4 Reasons Why Cryptocurrency Trading Is Like Gambling

Many people do not understand cryptocurrencies very well, and using and trading them is still a hard thing for them. Luckily, there are more and more people every day who are using them regularly. Many compare them to gambling, and they are sure that is the same thing. There are indeed many similarities between them, but also some differences. It is not only the gambling aspect the main similarity, but there are many beyond it. If you are interested to learn more about cryptocurrencies, check www.advfn.com, and you will find a lot of useful information. And if you are interested to learn more about similarities between crypto trading and gambling, continue reading, and you will find the most important in this text.

1. Strategy

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Gambling requires good thinking about strategy. No matter which game it is for each of them, it is necessary to think well and make a plan. Making a plan does not prove that you will win more money, but playing without a plan certainly guarantees that you will lose more. Different games require a different level of strategy, so poker requires the most preparation and thinking. The cryptocurrency market is the same as gambling since you need to have tactics if you do not want to lose all the money. First, you need to set your goal, and then to choose between many different strategies. Maybe the most popular one is “hodl” which implies buying and holding the assets that can be perfect for those who believe that the cryptocurrency’s value will increase. The other good option is DCA, which stands for dollar-cost averaging, and it can help with minimizing the risk by predefining the number of cryptocurrencies to spend at a certain time. In the end, the best thing is to know the market well and to decide which strategy is the best to use, not only for trading but also for gambling.

2. Risks

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Although the way of earning is not exactly the same, both have their risks. If you want to win some money by gambling in the casino, you should be aware of the house edge. No matter how much you play, there is always some money that the casino will win. In fact, to overcome the house edge and make some profit, you will need to win more than 50% of the time. The cryptocurrency trade does not have the house edge, but there are some fees that you need to pay every time you trade. The biggest risk is to hold the asset and be sure that its price will increase, but it never does. If the price is the same, that can save you some money, but the worst thing is if the price decrease. It is obvious there is risk in both trading cryptocurrencies and gambling. Although not the same, it is always there.

3. Self-discipline

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Gambling should be one of the ways of entertainment. It should be fun, interesting, and to help us fulfill our free time. Winning the money should be only a big plus to that. Unfortunately, it is not always like that. Some people are losing their self-control easily, and that can result in severe addictions. The addiction is starting slowly and gradually, and it is never sudden. Sometimes a small winning can result in the urge to play more, but more often, that happens when someone wants to regain the lost money. No matter the reason, every uncontrolled play can be potentially dangerous, and low self-control and addiction can cause even more problems. Addicted people are usually without money, they are selling everything they have to pay the debts, and their mental health is getting worse every day. With trading cryptocurrencies, the situation is a little different. The main problem is when people are excessively buying the assets and risking losing all the money if the market crashes. In both situations, having great self-control is crucial since it can save you from losing all you have, including material things, but also health and social life. Many bankroll management methods can be helpful, but in the end, self-discipline is the only thing that you cannot help yourself without.

4. Bonuses

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Gambling is well-known for the special offers, promotions, and bonuses they are giving to their users. They are numerous. From amazing welcoming bonuses that you will receive the moment you choose the online casino, for example, to the great deposit bonuses that you receive every time you pay some deposit. Besides that, there are many promotions such as cash backs, free spins, or birthday presents that you can use to gamble. In cryptocurrency trading, there are no free spins or cash backs, but there are also many useful bonuses and promotions. Regarding that, there is the possibility of lowering some fees or sometimes receiving some free crypto as a gift. The trading sites need to run some promotions if they want to keep the traders engaged. There are many different ideas, and the websites with the best promotions usually have the most users. Keep in mind that it is never a good idea to choose the site only because of the bonuses, so research before deciding.

Gambling and cryptocurrency trading indeed have a lot of similarities. It is possible to make a lot of money with both of them, but you need to be aware that there is also a risk of losing. Strategies are necessary for crypto trading, but also gambling, and it is almost impossible to overcome the competition without them. Bonuses are something that every site is using to keep the users engaged, but be careful with them. Too much gambling can cause addiction, and putting all your money into cryptocurrencies can be a bad decision since it is always possible that the market will crash. Self-control is something that can save you, but also good research before the decision on what site to use. For those who love both crypto and gambling, the great news is that there are more and more gambling sites that are using cryptocurrencies as a payment method.

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