What is the real difference between cryptocurrency speculation and gambling?
Many newcomers tend to confuse cryptocurrency speculation and gambling when they enter the cryptocurrency circle. In fact, although both seem to have certain risks on the surface, they are very different in essence. Today I will briefly tell you why cryptocurrency speculation and gambling are not the same thing.
1. Controllable risk vs. uncontrollable risk
Gambling is a pure game of luck, and basically you cannot predict the results. Whether it is the roulette wheel in the casino or the winning or losing of poker cards, it is ultimately controlled by probability and luck. But cryptocurrency speculation is different. Although the market fluctuates, by analyzing technical indicators, market trends, and news, you can grasp the general direction and manage risks reasonably. The victory or defeat of cryptocurrency speculation depends more on your knowledge and judgment, rather than luck.
2. Have long-term planning vs. short-term betting
Gambling is usually short-term, and the winning or losing will be immediately known. Cryptocurrency speculation is a long-term accumulation process. You can adjust your position according to market conditions, set stop loss and take profit, and slowly accumulate wealth. As long as you have patience and strategy, your income can be gradually improved. Gamblers often place bets with the mentality of "getting rich overnight". If they win, they will make a lot of money, and if they lose, they will lose everything.
3. Different mentality
Coin speculation focuses on mentality management. You need to be calm about every rise and fall and operate rationally. Gambling often makes people addicted. Gamblers' psychology is easily influenced by winning or losing. The more they lose, the more they want to make up for their losses. The more they win, the greedier they are, and they lose more in the end. Coin speculation pays attention to discipline and planning, and they know how to control their desires and keep a normal mind to face market fluctuations.
4. Market rules vs. randomness
Coin speculation is based on the supply and demand relationship, market sentiment, technical trends, etc. of the financial market, and there are certain rules to follow. While gambling, the results are completely random and there is no rule to rely on. In other words, coin speculation is an investment behavior with logic to follow, while gambling is "speculation" that relies purely on luck.
The difference between coin speculation and gambling lies in risk control, long-term planning, mentality management and market rules. People who really understand coin speculation rely on knowledge and experience to make money, rather than blindly gambling. I hope that after entering the cryptocurrency circle, everyone can adjust their mindset, treat cryptocurrency trading as an investment behavior, and avoid falling into the gambler mentality.
