Trading v. Gambling Vol 2: The Rehab By DailyCoin
- Day trading has made lots of acclaimed market millionaires and has also led to the loss of funds by inexperienced and overzealous traders.
- Crypto Rehab: Castle Craig Hospital set up a rehab to treat patients with trading addiction.
- Though people do not feel it’s that bad yet, this 12 step program could be the key to turning around this ugly trend that has been slowly creeping in.
- Experts suggest that, due to the ever-growing wave of cryptocurrencies, new users may still fall into the cycle of trading addiction.
To make extra money, people often venture into new areas as they try to improve their financial position. Some people are experts in a particular area and have developed skills over the years. Other times they just rely on their luck. Gambling is a major part of almost every sector of the financial system, from casinos to sports to reality television and even the financial markets.
Gambling is betting on an unreliable outcome. For an action to be considered gambling, three prerequisites must be present; a stake, risks involved, and a prize that may be obtained upon the event’s occurrence. Trading, on the other hand involves buying and selling financial instruments such as cryptocurrencies, stocks and bonds, derivatives and the like, and can also include the purchase and sale of financial instruments.
Trading cryptocurrencies or other financial assets is a common skill. However, it can become overwhelming and addictive. It can become an addiction to reading charts and waiting for Altcoins to reach the moon. Also, it is a way to avoid psychological issues.
It is extremely volatile in crypto markets, and billions can be wiped out in a matter of hours. This means that there is no clear line between investing in digital assets or gambling.
The Crypto Gambling Problem & The Leverage Factor.
A new wave was created by the 2009 launch of Bitcoin and its widespread adoption. Since then, the success of blockchain technology has led to an abundance of DeFi coins and tokens. This gives users greater trading options and increases their excitement for the next major rise. This addiction has many side effects, including the desire to trade assets constantly and to farm high-risk yields day in and day out.
When crypto trading becomes an addictive activity, traders subconsciously start gambling. This could lead to further problems, including the loss of funds. Gambling has addictive properties that lead to people putting more money into the game, even though it is losing funds. Because of market fluctuations and the potential dangers associated with glorified leverage, trading is very dangerous.
The leverage offered by exchanges to traders in order give them an edge in the markets by increasing their purchasing power, also increases their risk. An exchange or broker may offer traders 10x leverage. This gives them extra money (debt), which increases their risk. The joy of having money at one’s disposal is a factor in this crypto gambling problem.
On The Flipside
- Crypto enthusiasts may just be over-enthusiastic about the market as they want to make higher profit.
- Crypto Rehabilitation Centres, which are very new, will be avoided by most users in the near future.
The cure for addiction is usually to get the patient rehabilitated. Alcohol, tobacco, and other addictions can be treated. You can be treated with the 12-step program. Crypto rehab may sound silly to many because it’s not a drug, and “who gets so addicted to the point of rehab?” With daily volumes rising on most CEX and DEXes, increasing numbers of people are getting trapped in the daily trading cycle. For those addicted to the blockchain, crypto rehab can be used as a treatment.
Should a trader reach a point where they become paranoid and don’t know when to call it a day, it may be time to deploy the 12-step program, leading to a “crypto AA.” Following the principles of the twelve-step program, the trader must first admit it is now impossible to control addiction through self will, thereby believing in a higher power to give them the required strength.
With the support of an experienced member, trader will need to reflect upon past failures and discover how to make them right. Finally, the trader will live according to these rules and help others suffering from cryptocurrency addiction.
UK Hospital Opens a Rehab Centre
A Scottish hospital is addressing the issue of bitcoin gambling addiction and currently treats patients in its rehab centre. Castle Craig Hospital tackled this issue by beginning to determine when speculation about bitcoin prices and other cryptocurrency becomes gambling. The rehabilitation program launched by the hospital will use the format of gambling addiction as a template, as it has been described as being “akin to gambling addiction.”
Castle Craig Hospital further released ten questions which serve as addictive indicators to crypto enthusiasts who answer up to five or more affirmatively. This will solve the problem. One thing is sure, crypto rehab will increase in number as a result of the DeFi boom.
Why you need to care.
Most crypto users don’t know when speculation becomes addictive gambling. With more money flooding into the markets every day, crypto gambling is causing a huge loss in funds. This is a major problem because most people aren’t aware they have it.
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