According to KookCapitalLLC, high-risk behavior in crypto trading is often linked to gambling addiction, highlighting the need for robust risk management strategies among active traders. The source emphasizes that typical investors are conditioned to avoid such high-risk exposure, suggesting that only a subset of traders—so-called 'crypto degens'—are comfortable with extreme volatility and aggressive speculation. For market participants, understanding this behavioral dynamic is crucial for optimizing portfolio risk, setting stop-loss levels, and avoiding emotional trading traps that can lead to significant losses in volatile markets. (Source: KookCapitalLLC on Twitter, June 5, 2025)

According to Reetika (@ReetikaTrades), many cryptocurrency participants are facing financial losses due to gambling addiction, which leads them to invest in risky ventures. Reetika suggests that the solution to avoiding these 'rug pull' schemes is straightforward: abstain from buying into these projects. However, this advice is difficult for those who are addicted to gambling and constantly seeking a lucky win.