Similarities Between Cryptocurrency Trading and Gambling
Cryptocurrency trading and gambling have been debated to have a lot of similarities. There are signs that the two industries align is some regards, but there are also some significant differences. Here, we will put both of them against each other to understand where they coincide and where they differ. So, it’s time to find out if logging in to your Royal Vegas casino account is the same as frequenting your favorite Crypto exchange.
What is Cryptocurrency Trading?
Unlike gambling which has been around for centuries, Cryptocurrency exchanging is relatively new. First, we must understand what is Cryptocurrency. Ultimately, it is a type of digital currency that is recorded on Blockchain technology. This means the currency is decentralized from banks and secured in the public domain. There are many different types of cryptocurrencies with different values.
Holders of cryptocurrency can then trade their currency for other cryptocurrencies and even physical currencies such as pound sterling or American dollars. They do this on specific platforms. However, the value of all currencies can change quickly, meaning informed moves must be made when trading to earn money. Due to the speed of success stories and other factors, many people wrongfully think they can get rich quickly through cryptocurrency trading.
Where Do They Meet?
Cryptocurrency trading and gambling meet through one specific thing, and that is a risk. When somebody takes to a slot machine or a card game, they risk their stake in the hope of winning and earning more money. Similarly, a crypto investor will take to an exchange platform to “play the game” and trade currencies so they become richer – for themselves or for their company. Therefore, both cryptocurrency trading and gambling use money to attempt to win more money, while simultaneously being risky in that the dealer can win or the investor can make the wrong trade.
There are no established ways to estimate the valuation of Crypto assets, while there are some major Cryptocurrencies like Bitcoin which has proven to be resilient there are other Crypto assets which are relatively new whose value proposition is still not clear.
The 2017 ICO mania resulted in the creation of many Crypto tokens which are being traded on many exchanges, but these tokens are seldom used for real utility and are mere elements of speculation which makes trading such tokens comparable to gambling.
What are Their Differences?
The speculative nature within crypto trading makes it somewhat identical to gambling, which most people will not deny. However, just because they both have similar goals and wrestle with risk, does not mean they are exactly the same. Here are some key differences between both activities:
End goal – one of the biggest differences between the two is the end goal. Although both may appear to share the ambition of becoming rich, they are slightly different. Gamblers seek out excitement as well as winning, whereas a trader will be happy if there were no adrenaline rushes and they still got their money. Although professional gambling exists, more traders are also trading for a living to support themselves, while gambling is just an enjoyable event.
Time – the other main difference, due to the career aspect mentioned above, is the amount of time that gamblers and traders devote to each activity. Gamblers may play the slots once or twice a week, but a cryptocurrency trader is likely to be sat at his or her desk throughout every working day.
The Final Verdict
The final verdict is that the nature of gambling and Cryptocurrency trading has a lot of mutual purposes and pitfalls. However, how these activities are acted out and the overarching purpose of them differ.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
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