Cryptocurrency has become something of a buzz word over recent years, with the likes of Bitcoin and Ethereum names that are readily bandied about in daily conversation and the digital currency sparking transformation in the world of trading. Once reserved for only the savviest and most experienced of investors, these days people of all ages and backgrounds are logging onto trading apps like BTC Code and making their first deposits in the hopes of making some substantial long-term gains – and thanks to advanced signalling software, it’s no longer necessary to be an expect in order to get started.
This increase in accessibility has, in many ways, been a positive thing, but there is a darker side to it. While the high market volatility that is associated with cryptocurrency means there is the potential to make some excellent returns on investment for those willing to play the long game, it also means that it’s possible to make some sizeable losses should things not go your way – and looking at the dramatic plunges in the value of Bitcoin and alt-coins that have punctuated the past 12 months, it’s easy to see how quickly things can turn, and to detrimental effect.
But when things are going well and asset values are on the rise, the high that comes with seeing your investments surging is something that many find themselves chasing, and just like gambling, it can quickly become addictive.
It might seem dramatic, but in fact, it’s more common than you might think – so much so, in fact, that several luxury rehab centres have popped up across the globe to offer support and treatment for those suffering from ‘crypto addiction’.
And they mean business. The professionals that staff them are experienced in treating patients for a host of more commonly recognised addictions such as alcohol and drugs, as well as eating disorders, and offer psychotherapy and detox programmes for those who simply can’t stop, won’t stop buying and selling cryptocurrencies.
Perhaps unsurprisingly, applications from would-be patients have spiked over the past three years, in line with the dramatic price swings that began at the start of the global pandemic and have continued ever since. Crypto addiction is no laughing matter, and can quickly see even the healthiest of bank accounts depleted if traders don’t place limitations on their spending. But given that the whole premise of crypto trading is about risking your capital for the chance to make gains, when exactly does it become a problem?
Just like most other addictions, the answer is when it starts to impact negatively upon your life. Can’t stop thinking about crypto? Spending money you don’t have on the latest hot tips, or risking all of your savings, and your children’s inheritance? Then it might be time to take a step back.
Perhaps ironically, however, treatment doesn’t come cheap. The Balance – a luxury rehab centre brand with clinics across Europe, including one in London, charges patients upwards of £60k to access its facilities and services, which include therapy, mindfulness, yoga, massages and various outdoor pursuits.
And in Switzerland, enrolment at the opulent Paracelsus Recovery could set you back as much as an eye-watering £85k per week – which, when you consider that treatment usually lasts between four and six weeks, is no small expense even for the rich. Of course, you can expect some extra bells and whistles for the privilege, including acupuncture sessions and a customised diet plan – but there’s no denying that for those who are struggling with a spending-related addiction, it can in some ways seem a little counterintuitive.
Treatment generally begins with abstinence, with patients unable to access the markets from their clinic of choice, and support on hand as they go through withdrawals. These can include insomnia, anxiety and low mood, although the experience varies from person to person – and typically, individuals are provided with healthier coping methods and advice on safer investment options. How effective it really is, and whether crypto addiction can really be treated in the same way as a more general gambling addiction remains to be seen, but time will certainly tell.
For now, the jury is still out, but in the meantime, there are some ways you can protect yourself from falling under the spell of the cryptocurrency market. Before you start, determine your risk tolerance and set yourself some strict limits when it comes to how much you are willing – and can afford to – invest. There is always going to be some level of risk involved, and the crypto market is particularly volatile – so know what you’re getting into before you start, and know when to cut your losses.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
