For years, people around the world have been debating about the difference between investing and gambling. This debate is not specific to crypto, the same conversation has been facilitated by many about the other markets as well.
While the majority of market participants have made up their minds about investing being different from gambling, many questions have started to rise with the introduction of crypto investing.
There are several reasons why this conversation is so popular. First, is the high volatility of cryptocurrencies. These are assets the prices of which are moving at a very fast pace. At one point, a certain crypto asset can be skyrocketing, while in just a few hours it can drop.
Many believe that due to the nature of cryptocurrencies, investing in them is very much like gambling. However, it would be much better if market participants tried to view crypto investing from all different angles. To get started with crypto investing, you just need a crypto wallet or an account at a crypto exchange. You have a lot of options – from Mercatox to Coinbase to Binance, they’re all pretty good.
Let’s say that there is a crypto investor who analyzes the price movements in the market in great detail. This trader follows a well-structured trading strategy, with a good risk management technique. In such a scenario, it would be very hard to call this process gambling. When there is a trader with a plan on what to do – it is not gambling.
On the other hand, there might be another trader, who does not follow a specific strategy. Rather, he or she is simply speculating, without depending on any factual information. This is very similar to gambling.
So, it can be said that crypto investing can have nothing to do with gambling or be exactly the same as gambling. It all depends on the individual trading strategy adopted by the investor and the attitude that he or she has.
Whether you think investing is gambling or not, it should not be noted that cryptocurrencies have become a huge part of the gambling industry. But, what exactly makes cryptocurrencies a good asset for gambling?
The number one answer to this question is privacy. Cryptocurrencies are viewed to be a great payment solution for gamblers as these payments are almost impossible to be tracked. Offering such high privacy has made crypto assets a very important part of the online gambling industry.
There are numerous bitcoin trading casinos available in the market. These casinos offer gamblers the opportunity to make deposits in a fast and convenient manner. The number of bitcoin casinos has increased dramatically over the past few years, and anyone can easily find a BTC gambling site that allows customers to make deposits and withdrawals using digital coins.
The white label casino not only allow individuals to make deposits and withdrawals in digital assets but also gives them the opportunity to gamble using cryptocurrencies.
This shows how much the crypto market has grown over the past few years. It has managed to become a very important and useful part of the many industries around the world and gambling is only just a small part of this.
FOMO & Its Impact on Crypto Traders
When investing in cryptocurrencies, it is quite easy to act according to your emotions. Things are moving at a very fast pace in the crypto market, and many traders tend to feel like they are missing out on major opportunities.
This can turn crypto investing activities into gambling. Feeling like the market is moving ahead with you can lead you to make a lot of decisions that you would not make otherwise. While it is true that some of these decisions can make you some profits, it is also true that they can lead to major losses.
FOMO, which stands for Fear of Missing Out, is associated with almost every single trading market. But in the case of the crypto industry, it tends to have the most impact. This is mostly true due to the nature of the crypto market and its high volatility.
So, when does crypto investing starts to become gambling? A simple answer to this question is that crypto investing becomes gambling when a trader decides to turn his or her back to the trading plan and choose a new direction only because they feel like doing so.
If you are a trader who has a well-formed trading plan, which comes with good risk management, it is hard to imagine a situation where you would have to change it up altogether. If you’re an active trader who spends time switching in between different crypto exchanges, then visit cradio to learn how crypto trading bots can make your life easier. Making emotional decisions can also have a huge impact on investors’ profits and turn investing into gambling.
The cryptocurrency trading market has become very popular over the past few years. People of all different backgrounds and interests are now starting to become part of the market, and every single one of them has a different idea on how they want to be making profits.
Some people want to make profits in the very short term, taking advantage of the small price movements of the crypto assets. On the other hand, there are investors who want to buy crypto assets and wait for the price to increase dramatically in order to make greater profits.
There are some traders who always look for cryptocurrency tips and do very extensive research about the market, while others make decisions in a very fast manner. Some traders end up gambling on the possible price movements of crypto assets, while others make well-informed decisions.