Everyone dreams of becoming an expert at gambling and trading – but just how similar are these two different entities? The following guides provide an in-depth look at everything you need to know.
Before anything else, let’s first define what gambling and trading are.
What is Gambling?
Gambling is when you wager something (usually money) with the intent of winning something more valuable in return. In gambling, there’s no guarantee of winning, which is why it’s always a ‘gamble’.
Today, most people gamble online. They do this through:
- Online casinos
Online casinos are the most popular platform for gambling. The general reason for this is that they’re more fun, as not many forms of gambling involve games. For instance, you can play online roulette, slots, blackjack, poker, and baccarat as much as you want on the internet these days.
Some casinos even host live games, which are played with real human dealers over the internet, not AI or computers. Live casinos grant a greater sense of realism than their computer-based counterparts, simulating the experience and gameplay players would enjoy in a land-based casino.
Moreover, many of these online casinos have opened their doors to cryptocurrency, which many traders use, enticing gambling fans and traders alike to combine their hobbies and create the ultimate pastime.
For instance, many live internet casinos let players use Bitcoin to play games. Take Bitcoin live baccarat as an example of an excellent classic; players enjoy this long-loved game as usual with eight decks of 52 cards while trying to beat the banker over an internet feed (the live dealer) with a hand value closest to 9.
Just like traditional baccarat, they can bet on which hand will win. They can wager using Bitcoin; if they win, their payout will also be in this cryptocurrency. This ticks the crypto trader fans’ boxes; however, the live element of this game tickles the fancies of hardcore casino fanatics since it offers them a more human, realistic experience.
What is Trading?
Trading is when you buy financial instruments with the end goal of selling them for a profit.
Usually, people will buy and sell stocks, bonds, currencies, and (in more recent times) cryptocurrencies.
Some people trade on a full-time basis. For them, it’s a career.
Other people trade on a part-time basis, using it as a tool for making money on the side. In essence, it’s simply a hobby for them.
The Key Similarities Between Gambling and Trading?
Still here? Great.
Now, let’s look at the key similarities between gambling and trading, as there are quite a few to look at.
1. The Element of Risk
Both gambling and trading always involve an element of risk. This is why trading itself is often referred to as ‘professional gambling’.
When people on Wall Street buy stocks in a certain company with the aim of selling them when the market value increases, there’s no actual guarantee that this will happen. They can only go off of market forecasts and analytics – and these aren’t always right. Hence, there’s the element of risk.
The same applies to gambling! Whenever you place a bet on a football team to win, even if they’re on a 100-game winning streak in their league, there’s always the chance that today is the day they’ll lose. Similarly, when you bet on red on the roulette table, there’s roughly a 50 percent chance that you’ll win – which is very risky.
You won’t be surprised to learn that the element of risk in both gambling and trading is what drives and motivates millions of people! To them, it’s incredibly exciting and keeps them involved. This is especially true when things are going their way.
2. Patience is Required to be Successful
Make no doubt about it, and patience is required to be successful at both gambling and trading.
In gambling, you can’t simply fly into a casino and throw money at each table in sight, as you’ll end up losing money. Instead, you must specifically choose casino games with a low house edge and then implement strategies while playing them.
Trading is the same. You can’t invest in a specific cryptocurrency, such as Bitcoin or dogecoin, and then expect to sell it for a profit the next day. Sometimes, you must play the ‘long game’ in the trading world, which is when you wait potentially months (or even years) before selling the assets you’ve invested in. Patience is key.
3. Similar Motivation
When people gamble or trade, they usually have similar motivation: to make a profit.
Sometimes, the motivation is more light-hearted, such as simply having fun. However, more often than not, money is the motivating factor behind gambling and trading.
4. Strategic Thinking
Finally, these two activities both require strategic thinking.
This is especially true when it comes to trading. You must look at price indexes, exchange rates, and endless other variables before making decisions.
In gambling, strategic thinking is still involved, but on a smaller scale. Some gambling games, such as slot machines, don’t require any strategic thinking at all, as they’re entirely based on luck. Interestingly, this is another reason why many casino games are popular.
You’ve reached the end of the guide.
Now, you know all about the key similarities between gambling and trading.
Whichever you decide to do, make sure you:
- Acknowledge the risk involved
- Remain patient
- Keep your motivation levels high
- Always have a strategic plan
Finally, always handle your money responsibly, particularly during times of economic inflation!