Is Investing in Crypto actually Gambling?

Published: Feb 09, 2023 Est. read time: 1 minute

Investing in cryptocurrency is still considered a speculative or high-risk investment, which is similar to gambling in many ways. Both involve taking a risk in the hopes of earning a large return, and both can result in significant losses.

However, there are some key differences between investing in cryptocurrency and gambling. Gambling typically involves betting on the outcome of a random event, such as a dice roll or a roulette spin. Despite what many think, there is no way to reliably predict the outcome of these events, and success is largely determined by chance. Even in sports whereby you can use past analysis/ranking etc... it's still largely chance and that's where we begin to see similar traits.

Investing in cryptocurrency involves a certain degree of research and analysis, as well as a level of understanding of the market and the underlying technology. While there is still a degree of risk involved, the outcome of an investment in cryptocurrency can be influenced by a range of factors, including market trends, news and events, and the development of the technology itself.

Ultimately, the nature of investing in cryptocurrency will depend on you as an individual and your strategy. Some people may consider it as gambling, while others see it as a legitimate investment opportunity. It's important to understand the risks involved and as always DYOR before investing in any cryptocurrency project.

There certainly are some flat-out gambling strategies that many investors can find themselves in. I believe stupidly high leverage, yes some platforms allow 100x + meaning a 1% move can wipe out your investment, is a flat-out gambling platform.

There are also some pure-play gambling platforms/tokens that purely use cryptocurrencies as their staking method. Whilst gambling isn't strictly "bad" it's important to understand when you're doing it and is something you're doing for fun rather than relying on returns.

How can I ensure I'm not gambling?

Ask yourself, are you adopting good trading strategies?

• Using stop losses taking profits, avoiding FOMO and investing only what you can afford to lose?
• Are you establishing longevity with your investments or strategies?
• Setting a solid foundation and understanding of your trades and/or investments
• Growing your wealth over time

I'd finish by asking yourself:

• Are you addicted (in a bad way)?
• Are you chasing higher returns and taking unnecessary risks? Chasing losses?
  

As always nothing should be considered financial advice on Cryptohogo.com