The Invisible Line Between Investing and Gambling

[Sowat]

Many say investing and gambling are totally different. I largely agree with that notion, although I sometimes think the boundary line blurs quite easily once our original plans go out of window. Take two individuals with a solid plan to invest their BTC in amounts that can be left undisturbed for years.

They initiate an investment strategy of regular buys and discipline against emotional reactions.

Six months later, one of these investors cannot resist looking up the price every hour. Red candles are an signal for sell and green ones as opportunities they miss if they fail to do so. The plan gets pushed aside and replaced by the input from other, whether be it people on the streets, in the various telegram group, YouTubers or predictors predicting the rise and fall. They eventually stopped the thought process with Has my long term thesis changed?

instead ask  What will the price do tomorrow?

This is why, unknowingly a lot of those who set out to invest become traders. I’m perfectly okay with individuals who trade stocks but they have tested strategies and know what risk management means. Trouble brews when those that aim to invest become traders through making decisions without a plan.

We can’t even compare those with  I do random buys & sells based on emotions vs ones who have real systems to execute trades based on market conditions. What the big players of long-term investing like to do instead of chasing what will happen tomorrow? Spending more on learning.

They learn about the economics behind bitcoin, the network, adoption and security, what gives it monetary properties instead of the hype on youtube or facebook.

It's not about being intelligent to win the market, because actually we are too stupid for it. Nobody can predict market timing reliably. Investing is waiting the clock to tick but gambling is jumping with it to and fro to get a winning lottery ticket. Many would be even more successful had they just stuck with their long term plan than attempt to outwit market movements at every turn.

Last is the risk management, especially dealing with your own fears, insecurities & confidence to not be able to control ourselves makes us impulsive & do things we regret in the market.

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

[Jammy01]

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

 
having a plan before buying is more important than people think
It is very easy for someone to say that "I will hold through the dip" when bitcoin is moving up but things can feel very different when you are watching your money drop

Knowing how much you're willing to lose or when you are going to sell before buying can stop you from making a decision out of panic.

[Franklyn-wood]

Because, the hard part of bitcoin investment is not the tech behind it, but the psychology. Fear, Greed, Impatience and overconfidence kill good strategies faster than market volitality ever could, am I right? So what’s biggest threat to your long term investment: Market volitality or the inability to control your Emotions & follow your plan.

 
having a plan before buying is more important than people think
It is very easy for someone to say that "I will hold through the dip" when bitcoin is moving up but things can feel very different when you are watching your money drop

Knowing how much you're willing to lose or when you are going to sell before buying can stop you from making a decision out of panic.

 It is very important to know that the fear of Bitcoin falling below it current stability is what is coming in to the mond of people who invests in Bitcoin, because they start to think that could if the fiat could be shaking due to economic challenge, how much Moore Bitcoin that have no middle man to control it in and out flow. Another thing is the level at which one understand every about Bitcoin will make the mind confident enough.

[ColdLava40]

Many say investing and gambling are totally different. I largely agree with that notion, although I sometimes think the boundary line blurs quite easily once our original plans go out of window. Take two individuals with a solid plan to invest their BTC in amounts that can be left undisturbed for years.

There is a far line between investing and gambling and it's not even close.

In other for us not to complicate them, it's better to know that gambling requires no planning, there might be some strategies but they don't hold for long.

Investments contains more than just your financial inputs. You must handle yourself more than you handle your investment because a well developed mindset in the market will determine how far your journey would be.

Some investors drops out on the way not because they lack the capital, but because they couldn't build a strong mindset of the market.

[Doan9269]

When you are investing on a long time approach, you stand to be on a better side because you are not taking much risk on yourself than just to hold your coins until it is more profitable before you could sell, but when you are trading and appear to be a kind of trader investor, then always misses out upon every trade you engaged and end up on loss, it could be that you are just taking a risk, which some may termed as gambling, I know that this is not because it is not possible to lose when trading. Still, it must not be more often than when we are profitable, except when we go on a long-term investment to hold rather than trading.