How much gambling is in trading cryptocurrencies?

[walker_/L]

Hi,

Recently I began to wonder if crypto trading couldn't be perceived as gambling by its pure form. I know that we have here enthusiasts of crypto trading but I hope we can take it cool and try to think of it reasonably. Having this conversation might be helpful not only for beginners but also for more advanced traders. By saying that I mean people who trade longer, not necessarily who gain more profit.

First of all, I must say that by no means am I trying to state here one and only truth. This post is rather a bunch of my own thoughts which I would like to share and develop.

The question arose when I was trading during one of my daily session and it was neither good nor bad as for the closing balance sheet. The problem was that I was using my limited knowledge and at that point all I was doing was like trying to find something elusive. I knew it was there but couldn't really predict anything. The best metaphor I can find is pretending to be a doctor and curing people without having a clue about medicine. What it implies is that you can't be a good doctor without studying huge amounts of material and reviewing multiple case studies. Before you reach a certain level, you can easily hurt people or hurt your wallet.

This is where I come to the conclusion that for most of people who trade, trading is just a gamble. Sometimes they win, and this is where legends are born most of the times. Sometimes they lose, what happens more often. In general we are lured by huge and rapid wealth and such desires are addictive, especially if you succeeded a couple of times. Only few are determined enough to reach a level of proficiency before losing it all - money, hope and a touch of reality.

It sounds depressive as I read it but this is how I see this.

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[Oshosondy]

Trading is gambling for newbies and those that do not know the right thing to do while trading, but trading is not gambling. One thing about gambling is that you can lose all your money just at ones, but trading helps by making the loss to be gradual and the end result can support your trade or position opened in a way unrealized loss could become profit.

What I just know in trading is that you should not look for amount of profit you are not willing to lose, it is very important. But there is more to trading which would be very helpful, but if not known, then trading is gambling for such people and the result can be a big loss.

[Johnyz]

Trading will only become gambling once you depend on your luck, and that is why many lose the money because they didn’t do anything aside from a guess buy and sell strategy. You can be more good in trading once you do analyze the market, this is your hard work is needed and you should do this to avoid such losses. Those trader who succeed in this market didn’t think this as a gambling, but they treat this market as their job and they have to do their part to get the profit.

[AmoreJaz]

Trading will only become gambling once you depend on your luck, and that is why many lose the money because they didn’t do anything aside from a guess buy and sell strategy. You can be more good in trading once you do analyze the market, this is your hard work is needed and you should do this to avoid such losses. Those trader who succeed in this market didn’t think this as a gambling, but they treat this market as their job and they have to do their part to get the profit.

that's true. trading will only be gambling if a trader won't do any due diligence but just randomly picking a coin to trade with. trading requires patience and a lot of experience to get ahead of this game. once you got a very good grasp in this market, it will be easier for you to take profits as your skills will aid you in this journey.
it is not the same as most gambling games like dice, roulette and other luck-based games, where players are relying mostly in their luck.

[sheenshane]

Trading is trading and gambling is gambling they've differences from each other.
You can't do trading without proper knowledge even if you're a newbie, so can't say, you can trade that based on luck, it should be you're knowledgeable and have skills in trading.  No one can be consistently lucky in trading which you can be called the same as gambling.

Gambling is much more accessible than trading, you can gamble even though technically you don't have skills in that game.
Gambling is all about fun, while trading you aren't even though they have the same goal of making a profit.

[Scripture]

Not all trader are gambler, and trading is not gambling even if many believes on this.
In gambling you only depend with your luck while in trading, you depend on your own analysis and other signal. Trading needs a lot of work, indicators can be a big help but if you do this without any analysis, maybe that is the time you can consider trading as gambling that could only be 1% of the whole trading community, mostly newbies.

[Oshosondy]

Trading turns to be gambling when the buying and selling is done over a coin/token that is unknown. To check the luck out of the token investment, people used to buy. Here the price can increase or fall. In such case trading is connected with gambling. With leading cryptocurrencies it is possible to predict the movements to some extent which will restrict users from losing at any Market situation.

One of the wrong thing to do is to trade with some altcoins, you may know some, having good marketcap and trading volume, but the volatility makes it not better in trading. I have preferred to just trade bitcoin which yield more profit for me. Know that many traders can trade better coins like bitcoin but which can be seen as gambling if they have no knowledge about trading than to just use it to gamble and see if their luck works out for them, but at the end, they lose their money.

[Awaklara]

I guess there are already several threads discussing similar. I don't know why questions about trading and gambling are always there.

Is trading gambling in another form?
Can trading be likened to gambling and how so?

