5 Lessons the Crypto Crash Has Taught Online Gamblers
The recent crypto crash has devastated the portfolios of many investors. People saw massive gains wiped out almost overnight and some people lost massive amounts of money. While we can’t undo the damage of the crash, there are some things that you can learn from the crash that apply to the world of online gambling.
Today, we look at the top lessons that the crypto crash has taught people and how they apply to gambling at real money online casinos.
Understand What You’re Getting Into
There are a lot of people that got into crypto in the last 6 to 12 months that really had no clue about what they were doing. In some cases, they got into crypto due to tweets from Elon Musk while others jumped on board a meme train.
Many people that invested didn’t understand what they were getting into or just how volatile crypto is. When the markets crashed, they were unprepared. That’s similar to going into gambling without a plan or understanding the games you’re playing. If you play blackjack or other casino games without a strategy or not understanding all the rules, you will lose money to the casino. You’ll usually lose a lot before wising up and learning proper strategy.
Don’t Believe the Hype of Others
A lot of money is made and lost in crypto on the hype of other people. Look how high Dogecoin has jumped due to Musk’s tweets. However, there are a lot of people investing in various altcoins that doing so based on hype, or even worse, the hopes that people will go crazy for the coin like they have with Doge.
This is similar to playing at Bitcoin online casinos based on hype or casino reviews from less than reliable sites. You’ll hear a lot of place hype certain casinos but often they are trying to make money off you signing up with the website. That’s similar to those shilling altcoins. They want you to buy and hopefully bump the price of the coin.
Never put all of your investments into one basket. Even if it is Bitcoin. There are some that went all-in on one crypto and then watched in horror as it crashed. If you bought Bitcoin at $65k, then your portfolio is hurting. The same is true if you bought Ethereum at its all-time high. That’s not to say most cryptos haven’t lost money lately. But some are a bit less dramatic in their fluctuations.
For online gamblers, you don’t want to stick with a single game. When you learn multiple casino games, you give yourself multiple revenue streams. Don’t just stick to blackjack. Try video poker, craps, roulette, or other games to diversify some of your risks. Again, gamble with a plan to avoid putting your bankroll at unnecessary risk.
Variance is a Way of Life
There are many people that came into crypto thinking that they would ride a steady train to riches. They completely ignored the history of crypto. Often, Bitcoin will hit an all-time high and then soon enjoy dramatic crashes. There is a reason they say HODL and not HOLD. HODL is short of Hold On for Dear Life. That’s because the variance in crypto is greater than anything you’ve ever experienced.
Gamblers can appreciate variance because all gambling has variance. There are times where it seems you cannot lose and then there are times where you cannot buy a winning session. The key is managing variance. In crypto, that strategy includes profit-taking at the right times and buying when crypto does a massive dip. For gambling, managing risk includes bankroll management, employing new strategies, and playing games with a lower house edge.
Don’t Gamble or Invest With Money You Can’t Afford to Lose
A lesson that crypto investors have been ignoring in droves is that they should not invest money they cannot afford to lose. I’ve seen multiple stories of people that invested in crypto and then panic sold because they needed that money for other things. They invested stimulus money that they could have used for bills. One unfortunate guy took his college tuition and bought Bitcoin at $63k.
While investing in crypto is not online gambling, the concept is similar. If you need the money for any other purpose, don’t invest it. Online gamblers know that you only gamble with money you can afford to lose. The same is true with crypto. If you cannot afford to lose every dime of your investment, don’t invest.