What’s The Difference Between Gambling And Investing? – SAYS

In January 2021, a group of anonymous traders on Reddit took on a group of Wall Street hedge funds at a game of high-stakes betting in the stock market (re: GameStop saga). The popular narrative says the Reddit traders won.

However, there's emerging evidence suggesting the GameStop saga wasn't as clear cut as hedge funds vs retail traders. In fact, many large institutions made big money as well.

The Wall Street 'bad guys' lost billions of dollars. People around the world cheered that David had defeated Goliath.

Inspired by these events, another group of traders proposed another coordinated 'buy and hold' this time for the cryptocurrency XRP (commonly called Ripple). The target date: 1 February 2021, 8:30am.

The XRP price surged. It went up almost 300% in the week before 1 February. And then at 6am, two-and-half hours before people were supposed to buy together, the price started dropping. Right on cue at 8:30am, it crashed.

XRP's price lost 49% on that day leaving buyers who'd hoped for quick riches in tears. I'm fairly certain now the coordinated 'buy and hold' was actually assholes pulling off a pump and dump.

Two stories, wildly different. But from questions I was being asked right before 1 February, I realise many people actually thought the GameStop and XRP situations were very similar.

Perhaps the organisers purposely misrepresented it as the same thing large groups of common people FIGHTING against the establishment.

But in GameStop, the opponents were (supposedly) evil hedge funds. In XRP, the 'opponents' were actually their fellow investors.

It was a very different situation, but you might not have realised it unless you have experience trading.

Gambling is when you don't know what you're doing with your money, but still hope to profit.

The rest is here:

What's The Difference Between Gambling And Investing? - SAYS