Gambling websites and online casinos were the bane of our communities for a long time, and now they are regulated, gambling addiction remains a huge problem in the UK. Slot machines and the national lotto are regarded as gateway gambling compulsions by many. However, it is crypto currencies and the trade game in the field that are just becoming more prominent in recent years as a gamble that rarely (but sometimes) pays off.
“The highs and lows of crypto trading especially with additional trading options, is no different to other forms of gambling.” says Elizabeth Dantendorfer, operations manager at CATCH Recovery clinic in London. Emphasising the dopamine rush that many feel during day trading or option trading.
What Makes Crypto So Attractive?
The financial trading world is volatile in nature and has a huge potential for high profits. But they are hard to access for the ordinary individual. This is why crypto markets bloomed – accessibility. Just download an app and you’re now the Wolf of Wallstreet. This creates an addictive allure that can be hard to resist. It’s crucial to approach this exciting realm with awareness and responsibility. Understanding the factors that make crypto trading addictive is key to maintaining a balanced perspective and safeguarding financial and mental well-being.
The social side is also a real challenge with this type of trading. Engaging with online communities and forums can provide valuable insights, but it can also foster a sense of validation-seeking behaviour. Remember that your trading decisions should be based on careful analysis and not solely influenced by the opinions of others. That perhaps is why many experienced traders avoid cryptocurrency trading altogether, as prices are driven purely by sentiment.
Last but not least, the Fear of Missing Out (FOMO) on lucrative opportunities can be a driving force in the crypto world. FOMO-driven decisions can lead to impulsive and risky trades.
Ten Facts You Didn’t Know about Crypto:
- Some believe that the U.S. National Security Agency (NSA) may have played a role in the creation of Bitcoin, citing its advanced cryptographic algorithms and the timing of its release during the global financial crisis of 2008.
- The concept of blockchain technology, which underlies cryptocurrencies, was initially described in a research paper published in 2008 by an individual or group using the name Satoshi Nakamoto. However, there are theories that suggest Nakamoto may have been a collective effort involving multiple people or organisations.
- The mysterious creator of Bitcoin, known as Satoshi Nakamoto, has never been officially identified.
- Many believe that certain governments or powerful entities secretly control significant amounts of Bitcoin and other cryptocurrencies, influencing their prices and market movements.
- Cryptocurrencies are often used for illicit activities, such as money laundering and purchasing illegal goods on the dark web.
- The sudden and dramatic rise of certain cryptocurrencies, such as Dogecoin and Shiba Inu Coin, has led to speculations of orchestrated pump-and-dump schemes.
- Cryptocurrencies were mostly created to disrupt traditional banking systems and centralised control over money.
- The concept of a “global currency” or a single digital currency replacing traditional fiat currencies has sparked theories about a hidden agenda by influential organizations seeking to establish a new world order.
- In 2013, long before Bitcoin became as valuable, a Reddit post described a future scenario where Bitcoin would become extremely key in the financial world.
- The environmental impact of cryptocurrency mining sparks discussion over how the energy consumption associated with mining is intentionally being overlooked. According to information from an industry tracker run by the University of Cambridge, published in The Atlantic, Bitcoin mining will release about 62 megatons of “carbon-dioxide equivalent”. Per year. This is almost equal to the 2019 emissions of the whole of Serbia.
Managing the Psychological Side
Acknowledging vulnerability and seeking help is a sign of strength, not weakness.
Therapeutic interventions, such as cognitive-behavioural therapy (CBT), help people by equipping them with practical tools to address addictive patterns and manage triggers. Therapists assist with identifying and challenging irrational beliefs surrounding trading. Develop healthy coping mechanisms, and establish a balanced approach to investing.
Working with a financial advisor who specialises in cryptocurrency can help you regain control of your financial situation. They can assist in developing a realistic budget, implementing risk management strategies, and guiding you towards making informed investment decisions. Additionally, expanding your knowledge about cryptocurrencies through educational resources can enhance your understanding and minimise impulsive behaviour.
It is even more difficult to find help when what you’re gambling with is a currency which is considered to be for the chosen ones like Elon Musk. Impostor syndrome and self-doubt are common complications when one is dealing with a crypto obsession, say experts. Ironically, the fear of being exposed as a fraud can exacerbate the denial of addiction. Impostor syndrome, commonly experienced by high achievers, amplifies the belief that they couldn’t possibly have an addiction. They convince themselves that their exceptional skills and knowledge protect them from falling into such traps, dismissing any concerns or red flags.
Those who have established a reputation in the crypto trading community may hesitate to admit their struggles due to the fear of stigma and tarnishing their image. They worry about the potential impact on their professional standing, relationships, and financial opportunities. This fear becomes a barrier to seeking help, trapping them in a cycle of denial and neglect.
Handling the Problem at Hand
This is also where counselling and workshops specifically will help people fighting this problem regularly evaluate your trading habits. Preserving financial and mental well-being is paramount.
A supportive network is vital in overcoming addiction. People often seek out a community who understand the complexities of crypto trading and addiction, whether it be fellow traders, therapists, or support groups. Opening up to trusted confidantes creates a safe space to discuss challenges, gain perspective, and receive guidance without judgment.
If you find yourself caught in the grips of crypto trading addiction, remember there’s more to life than obsessing over charts and cryptocurrencies. So, take a step back, breathe, and consider a more balanced approach that prioritises your well-being and financial stability.