# Article Introduction
This comprehensive guide demystifies "rekt," a critical slang term in crypto trading that describes severe financial losses from bad trades, liquidations, or poor investments. Whether you're a trader on Gate, a crypto investor, or gaming enthusiast, understanding rekt helps you recognize risk patterns and avoid catastrophic losses. The article traces rekt's etymology from "wrecked," explores its specific applications in cryptocurrency markets, asset depreciation, and gaming communities, then provides actionable risk management strategies. Learn why traders get rekt through leverage trading mistakes, how liquidation differs from losses, and practical methods to protect your portfolio through diversification, stop-losses, and due diligence.