Trading cryptocurrencies has become a way for many people to make money. Much like day trading, buying in the dips and selling at the peaks can result in some good returns. The volatile market and changing regulations make this form of currency trading very lucrative for some people but can result in devastating losses for others. The highs and lows of crypto trading can stimulate dopamine release which can contribute to a compulsive behavior disorder – also known as behavioral addiction.
The volatile fluctuation of cryptocurrency value creates a ‘high’ when traders buy or trade at a profit and can cause feelings of depression or worthlessness when the value of that currency drops to a loss. Experts have said that the dramatic and unpredictable fluctuations in prices create a similar "high" to that experienced by gamblers who see a big bet come in at the races or other sporting event. This cycle of ups and downs can stimulate your hormones, even creating trading withdrawal symptoms.
Cryptocurrency trading can easily turn into cryptocurrency gambling because just like with ordinary gambling, cryptocurrency trading is purely based on chance. Even if you’re educated on the market and are making trades that appear to be sound, the result is generally out of your hands and is dependent on many other factors. Compulsive trading of cryptocurrency is fast becoming a worldwide phenomenon with research suggesting there are currently more than 13 million people in the world actively trading in cryptocurrencies.
If your investment portfolio has you up at night, checking markets constantly or if you’re making trades even when you don’t really need to, you might be developing a behavioral addition to trading. Cryptocurrency gambling can become a problem and if you think your trading might be getting out of hand, you can call us today and confidentially talk about it.