Newton’s third law of motion states that for every action, there is an equal and opposite reaction. Similarly, technology brought us a lot of advantages. However, whatever advantage it has brought, there are always disadvantages that come along with it.
While we are on the topic, one thing that technology offered is what we call the cryptocurrency. This modern currency allows individuals to send and receive money without third-party involvement. As such, the transfer rates for such is cheaper as compared to traditional currency.
However, there are rumors that cryptocurrency trading is just another form of gambling. Is there some truth to their claims? Let us find out below.
Gambling and investing defined
Gambling
- Placing your money in a game you think will reap huge monetary benefit on your end
- Makes use of instinct to make the right decisions
Investing
- Placing your money in an asset that grows for profit purposes
- Makes use of proper analysis of the trends in making the best decision
Aside from defining the terms individually, let us analyze how the two terms compare and contrast with each other.
Similarities
- Involves risk and reward as they are both based on chances
- Experts advise to use only the excess money you have in making a bet or investment
- One should know when is the most opportune time to cash out your money
- Involves high levels of uncertainty no matter how much you studied the trends
- They can both make you wealthy if the odds are in your favor
Differences
- Gambling involves a house, while investing involves the market
- Gambling is purely a game of chance, while investing relies on proper reading of numbers for you to arrive at the appropriate move
- Gambling is a liability, while investing is more of an asset.
To answer the question above, crypto currency trading can be considered as pure gambling only if you are not careful enough to analyze the metrics and the trends. In the end, it is you that dictates the outcome.