If you are buying crypto to get rich in the very short term, it would be more of a gamble than an investment, especially in the volatile crypto sector.
But if you are buying cryptocurrency, considering a long-term strategy, it may be considered an investment.
Cryptocurrencies will be rewarding if held for at least a year or more. Cryptocurrencies are very volatile, and investors make money out of them if the coins have good fundamental backing.
However, online crypto gambling using cryptocurrencies is becoming popular.
The Crypto Addiction
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Cryptocurrency addiction is similar to gambling addiction. It involves compulsive trading and is most common in men, especially among adults and teens. Cryptocurrency trading and gambling have become most prominent in recent years.
The global pandemic brought many new users to trade digital currencies. It is a modern-day epidemic, says Castle Craig Rehabilitation Clinic.
Cryptocurrencies are used to make and receive payments. Large companies prefer crypto payments. Further, making online payments through crypto makes the process faster and easier.
Day trading, dice games, internet gambling, roulette tables provide a gambling environment. People spend a lot of time thinking about cryptocurrencies and spend a lot on them. Once you know that you are lying to people about the time or amount spent on crypto trading or gambling, it is a sure sign that you are addicted to this habit of trading or gambling.
Problems Arising from Crypto Gambling
Addicts tend to accrue more debts in crypto. Some are unable to make utility bill payments. They are willing to default on payments or even commit illegal activities such as theft, embezzlement, or fraud. The ultimate end is total bankruptcy. Crypto gambling is not the primary way to make money. Statistics report that most people lose money than gain money on crypto gambling.
It is best to seek qualified and professional help to get out of cryptocurrency addiction. It is not easy to beat the market or get out of compulsive trading. There are many football players and clubs that tout crypto investments and trading. Famous personalities like Elon Musk promote cryptocurrencies like Bitcoin and Dogecoin on social media.
Advertisers amplify the profits and create a false impression. But losses are ignored and not given any importance.
Social media is promoting compulsive trading and gambling.
Online betting centers use digital currencies to make deposits and withdrawals. Bitcoin and Ethereum are some cryptocurrencies that play a major role in gambling. At a casino, the user wagers with his crypto holdings.
Do research on new tokens before investing or trading on them. The most-hyped digital currency, Squid Coin, was behind the crypto scam that happened in November 2021. According to the Gizmodo website, the Squid Coin robbed almost $3.30 million off investors.
Its value surged thousands of percent. Squid prices were trading at $2,850, and the very next day plummeted to $0. It was called a rug pull where investors were caught unawares and lost almost all their investments.
Growing Online Gambling Industry
Earlier, payments for online gambling were through fiat currencies such as the US Dollar, the Euro, or the British Pound. But with cryptocurrencies gaining popularity, casinos accept the deposit and withdrawal of the digital currencies for playing.
Online gamblers enjoy privacy while playing with cryptocurrencies. The wallet address is sufficient to send funds to your account. Users do not have to follow banking regulations as cryptocurrencies work using blockchain technology. Payment processing is a speedy process, ideal for the online gaming industry.
However, some countries do not accept crypto payments for making payment for online gambling. Countries like China, Egypt, and Iraq do not accept digital currency payments.
There are many fraudulent websites ready to swipe money from user accounts. Most online casinos are not regulated and are not genuine.
We can expect the crypto gambling segment to show swift growth. But it is up to users to keep their investments safe.
Countries Vary on Cryptocurrency Gambling Regulations
The United Kingdom imposes strict regulations on cryptocurrency gambling. South Korea prohibits cryptocurrencies, but crypto exchanges accept the tokens.
In the United States, there is no law regarding cryptocurrencies. It is neither prohibited nor accepted by the gambling centers. Gambling is not allowed in the United States, but there are increasing gambling websites.
El Salvador was the first country to legalize cryptocurrencies. In August 2021, El Salvador made Bitcoin a legal tender.
More and more countries are accepting crypto payments. The need for regulating the crypto market is increasing, but there are no specific laws to regulate Bitcoin gambling.
If your life savings are in cryptocurrencies, it is a gamble. If you make investments in a calculated and safe way, it is an investment.
Bitcoin prices hit a record high of $68,700 in November 2021. BTC prices were at $46,000 at the beginning of the year, but prices fell to $33,180 by mid-January. The Russia-Ukraine war adds pressure to the crypto prices.