This post is intended for caring parents concerned about their child’s involvement in crypto trading.
Disclaimer: The information provided is not medical advice. It is for general informational purposes only and should not replace professional medical consultation. Always consult a qualified healthcare provider for medical guidance and treatment.
In today’s world, smartphones have revolutionized various aspects of our lives, making tasks like shopping, staying connected with friends, and managing finances more convenient. However, along with these benefits, our beloved smartphones provide unprecedented access to enticing (sometimes addicting) opportunities, such as cryptocurrency.
As caregivers and loved ones, it’s crucial to approach this issue with empathy and understanding, guiding those we care about towards informed and responsible decision-making.
Crypto Basics
If you’re just learning about cryptocurrency, you probably have questions. A lot of them. If you can, focus on this one aspect for now: the size of the cryptocurrency industry. So just how big is crypto exactly?
Consider a few numbers:
- 98 million Coinbase users worldwide
- +$2T: Total crypto market cap
- 17%: Percent of American adults who have used crypto
- $33B: Amount venture capitalists (VCs) poured into crypto in 2022
Remember when supermodel Gisele and Tom Brady did an FTX ad?
Why share this? To get you thinking about the size and prevalence of the cryptocurrency and comfortable with the chance that you know someone who suffered harm as a result of participating in the market.
Gambling Disorder
There are notable parallels between crypto trading and gambling disorder that merit serious consideration. Problem gambling, as defined by the American Psychiatric Association, entails repeated, problematic behavior leading to issues for individuals, families, and society. Those with gambling disorders struggle to control their behavior, persisting even when it causes significant harm.
Problematic Crypto Trading
Both crypto trading and gambling involve elements of high speculation and risk. Both activities also share the same demographic group of participants. YaleMedicine says men and younger individuals are more prone to gambling-related issues. These demographics resemble those of crypto traders. As the Pew Research Center tells us, “Men under 50 stand out for investing in, trading or using a cryptocurrency.”
There are additional ways in which crypto trading resembles gambling.
Uncertain Outcomes
Like gambling, investing in cryptocurrencies can have uncertain outcomes. The value of cryptocurrencies can be highly volatile, leading to significant gains or losses within short periods.
High-Risk Ventures
Crypto investments often involve high risks. Like in gambling, individuals may be enticed by the potential for quick and substantial profits, sometimes overlooking the possibility of substantial financial losses.
Emotional Rollercoaster
Both crypto and gambling can evoke intense emotions. Investors may experience exhilaration during periods of growth, as well as anxiety, stress, or disappointment during market downturns.
Addiction Potential
For some individuals, the excitement and thrill of trading cryptocurrencies can become addictive. The constant monitoring of prices, chasing losses, and seeking quick gains can resemble behaviors seen in gambling addiction.
Speculative Nature
Speculation plays a big role in both crypto and gambling activities. People may invest based on rumors, tips, or unverified information, hoping to make significant gains. This speculative behavior can be similar to gambling strategies that rely on chance and luck.
Warning Signs
If you’re concerned your child or someone you care about is struggling with crypto trading, consider if you’ve observed any of these signs.
Obsessive Behavior
Pay attention if your loved one becomes consumed with checking crypto prices, reading about market trends, or constantly discussing investments.
Financial Problems
Look for signs of financial distress, such as borrowing money, selling personal belongings, or unexplained financial difficulties that may indicate significant losses in crypto investments.
Emotional Distress
Notice changes in mood, increased irritability, anxiety, or depression that may be related to crypto investment outcomes.
Neglecting Responsibilities
If your loved one begins to neglect work, studies, or personal relationships due to excessive involvement with cryptocurrencies, it could cause concern.
Secrecy and Isolation
Watch for signs of secrecy regarding their crypto activities or a withdrawal from social activities, hobbies, or interests they previously enjoyed.
Impaired Judgment
Be alert if your loved one consistently makes impulsive or high-risk investment decisions without considering the potential consequences.
Steps To Consider
If you observe these signs in your loved one, they may be engaging in problematic crypto trading. If you’re concerned that your child has developed a problem with crypto trading, it’s important to address the situation thoughtfully and effectively.
Here are some steps that can be taken to help manage and potentially resolve the issue:
Open a Dialogue
Start by talking openly with your child about your concerns. It’s important to approach this matter calmly and without confrontation. Ask about their trading activities, what attracts them to crypto trading, and how they feel about it. Understanding their perspective is crucial.
Discuss Financial Management
Teach your child about financial management and the importance of saving and investing responsibly. Discuss more stable and traditional forms of investment that could also teach them about financial markets without the same level of risk.
Seek Professional Help
If your child is spending too much money, getting upset over losses, or ignoring their duties because of their crypto trading, it might be serious. In such cases, it’s wise to get help from a professional. This could be a financial advisor who knows about cryptocurrencies or a therapist who deals with addiction.
As a reminder, the information provided is not medical advice. It is for general informational purposes only and should not replace professional medical consultation.
If you need urgent support, we’ve compiled a list of national resources that may be able to help.
