Crypto Betting and Mental Health: The Psychological Aspects of Speculative Wagering

CryptoBetting and mental health are two topics that have gained global attention recently. As the crypto betting industry hits $250 million, the psychological aspects of speculative wagering have become a cause for concern.

Once, betting was confined to brick-and-mortar buildings like casinos in LA or Texas. However, with the advent of online casinos and sportsbooks, people now have unlimited and often unrestricted access to betting.

This has raised the salient concern that crypto betting can harm mental health. From depression and anxiety to stress and financial ruin, this article will reveal how speculative wagering could impact players mentally. We will also provide tips to mitigate the adverse psychological effects of crypto betting.

Table of Contents

The Psychology of Speculation

Although a complex topic, the psychology of speculation is strongly related to betting. In the context of crypto trading, experts have discovered that specific psychological mechanisms make crypto betting particularly risky, including the following:

The Bettors’ Fallacy

One factor contributing to the problematic psychology of speculation among gamblers is the bettors’ fallacy. This occurs when a bettor believes that past events can influence future outcomes.

For instance, if a bet lands on heads greatly, a person may believe it will land on tails the next. Such untrue beliefs may lead to irrational bets and mental health issues.

The Illusion of Control

The illusion of control is a common problem among problem bettors. This is the belief that we have more control over wagering events than we do. The illusion of control causes people to think that specific skills or knowledge will increase their chances of winning a bet.

For example, a bettor may assume that they can beat the odds at a casino or predict the price of a cryptocurrency. This illusion could cause people to take unnecessary risks, betting more than they can afford to lose.

The Need for Excitement

Bitcoin betting offers an exhilarating escape for individuals drawn to risk and uncertainty. These people with dare-devil tendencies may become addicted to the feeling of winning big, leading to a financial crisis.

Since all forms of betting trigger the brain’s reward pathways, people often become glued to its high-stake nature. These individuals typically forget that the risk of losing is also high, leading to mental problems.

Loss Aversion

Loss aversion is a wagering psychology where the fear of losses drives a bettor. Such an individual is often prone to feel more pain from a loss than pleasure from an equivalent gain.

A bettor with this problem could start with $100 and then lose $50. They feel the pain of losing the $50 more than the pleasure of the initial $100. This could lead to bettors chasing their losses at the expense of their finances and mental well-being.

The Risks of Bitcoin Betting for Mental Health

If practiced irresponsibly, Bitcoin betting can become risky and negatively impact mental health. Here are some of the risks associated with Bitcoin betting that should not be overlooked:

Anxiety and Depression

The volatile crypto-betting market is uncertain as bettors constantly face market fluctuations. The fear of losing one’s bets can trigger intense anxiety and stress.

If the bet is eventually lost and the bettor enters a losing streak, depression may set in. Anxiety and the emotional toll of losses could leave individuals grappling with a sense of failure and despair.


Addiction is another betting risk that may arise from Bitcoin betting. People already prone to betting problems may find it difficult to resist the urge to chase losses.

This lack of self-control plus a desire to win could lead to addiction which results in severe consequences. Addicted individuals may face financial issues, relationship problems, mental instability, etc.

Perceived Stress

Perceived stress is the subjective feeling where a person believes they are unable to keep up with the demands of life. Bitcoin betting can lead to this type of stress due to its volatility and availability.

The uncertainty about how much money one will win or lose can lead to feelings of anxiety. On the other hand, the constant availability of crypto markets can make it challenging to take breaks leading to burnout.

Financial Stress

Cryptocurrencies are a volatile asset class. This means that their prices are highly unpredictable and can fluctuate wildly. Those involved in Bitcoin betting are often more prone to financial stress. This problem can lead to further anxiety, depression, and other mental health issues.

How to Protect Yourself from the Psychological Harm of Bitcoin Betting

Bitcoin betting can be harmful psychologically and financially. This is why protecting yourself from psychological risks is essential before venturing. Here are some tips to help you:

Set Limits

Before starting your journey as a crypto bettor, limit how much money and time you want to spend. Stick to your set limits no matter the outcome of your bets.

Bet What You Can Afford to Lose

Betting is risky; there’s always the possibility of losing money, no matter how careful you are. Avoid chasing losses and only bet what you can afford to lose.

Take Breaks

If you feel at the end of your rope, you may need to take a break from Bitcoin betting. To avoid burnout, go for a walk, read a book, or indulge in other activities.

Talk to Someone

If you’re already addicted to Bitcoin betting, talking to a professional might help you. Seek support from a qualified therapist or betting counselor. They can help provide coping strategies and guidance tailored to your challenges.

Establish a Routine

Establish a structured routine and stick to it. Your routine should involve exercise, healthy meals, and sufficient sleep. This will help you to develop stability and resilience against emotional upheavals.

Monitor Screen Time

Overexposure to market fluctuations can lead to FOMO (fear of missing out), increasing anxiety. To avoid this, limit excessive screen time devoted to tracking your bets.


Exploring the relationship between Bitcoin betting and mental health reveals that speculative wagering can elicit various psychological responses. Anxiety, depression, perceived stress, and addiction are only a few of the adverse effects that can arise from irresponsible crypto betting. However, by following the tips mentioned above, players can successfully protect themselves from the negative aspects of speculative wagering.