Cryptocurrency has been making waves for a while now. Back in 2009, when the first crypto coin, Bitcoin, was created, not many believed it would be as valuable as it is today. Over the years, millions of transactions have been carried out in the cryptocurrency sphere. While some people have made millions, others have lost a lot.
With the risk (volatility) involved in cryptocurrencies, you may wonder – is investing in cryptocurrency gambling? Continue reading this article as we answer that question in detail. We will also give some valuable tips on becoming a successful investor in cryptocurrencies.
Long-Term vs Short-Term
To answer the topic question head-on, cryptocurrency can either be an investment or gambling. It all depends on your strategy. If your strategy is to buy cryptocurrencies to get rich overnight, then that is outright gambling. This is similar to what is done at an online casino, where you play games intending to win from it almost instantly. However, if you see cryptocurrency as a way of the future and buy it now, that’s investing.
The question remains, however: Is investing in cryptocurrency gambling?
Coinbase is a platform that allows users to buy and sell cryptocurrencies with fiat currency. On the other hand, Metamask is an Ethereum wallet that enables users to store Ether (ETH) and other ERC-20 tokens securely. Both platforms offer different levels of security and risk management strategies for investors looking to get into the crypto space.
When investing in cryptocurrency, it is best to look at the long-term. Ideally, you should be willing to hold any investment for a few years. While you can profit from cryptocurrency in the short term due to its volatility, that’s not always the case. But as a long-term investment, you could stand a chance to make a lot of money.
Nevertheless, note that there is no guarantee that a particular cryptocurrency will succeed. But when you invest in the long-term, you are less likely to lose money.
Investing Means Taking Calculated Risks
Every investment carries some degree of risk, no matter how safe it may seem. But what differentiates a good investor from a gambler is the ability to take calculated, educated risks. This also applies to cryptocurrencies. If you put your entire life savings into a cryptocurrency with the hope of getting something from it fast, that’s a gamble. It could be a smart idea to look into crypto wallets if you are going to take the plunge with crypto exchange. Crypto wallets provide a safer way to store cryptocurrencies – although there are different kinds of wallets and you will need to research metamask vs coinbase to see what will best suit your needs.
To invest in crypto, you need to do proper research and follow the latest trends. And importantly, you should make sure you have a healthy financial life. This means not investing more than you can afford to lose. Besides, you want to diversify your portfolio, even within the cryptocurrency world. By being strategic, you can reduce your risk when investing in crypto.
Where Are You Investing?
There are thousands of cryptocurrencies in the market, with new ones added every year. As the value of these crypto coins differs from one to the other, their risk also differs. Some are more dangerous, while others are a bit stable.
So like we said earlier, before you dabble into cryptocurrency investments, make sure you research properly. Otherwise, it won’t be different from entering the web design world without knowing the required tools and skills. Consider the different types of crypto and find the best ones to go for. Avoid making assumptions without data or “following the crowd”. If you choose a cryptocurrency because it is trending or its price has increased, that’s pretty much like gambling. e
Is It a Smart Move to Invest in Crypto?
Well, it could be. However, you should know that cryptocurrency is a highly speculative investment. Thus, you cannot tell for sure which direction it will tip. No matter the kind of strategy you adopt when investing in crypto, there is still a chance you can lose money.
However, if you’ve made up your mind to invest in crypto, then you need to do the work. You should research your options, consider which cryptocurrency you want to go for, and prepare your portfolio accordingly. In addition, think about the long-term, and be willing to hold your investment. While you cannot eliminate the risk completely, you can increase your chances of making money from crypto with careful planning and preparation.
Throughout this article, we have discussed whether investing in cryptocurrency is gambling or not. Remember, it all depends on how you go about it. If you are thinking short-term with a plan to get rich overnight, that’s gambling. However, if you embrace the long-term strategy and see cryptocurrency as a way of life, it’s an investment.
Since investing in anything means taking a calculated risk, you should carefully analyse and research your options when entering the crypto world. Consider the cryptos you want to invest in and follow a strategic approach. If you do all that and a bit of luck on your side, you can hit the big bag investing in cryptocurrencies.
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Moksha is a whiz with cars and all things tech. He loves to work on his own car and spent many hours in the garage as a kid, tinker- ing with anything he could get his hands on. These days, he's the go-to guy for all things automotive at work and can usually be found tinkering with something in his free time. He's also quite the tech nerd, spending hours upon hours online researching the latest gadgets and devices.