This article might be a heavy one, and for some, a tough one to swallow. If it strikes a chord with you, you might just be what this article is about — a crypto gambler.
There is always a fine line between being an investor or a gambler. These 2 categories, especially the former, has always been used loosely, blurring the lines in differentiating.
To invest means to:
“expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.”
On the other hand, gambling means:
“the wagering something of value on an event with an uncertain outcome with the intent of winning something of value.“
To me, investing is committing money into something with a realistic expectation of return. Gambling is committing money into something where they outcome is uncertain.
Here are the tell-tale signs that you are a crypto gambler:
1. Interest in short term gains
What are your long term investment goals?
If you don’t have an immediate answer to the question above, then you might be a gambler. There is a trend amongst short term investors, they bet on timing the market better than anyone else. Their urge to beat the market is off the charts.
“Even God couldn’t beat Dollar Cost Averaging”
We all know it is impossible to time the market consistently. You may leverage with technical analysis tools to increase your chances in getting them right but even professional market timers (fund managers) fail to beat the market consistently over time.
I have my fair share of trying to time the market. I almost always never get it right, but when I do, its never a substantial amount to cover the losses I already incurred.
I spiralled into an unhealthy cycle of chasing the dips, where my mind tells me to buy in more every time the dip dips even deeper. The chase always leads to no end with a gambler’s mindset.
2. You’re on a constant search of that 10x gem
Let’s face it, everyone wants to hold that gem which can give you a 10x return.
Just like how gamblers would cover their losses with a bigger bet, the search of that 10x gem might lead you down that very same rabbit hole.
It makes it worst when gamblers see common folks reaching millionaire status on their socials, like how ow An $8k Investment In Meme Coin Shiba Inu Helped This Man Retire As A Millionaire At The Age Of 35 and you pray that could one day be you. Gamblers are impatient and have little sense in making practical decisions.
[Author’s Note: Don’t get me wrong, there are good resources out there on social media which may have/had helped you.]
Investors are more interested in winning the game than just hitting a home run in one swing. Gamblers are only interested in hitting the home runs rather than devsing a strategy for achieving long term success.
Your selections are risky, and if you find yourself in a never-ending loop of chasing money and being disappointed, I am sorry to burst your bubble might you might just be a gambler.
Of course, high risk-high rewards right? However, there should be a limit and certain boundaries in your investment philosophy you should abide by, or you might just lose it all.
3. You experience the gambler’s fear of missing out
If you are likely to invest in what everyone is investing in because of the the fear of missing out, you are a gambler.
Basically, if nothing else influences your investment decision but what everyone else is doing, you’re gambling.
For gamblers, FOMO is a more powerful force than making decisions based on sound investment strategies.
Another indicator is when the projects you FOMO into is something of little to no value. If you’re ready to invest into a project whose basic fundamentals aren’t worth anything, you are a gambler. But of course, you are okay with that, as long as you are able to sell it to something else and make a profit out of it.
No utility, no real-world use or widespread adoption. As long as you can sell it higher than what you bought it for, you don’t mind taking that chance.
Of course some may argue setting aside a FOMO fund, to snipe potential moon picks which can take them to nirvana. To each its own, but not everyone would have that luxury and investing should not start that way.
Investing might be for everyone, but the truth of the matter is that everyone might not be ready for investing. You either take steps to slowly understand what you are getting into, or like me, learn the very hard way.
Anyone is a genius when their portfolio is up, but the actions you take when your portfolio is down would speak multitudes of your investment strategies. A veteran investor is not defined by how long he has spent in the market, but rather how adaptive he is with his decisions and strategies he takes to the market.
But of course, here is no right way in investing, find your strengths and continue to build on areas you lack. You lose some and maybe you win a little, its all part of the process.
Take everything you read with a pinch of salt; I’m no millionaire/genius, just a victim of most of the suggestions I put in this article.
Till then, stay cautious and invest safe. WGMI!
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image: Chain Debrief
Also Read: Here Are The Top 10 Common Mistakes I Wish I Knew Before Starting On My Crypto Journey
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