Do You Think Crypto Trading is Gambling?

[shanz]

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?

[Oshosondy]

You thought some people do not expected the crash? I expected it. I was also expecting bitcoin not to move above $60000 for now. You are right that the expectation can be wrong at time but everyone can not be on the same side.

Trading is not gambling but most traders are trading in a way it is gambling for them and that is why they are losing. Trading is as risky as gambling if you do not understand how it works.

Gambling is based on luck. Trading is based in knowledge, patience and experience.

[Nwada001]

We have discussed this same topic in different ways on this same gambling board, and my own stand is that gambling and trading might have something in common, but they are totally different things.
 
Gambling doesn't give you room to recover your money like trading does when your portfolio reduces in value due to a price drop. In gambling, you need to put in back money in order to retry your luck and see if you can regain what you have lost in gambling.

[Adbitco]

Well if you look carefully you would see that most of my post always go directly mentioning that bitcoin would drop to unexpectedly reason being that, if following historical data you would see if the market sudden gain sharp ATH would break down to about 40- 50 percent decrease before creating another stable bull run where the market would sustain a certain price till almost that very year runs out. On other hands people where projecting that after this bull run that bitcoin gonna hit $100k, and yes even me too agreed to it because I know fully well that no one can be certain about the prices instead we all are doing a speculative investment because you can't really give exact value or figures to what bitcoin would be in the next or future years rather we are only optimistic that such price is possible to hit but no proof.

Conversely, gambling as the name may implies means a lots somethings trading or investment is worth more better compared to gambling. Why because we have various form of investment and trading, while gambling whatever game staked if you lose you entirely lost your staked amount but on investment if the price of bitcoin doesn't go according to how you predicted it you could likely wait for the price to soar back so you could make back your profits and have your cash out from it.

[DaNNy001]

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 anything that involves an uncertain outcome is gambling, but we can agree that the financial market is quite better than gambling if you understand risk management, in my opinion there are more successful crypto traders than successful gamblers, I'm not talking about People that hit a lottery with less than a dollar that's just based on pure luck.. crypto trading requires a very high amount of patience and skill set, you can't just be successful in it a day, taking your time to do proper research and strategize can put you on an advantageous side of the crypto market

[bitbollo]

Much probably, some shitcoins (or Just memecoins) have some inner mechanisms that are more similar to gambling then real trading for an asset.
Most people like this approach because potentially It gives the chance for better profit then classic market but meanwhile these huge returns are just a chance...a Little chance.
Please don't forget that most of these coins and market are heavily manipulated...

[Pandorak]

[...] So, I personally think that this volatility makes crypto trading more like gambling where luck plays a key role, right? [...]

In general, trading can also be categorized as gambling, but in practice it is not. Even though there is speculation, in-depth analysis plays an important role, in real gambling we don't need this kind of thing. Nowadays, many people think that risk is synonymous with gambling, but in fact it is not. If all risks are synonymous with gambling, then our life is gambling, because we make many choices in life (which are risky).

Then, do i think trading = gambling? the answer is no.

[iv4n]

Life is gambling... taking risky action in the hope of a desired result. Every day we take risks to get the desired result, so the principle is the same, only the nuances are different (games, stakes, winnings, and losses). Sometimes we risk money to win/lose money, and sometimes we risk dignity to win/lose a job/girlfriend.

You thought some people do not expected the crash? I expected it. I was also expecting bitcoin not to move above $60000 for now. You are right that the expectation can be wrong at time but everyone can not be on the same side.

Trading is not gambling but most traders are trading in a way it is gambling for them and that is why they are losing. Trading is as risky as gambling if you do not understand how it works.

Gambling is based on luck. Trading is based in knowledge, patience and experience.

Many times we expected Real Madrid to win a game or score a lot of goals. So even with knowledge, patience, & experience, we make mistakes and wrong predictions in everything we do. So we can say that the luck factor is important in everything... as you said, not everyone can be on the same side, but we can also say that nobody has a 100% winning rate.

So when someone decides to risk some money on trading to get more money it's gambling. Knowledge, good analytical skills, and being well-informed about developments in the global crypto scene increase the chances of better results, but there is nothing that guarantees profit.

[swogerino]

This remind me of that meme where in a job interview the HR asks the applicant to find differences between two pictures and the answer is they are the same despite being two different pictures.The same can be said here and despite these two things look like different in the end they are the same as in both you need to predict the future in order to make money.Trading can be considered a bit less dangerous as you need more time to lose the money and you can also set auto limits to end the losing prediction of a pair like EUR/USD for example.In gambling you can lose all in an instant.

