Do You Think Crypto Trading is Gambling?

[Mr.suevie]

In my opinion, the main similarity between gambling and crypto trading is that both involve speculation and assumptions. If you are lucky, you may double your portfolio; if you are not, you may lose your money. Basically, you are trying to predict what might happen in the future. Any trading is basically a bet on whether the crypto will go up or down
As a crypto trader with years of experience, I always do deep research based on news, indicators and technical analysis. However, even after studying possible scenarios, the market sometimes moves in the opposite direction Let’s take the example of the recent Bitcoin drop, (almost) no one expected it, even the big channels… A small correction was expected. Well, some sudden political and economic news was the reason for all of that and crushed the traders’ morale that day… (Thank God the market is recovering now)
So, I personally think that this volatility makes crypto trading more like gambling where luck plays a key role, right?

Basically, trading the financial market with a proper skill set and risk management isn't really gambling, this puts you on a little edge over the market. People who gamble can only gamble responsibly to reduce losses but the outcomes are totally unpredictable especially casinos games, there's absolutely nothing to be studied there. Sports betting on the other hand is quite better but still has a lot of uncertainty
Crypto trading to me can't be classified as gambling, there's a big difference between them

[Crypto Library]

In my opinion, the main similarity between gambling and crypto trading is that both involve speculation and assumptions. If you are lucky, you may double your portfolio; if you are not, you may lose your money. Basically, you are trying to predict what might happen in the future. Any trading is basically a bet on whether the crypto will go up or down
As a crypto trader with years of experience, I always do deep research based on news, indicators and technical analysis. However, even after studying possible scenarios, the market sometimes moves in the opposite direction Let’s take the example of the recent Bitcoin drop, (almost) no one expected it, even the big channels… A small correction was expected. Well, some sudden political and economic news was the reason for all of that and crushed the traders’ morale that day… (Thank God the market is recovering now)
So, I personally think that this volatility makes crypto trading more like gambling where luck plays a key role, right?

On those case we have to say that everything what is happening right now in our world is depend on luck, Like now I am saying that I will definitely go my office tomorrow now do I really can reach my office tomorrow, because if in the road I can faced any issues that can stopped me to going office. So will you see it also as a gambling? Because it depends also on luck.

So Trading and Gambling ain't same bro. They are completely different but it is true that if a person doesn't know anything about the analysis and he goes for investment in trading then that might be gamble. But in reality you need to knowledge for doing trading not only luck

[darkangel11]

Technical analysis is only a way to predict future moves by analysing past ones. You could as well said that since there were 5 rainy days in a row the next one will be a sunny one. Maybe yes, maybe not. All that it proves is that the chances of a sunny day are higher than chances of a rainy one. You can bet on it if you feel like it. That's what trading really is. You compare your chances and choose the outcome that's more probable. The way I see it, there's crypto and there's bitcoin. Buying a dogecoin is gambling, but buying bitcoin is not.

[GigaBit]

If we analyze gambling and crypto trading with a deeper view, we can see that gambling and trading are almost the same. We know crypto trading is risky because it is so volatile that at any time a trader can lose his wealth. Sometimes a trader gets overly greedy and invests in something that may later withdraw from the market or lose value due to scamming. We have seen many investors go nuts after the 2021 bull run in crypto. Those who invested in crypto. Especially those who invested in projects like FTX or Luna. The same is true in gambling where a gambler can lose his wealth and win there at any time. Considering these factors, if we compare crypto trading with gambling, there is no possibility of a big mistake.

[alani123]

Crypto trading, especially futures trading, in some ways are even worse than gambling.

At least in gambling there's provable fairness and there's ways to calculate that the odds shown to you are statistically sound. Knowing that the outcomes are predetermined and won't depend on your bet amount actually makes gambling not prone to manipulation, at least so long as you're wise enough to pick fair games. With crypto, markets even as big as BTCUSD are prone to manipulation and certain exchanges and Tether are known to be opening up the door to manipulating prices so they can have more liquidations and this way enrich themselves by making customers rid of their money.

Same goes for shitcoin trading where the developer has a thousand ways to pull the rug anytime he wants.

So I'd just say if you don't know what you're doing stay away from trading crypto and especially with shitcoins and leveraged futures. They're even more deceptive than gambling promotions if you're a novice.

