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.

As people push to improve their finances, they venture into certain areas to make that extra income. Sometimes, it is an area of speciality, utilizing skills which they have perfected over time, other times, they delve into such areas relying solely on luck. Gambling has burrowed deeply into virtually every financial sector, from sports, to casinos, to reality shows, and especially the financial market.

Gambling involves placing stakes on the occurrence of an event that has an uncertain outcome, making winning unreliable. 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. On the other hand, trading involves the buying and selling of financial instruments like cryptocurrencies, stocks, bonds, and derivatives, amongst others.

Many consider trading cryptocurrencies and other financial assets a skill; this may get overwhelming and addictive for several reasons. Reading the charts, waiting for the next Altcoin to go to the moon, and constantly opening and closing trades has become a habit that leads to psychological problems.

The crypto market is highly volatile, with billions getting wiped off the market in just hours, meaning that the thin line between gambling and trading in the forex market becomes ever thinner with digital assets.

The Crypto Gambling Problem and The Leverage Factor.

The launch of Bitcoin in 2009 and its massive adoption have created a new wave. The success of the blockchain has since led to a plethora of DeFi tokens and coins, giving users more trade options and increasing zeal in expecting the next big rise. Unfortunately, this desire to constantly trade assets and perform high-risk yield farming day in, day out, has led to an addiction with many effects.

Once crypto trading becomes addictive, the trader subconsciously starts gambling and leaves the expert approach. This can result in loss of funds, leading to more problems. Gambling is addictive and makes people consistently put more money in, even though they keep losing said funds. Trading is a very risky business because of the fluctuations in the market and the dangers of the glorified leverage.

Leverage offered by exchanges in order to give traders an additional edge in the market by increasing their buying power also multiplies their risk. Some brokers and exchanges offer 10x leverage to traders,…