This article provides a comprehensive guide to understanding REKT, essential crypto slang meaning severe financial losses from poor trading decisions. Derived from 'wrecked,' REKT describes devastating outcomes from liquidations, failed projects, or over-leveraged positions in cryptocurrency markets. The article explores how the crypto community uses REKT memes to cope with losses and document failures like Terra Luna, Three Arrows Capital, and Celsius Network collapses. Beyond cultural context, it equips traders with actionable prevention strategies: conduct thorough research, avoid excessive leverage, diversify portfolios, use stop-loss orders, and invest only what you can afford to lose. The guide also clarifies related terms like liquidation, FOMO, and DYOR. Whether trading on Gate or managing crypto investments, understanding REKT culture and risk management principles helps traders navigate volatile markets responsibly and avoid catastrophic portfolio destruction.