Even though many people confuse crypto investments and trading with gambling, the truth is that making smart, well-informed crypto investments can lead to substantial long-term profits. When done right, crypto investing is not gambling and you will soon understand why.
Before we get there, we need to examine the biggest differences between making an investment and gambling. Gambling is generally short-term while making any form of investment is long-term. Essentially, you can turn crypto investing and trading into gambling depending on your goals and the strategy used. For instance, if your goal is to receive profits overnight, this may be considered gambling.
At the same time, if you are aiming for profits, in the long run, this falls into smart investment territory. Regardless of your goals, the best strategy is always to take things slow. While it is impossible, it is highly unlikely to get rich just overnight. This is especially true for cryptocurrencies which are extremely volatile in nature. While there is no guarantee that making crypto investments today will lead to substantial profits in the months or years to come, the best route to take is to have a long-term investment approach.
Crypto Investing Done the Right Way
As mentioned in the previous section, making crypto investments without any long-term strategic plan with the main goal of generating profits overnight is considered gambling. What is not considered gambling is investing in crypto with a strong financial foundation and a good long-term strategic plan. In a sense, investing in cryptocurrencies is very similar to gambling because you can never know how things will unfold both in the long and short run.
At the same time, making well-informed, strategic investment or gambling decisions boosts your odds of generating profits both in the short and long run. As presented by Wetten, engaging in online sports betting activities at reputable sites is always a better option than choosing shady sites that may or may not take care of your hard-earned funds.
The same is true for crypto investing and trading. Choosing reputable trading platforms, such as Coinbase, Crypto.com, BitYard, Kraken, or TradeStation Crypto makes a huge difference. Choosing the right crypto trading platform is also one of the most important decisions you make before you go out there and invest your money.
Investing and Trading Cryptocurrencies in a Responsible Manner
When it comes to investing and trading cryptocurrencies in a safe and responsible manner, you need to take well-calculated risks. Just like gambling, investing always comes with certain risks and since you cannot avoid this, you should not put everything you have on the line. Instead, you make sure that you have a good financial foundation. You also only invest funds you can afford to lose. To reduce the overall risk involved with crypto investing, you need to be very careful and strategic about your decisions about which cryptos to buy.
Investing everything you have, such as your life savings, is gambling. Investing a portion of what you have and what you can afford to lose is not gambling, it is a smart investment with great long-term potential. Where and when you make crypto investments also plays a crucial role. To avoid making mistakes of investing in the wrong place, you need to do your own research into the crypto world, recent fluctuations, and everything else. The bottom line, investing in cryptocurrencies is not gambling if done the right way.