Is Getting Cryptocurrency Essentially Gambling?

3 views 7:37 am 0 Comments December 19, 2023

Is Investing in Crypto Basically Gambling?

Crypto is one of the investments today that promises a high return on your capital. Most investors who bought or mined currencies like Bitcoin and Ethereum at their early stages are worth millions today from their investments. However, only a small percentage of cryptocurrencies rise in value to deliver huge returns, and even fewer sustain their value without crashing. The unpredictable nature of its investments and a few other factors make investors new to the crypto world suspicious about investing. Because of how crypto works, many believe crypto assets are akin to gambling. Therefore, there is a need to compare crypto and gambling to see how close or far apart they are.

How Crypto Investments Can Be Gambling 

Crypto investments and gambling, which is appealing to users with the possibility to try their luck with an Australian no deposit bonus or other perks, are different concepts, but they may seem similar. The similarities include:

  • Crypto is often unpredictable
  • Both concepts can be volatile
  • Emotional factors are also common
  • Losses can be enormous in both concepts

Crypto Is Often Unpredictable

It is difficult to predict which direction any crypto market will move, how far, and for how long it will move. While this may be easier in widely traded cryptocurrency markets, knowing about new or non-traded cryptocurrencies is dangerous, mainly because they are volatile. You may only encounter this dilemma in gambling, where you don’t see the outcome of your bet until you place it even at one of the casinos in the latest ranking for top online casinos in Australia. However, unpredictability is sometimes good because any result is good for gaining experience.

Both Concepts Can Be Volatile

When there are a lot of transactions on a coin or token, its value tends to sit between a defined range, or it gains weight or loses it at a decent pace. Only a few crypto markets exhibit this trait, which is safe for investment. Apart from being unpredictable, such investment options are inconsistent such that a well-profitable position can quickly revert into a significant loss and vice versa. It is similar to losing all your winnings quickly to a losing streak on a slot machine. 

Emotional Factors Are Also Common

Gaining 900% of your investment in less than a week may tempt you to keep holding beyond your initial goal. On the other hand, you may be influenced by the emotions accompanied by a loss to make bad decisions on other investments. Unlike your traditional investments, emotions affect decisions a lot, like gambling. 

Losses Can Be Huge in Both Concepts

In almost all traditional investment opportunities, it is nearly impossible to lose all of your investments with the proper measures. However, there is a higher possibility you lose it all in crypto. Coins can crash to negligible amounts compared to their original value, making you lose everything. Although crypto promises massive rewards for early investments, it is a gamble because you might lose it all.

How Crypto Investments Differs from Gambling

While you might shun crypto because of its similarities with gambling, you should know that almost any investment opportunity will have one or more gambling traits. For example, the concept of risk and reward lies in your investment. Here are some details that differentiate crypto from gambling.

Regulations are not a Factor in Crypto

A casino has some amount of advantage on every game that promises them profit over time. In gambling, casinos reserve the right to stop you from playing if they believe you are not playing fair. You will not experience anything similar to this in the crypto world. Crypto is often well-secured and free for everyone to invest in without worrying about any regulating body throwing you out of the market. You are only playing with or against other investors in the market.

Crypto Has Information and Analysis

There may need to be more price history on newly listed currencies, which will make prediction difficult, but most options have existed long enough for you to be able to analyse them. Also, news about cryptos can guide you in making better choices in the market. However, you can’t predict a slot machine or a fair die because the results will always be random. The only certainty about gambling is the house will make a profit within any period, even after payouts. 

You Can Make Profitable Investments

Mining coins is an alternative route some choose to invest in crypto. Mining allows you to earn crypto for performing specific tasks with a computer. The job often requires a lot of computer power for cryptocurrencies with higher values (which is what you want to mine), so you would consume a lot of electricity. However, you can make a profitable investment by planning out mining costs and rewards before investing in a mine. No amount of planning can help you predict a random card drawn from a shuffled deck.

Crypto Does not Provide Entertainment

Betting games are available on all app stores, but most people would rather travel to Vegas for the ultimate experience. Why? Gambling in a casino always delivers entertainment and a fun-filled evening for everyone. Virtual Reality casinos and well-developed slot machine story plots stand to show that joy is one of the things people seek in gambling. Crypto is a means of exchange or investment for all involved and should not be mixed with leisure. 

Crypto Can Be a Long Term Investment

It is common knowledge that no one makes plans to gamble. Betting on games that can immediately take your money from you is not a suitable option for any type of investment. Cryptocurrencies, however, allow you to make investments you will profit from even a decade later. You can consider the early Bitcoin investors, for example. 

Conclusion

So, are crypto investments essentially gambling? No. However, it can be if you are making decisions in the market without proper analysis and research, concepts which are not relevant to gambling. Do not rob yourself of the opportunity from potential returns from crypto investments. If you only want to gamble, avoid crypto and opt for casino games where you would have a fun time playing. As always, play games responsibly.

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