Today, we are here to address a question that has been put to me a few times in the post-pandemic. Pandemic has shown how traditional assets fail under the crisis. And how digital assets soar under the belief of fire potential.
This has made Cryptocurrency a rising superstar in the investment industry. Pandemic has given enough time to people to learn about Cryptocurrency. 2022 marks the year when the surge of new investors filled the Crypto investment market.
Despite the rise in the popularity of Cryptocurrency, there are still individuals who ask – Is Investing In Crypto A Gamble?
We are absolutely cool answering this question. This is why we are here today. Instead of giving answers to each individual separately, we decided to write this up.
Before we can move further, let us tell you that we won’t be sharing any latest tips for Crypto investment. If you are here for that, it would be better that you visit Quantumai. At Quantumai, you will get to learn from the experts and access the latest market information.
Now coming to the question…
Is Investing In Crypto A Gamble?
The answer is NO!
Cryptocurrency is the latest phenomenon in the investing world. Despite having no physical presence, they are worth millions and have a multi-billion dollar industry.
This is what makes people invest in Cryptocurrency. However, at the same time, it also makes the investors ask – How safe is it really?
While people have made millions investing in Cryptocurrencies, there are people who have lost everything. This is where the notion of Cryptocurrency being a gamble comes in.
However, this is what we feel about the connection between gambling and Crypto investment. Every investment is like a gamble. But investing in them is not gambling. This is because, before making any investment, you go through trade charts, news, and how the market has performed in the last couple of days.
Having so much information to make a decision can’t be said to be a gamble, can you? The same thing stands true for Cryptocurrency.
Yes, the risk in Crypto investment is more because of their volatility, but in no way are they gambling.
Here’s What Experts Have To Say!
In both gambling and investing, a key principle that works in mitigating the risks while maximizing profits. However, one difference clearly differentiates between the two – investment is for the long-term, and gambling is for the short-term.
It simply means, over time, odds will be in your favor as an investor and not in favor as a gambler. So here are a few things that set the Crypto investment and gambling part.
1. Investment Are long-Term, While Gambling Is Short Term
The truth is Crypto investment can be a good investment or gamble, depending on your strategy. For instance, if you are investing in Cryptocurrency with the sole purpose of becoming a millionaire overnight, you are taking a gamble. But if you truly believe Cryptocurrency is the future, then buying it now is considered a good investment.
2. Investing Is All About Taking Calculating Risks
No matter where you invest, it always carries a certain amount of risk. It is just that with Cryptocurrency, the risk is more. Then again, you cannot invest without calculating all your risks.
If you put all your savings in any Cryptocurrency or any asset, it is a gamble. To ensure you are investing with the hope of making a profit, you first need to read the market and then make a conscious decision about investing.
3. Choosing The Right Cryptocurrency Is Never A Gamble
Like in traditional trade markets, where you need to select the right asset with future potential, you need to select the right Cryptocurrency. While Cryptocurrency might differ from stock, you still need to conduct thorough research before making any investment.
You need to find the right Cryptocurrency to invest in by reading the market and how traders behave in the market.
Should You Invest In Cryptocurrency?
The Cryptocurrency trade market is still new to the industry, and compared to the traditional trade market, the market is cap low. So, even a small fluctuation can cause a massive turmoil in the Crypto trade market.
But, if you decide you want to invest in the Crypto trade market, the best course of action will be, through research, to prepare your portfolio accordingly and try to hold all your Crypto assets for a long-term.
Yes, you can’t eliminate the risks entirely. But gains, this much is inevitable in any investment industry.