I believe people who still think trading is/are part of gambling, are beginners in crypto trading. probably almost all trades.

a novice trader buys and places buy or sell orders with their guesses. not use analytical techniques or even more complicated trading techniques. like placing a bet in a casino, not even seeing a chance to win.
in the past, that's what I did. after studying and knowing more. Every trader will know that there is a very clear difference between trading and gambling.

[Stalker22]

The fact is that not everyone can trade cryptos, much like how not everyone can perform at the World Cup. A good number of people have no clue how to play soccer, which would make them outmatched in this competition. Likewise, the same goes for cryptocurrency trading, not everyone is capable of it, no matter how much you learn. If you decide to dive into the world of cryptocurrencies, then you need to understand that they hold a fair share of risk involved. There are reasons to be optimistic about them, and there are reasons to be weary. If you're interested in trading cryptocurrencies, then you should always do your research and never invest more than you can afford. Some people have made incredible amounts of money by doing so; others have lost it all. Speculating can lead to big gains, but it can also lead to big losses – don't fall prey to hype and buzzwords in your efforts to play the market.

[judaspriest]

Trading turns to be gambling when the buying and selling is done over a coin/token that is unknown. To check the luck out of the token investment, people used to buy. Here the price can increase or fall. In such case trading is connected with gambling. With leading cryptocurrencies it is possible to predict the movements to some extent which will restrict users from losing at any Market situation.

One of the wrong thing to do is to trade with some altcoins, you may know some, having good marketcap and trading volume, but the volatility makes it not better in trading. I have preferred to just trade bitcoin which yield more profit for me. Know that many traders can trade better coins like bitcoin but which can be seen as gambling if they have no knowledge about trading than to just use it to gamble and see if their luck works out for them, but at the end, they lose their money.

Actually I don't think it's a problem when a trader wants to trade some altcoins the condition is of course as long as they have the capacity for it,
other than that we really need to know which altcoins are good for trading,
it's just my opinion and everyone has their own point of view

[mk4]

Trading in general — inside and outside of cryptocurrencies can really be fully considered as gambling if you don't actually know what you're doing and just trading blindly(or making decisions based on other people's trades).

[Strongkored]

Although many say that trading is different from gambling, but in reality it is not entirely true, for those who are used to trading on altcoins being hype, for example, meme coins how many traders enter the market because they think it is a good time to get high profits, or when Terra Luan drama happening many traders continues to exist in the market in the hope of getting profits to cover losses, this is purely gambling because when traders remain in a market that is already in trouble, they are hoping for luck which is very synonymous with gambling.

[blue_hurricanger]

Full-fetched gambling if you really don't know what are you doing. Even for the full-time, experienced crypto traders, it was full of risk and borderline of a gamble too. You can lose all of your money in a short amount of time trading cryptocurrencies (derivative trading, pure shitcoins,...) Yep, just like how gambling was so don't think you're safer or can recover at least a part of your investment. Remember how the LUNA down from nearly $100 to 0.0000x? That's like -99,9% down!

[gunhell16]

Hi,

Recently I began to wonder if crypto trading couldn't be perceived as gambling by its pure form. I know that we have here enthusiasts of crypto trading but I hope we can take it cool and try to think of it reasonably. Having this conversation might be helpful not only for beginners but also for more advanced traders. By saying that I mean people who trade longer, not necessarily who gain more profit.

First of all, I must say that by no means am I trying to state here one and only truth. This post is rather a bunch of my own thoughts which I would like to share and develop.

The question arose when I was trading during one of my daily session and it was neither good nor bad as for the closing balance sheet. The problem was that I was using my limited knowledge and at that point all I was doing was like trying to find something elusive. I knew it was there but couldn't really predict anything. The best metaphor I can find is pretending to be a doctor and curing people without having a clue about medicine. What it implies is that you can't be a good doctor without studying huge amounts of material and reviewing multiple case studies. Before you reach a certain level, you can easily hurt people or hurt your wallet.

This is where I come to the conclusion that for most of people who trade, trading is just a gamble. Sometimes they win, and this is where legends are born most of the times. Sometimes they lose, what happens more often. In general we are lured by huge and rapid wealth and such desires are addictive, especially if you succeeded a couple of times. Only few are determined enough to reach a level of proficiency before losing it all - money, hope and a touch of reality.

It sounds depressive as I read it but this is how I see this.

In short, you compared it to a student who take a medical course in which you first have to spend time, including the large amount you will spend on studying for a doctoral degree course, am I right?

