Investment Become Gambling

[Jaycoinz]

This is why it is good to prepare your yourself, mentally, emotionally before thinking of investing in Bitcoin. Like your friend, his goals was to use it as a means of survival, that why he keeps selling out profits, then when he see that Bitcoin price is increasing again he jump in in order to find profit out of that short term move. So inshort he is just gambling with his money. Normally investment in Bitcoin for a long term is not really easy , because there are a lot of temptations that comes with it along the way. It is only those who are discipline and patient enough that tends to earn massive rewards from Bitcoin.

There is a reason why it is advised that money meant for investment should only be your discretionary funds, money you know won't have any effect to you when you use it because if you use money that is meant for other purposes then you will eventually sell off or if you haven't prepared your mind mentality for the investment then you will be constantly checking on the price so that at every chance you will get profits which is not good for investment because what if the price dips.

[Joy_learns_crypto]

What was his financial loss, and I don’t think you can buy bitcoin out of FOMO because buying bitcoin at anytime is good and bitcoin is not a hype coin like altcoins.
You and your friend are investors with affections to the market that is desperate. If your friend is taking profits he is not a long term investor and u don’t know what information he is getting on telegram and socials on bitcoin. If your friend is long term investor advice him to have an emergency fund account so should you.

[I_Anime]

Is two ways about it either you are trading or investing. Trading you can focus more on short term speculation, like buy when the price down sell when the price up stuff like that , not the one you will belike you’re longterm investor but all you do is trading , the truth is that if you want to trade you do it well by learning properly and stop losing money due to guessing trading (trading when you’re not sure if the market will go your way ).

Investing in the other hand , is when you are completely all in with the longterm stuff like trying to build your stack while you hold through accumulation and stuff , not focusing on the market always , or trying to buy when low and sell when high in short term.

[Chibit01]

It’s better sometimes to just let someone people treat there crypto life the way they want to treat it, you can buy and hold for long term and get your profit base on how much value the coin have added someone else can also be on the other end and be winning trading and still make same profit which you are holding coin for long term for, some people trading favors them they can make that profit which we wait for year to make on the interval of few months, but they also still can loss that capital which they are using to chase quick profit before they can even reach their target.

You and your friend intention was to make profit you only wanted to make your own profit from holding for long term while your friend was trying to get it quick as long as he’s able to see few trade won it will be difficult for your to convince him out from being a day trader.

[Josefjix]

Investing in the other hand, is when you are completely all in with the longterm stuff like trying to build your stack while you hold through accumulation and stuff , not focusing on the market always , or trying to buy when low and sell when high in short term.

Most newbies make this mistake and always think looking at the charts everyday and every time makes brings them the wealth they always be delusional about, not knowing this method is the worst thing they could ever do to themselves because it disrupt your mental health and keep you stuck and the same times make you feel like you aren't progressing.

The best method of getting it through in the crypto investment plan is consistent purchase of Bitcoin, no matter the amount over time. The winner in my opinion.

[DaNNy001]

financial investments are very difficult to keep up with and it gets more difficult without emotional control. A lot of people move from making an investment and after a while it becomes gambling because they lack discipline and consistency. investments has rules to follow to make sure that you are on the safe side but when you try to take the fact route to make quick money that's gambling

[Olatundespo]

Do you think that mental and behavioral control are similar important with financial management, risk management  in investing?

Of course, you can succeed in investing with every management combination. You have the example. Your close friend initially started with investing but the desire for more wealth in a short time forced him to make quick decisions. He continued to trade without coordinating funds and risk management and ended up losing money.

You have a stable source of income and can accumulate Bitcoin in the long term through discretionary income. Instead of doing this, you may be choosing short term trading in the pursuit of more wealth. This is a significant mistake in investing. Even if you are experienced in acquiring skills or market analysis, this strategy is like a kind of gambling. Fund management is a very important issue for risk tolerance in investing.

[fredericktaylor]

financial investments are very difficult to keep up with and it gets more difficult without emotional control. A lot of people move from making an investment and after a while it becomes gambling because they lack discipline and consistency. investments has rules to follow to make sure that you are on the safe side but when you try to take the fact route to make quick money that's gambling

It is true that investing in Bitcoin and holding it for the long term can maintain discipline, and when we use Bitcoin in the hope of making quick money, it becomes gambling by losing discipline. Consistency is very important in long-term investment, when there is no consistency in investment, the investment cannot be managed properly for a long time, and thus success can never be achieved. To achieve success, along with proper knowledge, consistency, discretionary money, long time, and greed control are very important. When we buy Bitcoin with discretionary money consistently with a long-term plan and wait patiently for the right time despite the volatility in the market, success can be expected.

[JimaGod]

To be successful in investing in Bitcoin, it is very important to first achieve the right knowledge because without the right knowledge, it is not possible for an investor to achieve success. Along with achieve the right knowledge, consistency is very important. If there is no consistency in investment, then success cannot be achieved, so you should buy Bitcoin consistently with a long-term plan with prudent money and do not be disappointed by the instability of the market. You should wait patiently for a good time with confidence, as a result of which long-term profits can be expected. We must remember that it is never possible to achieve success by investing in Bitcoin long-term investment or short-term plans, so success can be achieved buy Bitcoin with a long-term plan with confidence and patiently waiting for the right time.

