What is Gambling?
The Merriam-Webster dictionary defines gambling as …
Based on the above definition, it is. But not only investing in cryptocurrency and games, but all investing is gambling.
On the outside, the stock exchanges look shinier and regal, but in reality, internally they resemble the Las Vegas strip with all of its casinos.
A Zero-Sum Game?
Investing, whether it is in the stock market or in cryptocurrency is a game where someone else’s loss is someone else’s win. And, vice-versa. It is a zero-sum game.
Let’s face it, when you invest, you do it because you hope to get more than you put in. Is that not taking a gamble … gambling?
Each one in this game of investing is playing against the other guy across from the table. If the person across the table folds, you win. Zero sum game.
Millions of Players. Some Crazy, Some Not. Most Are Greedy. None Care About You.
There are millions of players in the game of investing. They comprise a vast mix of people who are irrational, emotional, greedy, mentally unstable, wired, wild, crazy, stupid, brilliant and foolish.
When you indulge in investing, you enter into a realm of pure chaos.
You Are Going To Be Wrong A Lot
One of the things I have learned is that I – and everyone else in crypto – are going to be wrong a lot. Why is that? Because people and companies change.
I have learned that in investing, the markets do not give you a predictable stream of income. There are no Prophets in this game. Just the Speculators, the Guessers, and the Lucky. The money you make is made in spurts and it is lost in spurts. Nothing steady.
Take Risks. That is the very nature of investing (gambling). Any risk I take, I take with what I can afford to lose. If you cannot afford to lose money, DO NOT invest in anything. (Not investing, zero risks)
Focus On Protecting Any Gains I have made. (Reducing risk) This almost always involves taking profit off of the type. Buying low selling high. Thinking first about protecting my investments more than platform-loyalty or loyalty to people. Remember, that vast mix of players in this arena. They do not have your best interest at heart. They have theirs. You are the competition.
Portfolio Building. A portfolio is nothing but diversification of assets. A protection-action because your guesses when invest/gamble will not all be correct. I cannot over-emphasize portfolio building enough. There are many so-called “get-rich-quick-or-quicker” schemes in the crypto-space to include ICOs, Smart Contract DApp games (such as PoWH3D, Revolution 1, CryptoKitties, etc) yet, participation in them should never be a substitute for a solid long-term portfolio.
DApp games come and go quickly and are not created for long-term. If you get in early you can make money with them, but you need to be smart enough to pull out when you see a profit. Why are they come and go? Because clones of the successful DApp games will pop up and people will quickly migrate to the new thing. Additionally, whales are always ever present and they manipulate – this is, pump and dump – the prices.
If you participate in DApp games, get in, realize a profit, and get out. PERIOD. Do not be taken in by being loyal to any of them as you will find people within particular DApp game platforms push this “either you are with us or you are against us” thing. Forget that! You can be civil, but always remember that you are in it for YOU. Do not think for one moment that the other participants are thinking about YOU. They are thinking about THEMSELVES.
What’s New and What I am I Doing At Present?
At present, my portfolio is everything in crypto. It is solid. I am able to sell a few coins here and there and move money around so as to not go into my bank account if I decide to participate in anything crypto-related.
Secondary to my portfolio, I am into the following …
- Proof of Weak Hands 3D (PoWH3D). While the Ethereum in the contract has taken a drastic nosedive, I am holding P3D tokens ONLY to see how FOMO 3D will pan out. At the moment, FOMO 3D is in testing (on TestNet) and it looks very promising. We shall see.
- Revolution 1. I like Revolution 1 because it was built on encouraging taking profit and the prevention of whales bailing out on everyone. Lots of Ethereum has bled out of the contract because people have been realizing a profit and taking it. Also, the DEV Team has created other games in which participants have put their money into. Revolution 1 ran into a major snag, however. The Developer created a game that got hacked. Some lost confidence in the platform. Some remained. The DEV Team quickly rectified the situation to ensure everyone who invested in the game that got hacked would receive their money back. Many have yet to receive their money back. Additionally, five other games were created in which many have their money tied up in and it is stuck in the Smart Contract. No one knows when or if they will receive the promised return. I am of the opinion that Revolution 1 has – and is – doing too much. I am still watching its movement. I hope things pan out well because the platform does care that no one loses money. But the reality is – at the moment – many have money tied up in the games and cannot get it out.
- ARBitraging. This is not a DApp game. Arbitraging is a platform that takes advantage of the price differences of cryptocurrency on the various exchanges. You benefit from the price differences. The way it works is that you buy ARB Tokens and you have several options when you do. These are …
- HODL them and watch their value appreciate.
- Place them in the mBOT and let it generate profit for you.
- A combination of the above.
I do not expect longevity on any of these platforms as something new claiming to be better always comes up and people migrate like vultures to where the carcass is to feed on them.
It is for that reason, a good solid portfolio for the long-term is a wise thing to have.