"Degen" trading, short for "degenerate" trading, refers to a high-risk, speculative trading strategy often associated with decentralized finance (DeFi) and cryptocurrency markets. Degen traders typically engage in risky and aggressive trading practices, seeking to generate quick profits through leveraged trading, yield farming, token swapping, and participation in new token offerings (IDO or initial DEX offering).

Some characteristics of Degen trading include:

1. **High Risk**: Degen trading involves high levels of risk due to the speculative nature of the assets traded and the potential for significant price volatility. Traders may use leverage, margin trading, and complex financial products to amplify their gains but also increase their potential losses.

2. **Lack of Research**: Degen traders may not conduct thorough research or due diligence on the projects or assets they invest in, often basing their decisions on hype, speculation, or market trends. This can result in investing in risky or fraudulent projects.

3. **FOMO (Fear of Missing Out)**: Degen traders may succumb to FOMO and participate in trades or investments based on the fear of missing out on potential profits without fully understanding the risks involved.

4. **Impulsive Trading**: Degen trading is often characterized by impulsive decision-making and rapid trading, driven by emotions, market sentiment, and short-term profit motives rather than a solid trading strategy or risk management plan.

5. **Lack of Security Measures**: Degen traders may overlook security measures, such as using secure wallets, enabling two-factor authentication, or conducting transactions on reputable platforms, leaving them vulnerable to hacks, scams, or unauthorized access to their funds.

While Degen trading can offer opportunities for high returns in short periods, it comes with significant risks and challenges. Traders engaging in Degen trading should exercise caution, conduct thorough research, practice risk management, and be aware of the potential pitfalls and scams prevalent in the cryptocurrency and DeFi markets. It's essential to approach trading with a clear strategy, discipline, and a focus on long-term success rather than chasing quick gains through high-risk trading practices.