Short for degenerate, the term “degen” is borrowed from the gambling world, referring to a person who is willing to take high risks without carefully evaluating the possible outcomes. A degen in the crypto ecosystem invests in quick, high-risk, and speculative trading opportunities based on trending topics, memes, or rumors, hoping to increase their profits quickly.
Traders who use this method tend to make decisions based on short-term changes in market prices. They leverage the volatile nature of cryptocurrencies to potentially earn more money when the prices are favorable.
Of course, sometimes it is possible to yield high returns through speculative trades across different crypto tokens and other digital assets. However, this strategy exposes crypto investors and enthusiasts to the risk of making equally huge losses within a short period of time. Despite the risks involved, degens are not afraid of investing in the newest meme coin or DeFi projects without doing due diligence.
