Cryptocurrency trading, gambling and problem gambling

Some forms of speculative trading share similarities with gambling. Decisions are often based on limited information, short-term motives for gain, and highly volatile and uncertain outcomes. Given these similarities, there is evidence to show that people who are attracted to gambling are also statistically more likely to engage in higher risk speculation such as day-trading of stocks and crypto-currency trading. In this study, involving 543 people (M = 388, F = 155, 85% aged 18-40 years) who reported at least monthly sports-betting, crypto-currency trading or both, we examined whether gambling and problem gambling were reliable predictors of the reported intensity of crypto-currency trading. The results showed that gambling and problem gambling rates were highest among those who reported both activities and that problem gambling scores (PGSI) and engaging in stock trading was significantly related to measures of crypto-currency trading intensity as based on the time spent per day, number of trades and level of expenditure. Future research should examine whether gambling history and involvement influences how people manage their investments in crypto-currencies, including their propensity for making riskier decisions and experiencing more negative outcomes.