exchanges — such as DOGE and SHIB — can be purchased directly with local currency.

1. Open an account on a domestic exchange (e.g., OKJ)
2. Deposit funds
3. Find DOGE or SHIB in the trading interface and place your order

Domestic exchanges like OKJ offer Japanese-language support and operate under FSA oversight, making them a safer starting point.

Method 2: Buy on a DEX (Intermediate to Advanced)

Memecoins not listed on domestic exchanges — like PEPE, WIF, and BONK — are typically bought through a DEX (decentralized exchange). A DEX is a DeFi service that lets you swap tokens directly without an intermediary.

1. Buy ETH (for Ethereum-based coins) or SOL (for Solana-based coins) on a domestic exchange
2. Transfer to a wallet — MetaMask for Ethereum, Phantom for Solana
3. Connect your wallet to a DEX — Uniswap for Ethereum, Raydium for Solana
4. Find the memecoin's contract address on its official site, then execute the swap

⚠️ DEXs are full of scam tokens. Always verify contract addresses on CoinGecko or CoinMarketCap before buying.

Method 3: Buy on an Overseas Exchange

Many memecoins are also listed on exchanges like Binance or Bybit. However, these platforms may have service restrictions for residents of certain countries, so check the terms of service before signing up.

Q. Can you make money with memecoins?

Some investors have made large returns in a short time, but many others have lost most of what they put in. Data showing that over 98% of tokens launched on Pump.fun are scams underlines how rare success stories really are. No investment is guaranteed. Only invest what you can afford to lose, and make your own informed decision.

Q. What is the difference between a memecoin and an altcoin?

Altcoin is a broad term for any cryptocurrency other than Bitcoin, including technically-focused projects like Ethereum and Solana. Memecoins are a subset of altcoins specifically defined by being inspired by memes or jokes — their value comes primarily from community hype rather than underlying technology.

Q. Can I buy memecoins with regular currency?

Yes. DOGE and SHIB are available on domestic exchanges and can be purchased directly. For coins not listed domestically — like PEPE, WIF, and BONK — you'll need to buy ETH or SOL on a domestic exchange and then swap them on a DEX.

Q. What is the minimum amount needed to buy a memecoin?

On domestic exchanges, you can buy DOGE or SHIB starting from just a few dollars' worth. Via a DEX, the minimum is also low, though you'll need to account for gas fees. That said, memecoins carry very high risk — only invest an amount you'd be comfortable losing entirely.

Q. How are memecoin profits taxed?

In Japan, gains from selling memecoins are classified as miscellaneous income. If your annual profit exceeds 200,000 yen, you must file a tax return. Swapping one crypto for another on a DEX is also a taxable event, so keep thorough records of all transactions, including DEX trades.

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Key Takeaways

• Memecoins are cryptocurrencies inspired by internet memes; their price is driven by community sentiment rather than technology
• Shitcoins refer broadly to low-cap, obscure cryptos — a different concept from memecoins
• DOGE and SHIB are available on domestic exchanges; PEPE, WIF, and BONK require a DEX
• Rug pull risk is extremely high (roughly 98.6% of launched tokens are scams); keep memecoin exposure to 1–5% of your portfolio
• Always verify contract addresses and diversify to invest in memecoins more safely

To learn more about the broader crypto ecosystem, check out our guides on DeFi (Decentralized Finance), staking, NFTs, Web3, and DAOs.

Sources:

• CoinMarketCap — Crypto market cap and price data
• CoinGecko — Token information and contract address verification
• FSA Japan (Financial Services Agency) — Japan's crypto regulatory information