To the outside world, the cryptocurrency ecosystem might seem like a separate cosmos, with Statista reporting that there are about 900 million identity-verified crypto wallets. It can occasionally be challenging to keep up with its abundance of jargon, memes, and slang. There are new terminologies emerging virtually every day, from NFTs to DeFi and now Web3. Degen is one of the terms you’ve most likely seen circulating. Despite its age, the term “degen” has gained fresh meaning in the crypto community. In this article we will discuss what is degen in crypto, meaning of DeFi degen, and more. Table of Contents What is degen in crypto? Origin of degen trading Rewards and risks of degen trading Are DeFi Degens good or bad? Final words You might also like: ‘Make me feel emotional desire to quit:’ Ethereum’s Buterin frustrated by community’s focus on ‘degen casino’ What is degen in crypto? The slang term “degen,” which comes from the word “degenerate,” is frequently used in a humorous or self-aware way for degens in the web3 world. It is frequently used in the cryptocurrency world to describe those who trade or invest in very risky and speculative ways. Usually, degen traders are linked to a readiness to take significant chances in an effort to increase profits. The word “degen” recognizes that their cryptocurrency trades are speculative and occasionally out of the ordinary. Others, on the other hand, use it as a warning, highlighting how dangerous some of the behaviors are in the area. Many people in the crypto community have taken the term “degen” as a badge of pride, despite its negative connotations, signifying a desire to embrace the sector and take risks. They have a reputation for being devoted to the communities and initiatives they fund. Crypto degens are frequently seen as ardent and dedicated members of the crypto community, notwithstanding the possibility of losses. They might actively participate in projects, providing suggestions, criticism, and encouragement to foster community development. Now that we have understood the meaning of degen in crypto, let’s dive into its origin. Origin of degen trading Since “degenerate” gamblers are notorious for their careless betting practices, the word “degen” itself is taken from gambling slang. In the world of finance, traders that use aggressive tactics and often leverage their holdings to maximize possible gains are referred to as degen traders. This trading strategy is especially common in the cryptocurrency industry, where significant profits may be made by taking advantage of market volatility. Degen trading has drawn a wide range of supporters, from novice retail traders to more experienced players in the financial system, despite its gambling associations. Despite the inherent hazards, many have found it impossible to resist the temptation of quick profits, particularly in a market as volatile as Bitcoin. Rewards and risks of degen trading It is impossible to exaggerate how dangerous degen trading can be. In order to enhance the size of a transaction and increase the possible profits and losses, traders frequently take on high-leveraged bets. These tactics expose traders to the possibility of equally quick and large losses, but they can also result in huge financial profits in a short amount of time. Furthermore, judgments are frequently based on short-term price changes rather than long-term fundamentals due to the speculative nature of degen trading. This strategy may result in an extremely volatile trading environment where the risk of abrupt and severe financial downturns is equal to the potential for reward. Are DeFi Degens good or bad? DeFi degens stands for DeFi degenerates. It refers to a subculture within decentralized finance who are, unfortunately, notorious for pump and dump schemes. This practice involves purchasing enough of a coin to make prices tick upward and get others to buy before dumping and leaving the remaining holders to bear the losses. The term degenerate is fitting because these entities cause losses for investors and create baseless hype around meaningless cryptocurrency projects. The distortive behavior affects legitimate projects which compete with the pumped-up projects. You might also like: Degen chain network halts production for over 42 hours Final words An intriguing, although dangerous, aspect of contemporary financial markets is degen trading. Navigating the intricacies of today’s investment environment requires financial market pros to comprehend the subtleties of this trading strategy. Even if there is no denying the possibility of large gains, it is imperative to approach degen trading cautiously, understanding the dangers involved and the need of making well-informed decisions. In conclusion, the tactics and methods used by people involved in the financial markets will change in tandem with the markets themselves. The huge stakes involved in degen trading serve as a reminder of the delicate balance that exists in the financial industry between risk and reward.
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