Is cryptocurrency investment a gamble?

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Well to a lot of audience there they view cryptocurrency investment more like a gamble more or less, so feel its like tossing a coin were either the head or tail shows up and really this could be due to the losses they have experienced here or from another person experience which has influence them into thinking so about cryptocurrency.

It's true though to an extent that one might be right in thinking that cryptocurrency investment is a gamble but it can only be a gamble depending on the individual, one who is approaching the market and looking to invest in it plays a huge part in determining if the market is a gamble to him or not, so invariably how one approaches the market is key.

Cryptocurrency being a gamble is all too well dependant on how you enter the market so am not surprised as to why it will be a gamble to many, well in my article today I will be sharing on some of the reasons why many feel cryptocurrency investment is a gamble.

Why some look at cryptocurrency investment as a gamble

High Volatility

This is one reason why many really do look at cryptocurrency as being a gamble, cryptocurrency is volatile and what this means especially for those in the lower timeframe there is often sudden and quick change in price and prices are hardly stable it's a volatile market which means that you can be able to make decent earnings in a limited short period of time and yet could lose even much more in same period of time and for this reason some feel cryptocurrency it's a pure gamble.

There are people who have invested in the cryptocurrency market and make gains in short period often to watch the market take those gains from them, some have made life changing money here while others are left bankrupt and in debt from cryptocurrency investment so this is just one of the reason why people generally feel that cryptocurrency investment is a gamble and mere speculative investment.

So cryptocurrency volatility is clearly one of the reasons why there is a perceived reasoning by some audience as to crypto being a gamble.

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Lack of Intrinsic Value

Also another reason why people feel that cryptocurrency is a gamble is due to the fact that they are lots of crypto out there which has no utility or any intrinsic value so to speak.

Yes we have good projects with great value, Bitcoin, Ethereum, Solana, Ton, Polkadot just to name a few which has intrinsic value and it's price is supported by the value it provides but then at the same time we have projects like the meme coins which has no real use case and yet at times we see their prices driving here even more than that of coins that have real value based purely on sentiments and hype nor do they generate cash flow so invariably this is the concern for many.

So seeing coins lacking any real intrinsic value up and going high is one of the reason too why many may feel that cryptocurrency investment is a gamble.

Speculation and FOMO

This is another factor that makes many feel cryptocurrency investment is a gamble, speculations and fomo is something very common in this market infact as long as cryptocurrency exists this is a constant thing that goes along with it.

FOMO which means fear of missing out often investors when they see prices going high they want to jump in to get something out from the market and sometimes price might have already played out already or reached premium value before they jump in this persons enter the market because they do not want to miss out on the move and this is what gamblers do.

When one out money into something just so they don't miss out or without any real facts or fundamental knowledge of the project just based on hype or even speculation then clearly it's not wrong to say it's gambling and that's why many feel cryptocurrency investment is a gamble because of the attitude of some who approach the market in a certain way without any background knowledge whatsoever.

Unpredictable Market

Another reason for the perceived gamble notion is the unpredictability of the cryptocurrency market, infact there hasn't been a market before as unpredictable as this one due to the fact is being affected by so many things sometimes in respective of what the chart is showing especially in an event of red folder news.

The news maybe about unfavorable regulatory changes which could suddenly drive a bullish market down and sometimes too social media influencers could play a role in manipulating the market by staring a trend which influence sentiments of investors to either buy or sell and most times they do this without paying attention to the intrinsic value of the crypto asset I mean a market so driven by all these makes some weak and just safely conclude that crypto is one big gamble.

So because cryptocurrency market is unpredictable and could be influenced by so many things that is majorly another reason for the gamble notion.

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Conclusion

Indeed these are some of the reasons why many feel cryptocurrency investment is a gamble, well for me though how you make your bed is how you lie on it, you can't enter the market without proper research and expect it to move in your favour, so if you fomo in or invest based on speculation then yes cryptocurrency is a gamble to you.