Cryptocurrency is a fun, exciting new form of digital currency that offers a decentralized solution to many of today’s currency problems.
In the last few years, cryptocurrency trading has become a risky yet rewarding way to earn money and learn more about the world of trade. But the fact of the matter is that most people who invest in cryptocurrency will ultimately lose their investment. In fact, one person lost over $10 million in cryptocurrency at one point.
This begs the question: Is cryptocurrency trading addictive? We believe so, and here are a few fundamental reasons why.
The Rush Of Cryptocurrency Trading
Imagine buying into your first cryptocurrency. You check the stocks a few hours later to see that your investment has paid off. Suddenly, that $100 you invested is now worth $500 or even $1,000!
This is actually a pretty common occurrence in the world of cryptocurrency trading. And in all honesty, cryptocurrency investments can be a great way to make some money if you’re smart about it.
However, cryptocurrency trading is a lot like investing in the stock market or even gambling at your favorite casino. Most investors enter the digital arena with an understanding that they may not leave with their money.
And make no mistake, there’s a very real possibility of losing your money. Just as quickly as your investment can rise, it can fall, often plummeting below its initial market value.
The rush an investor may feel from the rise and fall can lead to a destructive feedback loop.
Why It Could Be Problematic
Many reading this article may find themselves asking, “Well how is that any different than the normal stock market?” It’s a fair question. However, there are a few differentiations that make cryptocurrency investing addictive.
Most forms of currency are backed by some sort of tangible item directly tied to the wealth of a nation as a method of keeping inflation rates at bay. But cryptocurrency is completely intangible, so it’s easy to consider cryptocurrency and its costs less ‘real’.
As a result, a loss in your currency’s value may not have the same effect as if you’d lost $10,000 in the stock market. Since it’s less tangible, you may feel more inclined to continue investing, even if the market trends indicate that it’s a bad idea.
This is a common trick used by casino games, particularly those who let users pay via credit card. Since you’re paying with a credit card instead of physical money, many players don’t feel the weight of their loss until its far too late. In short, it’s designed to be addictive.
How To Tell If You’re Addicted To Cryptocurrency Trading
So how can you tell if you’re addicted to cryptocurrency trading? Here are a few telltale signs that you may have a problem.
- You keep investing even when you know it’s a bad idea
- You’ve lost a substantial amount of money
- You’re addicted to the rush of “winning”
- Cryptocurrency investing overwhelms your thoughts
- You’re showing an increased preference for risky behavior
Sound familiar? Many of these traits are common among those suffering from gambling addiction.
Final Thoughts On The Addictive Nature Of Cryptocurrency Trading
There’s nothing wrong with trying out the occasional cryptocurrency trade. But be smart about it. The digital nature of currencies like Bitcoin and Ethereum make it easy to forget that these bits and bytes can have a serious effect on your bank account.
If you or someone you love may be suffering from an addiction to cryptocurrency trading, get in touch today. Compass Recovery Center can help you better understand your addiction and find a treatment plan that fits your unique needs.