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Rekt

Dec 16, 2022 | Updated Dec 16, 2022
Rekt is crypto slang that means “to lose most or all of your funds due to a bad investment or trade.”

What is “Getting Rekt” in Crypto?

The term “rekt” is derived from “wrecked” and can have different meanings depending on the context. For cryptocurrency trades, it describes a sudden and severe financial loss. It is also used sometimes to describe an asset that loses all value, such as, “this token is rekt”. The term can apply to individuals, protocols and any aspects of cryptocurrencies.

There are different contexts for describing a situation as rekt. When the price of a coin drops drastically, the coin is “rekt”. If you invest heavily in a token that loses all value, you will be rekt. In DeFi, protocols sometimes get hacked and drained of liquidity, when this happens, the dApp is rekt. 

The term originated in the online gaming ecosystem, where you can call a player rekt if they are defeated on an embarrassing scale.

How to Avoid Getting Rekt

The volatility in the crypto market makes it possible to get rekt if a user operates without the proper precautions in place. To mitigate the chances of getting rekt:

  • Do your research before choosing a project to invest in. 
  • Don’t invest more than you are willing to lose especially when trading in margin or futures. 
  • Consider diversifying your portfolio to spread out the risk.

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