In the world of trading, especially cryptocurrencies, the phrase “zero-sum game” is often repeated. For some, this concept means that someone’s gain necessarily means someone else’s loss. But is this true? Or is it more complicated than it seems?
What is a "zero-sum game"?
A “zero-sum game” means that the total amount of profit and loss in the market equals zero. In other words, when one trader wins, another loses the same amount. But cryptocurrencies are not that simple, and there are more complex factors that affect the market.
Why do some people think cryptocurrencies are a zero-sum game?
1. Major market volatility
A volatile market makes it easy to see immediate gains and losses. If you buy a currency when it is high and someone else sells it when it is low, one person obviously loses and the other gains.
2. Relying on speculation
Most cryptocurrency trading is based on speculation rather than intrinsic value. This makes trading look like gambling in the eyes of many.
3. Lack of added value
Unlike traditional assets like stocks, which may reflect the growth of a real company, cryptocurrencies are often based on supply and demand.
Fact: Cryptocurrencies are not always a zero-sum game.
While it may seem that loss and gain in cryptocurrencies are opposites, there are factors that complicate the picture:
1. Overall market growth
When new investors enter the market and currency values increase, everyone can profit. The market is not static but grows with time.
2. Technology adoption
Cryptocurrencies are not just assets to trade, they are world-changing technologies like smart contracts and decentralized finance (DeFi). Investing in them can reflect confidence in these innovations, not just a win-lose game.
3. Education and development
Smart investors don't just bet, they learn how to analyze and develop strategies that will bring them long-term success.
How to avoid falling into a "zero-sum game" mentality?
1. Think long term
Day trading may seem lucrative, but it is stressful and risky. Long-term investment in solid projects gives better opportunities.
2. Find value
Don't buy a coin because it's popular, look at the project behind it. Does it provide a real solution to a problem?
3. Learn financial management strategies
Calculated risk and not putting all your capital in one currency protects you from big losses.
Conclusion
Cryptocurrencies are not just a zero-sum game; they are a world full of opportunities for smart investors who know how to read the market. Stop thinking only about profit and loss, and start seeing the big picture.
Key points:
Cryptocurrencies are not just a gamble; they can be a smart investment tool.
Learning and analysis is the key to success.
Think beyond the daily fluctuations of the market.