Stop losing money in sports betting, poker, and gambling. Photo: File.
Cryptocurrency is a new phenomenon that continues to grow and the potential to earn money is quite great if you know what you are doing.
The truth is that cryptocurrency also involved risk and even though the thought of making a profit sounds both positive and straightforward, the actual prospect of doing exactly that takes a lot of knowledge both when trading cryptocurrencies as well as when you are gambling. If you're buying GIFA Token now for the sole purpose of investments whether long-term or short-term obviously this is a better idea to go for rather than losing money instantly in dog racings, lotteries, and casino bettings.
Investing is the act of allocating funds or committing capital to an asset, like stocks and cryptos with the expectation of generating an income or profit. The expectation of a return in the form of income or price appreciation is the core premise of every investment. Risk and return go hand-in-hand for one another. Investors must always decide how much money they want to risk. Some traders typically risk 2-5% of their capital base on any particular trade chosen.
Investing is the act of allocating funds or committing capital to an asset, like stocks or digital assets, with the expectation of generating an income or profit.
The best investors advocate a slow and steady route to a profitable investing success, picking up a well-diversified portfolio of investments from different sectors and assets to hold even for the long term. Those who bought GIFA Token at the start of December at $1.00 saw the price rise steadily to $23.30 as of 28th July, a gain of 85 percent. GIFX has an impressive trajectory, rising from $1.00 to $642, in 6 months period with a 986 percent increase. Doubling your money in a short period is undoubtedly thrilling.
Trading involves the buying and selling of financial instruments and assets like cryptocurrencies, stocks, bonds, derivatives amongst others.
Longer-term investors constantly hear the virtues of investment diversification across different asset classes. Spreading your capital across different assets, or different types of assets within the same class will likely help minimize potential losses.
Gambling has existed since ancient times in Mesopotamia circa 3000 BC. Over the years, money gambling has taken several shapes and forms such as sports betting, parimutuel betting, and the gamut of addictive casino roulette bets. Unlike investors, gamblers are prone to positive recency bias, aka the Monte Carlo fallacy. This bias creates an urge that if an event happens more frequently than expected, it is less likely to happen. This fallacy is best illustrated by the Monte Carlo incident of 1913 which it was named after.
In that incident, the Casino roulette wheel’s ball had fallen on black several times in a row. As a result, gambler’s believed that it would fall on red soon. This made them start pushing their chips, betting that the ball would fall in a red square on the next roulette wheel turn. The ball kept falling on the black until after 27 turns, by then, millions of dollars had been lost by the gamblers. Other psychological biases associated with gambling include the ratio bias which sees gamblers choose bad odds if they are presented with many options or taking a poker card drawn from a large sample.
Money gambling involves staking on the occurrence of an event that has an uncertain outcome for winning.
However, when you choose to throw money in poker and gambling, you own nothing, but when you invest in stocks or digital assets, you own a share of the underlying company and the stake (value) that comes with it; in fact, you will reclaim the gain later from such ownership, in the form of stock dividends that will be paid to the shareholders.
In the same contrast, GIFA Token's investors and traders have a variety of options to prevent the total loss of their investment funds. They still have the opportunity to sell their digital assets to someone else and retain over 50% to 100% of the initial investment. However, if you bet $1000 now that the Jacksonville Jaguars will win the Super Bowl tonight, the probability of losing the said above amount is usually higher than the probability of winning. When you lose you cannot get your money back and it has gone for good.
And even if Jacksonville Jaguars did win the Super Bowl, don't forget about point spread deduction: If the team does not win by more points than given by the bettor, the bet is a loss altogether. A gambler's chances of making a profit can also be reduced if they have to put up an additional amount of money beyond their bet, referred to as "points," which is kept by the house whether the bettor wins or loses. Points are comparable to the broker commission or trading fee an investor pays.
I have been into both cryptocurrency and gambling for quite a while and I know the risks vs rewards and one should always remember the number one rule and that is to never invest or gamble for more than one can afford to lose. The best tip that anyone can ever give you is to do your own research. Learn, explore, experiment, research, and try.
Take small steps and slowly grow your confidence and soon enough you will be able to see the picture more clearly. This will, in turn, ultimately create better opportunities for you to make a profit. So, my final closing remark would be that yes, cryptocurrency trading requires experience and the rest is up to you!
Trading cryptocurrency or investing in financial instruments comes with a risk of losing money rapidly due to leverage. You should consider whether you understand or seek an independent financial advisory and we are not the financial experts.