How to Bet With Cryptocurrency?
Cryptocurrency is becoming increasingly popular to get money on and off online sportsbooks. The fact that payments cannot be blocked by a third party, such as a bank, makes them an attractive choice for gamblers. They also offer more anonymity than bank payments, which helps protect your personal information when signing up for an online casino.
People are not only looking to bet with cryptocurrency, they’re looking to bet on it. Many people treat cryptocurrency as a speculative asset and, as such, will bet on whether the price will increase or decrease. In such a volatile market, there’s a lot of money to be made if you can get it right, but you can lose a lot of money if you get it wrong.
Exactly how do you bet with cryptocurrency? We’ll look at what you need to do to start off betting with cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a digital, peer-to-peer currency that is maintained and verified by a cryptographic, decentralized system.
In English, this means that it does not require a third party to verify transactions, as transactions are verified by an algorithm that ensures all transactions are valid.
This means that you are free to send your cryptocurrency anywhere and to anyone, with zero risk of a third party -such as a bank- stopping that transaction.
Why Should You Use Cryptocurrency to Gamble?
Cryptocurrency is one of the most secure deposit methods, thanks to the blockchain. The blockchain records every transaction made, so there is a permanent record of every transaction you make to and from the casino.
This means that a casino can’t just take off with your money, as there will always be a digital record of where your money is going.
You also don’t have to worry about exchange rates when betting with crypto, as most sites will let you make your bets in crypto without having to exchange it for a fiat currency.
Cryptocurrency Sports Betting
Sports betting with cryptocurrency is just like regular sports betting; the only thing that changes is your betting currency.
While normally you would deposit to your casino account with your e-wallet, bank account, or debit card, in this case you would have to deposit using your cryptocurrency wallet.
From there, the money will be available in your account, and you are free to bet on any event, just like you would with fiat currency.
Cryptocurrency Spread Betting
Spread betting on cryptocurrency is a great way to bet on the price of cryptocurrency increasing without actually having to purchase and store the asset.
To engage in cryptocurrency spread betting, you must buy a derivative contract. This derivative contract is tied to the price of your chosen cryptocurrency.
When buying the contract, you must decide what your stake will be. The stake is the amount of money that can be earned or lost for every specified amount of price movement; this is known as a point.
How to Bet Against Cryptocurrency
If you think a cryptocurrency is going to decrease in value, you can take a short position instead. When taking a short position, you’re betting against the cryptocurrency increasing in value.
This means that the properties of the stake are inverted. At every point the cryptocurrency increases, you lose multiple of your stake. In contrast, for every point the cryptocurrency decreases, you earn a multiple of your stake.
Bear in mind that spread betting is a leveraged trade, so exercise caution when making your bets and always have a stop loss in place.
Tips for Betting with Cryptocurrency
Despite Bitcoin being around since 2008, cryptocurrency sports betting is still relatively new, and only a few online casinos accept it as a payment method.
Scammers look to take advantage of people’s unfamiliarity with crypto, so follow our tips to make sure you stay safe when going for cryptocurrency sports betting.
Cryptocurrency Betting Pros and Cons
We always want to give you as much information as possible so you can make an informed decision about how you bet. While there are a lot of advantages to betting with cryptocurrency, there are a few drawbacks to be aware of.
Let’s take a look at the pros and cons.
◭ Fast Transaction Times – While most banking methods offer instant deposits, withdrawals often take a lot longer. With cryptocurrency, you can make deposits and withdrawals that are processed in minutes.
◭ Anonymity and Privacy – Cryptocurrency offers anonymity you can’t get from using established payment methods such as debit cards or e-wallets, as those methods contain your personal details.
◭ Store of Value – Large cryptocurrencies, particularly bitcoin, are considered by many people to be stores of value. Despite its volatility, this currency is anti-inflationary and has seen an increase in value in the long term.
◭ Secure Transactions – Cryptocurrency transactions are incredibly secure. By design, the transactions cannot be tampered with by a third party, there is permanent proof of each transaction, and the sender cannot reverse transactions once they have been processed.
◮ Location Restrictions – Not all jurisdictions allow cryptocurrency betting and have banned operators from accepting it.
◮ Precision Required When Moving Crypto – When you’re sending cryptocurrency to your sportsbook, it is vital that you type in the address correctly. It’s easy to make a mistake, and if you send crypto to the wrong address, there’s no way of getting it back.
◮ Large Volatility Levels – If you’re betting on the price of a crypto asset increasing or decreasing, it can be easy to lose money thanks to the volatility of the market.
Cryptocurrency Sports Betting – FAQ