Fortune reports: The phenomenon of cryptocurrency trading addiction is becoming increasingly common

Original Title: "Crypto traders anonymous: A new addiction takes hold for many as cryptocurrency goes mainstream"

Author: Zara Stone

Translated by: Hu Tao, Chain Catcher

Maté Ballai, a rideshare driver in Budapest, estimates that since 2018, he has spent $100,000 on forex and cryptocurrency trading: $50,000 from a family inheritance, $10,000 from selling a car, and the rest from his salary.
At first, he saw no returns. But everything changed starting in November 2020. His investments in cryptocurrencies XRP, ETH, and BTC doubled, then quadrupled. "I felt like a god," Ballai said. He borrowed on margin to increase and diversify his investments and went on a spending spree.
He bought himself a BMW and a $2,000 OLED TV. He signed a lease for an apartment and moved out of his family home. He spent $20,000 on a two-week vacation in Dubai, treating his friends to accommodations, drinks, and racing in the desert. "I make $2,500 a day… 24-year-old Ballai said: 'This is the 'f--k you' money. If I keep going at this rate for three more months, I'll be a millionaire.'"
Then cryptocurrency prices plummeted. Ballai's net worth shrank. He poured in more money, convinced the market would rebound. He barely slept, worried about missing price surges. He found blood in his stool. His girlfriend left him. "She said she couldn't rely on me; my mood swings were too extreme," Ballai recalled. By the end of February, he had less than $11 left in his crypto wallet and owed $20,000 in loans.
Psychologists say that as interest in cryptocurrencies and trading apps continues to swell, the lockdowns, isolation, and stimulus checks from the COVID-19 pandemic often exacerbate stories like Ballai's. More people are seeking treatment for cryptocurrency addiction, a new twist on the long-standing issue of gambling addiction intertwined with investing.
Media reports of successful crypto investment stories embolden addicts: unemployed brothers turning $8,000 into $9 million; a 22-year-old high school dropout becoming a crypto millionaire. "People think they are the next Warren Buffett because their assets have appreciated," said Klein, a psychologist in London.
After receiving numerous inquiries, Klein began offering cryptocurrency addiction treatment in 2019, most of which came from teenagers aged 17 and 18. "Their parents were fighting, and they escaped by trading cryptocurrencies," he said. Today, most of his cryptocurrency addiction patients are in their 30s and 40s.
The scope of the problem in the U.S. is difficult to quantify. A recent survey by cryptocurrency trading service NYDIG found that an estimated 46 million Americans currently own cryptocurrencies. According to the National Council on Problem Gambling, it is unclear how many of these individuals have severe gambling disorders, with an additional 5 million experiencing mild to moderate issues.
Data from overseas provides a more detailed picture, although no conclusions can be drawn yet. For example, according to the Korea Center on Gambling Problems, in 2020, 1,732 South Koreans registered for treatment for cryptocurrency and stock trading addiction, up from 1,008 in 2019. However, it is impossible to know whether this increase is due to a rise in crypto addiction, compulsive stock trading, or both.
Meanwhile, Harun Olcay Sonkurt, a psychiatrist at the Agri Research and Training Hospital in Turkey, recently published a study on cryptocurrency and gambling-related disorders in the Journal of Gambling Issues, based on a survey of 300 adult cryptocurrency investors in Turkey who had been trading for at least six months. He said that among those surveyed, 2% exhibited signs of addiction, which is statistically significant.
Paul Delfabbro, a gambling researcher at the University of Adelaide in Australia, identified five psychological risk signals associated with these characteristics. Many warning signs are similar to those of gambling addiction and stock trading addiction. They include being completely focused on trading while neglecting everything else, fear of missing out, and constant rumination or regret over poor investment decisions. So, what is the most dangerous sign of addiction?
Delfabbro explained that individuals with some investment experience tend to overestimate their skills while ignoring the role of chance in their trades. When the market rises, it creates a false sense of invincibility, leading to greater risk-taking. He added that day trading and cryptocurrency addiction are often closely related.
The 24/7 nature of the crypto market makes it harder for addicts to step away than it is for daytime trading. Additionally, the plethora of posts on social media about influencers trading cryptocurrencies keeps crypto addicts constantly seeking reinforcement for their out-of-control trading habits online.
Therapist Klein warns that a clear sign of addiction is when people invest in obscure cryptocurrencies, which are more likely to experience value fluctuations. The adrenaline rush from massive daily gains and losses can be enticing.
This spring, Klein received a series of new calls related to the astonishing volatility of Dogecoin, which was created as a joke in 2013 but has since been taken more seriously. From January to May, it rose 13,000%, then dropped 75% within weeks. "People are losing wealth. Their anxiety levels are through the roof," Klein said. He has heard of individuals trading in the bathroom or desperately checking prices under the covers while their spouses sleep.
In general, cryptocurrency addiction is treated through cognitive behavioral therapy and 12-step programs, similar to those used in Alcoholics Anonymous and many other addiction treatment programs. Therapists address the emotions that lead to addiction, assess secondary issues such as depression or substance abuse, and help patients develop coping strategies. Professional treatment ranges from one-on-one Zoom calls and office visits to inpatient programs, with prices ranging from $120 per hour to $90,000 per week at luxury inpatient facilities in Switzerland.
A free option, or a complement to expensive treatment, is attending Gamblers Anonymous. At least for now, there is no Anonymous Cryptocurrency Association.
Even for those who can afford it, only a few institutions offer treatment for cryptocurrency trading addiction. But as demand grows and awareness in the medical community increases, more people are entering this field.
A Maryland rehab center in the suburbs of Baltimore is considering implementing a cryptocurrency addiction program. Earlier this year, the center's co-founder, Zach Snitzer, was alerted to the issue by his clinicians. They noticed a surge of patients compulsively trading cryptocurrency software, and how real-world events, such as the crash of crypto software prices and the volatility of video game retailer GameStop's stock, exacerbated the condition. "When you see Elon Musk talking about cryptocurrency on Twitter or the New York Times reporting on it, it normalizes cryptocurrency investment," Snitzer said.
Because cryptocurrency addiction is so new, he and his staff have had to educate themselves. Even now, many details about the issue remain unknown. Snitzer's center has incorporated questions about cryptocurrency into patient interviews as part of the admission process. The hope is that the data collected will help further understand the causes of the illness and how to treat it.
For example, based on conversations with patients, Snitzer noted a connection between cryptocurrency addiction and substance abuse. But he cautioned that it is too early to draw conclusions.
The consequences of cryptocurrency addiction or Bitcoin addiction are severe and can sometimes lead to suicidal thoughts among addicts. One therapist spoke about a patient, a CEO in an unhappy marriage, who found himself $40 million in debt. On Reddit, people report emptying their 401(k) accounts and refinancing their homes to extract cash to fund their crypto habits.
As for Ballai, he attributes the craziness to social media crypto KOLs who sell courses and peddle unrealistic promises about how much investors can earn. "They don't mention that most people fail," he said. Ballai also pointed to scammers who "pump and dump," promoting certain coins only to sell them as prices rise, leaving those they deceived to suffer huge losses when prices inevitably drop.
Ballai said he has managed to break his cycle of addiction and has not invested for months. "Now, I think about losing money first, then making money," he said. "I don't want to get involved again. It's not worth the stress."