Is crypto basically gambling?

crypto basically gambling

Is dealing with cryptocurrency essentially the same as gambling

With the popularization of cryptocurrency and gambling, many players have begun to wonder if can trading in cryptocurrency be considered gambling. But thanks to what have comparisons of this kind emerged?

In cryptocurrency, there is an opportunity to make a lot of money, just like in casinos. At the same time, there are certain risks, concerns, and the possibility of losing everything, both on exchanges and in crypto casino games. Let's understand in detail, does investing in crypto equate to gambling?

Cryptocurrency risks and high volatility

Many new users on cryptocurrency exchanges lose money due to high market volatility and lack of investment knowledge. Even some experts and professional traders make mistakes in their forecasts, in the choice of coins, and what to say about newcomers in the crypto industry.

Anyone can lose money on rate changes or be subjected to FOMO, it is important to take this into account.

Is participating in the crypto market akin to gambling

To understand whether trading and crypto investments should be equated with gambling, it is worth understanding the main differences. For the moment, we will not take into account the quick earnings on cryptocurrency with the help of futures, let's consider exactly investing for a certain period of time.

Long-term investments in the crypto market

Basically, most of the crypto community invests for a long period in coins of various networks, hoping for a promising future and a good rate of growth. However, this does not mean that you can completely avoid risks. Even the most reliable rate forecasts from top traders and experts can fail.

Short-term gambling entertainment

Gambling is more suitable for players who want to earn here and now, invest some money, and win the jackpot. Many crypto casino customers primarily seek emotions rather than financial gain. The feeling of excitement and thrill gives players a boost of energy and vigor. However, when it comes to money, the risks in this case are much higher than in long-term crypto investments. And now, in comparison, it becomes better understood is engaging in the crypto world comparable to gambling.

Controlled risks in investments

Everyone can lose money, but if casinos are superior to random generation and unpredictable results of games, on crypto exchanges you can still reduce the risks through your knowledge, analyzing the news, market, and charts.

In addition, you can listen to professional traders, they often give investment advice by analyzing the coin for you. However, before blindly believing the trader, study the statistics of his successful and unsuccessful transactions. On the Internet, everyone can fancy themselves an expert, so be careful not to lose money!

How to safely invest in crypto coins

Apart from following and heeding the advice of experts, there are some other aspects to consider for a safe investment.

First, always diversify your portfolio. It is extremely important not to lose all the capital, in case of anything. Use several crypto wallets, and trade on several exchanges. And you shouldn't invest your last money in cryptocurrency, invest the part that won't affect your daily budget.

Fundamental coins

When investing in proven coins such as Bitcoin, Ethereum, Litecoin, Ripple, and others, you can safely allocate most of your portfolio. For the reason that fundamental coins have a promising future and when the market rises, they will steadily follow the trend. Thus, your investment risks will be reduced.

New, experimental coins

A small percentage of your investment portfolio can be allocated to new projects that are gaining capitalization, have large investors, and are likely to give you some fixes in the future. However, be careful, because in new coins it often happens that the coin is pumped and then it turns into a scam. Money is lost and under such circumstances, users wonder if does crypto trading basically amount to gambling.

Bottom line - is involvement in cryptocurrency fundamentally similar to betting?

Now that important aspects of investing and cryptocurrency gambling have been discussed, it is clearer whether it is worth sticking to doubts about the similarity of these two areas. Everywhere there are pros and cons, their risks. In any case, each user decides for himself how to dispose of finances, invest, or gamble, as well as what rules to follow. The most important thing is to use free money for investment or gambling, not the main budget!

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