[Fortify]

In my opinion, the main similarity between gambling and crypto trading is that both involve speculation and assumptions. If you are lucky, you may double your portfolio; if you are not, you may lose your money. Basically, you are trying to predict what might happen in the future. Any trading is basically a bet on whether the crypto will go up or down
As a crypto trader with years of experience, I always do deep research based on news, indicators and technical analysis. However, even after studying possible scenarios, the market sometimes moves in the opposite direction Let’s take the example of the recent Bitcoin drop, (almost) no one expected it, even the big channels… A small correction was expected. Well, some sudden political and economic news was the reason for all of that and crushed the traders’ morale that day… (Thank God the market is recovering now)
So, I personally think that this volatility makes crypto trading more like gambling where luck plays a key role, right?

Like sports betting, there are a tiny percentage of people out there who may have figured out how to beat the bookmakers, we're talking about the 0.001% of people - if we're being generous. Those people probably spent many years of research, learned how to dynamically read profitable plays and probably lost a lot of money while learning along the way. The same will be true for traders, there are some people genuinely making big money out there, some who will be scraping a few dollars and the majority who will be losing money. It's basically an extension of the forex market and if you go on any forex trading site the is worthwhile, it'll tell you straight up that that vast majority of people lose money while attempting it.

[Juse14]

As much as research and analysis can aid better decision-making, the crypto market's unpredictability is quite high. At times, no matter how prepared you are, or how well you plan, things may turn out not in your favor just like the results of a gamble. Therefore the skill and knowledge are important but luck also has a big role to play in crypto trading, that's what makes it have some similarities with gambling.

Though there may be an element of luck that cannot be ignored, I think there is difference between crypto trading and gambling. Because in crypto trading, the more one's decisions are informed by market analysis, knowledge of blockchain technology, and so forth, the higher the likelihood of success. Traders with experience tend to use proven strategies and diversify their portfolios to reduce risk.

Crypto trading is one thing but then it includes a lot of analysis and all that it's not as perfect because at the end you're still running a risk but its more feasible than in gambling where the odds of winning or losing are usually not in control or predictable in the same way -

[BIT-BENDER]

I think every business is a gamble, you investing in Bitcoin hoping to get good return on investment is also a gamble because you actually do not know what the future holds for bitcoin but we would like to stay positive and hope it favours us(investors) that in it's own is a gamble, deciding to buy some shares in any company is a gamble, so yes trading is also gambling. You can have all the signals you want, be very experienced like an old tortoise you still gambling when you are trading.

[Ultegra134]

If we analyze gambling and crypto trading with a deeper view, we can see that gambling and trading are almost the same. We know crypto trading is risky because it is so volatile that at any time a trader can lose his wealth. Sometimes a trader gets overly greedy and invests in something that may later withdraw from the market or lose value due to scamming. We have seen many investors go nuts after the 2021 bull run in crypto. Those who invested in crypto. Especially those who invested in projects like FTX or Luna. The same is true in gambling where a gambler can lose his wealth and win there at any time. Considering these factors, if we compare crypto trading with gambling, there is no possibility of a big mistake.

Both share a few similarities, but you cannot claim they're identical. Acquiring cryptocurrencies is seen as an investment, but you cannot call gambling an investment; you're not obtaining anything in return, nor can it yield returns in the future. Sometimes we claim that trading is a gamble because they share some similar principles, such as luck and analysis, which exist in both options but aren't always accurate. Thus, I don't think we should compare the two or claim that trading is a form of gambling.

[AYOBA]

Yes off course both are the same for me the crypto trading and gambling there similar since both of them have the risks and both the crypto trading gambling are include of financial, but I think the trading is more better than gambling even in terms of losing because in crypto trading even though a person is losing they might a day that your gain can definitely come back to you.

But the problem with some peoples is that their lack of patience is deal with them that’s why there not making any profits in trading, and somes is like of knowledge that is make them lose their profits in trading; Gambling doesn’t have any thing like technics analysis and which is why he they very easily to fall in victim of losing in gambling.

[taufik123]

Yes off course both are the same for me the crypto trading and gambling there similar since both of them have the risks and both the crypto trading gambling are include of financial, but I think the trading is more better than gambling even in terms of losing because in crypto trading even though a person is losing they might a day that your gain can definitely come back to you.
-snip-

If you say the two are the same between gambling and trading, you have to explain that trading is not just using one method, but there is futures trading and spot trading, but you are here explaining that spot trading is the same as gambling.

