Is acting in crypto gambling?

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Acting in crypto, either in cryptocurrency or tokens, is nowadays very common. More and more people are discovering the opportunities that arise in this world and are going to work. What is not clear to many people is whether acting in crypto gambling is. It is of course important to know this.

Are you a gambler if you act in crypto? That is the key question. We are happy to answer this question.

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Acting in crypto is not standard

The first important point to know is that acting in crypto is not standard. You can choose from several types of crypto currency, to name just an example. In this case you can also speak of various types of tokens. We can subdivide this into 5 categories, namely reputation tokens, asset tokens, equity tokens, security tokens and utility tokens. First, let's take a closer look at this, so that the difference is clear. Each type of token has its own function.

1. Acting in Reputation Tokens

If you want to act in reputation tokens, it is required to actively work within a network. So you are part of a network, in which you perform multiple tasks to earn the reputation tokens. A blockchain project consists of an ecosystem within which the token is used. We also call these token the Reward token. So you don't buy them, but you earn them.

2. Acting in Asset Tokens

Asset tokens can be used well as a way of trade. The term "asset" indicates "possession". You can represent a possession, so a tangible ownership, by applying asset tokens. This may involve numerous tangible property, but in most cases we are talking about relatively large properties. You can think of commercial buildings or houses. For example, it is possible to sell a building or home through the blockchain by using Asset tokens.

3. Handelen in Equity Tokens

Equity tokens are often seen as a kind of shares, but in digital variant. When you have an equity token, then you are automatically "co-owner" of something. This means, for example, that you can purchase yourself from a company by buying an Equity token. It is important to know that all this is not easy. In this case you have to deal with the SEC, also known as the Security and Exchange Commission, and you are obliged to adhere to the laws and regulations of the SEC.

4. Trading in Security Tokens

Security tokens are also among the tokens where you are dealing with the SEC, so the Security and Exchange Commission, and the corresponding laws and regulations. These tokens are primarily intended to make an investment. There is therefore a so -called underlying value on these tokens. Do easy ensures a bit of extra certainty. You can have multiple goals if you have security tokens. An important goal may be that you receive dividends, but you can also buy the tokens if you are aiming for a price gain.

5. Handelen in Utility Tokens

We come across Utility Tokens in crypto projects. They are intended to gain access to a certain service or a specific product within this project. There is always a so-called "use case" when it comes to the function of these tokens within the ecosystem of the blockchain. That is why these tokens are also known as user tokens. You can reach good price gains with it, making it an interesting option for many traders, or investors. Of all the tokens that exist at the moment, the Utility token is the most common variant.

The typical thought when we talk about gambling

When we think of gambling, we immediately think of playing gambling games in a casino. This can of course be a physical casino or a Legal American Online Casino. It can be about playing on slots, but of course also about various table games, such as blackjack and poker.

The typical thought behind the word "gambling" is therefore the use of money in a game, to be able to win money if you win the game. In most cases, acting in crypto is not seen as a game, but of course you do take risks with your money. That is why it is often difficult to properly determine whether acting in crypto gambling is, or not.

Acting in crypto is "gambling" with your money

"I'll take that gamble" we hear more often, especially in the world of crypto trade. When you invest your money, in any way, then you take a risk with your money. Taking risks with your money is therefore easily seen as gambling with your money. You gamble on a good outcome, but you never have certainty. In that sense, we can therefore say that acting in crypto is a form of gambling. Yet gambling is in a very different way than the way we gamble in an (online) casino.

Is acting and hodling the same in the world of cryptocurrency?

In the world of cryptocurrency you can "act" and "hodlen". Certainly if you are new in the field of crypto, this can easily cause confusion. Are you going to act in crypto or are you going to hodlen? What is the difference? It is certainly important to know this difference. That is why we give you a clear explanation about both the actions in crypto and hodling.

Acting in crypto is mainly about speed

If you want to act in crypto, this actually means that you follow the trends. You see a cryptocurrency that suddenly becomes "trendy", so you hook in by buying quickly. Then it is important to get out again on time, so before the value of the cryptocurrency starts to fall again.

So you actually act on the basis of what is happening in real time, you respond to trends and ensure that you will trade the cryptocurrency on time again. That is what acting in crypto in the base is all about. You can determine your entry moments in different ways, such as using technical indicators, which is the most popular way.

Hodlen is the best choice for the long term

If the speed of action, so the short -term focus, does not suit you, then you can also start hodling. You take the time to get to know the crypto currency really well, to analyze, to view things about the big whole.

In principle you look at the long term and everything the crypto coins do in that longer period, so that you can also make better predictions. As a Hodler, you buy cryptocurrency for the longer term, for which you have done an extensive research to gain as much security as possible.

