In crypto, “Rekt” refers to investors making wrong decisions and losing money. In other words, Rekt is the jargon word to describe a bad loss on an investment. It is the phonetic spelling of the word “wrecked” meaning “ruined”.
What is Rekt (Wrecked) in Crypto?
The meaning of the word REKT in crypto is to experience a financial collapse in a particular transaction or investment. Although the amount lost varies, this concept is generally used for very large losses. To give an example of using Rekt, “I was long on LUNA and then I became REKT when UST lost its constant and crashed.” a user who says, expresses his loss.
The concept, which has become widespread with the crypto money markets, is usually used for investors who make serious losses. It can also be used to describe a failed investment and a falling market. Getting rekt or being rekt means “to be completely destroyed”, “to end”.
What Does It Mean To Be Rect?
Sometimes crypto investors buy an investment that they think will make a profit, out of fear that they might miss out. However, after the purchase, things may not go well and a big price drop may occur. In such cases, an unexpected decline and loss occurs. After the financial loss faced, it is stated that the investor is rekt, that is, bankrupt.
The “fear of missing out” called FOMO actually creates a reason for the market in general. This event can occur in both futures and spot markets. For example, an investor who makes spot purchases can sell the asset he bought with the effect of FUD for one-fourth of the price.
Investment Advice to Avoid Rekt
Especially users who have just stepped into the crypto market are likely to be rect. However, this situation can easily be avoided if some points are observed. 7 investment recommendations listed below can be taken into consideration in order not to be a rakt:
- Observe the market trend: Understand the mechanism and functioning of this market before investing in cryptocurrencies. Do a short research on basic but extremely critical transactions such as buying, selling, changing, transferring. It is a great benefit to watch the videos that explain these.
- Keep calm: Psychology has a very important place in the cryptocurrency market. The chance of success of the investment or transaction made by the investors is highly proportional to the current decision-making mechanisms and moods. It is among the researches that individuals with developed investment psychology perform more logical and more profitable transactions.
- Focus on the long-term, not the daily earnings: It is more important to be a long-term investor than daily earnings. The investor group, who prefers to take advantage of the volatility of cryptocurrencies and to enter many transactions during the day, is usually the loser. Individuals who follow the general conjuncture well and make the right investment for a long time have a better chance of winning in this market.
- Don’t get caught in FOMO: The most common mistake most investors make is getting FOMO. Even if FOMO-stricken investors have a hard time resisting the urge to buy, they are more likely to win if they manage to do so. Don’t worry about it, opportunities will always come your way.
- Make a basket: Don’t tie all your savings to one financial instrument. Diversify your portfolio. Because a diversified portfolio is the key to long-term earnings. The more you reduce risk and use math, the better you can outcompete your competitors’ strategy and capture the value of your investments.
- Have your STOP point: Opening a STOP (stop loss) trade is extremely important. 24 hours is a very long time for the crypto money market and very volatile movements can occur even in 2 hours when you are not interested in the market. Using the stop loss level in the crypto money market, where the rises can be harsh as well as the falls can be quite harsh, will contribute to you.
- Focus on not losing, not winning: The most important rule is that the market is not where prices are formed, but where the right prices are respected. That’s why the most important thing when investing in the market is not to make money, but to not lose money.
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