Gambling with spot trading is different, because spot trading has an asset that you still hold and will still have value even if it fluctuates but won't disappear when the price drops.

You should explain that futures trading will be the same as gambling because it only guesses the price and if it is wrong it will be liquidated and lost like gambling.

[pawanjain]

In gamble they call it strategy but in trading they call it analysis and this made them to have something similar in common but it's true that they are not the same because trading is mainly for those that seeks for the easiest ways to make quick money which is not that easy because of its crypto currency. And on gamble it's also something that's lose is always more that the luck, unless luck is involved in the round you played. On gamble there are games a gambler can predict and there are some which they can not predict and those games that they can not predict are purely luck that makes anyone to win from them but if we talk about trading all of them needs predictions and analysis altogether so that the trader can be able to get some profits from his/her trade.

There are few things in your post which are applicable to trading as well as gambling. For instance:

In gamble they call it strategy but in trading they call it analysis

I would say, trading and gambling both have "strategies" and both "can" have some analysis involved depending on the type of betting involved. Example: Sports betting involves analysis.

trading is mainly for those that seeks for the easiest ways to make quick money

I guess people prefer gambling more than trading to really make "quick and easy" money. It's another fact that they often lose in the process.

[Kavelj22]

It is only gambling if one is messing around with  future contracts and using unreasonable leverage for the sake of bigger returns. On the other hand, there are people who use exchanges in a more moderate way to predict the patterns of the market and take smaller profits without having to compromise their whole budget in a very slim period of time.
For example, of I notice there is a strong tendency for the price of Bitcoin to increase and the chances of it to continue to do so is high, then I buy in and wait for the price to continue to go up before selling (that would be after doing some analysis on the price graph), it would be different if I stepped into the future market and picked up the first shitcoin I saw and  got all in using an exaggerate leverage, that would be gambling .

As I read the comments, I was sure that there would be a huge difference in opinions due to the gap between the two concepts, and on the basis that Forex trading and speculation are permissible according to official religious and legal legislation. Gambling is forbidden in all religions and laws and carries serious legal charges. I personally prefer the definition that says that trading in its original and conventional sense is far from gambling, but it may become so - in the opinion of some - if the trader decides to completely abandon following any of the strategies and refrain from analyzing the market, as in that case he relies on chance and luck to achieve profit.

Gambling is based on betting on probabilities and does not give its owner anything or any ownership, unlike speculation, which is basically a partnership based on owning a share in a company in exchange for a sum of money, meaning that companies/assets listed on the exchange open the door for investment and own shares in it in exchange for obtaining financing from investors, meaning that there is a mutual benefit, unlike gambling.

[mv1986]

If we analyze gambling and crypto trading with a deeper view, we can see that gambling and trading are almost the same. We know crypto trading is risky because it is so volatile that at any time a trader can lose his wealth. Sometimes a trader gets overly greedy and invests in something that may later withdraw from the market or lose value due to scamming. We have seen many investors go nuts after the 2021 bull run in crypto. Those who invested in crypto. Especially those who invested in projects like FTX or Luna. The same is true in gambling where a gambler can lose his wealth and win there at any time. Considering these factors, if we compare crypto trading with gambling, there is no possibility of a big mistake.

Both share a few similarities, but you cannot claim they're identical. Acquiring cryptocurrencies is seen as an investment, but you cannot call gambling an investment; you're not obtaining anything in return, nor can it yield returns in the future. Sometimes we claim that trading is a gamble because they share some similar principles, such as luck and analysis, which exist in both options but aren't always accurate. Thus, I don't think we should compare the two or claim that trading is a form of gambling.

It is certainly closer to gambling than investing, but a prerequisite for trading being considered pure gambling is if somebody literally rolls the dice on something he or she has no clue about. If somebody does not follow any updates in technology or crypto in specific and yet tries to trade it back and forth for a gain, I guess it would and should be considered gambling.

[Raflesia]

If it is not based on research and some things such as technical analysis that professional traders always do then indeed I would consider it as gambling because they only use intuition and isnting as a benchmark in trading. The problem is that this kind of thing (relying on instinct) is a common thing especially for those beginners who do not really understand trading but want to try something like this which makes the situation worse even more than gambling.