You know that trading in this cryptocurrency industry is a kind of choice and no one is forced here or nobody is ordering or dictating you to do it or you shouldn't do it, it's not like that. Although it cannot be denied that you will release capital here, it depends on what you can afford to lose because its value in the market fluctuates most of the time. It means that if you can loss a big one at discretion if it's a small one, and vice versa, just simple as that.

[stompix]

99% of it.
The rest of the 1% comes from people who just don't want to admit they are gambling and hiding behind random lines of TA thinking it's different from checking the previous numbers of goals scored in match by a team.

You can't do trading without proper knowledge even if you're a newbie, so can't say, you can trade that based on luck, it should be you're knowledgeable and have skills in trading.
Gambling is much more accessible than trading, you can gamble even though technically you don't have skills in that game.

They are the same, this is the same kind of denial people just part all day to try to make themselves look better and avoid looking at the risks it involves.

The average gambler only knows how to bet on a single or a few events, go and take a look at the gambling board and half of them would have a problem understanding a handicap or a spread and I'm pretty sure 99% of them would need hours of reading a tutorial before understanding a betting exchange and how it works. In trading most of them just buy because they think it's a low price and they sell when they have a profit, some go for leverage which it's petty easy to do, of course 1000x times harder to make money out of it but the reality is that you can place any sort of trade (and lose money) far easier than a lot of sports bets.

Shitcoin trading is gambling, end of it, they have zero reasons to look like anything else, at least with a match there is no way that if Buterin holds a banner with Barcelona during the game the result will change, with crypto one imbecile or one fake rumor and you have a 20% swing in minutes, and no TA will ever mage to predict that.

[ethereumhunter]

If people just buy randomly without doing any analysis, it's a gamble because they expect to guess the price to make a buy then or sell and most of them suffer a loss, although some of them can make a profit. But we can't always get profit by doing it this way, considering that market conditions and situations are always changing. This is where the importance of learning to analyze which is done continuously to improve our ability to trade and not many people can do this.

[Coin_trader]

Considering how volatile crypto is. Everyone is just gambling at this point because no TA can save you from a huge price swing due to sudden fud or good news in crypto. Crypto trading is very easy to manipulate due to its volatility so I agree to everyone here states that we are just gambling and using TA as delusional guide to make a position or decision on our trading.

I usually do TA just to determine support and resistance to trade near at that level but I always consider stop loss close to my buying price because I’m always gamble whether there will be instantaneous news that will reverse my TA or not.

[ethereumhunter]

If people just buy randomly without doing any analysis, it's a gamble because they expect to guess the price to make a buy then or sell and most of them suffer a loss, although some of them can make a profit. But we can't always get profit by doing it this way, considering that market conditions and situations are always changing. This is where the importance of learning to analyze which is done continuously to improve our ability to trade and not many people can do this.

We can minimize the risk in trading by just doing continuous research and acquiring skills and enough understanding about the basics and important knowledge about trading as well as technical analysis. While gambling, we are mostly relying on our luck. Trading could be like gambling if we will risk our funds with zero knowledge about what we are doing and without enough information about the coin that we're going to trade. Trading is risky but with continuous learning, we can deal with all the risks that we might face.

If you rely solely on luck, I'm afraid you will lose your moment of profit because what you do in the market will cost you. That's what you will get if you trade without analysis and based solely on luck. Indeed there will be times when you can get lucky but that does not guarantee you will always be lucky. Maybe if the results of your analysis still make you hesitate but you still want to enter the market and try it with a little capital, I think it's still acceptable. And if you can accept the risk of losing money on the trade, you can trade, even if you are gambling.

[Pandu Geddon]

If we see relatively then gambling and trading are similar.
When we put some money on stake to get extra money in return, it is considered as gambling. And guess what we do the same in trading also.
The only major difference is the risk factor involved in both the scenarios.
In case of trading the risk is minimal, whereas in gambling the risk is high and so do the profits.
So coming back to the question asked by OP, if the risk factors in the trade is high, then it’s nothing but gambling.

there is another difference in my opinion. once a gambler has made a bet, he will have no control over the assets at stake in the casino.
but in trading, the control of the asset is always with the trader. however, the outcome of the trade is never known when it comes to buying the asset. but traders can hold assets and not accept losses. it's as you mentioned regarding the risk of trading which is less than gambling.
the trader has complete control of the asset, wants to sell at a loss, or remains to wait to grow again until it gives a return.

[Ararbermas]

It will become gambling if will you will not take it seriously i mean if you don't educate your self and just trading because of perspective that will give you good returns afterwards.  Knowledge is a must! So be smart enough if you don't want trading to be a gambling form because its very risky tbh.