What is Yolo in Crypto?
Whether it’s from other people who are into crypto or via Drake or Lonely Island, it’s near impossible to be in crypto (or the world at large) without hearing someone say YOLO. For example, someone could YOLO their whole stake into Solana and make it big, or fail and go broke because of a YOLO into Shiba Inu.
But what is YOLO really? Why is it used as a verb? Should you YOLO your life savings into that NFT collection? Read on to learn more about YOLO!
What Does YOLO Mean?
YOLO is an acronym that means “You Only Live Once”. And because you only live once, you shouldn’t hold yourself back.
The acronym may be new, but the sentiment is an old one, dating back millennia. Even the Ancient Romans had something similar in the phrase “carpe diem”, translating to “seize the day”. YOLO is just a modern way of expressing this time-honored feeling.
Its most notable use in recent years was during the GameStop short squeeze. It was the prevailing sentiment on Reddit’s r/wallstreetbets, as users bought and bought and drove GameStop’s stock price upwards. The subreddit has moved on to other prospects on the stock market since then, but the YOLO spirit remains.
In crypto and on r/wallstreetbets, it’s used as a verb to describe when you go all-in, putting all your money on a single asset. r/wallstreetbets believes that a YOLO should be “at least 4 digits and represent 98-100% of your account”.
Why Do Investors YOLO?
Why risk it all? There are many reasons why someone might YOLO or make a purchase or investment without forethought. They might have a feeling that their choice is going to the moon, sheer confidence, or a lack of experience or knowledge in crypto.
YOLO can also be a means to an end or make a statement, as with the Gamestop short squeeze. The redditors of r/wallstreetbets obviously enjoy the high value of their stocks; however, to many of them, it was more about sending Wall Street, the stock market, and the hedge funds a message.
Is YOLO Good Advice?
Newbies to crypto may be wondering whether they should YOLO their life savings into a given currency or NFT.
Should you YOLO? We highly recommend against it. There’s always the chance that you might get lucky, but the potential risk is too high for that very small chance.
If you have different goals – A YOLO, by definition, leaves you with zero margin for error. If it goes wrong, then you will lose a significant portion of your stake. That’s not a good position to be in, and it may take you a while to recoup your losses.
YOLO goes against all investment advice. If you really want to YOLO – to indulge, purchase a specific NFT, or exercise your power via financial transactions – you are entirely free to do so, of course. Just keep in mind the many risks of this potentially reckless investment strategy.
Final Thoughts On YOLO
Whatever you think of YOLO, it’s a saying that everyone in crypto knows. You may not necessarily make a YOLO purchase yourself, but it can be tempting, especially when an NFT collection really catches your eye.
The occasional YOLO may be good, even if it’s just for the experience or thrill. However, YOLO as a consistent investment strategy likely won’t get you the profits you’re looking for. Either way, consider the risks before choosing the right approach for you.
When new crypto assets for art come out, crypto enthusiasts start talking about keeping an eye out for NFT shilling..
Imagine this. You spot a new token on the market. It has a lot of hype, so you and a lot of others buy in, hoping that the devs..
In the crypto world, there are a lot of slang terms used to describe different things. If you’re new to all this, it can be a bit..