Cryptocurrency has been considered a phenomenon in the investing world since its creation. However, its volatility divides opinions and even experts cannot ensure whether crypto is a good investment or not. In this case, would cryptocurrency be more of a gamble than an investment? Check this article out to know more about it!
Some people have made millions buying cryptocurrency since it was created. Meanwhile many others still easily lose everything trying to invest in this high-risk market. It is so risky that some have considered it more of a gamble than an investment. We bring this article to point out there are many differences between them besides a few things you should know before you buy crypto or even make real money online casino through your favourite traditional games.
Long-term versus short-term investments
It is a matter of fact that cryptocurrency could be either an investment or a gamble. But it depends strictly on your strategy. If you are trying to get rich overnight, then you should consider gambling territory instead of cryptos. Cryptocurrency is volatile in the short term and only worth it if you believe it will be around for decades to come and if you are willing to wait for it over this amount of time.
This concept contrasts with the fast turnovers that casinos can bring to your investments. This short-term investment has a probability of making you rich overnight. If you are really lucky. What both have in common, whether as a short or long investment is that there are no guarantees they will succeed over the long or short run. You could still lose everything independently of your approach, and this is the most relevant advice we can give.
In the cryptocurrency market, it is best to take a long-term strategic approach since you are less likely to lose money than if you try to rush and make a quick buck. The wise choice is not to invest in this market if you are not willing to hold it for a few years. Just like the regular stock market.
Stay tuned to any kind of cryptos
Cryptocurrency is risky, but where you invest matters and will make the key difference between success and failure. Some cryptocurrencies are riskier than others, and choosing the wrong one could be more like gambling. Mostly because it would be based on luck instead of on your ability to read market fluctuations.
You can always research cryptos the same way you would for other investments. Even though cryptocurrencies are very different from stocks, maybe a bit more unpredictable, you can still take lessons from the regular market! A good example is the company’s underlying fundamentals to determine whether it’s likely to grow or not. Consider that you probably would not invest before some good research about it, and the same is true for cryptocurrencies.
Remember to ask yourself questions like if this particular cryptocurrency has any real-world utility right now. Also, is it likely to become mainstream in the future? Once again, it is similar to gambling if you choose cryptocurrencies based on how trendy they are. On the other hand, buying cryptocurrency you believe is the strongest based on research and critical thinking, then it’s more of an investment.
Should I stay or should I go?
Years after its launch, cryptocurrency is still a highly risky investment. It is mostly because it is still such a new creation and strictly related to the algorithms of the tech world, that it changes really fast. No matter how much you try to reduce your risk right now, nobody actually knows where it will go and there are still chances you would lose money once you cannot eliminate risk entirely. The best you can do is prepare as much as you can to get the best out of the market.