Avoid Crypto Gambling Start Trading – Biggest Rooky Crypto Trader Mistakes

The latest sensation in investing landscape is cryptocurrency but is it safe. Some traders gained millions in crypto trades, but the risk of losing everything is also high. Crypto enthusiasts include celebrities like Elon Musk and even opponents like Warren Buffet and Charlie Munger.

Cryptocurrency is extremely risky, so it is considered a gamble rather than an investment. If you are interested in crypto trading then there is a need to gain some basic knowledge. On ZenGo X, you will learn a lot about the cryptocurrency mechanism and how it works. You can even download a wallet for Ethereum, Bitcoin, Dogecoin, etc. with ease.

Cryptocurrency can be a gamble of an investment. The risk in cryptocurrency trading depends on your strategy. Here are some common errors associated with crypto trading.

Investment is long-term, gambling is short-term

If the main purpose of crypto buying is to get rich instantly falls under the gambling category. If you believe that cryptocurrency investment will be profitable in future then it is regarded as an investment.

Long term approach is better for any kind of investment even cryptocurrency. Never invest in assets you are unwilling to hold for several years. In the short-term approach, cryptocurrency is extremely volatile but if you have confidence in its performance then it is sensible to go long-term.

There is no assurance that the cryptocurrency will succeed in the long term. You can lose significant with a long-term approach. However, if you time the market correctly then you can make a quick income in the short term.

Investing means taking calculated risks

There is some risk in investing even if you invest in safe places. To become a successful trader take educated and calculated risks including in cryptocurrency. People who invest their life savings in cryptocurrency trading are clearly gambling. Nevertheless, there are some safe and calculated ways to invest in cryptocurrency.

Check your financial health. Invest an amount that you are not concerned about losing. Ensure that your portfolio is diversified properly. If you add crypto to the portfolio then ensure the remaining investments are stable and strong. Because if crypto falls, it must not take the remaining investments in the portfolio down.

Where do you invest also matters?

Cryptocurrency is volatile but some are too risky than others. The wrong choice can be regarded as a gamble. Cryptocurrency trading is different than stocks but researched in the same way as other investments. When you research stocks, you check the company’s underlying fundamentals to decide whether it has the potential to grow. This approach also applies to cryptocurrencies.

When you research different cryptocurrencies look for things like –

  • Does this specific cryptocurrency have real-world utility at the moment?
  • Has it the potential to enter the mainstream in the future?
  • Will this crypto retain its advantage if new crypto enters the landscape?
  • How much advantage does it have over its competitors?

If you choose a cryptocurrency based on trends or increased price then it is gambling. If you research and buy cryptocurrency because you feel it is strong then it is an investment. If you decide to invest in crypto then you will need a Bitcoin wallet to store, buy, sell, and trade BTC.