Trading is a situation where you need to know exactly what to do before opening a position, but nowadays a lot of people don't care about that because they expect their instincts to do their job well and try to guess what will happen in the future and this method is not much different from gambling in the end.

[ChiBitCTy]

No, not technically.  Trading a financial instrument can be sort of considered gambling , in theory, but really it's nothing like actual gambling.  There's a lot more skill involved when it comes to many gambling games, but nothing compared to legitamate technical trading where not only are you studying technical analysis, but often times fundamental analysis as well. So there's just a lot more involved when it comes to trading.

[Hirose UK]

Yes off course both are the same for me the crypto trading and gambling there similar since both of them have the risks and both the crypto trading gambling are include of financial, but I think the trading is more better than gambling even in terms of losing because in crypto trading even though a person is losing they might a day that your gain can definitely come back to you.

How can we consider trading and gambling the same, if it is only based on the risk and involvement of money in it, then there are several other similar activities such as someone who sells food, they spend money for capital and if it doesn't sell then they risk losing capital, can this also be called the same as gambling.
Considering trading and gambling the same is an unreasonable assumption, moreover if in trading we can take precautions in terms of losses and really not lose all the money used, it is very different from gambling.

Gambling doesn’t have any thing like technics analysis and which is why he they very easily to fall in victim of losing in gambling.

This is also an inappropriate response in my opinion because in gambling there are several bets or games of skill that are still very important or require good analysis.

[Tmoonz]

If someone is "gambling" in their trading, then it is not trading, but gambling as you said. Because basically what distinguishes gambling from trading is that when someone gambles, they tend to rely on their luck and usually it is done in a short time. While for trading, someone will use various instruments, strategies, and news, and then analyze them and use them to make a profit in the market.
So back to your topic, is crypto trading gambling? it depends on the person, whether he really has the mindset of a trader who uses strategy and analysis, or a gambler who only relies on luck. And also not all crypto is based on speculation, in memecoins it may be the case, but in popular crypto it may not be.

For me I would say that one of the reasons why people consider trading to have certain similarities with gambling is that there are a lot of emotional devastation that is attached to both senerio cases and the higher level of risk irrespective of the amount that is used, those who trade are always carried away by the act of monitoring the market conditions in order to maximize the opportunities of exiting point either in profits or loss because a lot of people panick and exit at loss or fall in to a scam project, and that's also how we gamble with games that we have don't have control of.

[Dr.Bitcoin_Strange]

Well, yea, they both have the similarity of speculation but trading have some tool that a trader can use to identify the  market trend and know the direction of the market before they can enter the position, trading is not majorly dependent on luck but it requires a good skill but gambling requires luck.

can be said the same but not similar. the simple difference is a beginner gambler can easily play bets and win the game with luck. unlike beginner traders there is no luck to get profit in trading they must prioritize the approach, and skills other things beginner traders need a long process to continue to get profit.

It might sound funny but I think anyone that feels they want to have fun in trading and try their luck can actually handle trading as gambling but gambling can not be handled as trading because they are both different things. The fact that two things might just have one slight similarity doesn't make it the same thing. I know that there's a big gap between those two and one common similarity is that the both can generate profit but one requires more of skill and not luck.

[wheelz1200]

Well, yea, they both have the similarity of speculation but trading have some tool that a trader can use to identify the  market trend and know the direction of the market before they can enter the position, trading is not majorly dependent on luck but it requires a good skill but gambling requires luck.

can be said the same but not similar. the simple difference is a beginner gambler can easily play bets and win the game with luck. unlike beginner traders there is no luck to get profit in trading they must prioritize the approach, and skills other things beginner traders need a long process to continue to get profit.

It might sound funny but I think anyone that feels they want to have fun in trading and try their luck can actually handle trading as gambling but gambling can not be handled as trading because they are both different things. The fact that two things might just have one slight similarity doesn't make it the same thing. I know that there's a big gap between those two and one common similarity is that the both can generate profit but one requires more of skill and not luck.

I disagree.  Crypto trading needs an insane amount of luck just like with gambling.  Now if you are going to buy and hold bitcoin I don't think that falls in this category but if you are day trading coins even large cap coins it's definitely gambling.  It's not like stocks where you have earnings, profit, etc it's trying to guess which coin will have more demand than there is supply purely based on popularity at the time.  Technical analysis only goes so far and should only be for long term traders.  In the short term I don't think there is anything that can predict the market.