For every crypto newbies, the crypto market might look like a frightening place to be. However, one thing that is certain in trading cryptocurrency is you don't want to get Rekt! 

So we can say, getting Rekt is when you lose everything in fast and violent market movements. For many inexperienced traders, it's game over!

There is no turning back from such a horrific event, and many eventually abandon cryptocurrency transactions altogether.  


In this article, we will be looking at what getting ‘Rekt’ means in the cryptocurrency world  and how to prevent it from happening. 

What is Rekt? 

Rekt is a cryptocurrency slang for wrecked. It simply originates from gaming but has since  become popular in the cryptocurrency world.  

The term is believed to be derived from British English which means you have lost everything. 

So, we can say a Rekt occurs when a trader makes a loss in a trade.  

Usually, this happens when a trader buys into an ICO or cryptocurrency that later fails or  results in fraud. 

In most cases, the results are readily available; it is a big, deadly move that traders' money  gets wiped out, causing losses. 


How to Prevent Yourself from REKT 

1. Diversification of Trading Portfolio.  

This means that you shouldn't put all your eggs in one basket. Trade multiple cryptocurrencies and probably look at stocks and forex.  

If the price of one cryptocurrency goes down, we recommend that you do this as you can trade with another cryptocurrency. And when the entire cryptocurrency market is down, you can invest in another asset.  

This way, you can maintain profitability and reduce losses.

2. Understand How Cryptocurrency Works 

Knowledge is an essential key to not getting Rekt as a crypto trader. So, to be a crypto trader, you need to have a lot of knowledge about how cryptocurrencies work. After all, you can't trade what you don't understand. And you need to have a good knowledge of all the cryptocurrencies you purchase so that there will be nothing that will happen that will meet you unexpectedly. 

3. Follow The Market Flow  

As you may know, the cryptocurrency market is very volatile. Getting Rekt in a single downward movement is very easy.  

Many beginners in cryptocurrency trading do not know that the market functions periodically. The market will never keep rising or going down forever.  

It reaches peaks, falls, troughs, and then rises. It's the same in all markets, including cryptocurrencies.  

So, you should keep in mind that things don't always stay the same; you need to be ready. It may be good now, but it may not last forever, and you must stay flexible. 


4. Look For Cryptocurrencies That Are Reasonably Cheap And Appear To Be Rising. 

This means doing a lot of research. Not just how cryptocurrency works; but how it has historically performed and what might affect its prices. 

Understanding the historical movements of cryptocurrencies will help you develop more realistic targets during trading. 

Unfortunately, this can be tricky as many cryptocurrencies are only a few years old and can only display a limited amount of data.  

The crucial thing to note is not just the highest and lowest prices reached, but also the trading volume, which indicates the number of people trading the asset. 

5. Learn How To Find Scams And Poor Quality Cryptocurrencies 

The best way to do this is to stick to well-known cryptocurrencies and choose your ICO carefully. 

Crypto creators in Pump and Dump Scams; encourage people to invest in cryptocurrencies  to inflate prices before selling everything. 

In this situation, the creator owns the majority of the cryptocurrency; and when it is sold, the value of the cryptocurrency quickly declines. Victims of such scams are certainly Rekt and are known as bag holders. 

Good advice is to stay away from unknown coins. In many cases, it's not worth trading, even if it's not a scam. As a trader, you need to stick to the top 10 cryptos. And if you don't  understand what cryptocurrencies are different from other markets, it's probably not worth  trading. 


Conclusion 

Many traders are Rekt because they don't understand how cryptocurrencies work.  

Therefore, if you want to survive, you need to improve your knowledge of cryptocurrency  trading using the tips above.  

No matter how big the crypto market grows in the next few years, there is no chance of profit if you waste your capital. So it's time to stay in the game, stay calm, and not Rekt.  

Want to know more about other cryptocurrencies and how to trade them? Register now on  www.Tradefada.com to get started!