Knowledge is power in the market and learning never ends when it comes to cryptocurrency. The space is very big enough and thereby qw keep learning new basis in the market because as the day goes by, so are the new innovation of projects which we're not acquainted with. What do we do when these projects are launched? Nothing other than keep exploring our paths in the crypto market and also leaning on our principles to provide crucial aides for development and growth for each and everyone of us. Investment turned to gambling because investors have completely failed to acquire knowledge, what they're all after is making wins but they forget a win doesn't come in a single day, rather it comes with consistency and learning never stops.

[Dr.Bitcoin_Strange]

Everyone has a choice for what they think is right to do with their asset, some people thinks that trading is best for them, allow them try luck and if they win, they will be happy that they tried but if they lose, they will learn a great lesson. Some people said they were going to start trading but at the end they turned gamblers and not pro trader who learns to improve in skill and not hoping on luck for every thing. The problem is lack of knowledge not really mental issue but the lack of a concrete knowledge about Bitcoin and management of funds can let someone make many mistakes. When a trader is handling trading as gambling without learning the right strategy and approach towards trading, then the person is lacking knowledge.

[Cgrexp]

Of course, people need to have determination or control because if there is no mental determination in investing, it is never possible to reach that investment goal. And behavioral control means continuing to invest according to the plan and maintaining regular habits. Without a long-term mindset, there may be a reluctance to continue investing patiently. I agree with the OP, when there is mental and behavioral control in investing along with financial and risk planning, it is easier to continue investing in a disciplined, consistent and stable manner.

[Jamestown70]

Year 2023. I started investing in Bitcoin. The market has fluctuated many times until now. However, I have always had a long-term goal. Although I had to sell once due to circumstances, but I started investing again.

However, a few weeks after my investment, a close friend of mine also started investing. He also talked about long-term investment. Our goals were similar. However, even though the goals were the same, our behavior was not the same over time, and this is where the difference between investment and gambling was created.

He start take profits when price increased. After doing this a few times, he started monitoring the market regularly and analyzing the opinions of YouTube and Telegram. At one point, he started making decisions with the market fluctuations. Sometimes he would buy out of FOMO and sometimes he would sell out of panic. In this way, he would make profits at times and sometimes he would lose.

 Even when I warned him about such behavior, he  misunderstand me that maybe I did not want to let him make a profit.
However, at one point, after significant financial loss, he realized his mistake. The problem was in his behavior.  He had the ability to continue investing well in the long term and even though he started investing with this intention, due to his inability to control his behavior, the investment turned into a gamble. 

Do you think that mental and behavioral control are similar important with financial management, risk management  in investing?

✨

My opinion about your friend is that he entered into the market without setting out a goal and also letting greed to cloud his judgement. I guess the result has thought him a lesson. On your own case, you didn’t had any emergency funds to assist your Bitcoin investment journey so in times of crisis you’ll be able to scale through. As you’ve started once again, try as much as possible to set up your Bitcoin Portfolio with a backup plan so you don’t touch your Bitcoin Investment. Your friend need to work on his emotion and also overcome greed to be able to have a long term goal in Bitcoin investment.

[AmaGold70]

Investment somehow could be seen as gambling but you have more assurance of making profit and your friend I don't blame him because not everyone has the ability to control their emotions and the market most times doesn't help the situation and even your advice will be seen as misleading because it obviously seems that you don't want him to make profit even though you were trying to help him remain calm in a crucial situation. I'm sure he has learnt his lessons now and I believe he will believe you more now and also work more on his emotions and decision making because Bitcoin investment doesn't need anyone that has panic issues.

[Samlucky O]

The truth is that some people came with the intention of investing rather than trading, but somehow along the line they where carried away mostly because of advice from friends or social media influencers, with that they began trading instead of investing which indirectly turn them from investor to Gambler. That's why I keep saying that Bitcoin investment is for the strong minded ones and not for the inpatient and indecisive people.

[Judith87403]

Very true. Behavioral and mental control are equally as essential as risk and financial management in investing.

The experience of your friend reveals that the difference between investing and gambling isn't the asset, yet behavior. Long term investment demands patience, discipline, and control of emotion. When these are absent, even a strong strategy will collapse under fear, greed, FOMO, and selling out of panic. Pursuing short term price moves and outside opinions makes decisions to shift from planning to impulse.

Risk management secures capital, but control of behavior secures the method itself. Any investor who do not how to manage emotions eventually will abandon their plan, not minding how good it is. In such sense, psychology isn't a part skill in investing. Rather it is the core foundation that prevents investing from becoming gambling.

[Cgrexp]

Investment somehow could be seen as gambling but you have more assurance of making profit and your friend I don't blame him because not everyone has the ability to control their emotions and the market most times doesn't help the situation and even your advice will be seen as misleading because it obviously seems that you don't want him to make profit even though you were trying to help him remain calm in a crucial situation. I'm sure he has learnt his lessons now and I believe he will believe you more now and also work more on his emotions and decision making because Bitcoin investment doesn't need anyone that has panic issues.

You are right, if you do not have the ability to control yourself, it is a bit difficult to reach your investment goals. In investing, the chances of success are higher in the long term. That person could not maintain his long-term mindset and sold when the price increased, and because of this, he completely turned his investment into trading. Although his friend advised him not to sell and to stay calm. However, when people learn from mistakes. That person will think before making the same mistake again because he made one mistake. In the case of volatile assets like Bitcoin, a long-term mindset gives an investor courage from panic selling and also prevents the mentality of selling when the price increases.