Cryptocurrency is increasingly becoming mainstream and is considered the most recent phenomenon in the investing sector. Not only is it one of the main chunks of discussion in social media channels, but it’s also heavily endorsed by well-known celebrities and influencers, which explains why many young people own crypto nowadays. An increasing number of industries and merchants have also begun incorporating crypto in their payment methods.
Although there are notable advantages that come with using cryptocurrency, it’s still uncharted waters for some who don’t know much about it. In fact, one of the most common concerns is whether cryptocurrency is similar to gambling and if it’s safe to use in the first place.
Crypto Investing vs. Gambling
Cryptocurrency refers to a digital form of currency or money that operates on encryption to guarantee the security of transactions. These come in many forms, such as Ripple, Ethereum, or Bitcoin. On this note, crypto investing can happen in various ways, such as buying crypto directly or investing in companies or crypto funds. You can do this by purchasing crypto via broker-dealers or through a crypto exchange.
Meanwhile, Gambling is the act of staking something valuable while being aware of the risks and being hopeful of potential gains. This is usually common in most casino slots online, where games operate on the mechanics of chance and guesses.
Investing is long-term; gambling is short-term
The truth is that cryptocurrency can either be a gamble or an investment, but this mainly depends on the strategies you utilize in the first place. If you choose to invest in crypto assets, you should at least be prepared for the possibility of losing your money, considering that the value of cryptos tends to be volatile and risky. If you’re merely purchasing crypto for the purpose of accumulating wealth overnight, that’s not investing – it instead falls under gambling territory. However, if you believe in the value of crypto and its potential to become a mainstream currency in the future, it can be considered an investment.
Irrespective of where you invest, choosing a long-term strategic approach is the best way to go. Investing in something you’re not willing to hold on to for a certain time period or decades is just a gamble. Crypto is volatile during the short term, but it can reap plenty of money in the future if it succeeds and if you believe in its value.
Investing requires educated risks
Besides this, another major difference between crypto investing and gambling is that investing always requires taking educated or calculated risks, unlike betting, which is all up to chance. This basically means that setting your entire life savings for crypto is a gamble and a poor choice at that, but there are various ways you can invest in cryptocurrency in a safer and more calculated approach. Being strategic about how you use crypto will help reduce the risks associated with it, leaving you with lesser worries and more rewards to obtain in the future.