- 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 Bitcoin 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, which provides them with more money (debt) to throw into the market, increasing their risk. The joy of having money at one’s disposal is a factor in this crypto gambling problem.
On The Flipside
- Crypto enthusiasts may just be over-enthusiastic about the market as they want to make higher profit.
- Crypto Rehabilitation Centres are still fairly new, so most users will not associate with them in the short term.
The cure for addiction is usually to get the patient rehabilitated. Addictions such as alcohol, cigarettes, etc. are treated using the 12 step program in rehab. Crypto rehab may sound silly to many because it’s not a drug, and “who gets so addicted to the point of rehab?” With daily volumes rising on most CEX and DEXes, increasing numbers of people are getting trapped in the daily trading cycle. Crypto rehab is a form of treatment for those who are overly hooked on the blockchain.
Should a trader reach a point where they become paranoid and don’t know when to call it a day, it may be time to deploy the 12-step program, leading to a “crypto AA.” Following the principles of the twelve-step program, the trader must first admit it is now impossible to control addiction through self will, thereby believing in a higher power to give them the required strength.
The trader must then reflect on past mistakes, with the help of an experienced member, and learn how to overcome them. Finally, the trader lives by these new rules and teaches others with crypto addiction.
UK Hospital Opens a Rehab Centre
A Scottish hospital is addressing the issue of bitcoin gambling addiction and currently treats patients in its rehab centre. The Castle Craig Hospital has tackled the issue head-on by first determining when speculation over the prices of bitcoin and other cryptocurrencies becomes gambling. The rehabilitation program launched by the hospital will use the format of gambling addiction as a template, as it has been described as being “akin to gambling addiction.”
Castle Craig Hospital further released ten questions which serve as addictive indicators to crypto enthusiasts who answer up to five or more affirmatively. Crypto rehab will help solve this problem, and one thing is certain, with time, there will be more crypto rehabs around the world following the anticipated DeFi boom.
Why You Should Care?
Most crypto users don’t know when speculation becomes addictive gambling. Crypto gambling has led to a massive loss of funds, and with more money pouring into the market every day, people want to get back in. The fact that most people who have this problem are not even aware of it is another major concern.