Rekt catchers in cryptocurrencies are the people who weather out the storm when investors face losing their money. Within Crypto, Rekt refers to a sharp drop in price; the same comes with heave losses to an investor. Rekt catchers are essentially players within the crypto fields, and act in the interest of the investors who face a loss. Price fluctuations are common within investments, and as such, investors must remain hawk-eyed, monitoring the increase and decreases of the digital currency.
Background of Rekt Is HOLDL
Holders of Crypto stay firm hoping to make a kill when prices rise. Let’s take an example of Bitcoin in December 2017(when BTC recorded a highest of all time in value, hitting the $ 17,000 mark). The dilemma for HOLDlers was whether to sell off or keep holding on to BTC. The dilemma was complicated.
On one hand, you could hope BTC would continue increasing in price, and you could wait for it to hit the $20,000.00 mark. However, you also have the option to sell immediately and enjoy any gains received. In each of the scenarios, there are opportunities to gain and to lose as well. Therefore, the whole thing comes down to opportunity costs.
What would an investor feel if they held BTC and sold it at $4,000.00 only for it to hit the highest mark the next day? Sure, you can feel like biting your fingers. Truth is that you have no BTC to sell, and have lost that opportunity.
Rekt Mitigation Measures
Investors are advised to undertake diversification. In it, investors hold different portions of Crypto. For instance, Bitcoin held alongside Monero, Litecoin, Dash, and Bezop. Let’s say BTC gets you into a Rekt situation, you have more in your hands in the form of other valuable assets within your portfolio. Those others act as forms of relief when you are hit from one of the assets.
Other Situations Arising Into Rekt Conditions
Towards the close of 2018, there was a shift in digital fundraising models and that causes additional problems for traders; and there was a significant fall in the number of ICOs while IEOs picked up into 2019. The problem was that there were scammers sifting through the market. Many projects were just fraudulent schemes to drown investors’ money into false promises. In most cases, individuals ended up in a bad position and required Rekt assistance.
Rekt Catchers? Who are they?
Rekt catchers are individuals or firms who take action to avoid customers taking heavy losses. Crypto investors may run into difficulties and stand to lose a lot of money; however, Rekt catchers will offer their help and support. The Rekt catchers will offer advice and give independent opinions regarding the position of an investor with respect to a situation of making losses.