The financial market is a dynamic environment that goes through ups and downs in cycles. The…
Rekt. People who encounter this term may think that it probably has no meaning. However, it is part of the cryptocurrency slang that you need to be aware of. Rekt is useful in describing a certain situation.
If you are looking to expand your crypto slang, then read this blog post to learn a new term you can use to connect with other crypto enthusiasts.
The term rekt is a slang expression that comes from the word ‘wrecked’.
People use it to describe someone who experienced a catastrophic financial loss. Furthermore, rekt is also applicable to cryptocurrencies and protocols. Usually, the financial losses that cause a person to get ‘rekt’ comes from poor financial and investment decisions.
Different Contexts of Rekt
As mentioned above, rekt can be used in a number of ways. When a coin’s price suddenly drops or if it almost loses a huge portion of its value, one can say that the coin is rekt. In the same manner, if you invest in a rekt coin, you will also experience the same thing. In the case of decentralized finance (DeFi), when a protocol’s liquidity drains out, that dApp becomes rekt.
Short History of Rekt
The origin of rekt comes from the gaming world. Players who lose in such an embarrassing way get described as rekt. Also, it helps talk about someone who loses so severely in an online gaming competition.
However, the initial use of the term may have started in the old British English language. Back then, it described a heavily drunk or messed up person.
How to Avoid Getting Crypto Rekt
Cryptocurrency receives a lot of hype nowadays. Consequently, a lot of malicious actors tend to abuse its decentralized nature. Here are some ways one can avoid getting wrecked.
Choose Legit DeFi Protocols
Do proper research or use trackers to check who DeFi protocols are trustworthy. Two things you can check on your own are the total value locked (TVL) metric and the time over which their users engage with their platforms. They may be trustworthy if their TVL is high and they have many users registered on their platform.
Learn More About Tokenomics
We know that tokenomics refers to the economic features of a certain crypto coin or token. Developers that designed their tokenomics with a good framework will last better in the long run compared to those with poor tokenomics.
Be Cautious with Leverage
Leverages are a double-edged sword. It magnifies an investor’s profits but it comes with substantial risks and needs continuous monitoring. When an investor uses leverage, he or she borrows assets to build better trading positions.
However, any type of miscalculation can lead to getting rekt. Therefore, leverage is not suitable for crypto beginners.
In conclusion, the meaning of the slang term rekt changes depending on the context. New investors should always be against the hype in social media platforms about digital assets.
Trades or investments in crypto require serious research and commitment. Remember, DYOR is one’s best friend!