Degen
Short for 'degenerate gambler' - a crypto trader who takes high-risk bets on speculative tokens.
Degen (short for “degenerate gambler”) refers to crypto traders who embrace high-risk, high-reward trading strategies, often with speculative or meme tokens.
Degen Characteristics
- High-risk tolerance for potential big returns
- Quick decision making based on social signals
- FOMO-driven trading behavior
- Community-focused trading approach
Degen Trading on pump.fun
Degens typically:
- Buy new launches within minutes of creation
- Follow influencers and Twitter alpha
- Use large position sizes relative to portfolio
- Trade based on memes and viral content
Common Degen Strategies
- Sniping launches: Getting in first on new tokens
- Copy trading: Following successful wallets
- Diamond handing: Holding through volatility
- Aping into hype: Large bets on trending tokens
Risk Considerations
While degen trading can be profitable:
- Most trades lose money statistically
- Emotional decision making leads to mistakes
- FOMO and greed drive poor timing
- Lack of research increases risk
Smart Degen Practices
- Never risk more than you can afford to lose
- Set stop losses to limit downside
- Take profits on the way up
- Diversify across multiple small bets
Remember: successful degens combine intuition with risk management.
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