The wave of skepticism and biased conclusions against cryptocurrencies seems to have passed. A growing number of people are slowly cozying up to the idea of investing in blockchain currencies, especially in prominent ones like Bitcoin.
But before delving deep into the subject, it’s paramount that we have a clear understanding of cryptocurrencies and how they work.
While cryptocurrencies are years away from being adopted on a mass scale, a growing user base is a promising news for the technology. However, apart from being a suitable substitute for fiat currencies, crypto blockchain tokens have emerged as a viable asset.
This begs the question, is investing in cryptocurrencies akin to gambling? Let’s analyze the detail before arriving at a conclusion.
Cryptocurrencies: Investing vs. Gambling
Crypto tokens have a singular feature that makes them appealing and dangerous at the same time – volatility. As the prices fluctuate, investors stand a chance to multiply the value overnight. However, the inverse is also true and that is a major reason for concern.
Although BTC prices have stabilized over the last couple of years, there are no guarantees that the trend will continue in the future and that makes investing in Bitcoins a risky proposition.
But how does high risk compare to gambling? For starters, comparing crypto investments with dice or roulette is wrong, because the latter depends on random circumstances. While selecting a well-researched ICO-project isn’t a random occurrence. Crypto investments can, however, be compared with poker where the quality of your hand is subjective.
Quite a few exterior factors play critical roles in determining whether the ICO will be a hit or a miss. Analyzing these factors is crucial for success. While the remaining five cards decide your fate in Texas Hold’em, crypto investments depend on financing, regulations, development, authoritative actions, and more.
However, certain results are based on your decisions. For instance, punters can calculate probability and decide whether or not to call, fold, or bluff. Similarly, in ICOs, potential investors can read white papers, technical road maps, etc. as part of their research.
Cryptocurrencies and Gambling
With the rising demand for crypto casinos, a leading number of Dogecoin gambling sites have popped up. These include sportsbooks, casinos, and dedicated poker rooms. However, most of the major operators accept tokens as a secondary payment method. While wire transfers, credit, and debit card transactions still remain the most frequently used transaction method.
Whether you prefer investing in crypto tokens or gambling, they both feature a set of perks and flaws. Researching is a key part of the process along with a range of additional safety measures.
Quite a few reputed crypto casinos have popped up over the years, and players can select from a long list of payment options like Bitcoin, Litecoin, Dash, XRP, and more.
At the end of the day, you don’t necessarily have to choose one or the other. A smart punter is nimble enough to gamble and invest simultaneously. The key here is to figure out which token works best for which purpose. If you’re considering investing in cryptocurrency, you can save a considerable amount of time by scouting for the best deals.
Initial Coin Offerings or ICOs are great opportunities to pick up crypto tokens cheaply. This is great for long-term investments. For the purpose of gambling, however, it’s best to stick with popular blockchain tokens as these tend to be more volatile and the prices might drop without prior warning.
Moreover, popular cryptocurrencies are less likely to fade away compared to new and unnamed tokens.