Is Cryptocurrency Trading a Gamble?
Days back, I had a discussion with a group of gamblers. These guys are deep into football betting and other sports betting. They said to me that football betting is a business and investment (to those who do the regular or weekly betting). Of course I disagreed, there is no investment in sports betting. Sports betting is entirely on luck and chance. It is only an investment and a business for those who conceived the idea.
To counter my opinion and stands on the matter, they said that cryptocurrency trading is gambling because it somehow involves prediction. I laughed because they had a shallow understanding of what cryptocurrency is all about. I saw it as an opportunity to educate them on cryptocurrency, blockchain and trading.
First off, cryptocurrency trading is not gambling. Cryptocurrency is simply a conversion of value so it's an investment. And every investment always yields a return on investment. When we talk of cryptocurrency trading, there's a level of certainty compared to sports betting. No one is ever sure in any sports betting. You only know the outcome when the game is over.
Also, in cryptocurrency, there is use cases and utilities for each coin. This is what gives a crypto trader confidence that a particular coin or token will increase in value and as such a fertile place for investment. On the other hand, a coin that has no real life value and use cases will always depreciate.
More so, cryptocurrency trading involves technical analysis and studies. And there are also trading rules that if one follows will always be in profits. On the other hand, sports betting does not require technicality or indepth studying. Most people play just by their instincts and feelings.
Hence, we shouldn't look at cryptocurrency trading as a gambling. No one succeeds in the business by luck. It requires an in-depth study and knowledge. For instance, you choose to do spot trading, before investing in a coin and hodling, ensure to do your own research, get to know the use cases of the coin, the roadmap and whitepaper. This is what gives you confidence in the cryptocurrency trading business.
Cryptocurrency is the future of money and it is only wise that we educate people and bring them to understanding how it works. This action will also foster mass adoption leading to value increment.