The Bitcoin is the most famous cryptocurrency

If you want to act in crypto, then the first crypto coin you think is probably the bitcoin. Logical, because this is the most famous cryptocurrency. The Bitcoin has been around for a long time and has also clearly shown how the value of such a point can change relatively quickly. Years ago you could buy a Bitcoin for less than 100 euros. Nowadays you will certainly not succeed anymore.

When we look at the lowest value of this currency in 2020, we see an amount of $ 4,500. In the same year, a maximum value of just under $ 29,000 was set. This only indicates how much the value of cryptocurrency can vary within the same calendar year.

What are the most popular cryptos to act in?

We have already indicated that the Bitcoin is one of the most famous and most popular cryptocurrencies. Yet this is not the only crypto that is attractive. We still see a number of crypto currency that are more popular than other variants. The Ripple is a good example of this, but the Ethereum is also one of the most popular variants.

Does this mean that you have to focus on these cryptos if you want to act in crypto? No definitely not. In fact, it can be very interesting to investigate the less popular variants. After all, you never know when these "break through". With good research, investing in a now lesser -known crypto can ultimately give you a lot of money. So don't be guided by the popularity of a coin if you want to act in crypto.

Also take into account the influence of companies

Large companies can exert a lot of influence on the value of a cryptocurrency. It is always good to be aware of this if you want to act in crypto. A good example of this is the influence that the company Tesla has carried out on the price of the Bitcoin in 2021. The company announced that 1.5 billion dollars had been invested in the purchase of Bitcoins.

This news ensured that the price rose to more than $ 58,000 in one fell swoop. Within just a few days the race dropped to well under 50,000 dollars. This indicates that powerful, influential companies can strongly influence a course.

Can you become addicted to action in crypto?

Something that is strongly linked to gambling is addiction. You can become addicted to gambling and that can have serious consequences. Gambling have been regulated in the Netherlands to offer protection against both fraud and addiction. For online gambling, the Law Gambling of the Gambling, also known as the KOA, in force since 1 April 2021.

If we have to act in crypto as gambling, does this also mean that you can get addicted to it? Officially, acting in Crypto does not fall under games of chance, but this does not mean that you cannot get addicted to it. Certainly when you make a good profit, this can lead to an addiction faster. It is therefore important to always be aware of this.

What does the Gaming Authority say about acting in Crypto?

If there is a party who knows everything about games of chance, and therefore gambling, then it is of course the Gaming Authority. The Gaming authority supervises games of chance. It is therefore of course important for this authority to have clear whether acting in crypto is a form of gambling. To determine this, the authority itself has investigated an investigation. This happened in 2018.

The research was mainly started because crypto coins were on the rise and there was a so -called supply and demand principle. The results of the research state that something is a game of chance when a participant has a chance to win a premium or a prize. The conclusion of the study is that this is not the case when acting in Crypto.

Acting in crypto is therefore not gambling

The research of the Gaming Authority therefore clearly states that acting in crypto is not gambling, in the official sense. This also means that it does not fall under the supervision of the Gaming Authority and that there is therefore no certain form of protection from there for the trader.

The acting in crypto is not seen as gambling, or as a game of chance, but it is of course a "game" where you take risks with your money. It is always important to be and stay aware of this.

Supervision and protection are being realized

The Gaming Authority therefore does not supervise when it comes to acting in crypto, because it is established that it is not a game of chance. Yet at European level there is a need to ensure a certain degree of regulation. The European Commission has been working on this form of regulation for a long time and a so -called regulation markets in cryptoactiva is being worked on.

This regulation also takes into account the protection of the consumer, or the trader. The regulation is not yet active. It is estimated that this is set in the year 2024.

Frequently Asked Questions

What is the purpose of cryptocurrency?

The most important point of cryptocurrency is to solve the problems of traditional currency by placing power and responsibility in the hands of the currency holders. All cryptocurrencies adhere to the 5 characteristics and 3 functions of money. They also try to solve one or more problems from the real world.

Is the mining of Bitcoin legal?

The legality of Bitcoin Minen depends entirely on your geographical location. The concept of Bitcoin can pose a threat to government control over the financial markets. For this reason, Bitcoin is completely illegal in certain places. Whether the mining of Bitcoin is legal is therefore largely dependent on where you live. In the Netherlands, the mining of Bitcoin is a legal economic activity.

Is acting in crypto better than buying shares?

Investing in crypto is risky, but also potentially very profitable. Cryptocurrency is a good investment if you want to be immediately exposed to the demand for digital currencies. Buying shares is usually safer in practice, but less lucrative.

Written by Henry Scheffers

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