Don’t Invest In Cryptocurrencies, It’s Gambling — True Or False?

I’ve been playing with cryptocurrencies for some years now. I have a habit of lurking in the shadows in various forums, trying to find some useful info. I’m also regularly reading posts and comments about crypto here on Medium. And more often than not, I see people saying that investing in crypto is not investing but gambling.

Is investing in crypto actually gambling?

Let me first tell you about my most profitable crypto adventure.

In January 2019, I was following a discussion about Cardano’s ADA token. People who previously bought this token were in despair. They were complaining that the price dropped from above $1 to around $0.02. They lost a lot of money and were angry. They were explaining that the token had a price of $1.30 only a year and a half or two years before. And now it was only $0.02.

I was a complete amateur. However, I once read a book written by a successful stock investor who claimed that an investor should track back an asset’s value over the last two years. He essentially claimed that you should see what the highest and the lowest values of the asset were over that period. And, in the next period, you should buy when the value falls down to a value similar to the lowest value and you should sell when the price goes up toward the highest value from the preceding period.