Is Investing In Crypto Considered Gambling?
It isn’t easy to have noticed the buzz surrounding Bitcoin. The cryptocurrency has garnered plenty of attention in recent years with its skyrocketing value, leaving some wondering if the meteoric rise is a bubble that will burst soon after or whether it’s an indication of where cryptocurrencies like Tether and Cardano are heading.
Here at AllGambling, we are experts at crypto gambling. A question we receive all the time is whether or not we consider investing in cryptocurrency gambling. In this article, we will address this question, hopefully allowing you to learn something.
So is investing in crypto gambling?
At AllGambling, we believe that it is not. Investing for us is a calculated risk that carries the possibility of generating returns long-term. In crypto gambling, sure, you have to invest something substantial, but there’s no guarantee whatsoever that you will get your initial investment back.
The Cryptocurrency Bubble
For many fiat currencies, such as the US dollar and British pound, there is an established market for trading them worldwide. With cryptocurrencies, however, this isn’t the case. In other words, cryptocurrencies are subject to violent volatility due to a lack of market liquidity, as continued growth presents risks.
In other words, there isn’t a centralized system that keeps track of transactions and manages risk accordingly. Instead, cryptocurrencies operate without any oversight or regulation from a centralized body. That’s why the value of things like Bitcoin can fluctuate so much due to the lack of regulation.
Which Cryptocurrencies Are Considered The Safest To Invest In?
In our opinion, the safest would be Tether and Cardano. These two cryptocurrencies have their own goal beyond generating revenue. In other words, they are not just a financial product for investors but also a means of value exchange in themselves.
Which currencies should you avoid investing in?
One thing we at AllGambling recommend to avoid is investing in currencies that anonymous developers have created. In short, they could be a scam or simply a way to get rich quickly. In other words, treat them like you would with any online casino bonus and avoid any bonus that is too good to be true.