Why Crypto Is Gambling Not Investing?

Cryptocurrency is nowadays getting a lot of attention throughout the world. Some people consider it gambling, whereas another group of people takes crypto as the best investing tool.

But why are there variations of thoughts about cryptocurrencies among people? Did you ever wonder?

If not yet, then keep on reading to know; why the majority of people consider crypto is gambling and not an investing tool.

There are so many crypto coins available that the market seems lucrative, and everybody is tempted to put some cash in these digital currencies. One of the prime reasons you want to invest in cryptos is that your nearest and dearest person has put some of their money in these digitally found currencies. And no doubt their money has shown tremendous increase in the value as well.

You must have heard of various people who claim to have gained huge returns by investing in cryptocurrency. They are sometimes true also. There is no doubt that crypto can be highly rewarding at times, but there is no denial of this fact also that cryptocurrency is a highly fluctuating form of investment. It can give good returns sometimes, but it’s not guaranteed.

Is Investing In Crypto Is Like Gambling?

At least not literally, but yes, it can be said as a kind of gambling. This is due to the excessive risk and uncertainty that comes along with an investment in crypto.

Gambling is a 50-50 game, and so is the crypto market. It can bring fortune but can destroy it too. It is just like a game of poker in which you are expecting a number, and if it comes, you are the king, but if it doesn’t, you will be finished. Similar goes with crypto, if the coin in which you have invested goes up, you can earn multi-bagger returns, but if it doesn’t, it can lead to severe losses. Many say that it’s better to play in Joker123 casino rather than invest into some strange coins that will scam in more than 50% of cases.

Let’s look at Crypto from Government’s perspective,

Some governments have legalized the use of cryptocurrency, and some put the step back because of authenticity issues. It is definitely not a medium of exchange, and in the near future also it is not certain.

Additionally, there is no governing body that regulates the crypto market. With reference to that, as the Government doesn’t give any recognition to the game of gambling, the same applies to crypto.

Although both are not completely illegal, there is still no constant stand of governments on these mediums of earning.

Crypto is a decentralized form of token that is not controlled and regulated by the central governments. And hence no central laws are applicable to them. This is the only reason; these cryptocurrencies have a bull run and pacific dips sometimes. The demand and supply chain of crypto is infinite, the same as gambling. There are innumerable currencies circulating in the market that makes the situation even more vulnerable.

Let us consider India as an example; the Indian Government puts the crypto in the same taxation slot in which it puts the gambling money. So, not directly, but definitely the Indian Government considers crypto alike gambling. If you earn returns, you will have to pay heavy taxes, and if you suffer losses, the loss belongs to you only. The system may look brutal, but in reality, it is not so. Both gambling and crypto are a huge threat to economies, and hence the Government considers these as liable to heavy taxes and no concessions.

Should You Put Money In Crypto As An Investment?

If you are looking for a secure income from cryptocurrency investment, then we would rather say; it’s not a good plan. But, if you are looking to make a small fortune from cryptocurrencies, then it may work well for you.

This type of investment strategy requires you to take a lot of risks. In other words, if things go wrong with the crypto market, you could lose a lot of money. Before you start any journey into cryptocurrency investing, make sure that you understand what you are doing and try to learn as much as possible about it before starting.

Here are some tips to help you get started to safely invest in cryptocurrencies.

Helpful Tips to Invest In Crypto

• The crypto market is an ocean; dive into it before spending money on this platform.
• Never have blind faith in the offers and promises that guarantee unrealistic profits.
• Have complete details and the history of the Digital Exchange (DEX) you are going to use for investing.
• Never go on people’s opinions about the crypto market, have yourself aware of the market first.
• Many people will claim higher returns but don’t have a blind trust in them. Have your own research and then decide.
• Always have in mind that the market of crypto-currency can rise and fall within no time, so never ever rely on the crypto investment as a regular source of income.
• There is a greater chance of suffering fewer losses if you invest judiciously and consciously.

Like any other market, the market of digital currency involves elements of risk, even higher. This can be mitigated with proper understanding and doing a lot of homework in research before investing.

So, if there is so much risk in a crypto investment like gambling has, what should be done?

How Can You Mitigate Losses in Crypto?

To suffer fewer losses in gambling, you need to have the proper knowledge and skill to play the game. The same applies to crypto as well. You need to learn some well-researched and applied methods that have helped people investing in these digital currencies around the world.

Let’s have a look at some of these methods:

• Find a coin you love and use it regularly, but make sure you have thoroughly researched the market. Once you get familiar with crypto, you can decide whether it makes sense to invest in more coins that you don’t use often. You’ll know the value of these coins better than anyone else.
• Diversify your investment; Find at least 5-10 different types of crypto investments. Don’t just buy one coin. Only diversification and research will save you money in the long run.
• Build a portfolio that relies not only on crypto. Put other assets too in your investment list. This will be really helpful when you suffer loss in crypto.

Conclusion

The crypto investment risk factor is at its peak, and so it is considered the game of gambling. If you are someone who is really interested in making money with a lot of risks involved, both these ways are best for you. But if you are the person who wants to put your hard-earned money into some sort of investment to earn definite returns, this game is probably not for you.