Cryptocurrency’s wave of skepticism and unfair criticism appears to have passed. People are becoming more aware of the advantages of investing in crypto and adopting this new form of payment for a variety of purposes. But a lot of people still confuse investing in crypto with gambling with crypto. What are the differences? How does investing in crypto compare to playing crypto dice?
Certainly, cryptocurrencies are still years away from achieving the widespread adoption that the community desires. However, the range of applications is expanding every day. Aside from pizza, ice cream, and gift cards, cryptocurrency is already being used to purchase far greater properties. Real estate, automobiles, and precious metals are examples of these assets. But the question remains: is investing in cryptocurrency the same thing as gambling with cryptocurrencies like crypto dice?
Crypto Investing vs. Crypto Gambling: The Differences Explained
As a financial instrument, cryptocurrencies have one primary trait that makes them both enticing and risky. Volatility is the term for this trait. Volatility is a financial phrase that refers to how much the price of a certain asset fluctuates over time. Significant risk is usually associated with high volatility. As a result, investing in cryptocurrencies carries a significant level of risk.
Investing in Cryptocurrencies
Investing in cryptocurrency is the act of speculating on cryptocurrency price movements via accounts for trading CFDs or buying and selling the underlying coins through an exchange.
CFD trading is a type of derivative that allows you to invest in Bitcoin without actually owning the underlying currency. You can go long (‘buy’) if you think the value of a cryptocurrency will rise, or short (‘sell’) if you think it will fall.
Both are leveraged instruments, which means that you only need a small deposit (referred to as margin) to have full exposure to the underlying market. Leverage magnifies both earnings and losses because your profit or loss is still determined by the total size of your investment.
When you purchase cryptocurrency on an exchange, you are purchasing the coins. To start a position, open an exchange account, deposit the full value of the asset, and keep the cryptocurrency tokens in your personal wallet until you’re ready to sell.
Exchanges have their own steep learning curve because you’ll need to wrap your head around the technology and figure out how to interpret the data. Many exchanges also limit the amount of money you can deposit, and maintaining an account can be costly.
Gambling with Cryptocurrency
Crypto gambling is when players fund their online casino or betting accounts with cryptocurrencies such as Bitcoin. Many gamblers choose cryptocurrency because of the ease with which they can handle their bankrolls. One of the most popular crypto gambling is Crypto dice.
Cryptocurrencies have grown in popularity, at least in part, due to the anonymity and power they provide to those who use them. Customers at online casinos playing crypto dice are required to disclose personal information to comply with legislation against money laundering, which may make many cryptocurrency users uneasy.
Of course, the advantages are significant and present gamblers with several chances. This, however, is not all that digital money has to offer. Crypto gaming is not expected to decline in the future, according to experts, because it is associated with so many positive aspects:
There are no commissions or transaction fees because digital currency is circulated over decentralized networks. As a result, no single organization gains from fees, commissions, or payments. The miner fee for the transaction is the only fee payable to users. Its value is less than $0.04, which is much less than that of any other financial institution.
Another advantage of crypto dice is the transaction’s speed. Cryptocurrency payments are completed far faster than regular banking institution transfers. Verifying and completing the payment usually takes no more than a few minutes.
Cryptocurrencies transactions using blockchain technology cannot be canceled or refused. All transactions are saved in the system’s history, and any attempt to change them is rejected. As a result, crypto transactions are completely secure, with no room for fraud. Users have more trust in casinos that accept this type of money.
Lastly, crypto games such as crypto dice offer anonymity. There is no need for you to provide any personal details to fund your account or withdraw your winnings using digital money. The only thing needed is the bitcoin wallet address and keys. The identity of the gambler is concealed. Even players from countries where gambling is prohibited can easily participate in online casinos and withdraw their winnings as a result.