The Connections Between Crypto, Stocks, and Gambling

If you’ve hung around the crypto, stocks, and gambling scenes, you might have noticed something: they tend to overlap a ton. It’s not just the testosterone-fueled aggressiveness of trying to make gains and score big profits. There’s a whole vocabulary of risk and action that flows seamlessly between these closely related areas.

In all three, participants are challenged to balance logical, calculated decisions with risky and sometimes emotion-driven choices. They can be the type to read up on expert advice and pore over charts. They can also be the type to fly by the seat of their pants. Accordingly, decisions can be based on probabilities, trends, or raw gut instinct. And there’s usually real money on the line.

Let’s dive into how these worlds intersect and explore the shared terminology of gambling, stocks, and crypto trading.

It’s All About Taking Risks

Whether you’re throwing another grand into BTC, picking up a temporarily depressed meme stock, or sitting down at a poker table, you’re playing a game of risk and reward. Each of these investing activities involves uncertainty. Thus, each attracts those with a taste for adrenaline or the hope of putting up some money and watching it grow by leaps and bounds.

In crypto, the volatility draws both thrill-seekers and traditional investors in. One tweet from an influencer can pump a coin sky high or dump it into the tank. In the stock market, options trading and meme stocks like GameStop or AMC have brought many casual investors into high-stakes speculative opportunities. In casino gambling, the risk is more immediate. But the mechanics of buying in and watching for a sign to take profits can feel very familiar, depending on what game you choose (Thundercrash, anyone?).

Each activity is built on a foundation of risk assessment and offers the possibility of big rewards for those who know when to get in the game.

Shared Terminology in Gambling and Trading

There’s a growing crypto gambling glossary that will probably be understandable to those involved in stock trading as well as traditional casino gaming. Let’s break down the crypto and gambling terminology that overlaps each of the areas under discussion.

Going all in

Going all in is betting everything you have at the table. It’s a poker term that means you’re making the biggest bet you possibly can. You’re not hedging and you’re not holding anything back. It is now common to use it in stock and crypto circles as well. If someone says, “I’m all-in on ETH,” they have made a big play on Ethereum. Their fortunes are tied to this crypto, just like those of a poker player who has gone all in preflop on his or her pocket aces.

High roller / Whale

High rollers and whales are one and the same. In a casino, a high roller can make large bets and put thousands at risk in a single wager. Likewise, a whale in the crypto or stock world is someone whose investments can move entire markets due to the large sums they control. A hedge fund CEO would be an example of a whale. 

House Edge / Edge

In gambling, the “house edge” is the built-in advantage the casino has. In trading, having an “edge” means something similar. It refers to an advantage a market participant has, perhaps through better research, insights, or simply timing.

Bet, wager, and play 

These similar words have migrated to and from casinos and investing circles. A poker pro might say that “the play” is to overbet a hand and use aggression to take control of a hand. A crypto fan may say that “the play” is to stick with Cardano until it hits a certain milestone.

Hedge

In finance, a hedge is an investment that is meant to soften the blow if your main play does not work out. In the casino (or the sportsbook especially), a bettor may hedge a wager as well. If you bet on a team to win a championship at the beginning of the season and things are looking good, you could hedge your bet by also betting a small amount on the team not to win. This reduces your downside losses and upside gains, giving you greater stability in your outcomes.

Diamond hands

If someone has diamond hands, they hold on tight to investments. When the going gets tough, and a coin looks weak, or when a poker hand is getting sketchy, those with diamond hands are unshakeable. They never sell. Bitcoin used to be worth less than a dollar. Only the diamond-handed investors stuck around to see $100K. Similarly, only the poker player with diamond hands will make the hero call and see through an opponent’s big bluff.

The Gamification of Trading and Crypto

It all feels like a casino game sometimes, doesn’t it? Trading crypto or options can lead to immediate gains and losses, some of which are life-changing. Trading and gaming language has become mixed, as a result. Your stock trading app may even use flashy graphics and celebrations when you complete a trade. They can mimic a slot machine ringing after a win. Much like a casino, crypto platforms make it simple to manage your investments. Their easy-to-use software reduces friction so that you can make bets on your terms whenever you want. The old days of calling a stockbroker are long gone. As a result, digital technology has blurred the lines between casino games and crypto trading in some ways.

A Shared Culture of Risk

As we said above, risk is at the heart of all these activities. There’s a reason that on Reddit, r/WallStreetBets, r/CryptoCurrency, and sports betting forums are sharing the same memes, language, and culture. They have a lot of the same users, of course. Whether it’s YOLO-ing into GameStop calls, buying a Solana dip, or betting on a weekend football parlay, the mindset is quite similar.

Players and investors chase value, try to read patterns, and tell stories of either glory or wreckage. “Loss porn” (screenshots of massive losses) is painful to make but can make a user a legend in any forum. You’ll see it coming from Coinbase or a poker account, too, because the idea is the same. And if someone is in the green, you’ll see the pics everywhere from Discord to X (formerly Twitter).

It’s All Melting Together

The connections between crypto, stocks, and gambling are right in our faces. The activities share terminology, psychology, strategy, and culture. Understanding crypto and gambling terminology is the first step to getting into these fun shared worlds. In truth, each is a gateway to the other.