- Fall Of Crypto
- Many people got REKT in Crypto in the year 2022.
- There are ways not to get REKT in crypto for newbies.
In the era of digital modernization, there are new, more dynamic, and exciting ways of investing. There are ample uncertainties that keep on occurring in the context of the crypto market or any market for that instance. lets discuss the REKT in crypto in market
Great Fall of Crypto
Last year was one of the most devastating occurrences from the point of view of crypto investors; most of them called it “The Crypto Winter,” and yes, you guessed it right, it has been taken in reference from the popular T.V. show “Game of Thrones.”
Crypto Winter shattered all the promises it said it would uphold when it was introduced; many cryptocurrencies fell from cloud 7 to the bottom of traditional finance. There were surely reasons for its fall, but when it went up in the year 2021, most people thought that it is one of the most promising ways that will be adopted in the long run in terms of finance.
Ultimately in the year 2022, after all this happened when investors’ dreams were in shambles, it was almost like their ship got hit by a winter storm and got “wrecked” in that process.
This is where the term “REKT” came in, which meant when an investor had heavy crypto investments but a huge loss. It’s a term that has been picked up from the gaming community, which means “wrecked”; it’s a slang term.
How not to get REKT in Crypto
But there are still ways for new traders to not get REKT and main pointers are noted down below:-
- Selecting the right platform: Choosing the right platform is one of the things that are needed to be kept in mind when starting to trade. Is it easy enough for a beginner to understand or not? One should be comfortable navigating through the site. Considering Forex, it must have major currencies to trade in.
- Risking stupidly: This is not a betting game of any sort; one should consider all possible possibilities. Risking on trades would ultimately rely on your uncertainty. Statistically, it’s not suggested to take risks without any calculation or which would ultimately result in some kind of loss as luck runs out.
- Ignoring Time Frames: A beginner is not able to calculate the time frames one should hold a stock. Different characteristics are needed to be kept in mind for a particular stock or share. The easiest way to tackle this is to listen to old and highly experienced traders. Their tips and tricks could help one to learn the tricks of the trade.
- Poor Risk-to-Reward Ratio: Understanding the charts is one of the most crucial parts of trading. One can easily decipher this risk-to-reward ratio by the analysis of the charts. There must be discipline in one’s actions regarding the trades. There should be no emotions causing hindrances in the decisions.
- Use of Stop Loss: Using the indicator for the stop loss, meaning restricting yourself after a certain amount of loss is very important. Again it should be a calculated risk for the trade. If one treats it as an addiction, he would be swimming in a pool of losses after a certain point in time.
- Trading outside of the comfort zone: As a beginner, one should only trade in the domain of a sector where he knows about it. One should not trade aimlessly and follow the trend even though it is out of your reach. Knowledge about things is also an important factor in trading. Don’t trade in patterns you are unclear about.
- Having control of emotions: Having control over your emotions is a very important part of the process of becoming a pro trader. You should not be driven by emotions while trading. There are certainly losses and gains when trading, but one should make logical decisions.
- Increase the knowledge base: Increasing one’s knowledge base is a very important factor. As it is a very crucial point for knowing which companies you are training for. Reading business news can also give you an edge.
Conclusion
The fall of crypto in 2022 left many investors “REKT,” experiencing significant losses in their crypto investments. However, there are ways for newcomers to navigate the volatile crypto market and avoid getting “REKT.” It starts with selecting the right trading platform that is beginner-friendly. It offers a diverse range of currencies to trade. Risk management is crucial, as blindly risking investments without proper calculation can lead to substantial losses. By following these guidelines, newcomers can minimize the risk of getting “REKT” and increase their chances of success in the crypto industry.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in cryptocurrency and NFTs comes with a risk of financial loss.
