In crypto slang, the word REKT (distorted from wrecked) means total financial defeat. If a Bagholder is someone sitting with a worthless asset, REKT is a level of total collapse, when an investor or trader has lost almost everything.
How is the term used?
“I got REKT” — "I got wiped out to zero", "I lost my entire deposit".
“That coin is REKT” — the token has lost almost all its value and will not recover.
“REKT chart” — a chart of a coin that has plummeted into the abyss.
Typical situations where people get REKT:
1. Trading with leverage. Took x20 on futures → market went against you → liquidation.
2. Participation in hype projects. Invested in a new meme coin → the project turned out to be a scam → deposit wiped out.
3. Improper risk management. Went all-in on one token → it fell by 80% → portfolio destroyed.
4. Financial disasters in the market. Example: the FTX collapse in 2022, where many held funds on the exchange and lost everything.
Examples from the crypto world
Investors in LUNA/UST in 2022: many lost millions when the stablecoin 'depegged' and the system collapsed.
Futures traders during sharp BTC movements: exchanges often show liquidations in the billions of dollars per day.
Traders in DeFi who fell victim to smart contract exploits.
The difference between Bagholder and REKT
Bagholder: you have an asset that is worth little now, but at least something is left.
REKT: you have nothing left, your deposit is gone.
How to avoid falling into the REKT zone?
1. Do not use high leverage. The higher the leverage, the greater the chance of being liquidated.
2. Diversify your capital. Never put everything into one trade or one asset.
3. Keep part of your funds in stablecoins. This provides a safety cushion.
4. Draw conclusions. If a project is scamming or collapsing — it's better to exit at a loss than to be left with nothing.
In summary: In crypto, the expression “Don’t get REKT” serves as a reminder — do not be overconfident, do not risk your entire deposit, and respect risk management.
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