Is investing a form of gambling?
Well… is it?
Many people see investing as a form of gambling, especially because investing involves risk and has no guarantee of success. The risk involved with gambling in a casino setting and investing in a business or property comes down to capital, along with hopes of future profit. It’s important to note that none of this can be promised as no one knows what the future holds. There are differences between gambling and investing though, and we’re going to break that down in an easy to understand way in this article.
What is Investing?
When you make an investment you are allocating money to a specific project in the hopes of it having a higher return. Although we are talking strictly financial there are different types of investments you could be making such as investing time with your family or investing in resources for personal development.
There are four main types of investment:
– Shares: Typically someone purchasing shares would invest in a new or smaller business who is expected to increase in worth at a fast pace. This is a long term investment strategy because the market can be extremely unpredictable and it is considered one of the riskiest strategies.
– Property: This is a very straight forward type of investing, and one that has been used for generations. Property investing could also be considered a style of growth investment as it can take a long time for a house to increase in value.
– Cash: Cash investments are when you use a bank account to store your money in. Banks will usually offer you an interest rate for leaving large sums of money with them, in return making you more cash for doing almost nothing. It is a very safe strategy.
– Fixed Interest: The most commonly used “fixed interest” investment style is done with the use of bonds. Governments or companies use a bond to borrow money from investors. They then pay them a rate of interest in return. This is also considered a very low-risk strategy for investing.
What is Gambling
Gambling or betting is done when you place money on an event that has an unexpected outcome. Gambling can come in many different forms and most commonly are used as “fun and games” or a pass time. An important thing to remember about gambling is that the house will always have the advantage.
The top four types of gambling include:
– Sports Betting: Sports betting can be dated back to over 2,000 years ago and is one of the oldest styles of gambling. It is the process of wagering money (or items) on the unpredictable outcome of a sports game.
– Slots: Slot machines are fully left to chance. Whenever you spin there is a chance to win, but no guarantee. It can be a very fun and exciting gameplay that can be found in most online casinos.
– Lottery: The lottery or lottery-style betting is when you choose any random numbers with the hopes that they’ll be drawn out. This style of gambling never has any guarantee but is loved by people all around the globe.
– Table Games: There are many different table games such as poker and blackjack. Some people become professional card players and use this as their source of income. These games differ from the others because there is a strategy involved, it’s not solely left to luck!
While there are some similarities, there are also many differences in investing and gambling. So is investing a form of gambling?
Well, there are four similarities:
– Investing can be considered a gamble.
– Investment and gambling are usually done with the hope of future profit.
– There are many different types of investment.
– There are many different types of gambling.
If you’re looking to gamble more safely, check out our casino blog for tips and tricks.