As recent developments show, Cryptocurrency investing remains a very highly speculative endeavor heading into the new year. 

In fact, a study conducted by Gamban and Solent University found that over half of adults (56%) already consider crypto trading as a form of gambling.

While a lot of people have made millions trading cryptocurrency, there are probably more out there who have lost their life savings. This can very much be attributed to the value of crypto’s volatility which can cause it to rise and drop very quickly.

In crypto trading, much like gambling, there is hardly any guarantee that one will see any returns as it is just as likely to lose everything invested as it is to make any gains. 

So what if crypto investment is like gambling?

One might argue that any form of investment is a gamble. That is not a stretch to say since billions have been gained and lost in industries other than crypto over the years.

Silicon Valley is already bracing for another tech bubble burst. Meta’s 75% collapse in October erased over $800 billion in stock market wealth, resulting in a loss of 11,000 jobs.

Online retail giant Amazon, which also saw a significant dive in stock price, is in the process of laying off about 10,000 employees. 

What’s important to understand is there will always be risks, whether it’s tech, real estate or the stock market. The key, of course, is minimizing risk while maximizing reward.

Is it possible to predict volatility?

If there’s one thing consistent about crypto, it is its volatility. Still, following its potential trends remains possible, as long as one understands what influences its price movements. 

It might not be that easy as it requires hard work, insight and a lot of research, but gauging crypto trends is very much doable.

It is important to understand that crypto’s price is influenced by several factors, including supply and demand, investor and user sentiments, government regulations as well as media hype. 

This means the ability to follow the most recent developments while also being able to interpret previous trends is crucial in effective market prediction. It is also worthwhile to closely observe how different markets are reacting to every shift in crypto prices. 

Finding out which blockchain systems work and which don’t is imperative to stay away from previous trends that have proven to become unsustainable. The data is out there for anyone who knows where to look. 

These are the very traits that most people who are successful in crypto possess. Through relevant data and really great timing, they are able to predict when to buy, sell or HODL.

But what if the trend is mostly bearish?

In these interesting times, when the trends don’t usually favor traditional traders, crypto enthusiasts are looking for alternative means to make some money. 

Crypto futures, which is the blockchain version of standard futures contracts for commodities or stocks, has been an option for some traders for quite some time now. Anyone who wants to earn profit from crypto’s volatility can simply bet on the price trajectory of their preferred crypto.

While crypto futures still come with all the risks that come with other forms of trading, users are given an alternative to just HODLing amid an extended bearish slump.

Popular platforms, like cryptocurrency exchange Binance, lets traders hedge against volatile markets by allowing them to sell high and buy low to profit from the price difference (a.k.a. short selling) without the need to possess the crypto. Should the price move in the opposite direction a trader wishes, they may end up paying more than the market price for their investment or selling it at a loss.

Due to the complexities of futures trading, these platforms will require familiarity with how trading works and the strategies that come with it. 

Some blockchain-based prediction platforms, particularly those focused on crypto prices, take a similar approach, albeit a lot more simplified. Similarly, such platforms allow users to make money even if crypto price trends aren’t favorable to crypto traders.  

At Triple 5, users can wager on whether the crypto price will go up, go down or stay in value.

What’s special about T5 is that the amount a trader can lose is always fixed and not variable as in futures, thus minimizing stressful trades and limiting trader exposure to their comfort zone.

Because their risk and exposure are always limited and fixed from the start, traders do not have to constantly monitor the trade and don’t risk liquidation. After the prediction is placed, being unchangeable and immutable, all that remains is to wait for the result on the timeline chosen (15 min /30 min / 45 min / 1h) for a resolution that is always binary, won or lost.

In many ways, a platform like T5 combines the speed and high rewards of gambling with the predictability and manageability of speculative investing, where users can still implement a risk management strategy. 

Attitude toward crypto trading may indeed remain lukewarm heading into the next year, but innovative platforms are already stepping up to empower crypto enthusiasts. So, while 2022 might have been a wild roller-coaster ride, there is so much to look forward to when 2023 rolls around.