The term REKT is becoming increasingly popular in the cryptocurrency market, especially among professional crypto traders and investors. But what does it mean? Put simply, REKT stands for “wrecked,” meaning someone has experienced a heavy financial loss due to an ill-advised trade or investment.
In this article, we’ll explore the origins of the term; its implications within the crypto space, and how you can avoid being “rekt” yourself when trading cryptocurrencies.
Origin and Popularity of the Word
The word “REKT” is popular within the cryptocurrency sphere, but its origin has been speculated and debated for some time. It is thought to have originated from Internet gaming and traditional finance where the term was also used to describe a big financial loss.
The word itself was widely popularised by traders discussing investments online, mainly on Reddit. The growing ubiquity of this term has now spread across global finance, as well as other sectors like crypto, which shows a shift in language usage and development involving unprofessional vocabulary within the world of finance.
How it Became Popular in Crypto
The term “REKT” became popular among members of the cryptocurrency community in late 2013 when the Bitcoin price took a steep downturn and left many investors wiped out.
Since then, it has been used to describe situations where crypto traders or investors suffer a significant financial loss due to market volatility or individual mistakes. To this day, REKT remains an indispensable part of how cryptocurrency market participants document and discuss losses suffered on exchanges worldwide, providing a critical early-warning system for spotting dangerous trading patterns amongst novice traders.
What it Means for a Crypto Trader to be “REKT”
When crypto traders get REKT, it means they have experienced an extreme amount of losses related to their crypto investments either due to unfavourable market conditions or a lack of better risk management. This can be particularly devastating for individuals and organizations alike who may have put high levels of capital into these digital currencies.
The implications of this term may also mean more than just losing a large sum of money – it could further evolve into creating mistrust in the crypto market and cause people to doubt the potential of certain cryptocurrencies as a viable form of currency.
How Traders Can Avoid Getting REKT
Cryptocurrency traders can take several steps to avoid getting rekt. The first step is to have a sound risk management strategy in place. This means setting realistic trading goals and limiting losses by having a stop-loss order in place when trading on an exchange. Risk management also involves diversifying investments across different coins, as well as maintaining adequate liquidity that allows traders to quickly exit positions if needed.
Second, it’s important for traders to stay informed of the latest market developments and periods of high volatility. This involves learning technical analysis skills and using tools like charts, indicators, and news feeds. Such tools can help identify potential areas of risk and help traders make more informed decisions when entering trades.
Lastly, traders should be mindful of their own emotions when trading cryptocurrencies. Fear and greed are two of the most common psychological pitfalls for traders, so it’s important to remain conscious of these emotions during periods of high volatility. This requires staying disciplined by following a pre-defined strategy and not taking risks that could lead to extreme losses.
Conclusion
The term REKT has become an integral part of how cryptocurrency market participants discuss losses suffered on exchanges or other crypto platforms worldwide. It is important for traders to take steps to avoid getting rekt by having a sound risk management strategy in place, remaining conscious of their own emotions during periods of high volatility, as well as staying informed about the latest developments. By following these best practices, traders can limit potential losses that come as a result of unfavourable market conditions or mistakes made while trading cryptocurrencies.
Other Popular Terms Used in Crypto Besides REKT
1. HODL: An acronym used to describe an investor’s decision to “hold” rather than sell a digital asset during periods of market volatility.
2. FOMO (Fear Of Missing Out): The feeling that an investor may miss out on an opportunity if they don’t participate in a trend or investment quickly enough.
3. Bullish/Bearish: Used to refer to a positive and negative outlook for the markets, respectively.
4. Pump & Dump: A coordinated effort by investors to artificially inflate the price of securities in order to make quick profits from unsuspecting buyers who purchase them at inflated prices before the bubble bursts and prices crash again afterwards.
5. Whale: Refers to large investors with significant amounts of capital in any given asset class; these individuals can have large effects on pricing when entering or exiting positions within the market due to their size alone
6. Shilling/Shillings: Term used for describing someone who is pushing publicity toward a particular coin or project online through social media channels, such as Twitter, Reddit, etc., with hopes of driving up demand and prices for it
7. Bagholder: Someone still holding onto assets after their value has significantly diminished in the market; often a result of buying and holding at an all-time high.
8. Altcoin: Any cryptocurrency other than Bitcoin, usually referring to those that exist as forks or clones of the original blockchain protocol.
9. Mooning: To experience massive gains in either a single day or over a short period of time.
10. ATH (all-time high): Refers to the highest price ever reached by an asset in its lifetime.
Source: https://www.cryptopolitan.com/what-does-rekt-mean/