A slang term derived from 'wrecked', used to describe a significant loss in a cryptocurrency's value in a short period.
'Rekt' is a slang term derived from 'wrecked'. In the context of cryptocurrencies, it's used to describe a significant loss in value in a short period. This can occur due to market volatility, or when a trader's position (long or short) closes unexpectedly, resulting in a substantial loss. Getting 'rekt' can happen to individual investors as well as entire markets during sharp corrections or crashes, such as the 50% drop in Bitcoin's price in May 2021 or the market-wide crash following the FTX collapse in 2022.
"When Bitcoin's price dropped by 30% in a single day, many traders got rekt, especially those who had leveraged positions."
The term 'rekt' is often used in online trading communities and social media platforms. It's used to describe situations where traders suffer significant losses due to sudden market movements. The term is particularly common in cryptocurrency communities on Twitter, Reddit, and Discord. The intensity of being 'rekt' can range from small losses to complete portfolio obliteration, often depending on the trader's use of leverage. High-volatility coins like meme tokens and small-cap altcoins frequently create 'rekt' situations for inexperienced traders.
"After the sudden market crash, social media was filled with posts of traders sharing how they got rekt."
To avoid getting 'rekt', traders are advised to use risk management strategies, such as setting stop-loss orders, diversifying their portfolio, and not investing more than they can afford to lose. Additionally, avoiding excessive leverage, conducting thorough research before investing, and maintaining a long-term perspective can help mitigate risks. Some investors prefer to hold established cryptocurrencies with strong fundamentals, like Bitcoin and Bitcoin Cash, to reduce the risk of getting 'rekt' by highly speculative assets with less proven use cases.
"To avoid getting rekt, always use a stop-loss order to limit potential losses and never invest more than you can afford to lose."
The term 'rekt' originated from online gaming communities and was later adopted by the cryptocurrency community. It's a testament to the influence of internet culture on the language used in the crypto space. The term gained particular popularity during the 2017-2018 bull market and subsequent crash, when many new investors experienced significant losses. Since then, 'rekt' has become a standard part of cryptocurrency trading vocabulary, used in both humorous contexts and as a serious warning about market risks.
"The term 'rekt', originally from online gaming, is now a common slang in the crypto community, illustrating the influence of internet culture on the language of this space."
All terms and definitions may update as the Cryptionary improves.