Cryptocurrency is a serious thing. If you invest in it, make sure to know what you are doing. Cryptocurrency has been gaining serious popularity as of late. And it’s serious business too. Even if the numbers appear to be unreal, people don’t joke about it and many serious investors have piled serious money into it already.
But also, there exists a serious risk that you might lose all your money should you venture into cryptocurrency without taking serious precautions beforehand. So before investing serious money into cryptocurrency make sure you do your own research thoroughly! There’s plenty of people pushing cryptocurrency or other forms of gambling/investment online, but are they trustworthy?
Difference Between Gambling and Investing in Cryptocurrency
The main difference between gambling and serious investing is that you can’t lose more than your initial investment on your first try. In serious gambling, if you gamble the money with a casino owner, he will most likely not let you bet more than what you have brought to him. In serious cryptocurrency Investing, things are different.
There exist no boundaries to how much serious money serious investors or crypto gamblers might end up losing or winning if they can invest using leveraged funds. While there are other options for investing your money online – many of which also allow the sometimes dangerous practice of leveraging – in this article we will focus purely on gambling and crypto.
Do Investments in Cryptocurrencies Bring Gambling Risks?
Many people invest serious money into cryptocurrencies without understanding their nature too well – this is a serious risk as explained above. This risk compounds itself when it comes to trading cryptocurrencies with leverage – a very risky thing indeed.
Many serious investors working in cryptocurrency don’t understand it either, but they do know that serious money can be made with cryptocurrency by leveraging oneself against fiat (i.e. traditional) currencies like USD, EUR or GBP.
Therefore serious gamblers pile serious amounts of money into cryptocurrencies in order to trade them for serious profits. This is typical gambling behavior and gambling psychology.
But this compounding risk is something you need to pay very close attention to when trading serious sums of money using leverage. Not knowing the technicalities of how cryptocurrencies work makes one particularly susceptible to huge risks associated with leveraged investments into blockchain technology assets.
But if you are well versed in these matters or if you only gamble small amounts of money, serious cryptocurrency investing can be very rewarding.
Can I Gamble on Cryptocurrencies?
Yes, serious investors might also risk serious money by gambling on the volatility of crypto markets without serious intent to make a profit. This is why many people play lotteries and casinos – they enjoy serious entertainment and invest serious amounts of money into these games thinking that it’s inevitable that they will win.
Gambling or investing in cryptocurrencies is not prohibited as such but only regulated if you live somewhere where gambling is illegal (or even online gambling).
In essence, what one needs to understand about serious cryptocurrency investing versus serious gambling with cryptocurrency, is that the psychological mindset involved does not matter too much for those who gamble or invest in cryptocurrencies with serious intent to turn a profit.
What matters is that serious cryptocurrency investing can compound your risk whereas serious gambling with cryptocurrencies does not. In the former case, serious investors or serious gamblers feel that they have to be serious in order to win serious money. And while this “seriousness” might be a requirement for making serious profits, it is also a requirement for failing completely.