Gambling vs. Cryptocurrency Trading | What Are the Odds?
Considering yourself the Wizard of Odds but wondering what might be better for you: gambling or cryptocurrency trading? The truth is that getting-rich-quick schemes are improbable, and trading is much more than a gamble!
The Similarities between Gambling and Crypto Trading
So, do playing the lottery, poker, horse betting, day trading, and Bitcoin hodling have something in common? Perhaps one of the main similarities is the fact that both gambling and crypto trading involve a high degree of risk. Gamblers and traders willingly embrace such risks in the hopes of maximising their profits.
Moreover, today’s technology facilitates both gambling and investing. You don’t need to visit the fancy casinos of Monte Carlo or Baden Baden to gamble. You don’t need to be one of the big wolves of Wall Street to invest, either. Online platforms and apps are just a click away!
That said, being easily accessible, gambling and trading can fuel addiction and lead to major financial and social losses. So are they both unsuitable pursuits for beginners?
The Differences between Gambling and Crypto Trading
The truth is that gambling and crypto trading are two totally different activities.
Gambling comes with a high degree of uncertainty. While many professional gamblers may study patterns and mannerisms, the truth is that the odds are against gamblers. The house always wins, right?! Or as Kin Hubbard humorously noted, “The save way to double your money is to fold it over once and put it in your pocket.”
Trading, on the other hand, has nothing to do with gambling. While nobody can predict a coin’s future price or escape from the market’s volatility, trading requires different sources of information, expertise, dedication, patience, in-depth market data, and a solid financial plan. Note that traders often turn to asset allocation or portfolio diversification to minimise risks and maximise profits, instead of relying only on pure luck.
Which One Is Better?
While playing roulette in Las Vegas can be fun, crypto trading is a more promising activity that could help savvy investors expand profits over time. No wonder why crypto trading is increasing in popularity. Data provided by CNBC show that 1 in 10 people globally are involved in crypto investing, and there are over 100,000 Bitcoin millionaires. The best part is that cryptos and blockchain technologies have numerous applications beyond the financial sector.
Note that those seeking profits overnight should stay away from trading! If you decide to trade only to make some quick money or for excitement, then you might be investing in a gambling style. For those showing signs of gambling tendencies, reevaluating financial goals, strategies and emotions is recommended to help change their trading habits. As Warren Buffett said, “When people think there's easy money available, they're not inclined to change.”
In the end, if you choose to trade, do not forget to invest only what you can afford to lose. Because there is no such thing as easy money in life!