What Is Crypto Degen

New terms keep emerging in the crypto space, which can be quite challenging for the average person to understand; one of these terms is crypto degen.

If you, too, are unsure what it means, don’t worry — we’re here to help. This guide will clarify the concept and explore all of its characteristics so you can better understand its meaning. Without further ado, let’s start.

What Does Degen Mean in Crypto?

Degen comes from the word degenerate. In crypto, it’s often used to describe a person who undertakes high-risk, speculative trading or investment strategies. These people usually take extreme risks in search of potentially high returns.

The term degen in crypto is generally used lightheartedly, acknowledging the crypto traders’ unusual and speculative nature. So, it should be noted that the term isn’t considered disrespectful; in fact, many crypto enthusiasts refer to themselves and others as crypto degens.

Characteristics of a Crypto Degen

Let’s discover all the characteristics associated with degen behavior.

High-Risk Appetite

A crypto degen loves to win more than they hate to lose, showing an extremely high tolerance for risk. Degens typically invest in small DeFi projects, speculating on their potential success.

They aren’t afraid to invest a substantial sum of money in coins that have the potential to increase by 1,000 times.

They also invest in presale tokens and newly launched coins, seeking rapid appreciation and large profits.

Understanding the factors determining a cryptocurrency’s value is often overlooked due to the allure of potentially high returns for some investors.

Passion for NFT and Memecoins

A crypto degen loves trading meme coins and collecting digital art. In fact, these people are at the forefront of speculative investments in emerging coins and non-fungible tokens.

As history has shown, being in the right place at the right time on a meme coin frenzy often results in millions in trading profits.

Degens frequently search for early-stage projects and digital art and bet on their future value. This extends to them participating in initial coin offerings and token presales, with the goal of entering potentially lucrative investments at an early stage.

Meme Culture

What is degen in crypto? To understand this, it’s important to note that crypto enthusiasts are naturally inclined to share memes on social media. These memes about current events, the crypto market, and life represent powerful means of evoking laughter and familiarity.

A crypto degen thrives in environments like Telegram, Twitter, and Discord, where they share strategies and information in addition to memes. Their culture is rich with humor, jargon, and norms.

Vulnerability

Because of degens’ impulsive and careless styles, they are vulnerable to scams and rug pulls. They also tend to be victims of herd mentality and can be quickly impacted by the fear of missing out (FOMO).

Interest in Experiments

When considering the degen meaning in crypto, it’s important to know that it also refers to people who tend to explore the top crypto apps, blockchains, and services.

Degens actively participate in DeFi activities, including yield farming, providing liquidity to pools, peer-to-peer lending, staking, and NFT trading.

Lack of Due Diligence

Due diligence is a critical characteristic of degens, meaning they don’t conduct thorough research before they invest. In fact, they engage in impulsive investing techniques, paying as little attention as possible to fundamental analysis, tokenomics data, and technical analysis.

Privacy and Decentralization

Cryptocurrencies’ decentralized and privacy-preserving features attract crypto advocates and degens. Degens usually use NFTs as profile pictures on social media and go under a pseudonym.

Conclusion

A crypto degen represents a subculture in the crypto space. To the outside world, a degen is a speculative crypto trader, but there’s more to this concept.

In fact, degens in crypto are characterized by a passion for meme coins and NFTs, vulnerability, a high tolerance for risk, a lack of due diligence, and interest in experiments.

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