Betting on Bitcoin: Can Crypto Trading Become an Addiction?
Clinical Review by:
Published:
Aug 21, 2024
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08:21 p.m.
ET
Bitcoin and cryptocurrency have been around longer than the general population may realize. The idea of cryptocurrency was first posed by David Chaum in 1983 with the creation of Digicash in 1989. Although Digicash was unsuccessful and shut down in 1998, Bitcoin as we know it today was launched just 10 years later.
Bitcoin continued to gain momentum over the next 10 years, and in 2021 it became the first traded cryptocurrency. In recent years Bitcoin and other cryptocurrencies have become more widely known and accepted as legitimate forms of accepted payment.
Can Bitcoin and cryptocurrency trading lead to addiction?
The idea of crypto trading becoming addictive has become more prevalent over the last several years as trading has increased. In fact, an inpatient rehabilitation center outside of Edinburgh, Scotland is known for specifically treating crypto trading addiction. A senior therapist at this facility describes how patients would compare their obsession with trading crypto or Bitcoin like a gambling addiction.
Patients described obsessive reading into cryptocurrency trends and white papers on Bitcoin. The compulsive nature of their trading started to negatively impact their mental health, relationships and financial security. Crypto trading also mirrors the nature of gambling in that success hinges largely on speculation and carries significant risk. Cryptocurrency and Bitcoin trading lend themselves to the same type of addictive nature due to the high risk, high reward mindset that often goes with it.
Read more about crypto trading’s comparison to gambling here
Is cryptocurrency trading the same as buying and selling stocks?
Cryptocurrency and stocks are fundamentally two different financial instruments. Stocks are shares in equity of publicly traded companies that someone can buy and own. Cryptocurrency is a digital token that represents a network that has value.
The trading of cryptocurrency differs from buying and selling stocks in that stock trading is highly regulated, while crypto trading is not. Stocks are also pieces of equity in a company that you own and cryptocurrency is a software token.
Cryptocurrency and stocks are similar in the fact that they are usually highly liquid assets, with the ability to buy and sell them very quickly. Both stocks and cryptocurrency involve a high amount of speculation when trading. It is important to remember that although fundamentally different, crypto trading and stock trading have similarities and all trading should be treated with care. Both can also lead to behavioral addiction issues, as traders may become obsessed with the practice to a point that it negatively impacts other parts of their lives.
Warnings signs of a crypto trading problem
As with other addictions, there are warning signs that may indicate someone has a crypto trading problem. Someone may spend a lot of their day obsessively checking digital currency news, price changes or reading Reddit threads on crypto white pages.
Someone with a crypto trading problem might ignore other responsibilities, such as work or school assignments, in favor of researching crypto trends or actively trading. When unable to access crypto accounts for long periods of time, someone may even experience withdrawal-like symptoms until they are able to engage in crypto trading.
Know someone who may have a problem? Make a confidential referral today
Dangers of trading Bitcoin, cryptocurrencies, tokens & coins
There are many negative outcomes that can occur when someone becomes addicted to Bitcoin or other cryptocurrency trading. Crypto trading addiction may impact personal relationships due to the preoccupation with it. This can lead to disconnect from loved ones or even trust issues from potential secretive behavior surrounding trading.
Financially, there may be cause for concern if someone is putting in money in order to continue trading Bitcoin and other cryptocurrencies. The desire to engage in crypto trading may supersede paying rent, buying food or other basic expenses.
There is also a risk of developing other mental health concerns like deression, anxiety or suicidal thoughts and behaviors due to the addictive nature of crypto trading. A brain addicted to this behavior may continue to seek out the high it gets while engaging in crypto trading. These urges can be hard to overcome and lead to a continued cycle of unhealthy trading behavior.
Learn more about the negative effects of cryptocurrency addiction here.
Treatment options for Bitcoin & crypto trading addiction
Finding your way out of Bitcoin or cryptocurrency trading can feel overwhelming, but there are strategies that can help begin the road to recovery. Separating oneself from the accessibility to cryptocurrency trading is a great first step. One option is to close any cryptocurrency accounts to stop the pattern of trading immediately. Another great option is to reduce exposure to crypto trading platforms by removing the software from devices.
While some people may be able to manage their crypto trading addiction with limited outside help, treatment for cryptocurrency addiction is available to those who need it. Birches Health offers virtual support for cryptocurrency addiction from the comfort of home. Birches has a team of licensed professionals with experience treating cryptocurrency addiction and other related mental health problems.
With 24/7 access to professional support and evidence-based treatment plans, Birches is here to help you or a loved one with Bitcoin and crypto trading addiction. Click here to learn more about Birches Health cryptocurrency addiction treatment.
You can also simply call 833-483-3838 or email hello@bircheshealth.com to get in touch directly with the Birches team.
