Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments, including Bitcoin, are highly volatile and risky. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. The views, thoughts, and opinions expressed in this article belong solely to the author, and not necessarily to CrytoCompare.
What’s in common between playing online casinos and cryptocurrency trading? At first glance, the two niches are in no way interconnected. Of course, players often use crypto when interacting with online gaming platforms, but it seems the only evident bridge between the industries. However, there’s a hidden secret: crypto trading is also compared to gambling in terms of the addictive behaviours they both can cause.
Trading addiction is not as discussed as compulsive gambling. However, this challenge must also be addressed, considering the growing industry's popularity. Compulsive behaviours are becoming more common among traders, requiring immediate treatment.
The Compulsive Investor: Recognizing the Signs
Compulsive cryptocurrency trading is among the overlooked addiction types. Fortunately, this issue is increasingly being made public. Therefore, more and more people are aware of the possible disorder. Knowing its first symptoms can help identify the problem and provide timely treatment, thus improving the chances of a full recovery:
- Constant checks of crypto prices
- The inability to stop investing money
- Anxiety, irritability, and even depression
- Constant investment, even despite losses
- Selling assets and taking loans to continue trading
Many become obsessed with trading without even noticing it, which leads to severe problems. Preventing the condition is easier than treatment!
Cryptocurrency Trading vs. Gambling
At first glance, trading is nothing but beneficial. Many people globally make it their main source of income. Investing money wisely can bring significant profits. However, huge possible risks are another side of the coin. Cryptocurrencies are highly volatile, so even the most experienced traders can be mistaken in their forecasts. In such an instance, investors can experience significant financial losses.
Many individuals compare trading to gambling, and the industries really have a resemblance: they are both risky. Of course, the outcome in online casinos only depends on the player’s luck, while a trader can predict the possible consequences. However, the crypto market often experiences unexpected changes, and investors should be ready for such updates. There’s always a risk of losing funds: even though no one would be happy with such an outcome, crypto investors should be prepared for everything.
Risks and Consequences of Compulsive Cryptocurrency Trading
Understanding the risks is essential before engaging in crypto trading. The market is highly volatile, which is the primary disadvantage for investors. While there’s a probability of earning a fortune in a few hours, the chance of losing everything also exists. Some calmly pass through these fluctuations and financial losses. At the same time, others begin to invest money in assets. As a rule, the trader does not have time to analyse the situation in the crypto market, as they strive to make up for their losses as quickly as possible and profit. This often backfires, and the investor risks losing even more money.
Such actions often lead to compulsive behaviours when a person becomes obsessed with trading. Financial losses are only a part of the problem. The addict's relationships with loved ones often deteriorate, and they lose interest in life. A person can’t think of anything other than investing money in cryptocurrency again and hoping for huge profits. Moreover, problem traders often take loans from banks and lose everything. After that, they can experience troubles with legislation due to the inability to cover their debts.
GamStop Responsible Gambling and Trading Practices
Casino and betting fans are well aware of responsible gambling principles, and many users stick to them. Crypto traders should also comply with these rules to avoid significant losses. They include setting budget limits and not investing more than a person can afford. Self-control is the key in both gambling and investments. However, not all people can cope with the temptation.
In this case, self-exclusion programs come in handy. These tools allow users to restrict access to the chosen websites. GamStop is a widespread option. However, it only covers gambling and betting platforms operating under the UKGC licensing. Players of non GamStop casinos in the UK can take advantage of similar alternative programs. Such an approach should become more common among compulsive crypto traders. The inability to reach the desired websites and invest money can reduce the temptation and help avoid addiction.
The Role of Regulators and Responsible Platforms
First, investors need to find reliable trading platforms where they will be confident their data and money are safe. For instance, Binance and TradeStation are time-tested destinations for crypto investors. It’s critical to avoid doubtful websites, as cryptocurrencies are often a topic for speculation. Tracking your funds is complicated when dealing with decentralized financial systems, so be aware of possible consequences.
Cryptocurrencies lack regulations in 2023, which has both positive and negative sides. Traders benefit from this option, as they don’t have to pay taxes or report their income. On the other hand, it allows proceeding with illegal actions without any penalties.
Crypto trading is among the common activities to generate additional profits, so it’s not surprising many are involved in the industry. While some consider it a quick source of income, others know it requires thorough analysis and implies high risks. Trading addiction rates are growing globally, as many people are unable to control themselves and continue investing cash despite losses. This disorder can be compared with compulsive gambling and requires appropriate treatment. Self-exclusion programs and support groups are a solution – but it has to be popularized among traders effectively.
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