Have you ever heard the term degen in the crypto world? In the Web3 community, this term is not just a joke.

Degen describes investors who dare to take big risks for quick profits, although often without sufficient research.

Through this article, we will thoroughly explore the meaning of degenerate crypto, how the investment style of “degens” can affect market movements, and the potential dangers for new investors.

Perfect for those of you who are active in the crypto ecosystem and want to avoid the high-risk instant profit trap!

What is Degenerate Crypto (Degen)?

Degen is an abbreviation of degenerate gambler, a term that describes individuals who dive into crypto investments in a speculative and high-risk manner.

They tend to enter dubious projects in pursuit of big profits in a short time, often without clear research or strategy.

The characteristics of degens are FOMO (fear of missing out), like to take extreme risks, minimal research, and hope to get instant profits. They rely more on instinct or momentary trends than in-depth analysis.

The word degen itself comes from the world of gambling, then was adopted by the crypto and NFT community to refer to actors who dare to enter wild projects.

Although initially negative, the term has now become part of the identity of crypto culture that dares to take risks.

It should be noted that degens focus on quick profits without regard to risk. On the other hand, ordinary traders tend to be more measured, using technical and fundamental analysis.

Meanwhile, long-term investors choose strong and stable projects for long-term growth.

Also read related articles: Investment Feasibility: How to Assess Risk & Profit

Behavior of Degens in the Crypto World

In the crypto world, the behavior of degens is very easy to recognize from the way they make investment decisions.

One of the main characteristics is buying tokens just because they are viral or trending without reading the whitepaper or understanding the goals and structure of the project.

In this case, they rely more on market sentiment and news from social media than official information. Degens also often participate in microcap or meme coin projects that have not been proven to be feasible.

Their motivation is usually only driven by the potential for large profits in a short time, not because of confidence in the quality of the project.

They rarely do DYOR (Do Your Own Research), which is actually a basic principle in crypto investment.

Their trading strategy is also very aggressive, especially in the form of super short-term scalping. They enter and exit the market in minutes or hours, hoping to profit from rapid price spikes.

The main focus of degens is not on the fundamentals of the project, but on the opportunity to make quick money even though it means bearing the risk of large losses.

Examples of Viral Degen Projects

Some degen projects that went viral, for example the $PEPE, $TURBO tokens, or presale coins that do not offer clear utility.

These tokens usually appear suddenly, then are widely discussed on X (Twitter) or Telegram groups, even though they do not have a whitepaper, roadmap, or transparent development team.

This phenomenon often triggers market euphoria, especially when the price of the token rises thousands of percent overnight.

However, there are also quite a few that immediately fall to zero because their projects are abandoned by developers. This practice is known as rug pull.

This is a form of coin scam, where investors lose funds because they believe too much in the hype without first ensuring the clarity of the project.

This phenomenon has become part of the degen ecosystem, where the potential for big profits always comes hand in hand with the risk of total loss.

You might also be interested in this: 14 Security Terms in the Crypto World & Complete Tips to Prevent Them

Risks & Dangers of the Degen Crypto World

Plunging into the degen crypto world carries various serious risks, especially for novice investors. One of the most common is losing funds because you are tempted by FOMO and joining an unclear project just because it is being widely discussed.

Many of these projects turn out to have no real fundamentals, development team, or development direction. The degen world is also very vulnerable to fraudulent practices such as scams, rug pulls, and pump and dumps.

In this scenario, the token price is deliberately raised by certain parties to attract investors, then sold in large quantities until its value drops drastically, leaving huge losses for the end buyer.

It is also not uncommon for investors to get caught up in fake tokens that are deliberately made to resemble the names of popular coins, thus misleading those who are less careful.

In addition to financial losses, degen activities can also have an impact on mental health, ranging from trading addiction due to the urge to make quick money, excessive euphoria when making a profit, to severe stress when the token price falls or the project fails completely.