[Davidvictorson]

There are many forces that rule the cryptocurrency trading market. We cannot say the same for online gambling/gambling or the gambling industry in general. Rather what the gambling industry has are regulatory authorities. I think that people who argue that crypto trading is gambling are those who do not understand the market. That is, they buy when they are supposed to sell and they sell when they are supposed to buy. They typically do not understand the market forces at play. What will eventually happen which is inevitable is that they will lose their capital and to avoid taking responsibility, they will call crypto trading gambling. Gambling more or less involves betting on sports activities whose outcome cannot be determined by market forces.

[Stepstowealth]

So, I personally think that this volatility makes crypto trading more like gambling where luck plays a key role, right?

In the literal sense, because you are trying to make money from trading, you are taking a risk, you are gambling. But when you consider gambling in the terms of casinos games and sports, then crypto trading is actually not gambling.
Crypto trading will seem like gambling when you are a new trader, just trying to trade the market with no deep market understanding. Depending on the game, a gambler can start gambling within a day of starting, but that is not the same with crypto trading where every trader must dedicate time to it before being able to be profitable. I am against the talk that crypto trading and gambling are the same.

[Popkon6]

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?

It is impossible to predict what is going to happen in the future, because exactly gambling is similar to such situations. Gambling is basically the future and the rest depends on the experience, but luck can change people. Gambling I have participated in many times in general. Although I have earned from gambling but when I entered new I lost more money.  Whenever I gain experience from gambling my luck starts to change and I win but sometimes lose because luck is not in my favor. 

So gambling is essentially luck experience and future uncertainty should be entered into gambling. But gambling experience is most in favor of those who want to increase their luck and future money several times.

[passwordnow]

There's a similar thread already about this topic that was posted on the Trading Discussion. I think if this and that thread can be merged much better because there are a lot of good insights about trading is gambling.

Thread ~> Why I think trading is no different from Gambling!

[Eternad]

They are completely different even on the speculation part. Traders is buying something in exchange for potential return while gambling provides only potential return due to pure luck without holding anything in return.

This has been discussed and compared many times and we can’t rule out the similarities just because they have they have a component of speculation but still the purpose of doing trading and gambling is different.

The only time trading is same with gambling when trading risk is already same with gambling such as high leverage trading.

[Solosanz]

Trading and gambling are different, even though both of them require luck, but trading is more possible to make money than gambling because the chance to win is 50/50. That's why gambling should be seen as a way to entertain instead of making money.

Any trading is basically a bet on whether the crypto will go up or down

What you said is more like a binary option since in binary option you can make money by guessing the price will going up or down, not necessary you need to buy at the bottom and sell at the top.

[bubilas]

So, I personally think that this volatility makes crypto trading more like gambling where luck plays a key role, right?

Volatility in cryptocurrencies is good. It means that forecasts come true faster and the trader sees the results faster. And accordingly, if the outcome is successful, he gets Profit.

I don’t think that trading is similar to gambling, because trading is manageable, here we see the price limits, and based on this we adjust our actions, and this allows us to control our trading position. And in gambling, we don’t know any of the data. We just start from scratch, and it’s like being blind.

[Kelward]

Crypto trading and gambling are both risky because you don't know whether you'll win/profit or lose your funds yet you go ahead to play or trade. But among the two, crypto trading is less risky than gambling because a trader's experience can help him to make informed decisions but a gambler is most times relying on luck to win. If you're a professional trader, you'll understands the market and it will help you to minimize loses but when you don't have any experience and dabbles into trading that means that you're no different from a gambler. So in this regard, crypto trading can not be said to be pure gambling, except the trader is a newbie that wants to gamble his funds in trading to get rich quick.

[lovesmayfamilis]

Such comparisons are not new topics. But the answers will still be the same. Gambling always implies luck first and foremost. A beginner who has not heard of gambling just yesterday can win a large sum. But is such luck possible in trading? Where it is necessary to have a strategy, it is unlikely to be successful without knowledge.

[Peanutswar]

Trading will become a gamble if you don't know what you are doing like making a position no matter what the current price, situation, or market movement at all you just making hope that your position will agree in your faith, there's market volatility with the trading but we can lessen the risk if you understand with the basic concept of it includes the help of the technical analysis and indicators. In this like you are making gambling in trading if you make trade base on your emotions.

I guess you can move this topic to trading discussion not here in gambling.

[Hatchy]

Yea, in a way they both have similarities which is predictions. We make predictions for gambling and also for trading the financial markets. But then gambling is different, we aren't quite sure of its possible outcomes which are based on luck and experience. Trading deals with analysis and if one understand how to read the market structures and patterns, you will be able to predict the market correctly and catch some good trades. In all, they both require you deposit some funds to get more or increase your portfolio. But there is still a lot of difference between both of them.