Another interesting article for you: What is Rug Pull in the Crypto World and How to Avoid It

Degenerate Crypto and Its Impact on the Market

The activities of degenerates have a major influence on the dynamics of the crypto market, especially in triggering extreme volatility.

Because they often make purchases and sales in a short time without considering fundamentals, token price movements can fluctuate drastically in just a matter of hours or even minutes.

The FOMO effect that arises cannot be underestimated either. Through social media such as X (Twitter), Telegram, or Discord, hype about a particular project can spread quickly and cause many people to buy without research.

As a result, token prices can skyrocket unreasonably, only to then plummet when the euphoria subsides or the project proves to be unviable. More broadly, the degenerate phenomenon also has an impact on the reputation of the crypto ecosystem.

The many cases of rug pull, scams, and instant projects without direction have made the public skeptical, especially new investors.

This can hinder long-term adoption and make it difficult for serious projects that want to build a strong foundation in the crypto world.

Is Degenerate Crypto Always Bad?

Although often associated with high risk and speculation, degenerate crypto is not always negative. In some cases, degenerate behavior actually drives early adoption of innovative new projects.

The hype created can accelerate exposure and attract wider market attention. In fact, several major projects in the crypto world, including those that now have established ecosystems, were once considered “degenerate” when they were first launched.

This shows that in the fast-moving crypto world, the line between speculation and innovation can be very thin.

However, it is important to maintain a balance between following trends and conducting in-depth research.

Enthusiasm is fine, but investment decisions must still be accompanied by a mature understanding so as not to get caught up in momentary hype that leads to losses.

Tips for Responding to the Degen Phenomenon Intelligently

The degen phenomenon in the crypto world is indeed interesting, but also full of risks. So that you can play it safe and still get opportunities, here are some important tips that you can apply:

1. Don’t get carried away by FOMO

Avoid investment decisions just because you are afraid of missing out on trends or following your friends. FOMO often makes people buy when the price is too high and end up losing.

2. Do DYOR (Do Your Own Research)

Always find out in depth about the project you want to join. Understand the vision, mechanisms, and potential risks so that your decision is more mature.

3. Check the utility, team, and whitepaper of the project

Make sure the project has clear benefits, a transparent and experienced development team, and a whitepaper document that explains their goals and plans in detail.

4. Use funds that you are ready to give up (risk capital)

Don’t use money that you need for daily needs or emergency funds. Invest only capital that if lost will not disrupt your financial condition.

5. Learn from trusted communities, not just hype

Join a community that has a good reputation and experience, so you get credible information, not just misleading viral news.

 

Conclusion

That’s interesting information about what Degenerate Crypto is that you can explore further in the Crypto Academy article on INDODAX.

In conclusion, the world of degenerate is indeed full of sensations and potential for quick profits, but it also brings many dangerous traps, such as scams and big losses.

To survive and succeed in the midst of this market volatility, you need more than just following trends. The main key is being able to read market movements carefully, conduct thorough research, and keep a cool head so that the investment decisions taken remain wise and measured.

In addition to expanding your investment horizons, you can also stay updated with the latest crypto news and directly monitor the price movements of digital assets on the INDODAX Market. Don’t forget to activate notifications so that you always get the latest information about digital assets and blockchain technology only on INDODAX Academy

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FAQ

 

1.What is degenerate crypto (degen)?
The term degen refers to crypto investors who dare to take extreme risks for quick profits, often without adequate research.

2.What is the difference between degen and regular investors?
Degen are usually impulsive, opportunistic, and short-term focused, while regular investors are more rational and pay attention to fundamentals.

3.Is being a degen wrong?
Not always, but it is full of risks. If you don’t know how to manage risk, you can lose all your capital.

4.Why are many young people interested in becoming degen?
Because they are tempted by the potential for quick profits and viral trends on social media, even though the risks are very high.

5.How do you avoid getting caught up in the world of degen?
Always do research before buying tokens, avoid FOMO, and use cold funds when you want to experiment.