Betting in cryptocurrencies has become quite popular in the last few years. It is understandable because cryptocurrency-betting offers advantages like anonymity for players, easier KYC (know-your-customer) norms, cheaper transaction fee, etc.
That said, a lot of bettors feel apprehensive of betting in anything other than fiat currencies, like the Indian Rupee (INR) or US Dollar (USD). They have spent all their lives dealing in fiat currencies. As a result, they wonder how to bet with Bitcoin or other cryptocurrencies.
So, to deal with those apprehensions, we’ve decided to write this blog, wherein we’ll discuss all about the crypto betting system and how to bet with cryptocurrencies in general.
What is betting in cryptocurrencies after all?
Let’s start with the most fundamental part. Betting in cryptocurrencies is almost like betting in fiat currencies. For example, if you want to bet on a soccer match in fiat currency, then your profit or losses entirely depend upon the outcome of the match. But it gets a little tricky when you place your bet in a cryptocurrency.
If you’re placing a bet in a crypto, then your net profit/loss depends upon the outcome of the match and also on the fluctuations in the value of that crypto. Remember that you may bet in a crypto, but ultimately, you’ll be converting your crypto earnings into a fiat currency. Besides, cryptocurrencies’ value is subject to wide fluctuations, so you should always be watchful of this aspect.
For example, Bitcoin’s value in INR terms has crashed by 21.6% in the last month. In such a case, depreciation in Bitcoin’s value alone may result in a punter making a net loss on his/her position. That being said, the value of a cryptocurrency also moves up frequently. Cryptocurrencies, especially Bitcoin, are now considered safe-haven assets against market volatility and inflation.
Infact, Paypal considers Bitcoin as a sustainable currency. Also, India’s RBI ban against cryptocurrency was lifted, as investors expressed significant interest in BTC. That said, with more countries seeking to regulate the market, cryptocurrencies will become mainstream.
Thus, as a punter, you should be aware of the highs and low’s when betting in a crypto.
Understanding different ways in which bookmakers allow you to bet in crypto
There’s clearly more than one way in which bookmakers allow you to bet in cryptocurrencies. We’ve already discussed the first one, in which you make a deposit in crypto at a bookmaker’s website and also withdraw your balance in crypto. Note that the bookmaker has no role to play in the conversion of your crypto balance into fiat currency in this case.
When depositing funds, you convert fiat currency into crypto using a crypto exchange. For withdrawing, the bookmaker allows you to withdraw in crypto itself, which means you don’t have to pay a commission to the bookmaker for conversion of currency from crypto to fiat.
However, there are other ways, too. At times, when you make a crypto deposit with a bookmaker, the bookmaker credits your account with the amount of “cash equivalent” to your crypto deposit. When you withdraw your balance, it is returned to you in a cryptocurrency. In such a case, you’re relying on the conversion rate of the bookmaker.
Typically, a bookmaker’s exchange rate is lower than that of an exchange. This means that you end up getting less crypto for the same amount of fiat currency from a bookmaker than you’d have received from an exchange.
Bookmakers allow punters to bet in their own cryptocurrencies as well
Yes, you heard it right. There are bookmakers, who mint their own cryptocurrencies. While betting on their websites, you’ve to buy crypto from them and then place your bets on sports, esports, online casino, or slot games.
This appears quite flexible; something totally different from a centralized form of currency. But bear in mind, for it has its downsides as well. When bookmakers mint their own cryptocurrencies, they control its supply. As a result, the value of a crypto fluctuates based on the actions of the bookmaker.
Always remember that in any system (whether centralized or decentralized), if only one person controls the supply of a currency, then he/she has a lot of control over it. For you, as a punter, it could be riskier than buying crypto, like Bitcoin or Ethereum, from an exchange and betting.
In the second part of this blog, we’ll talk about how to bet with crypto. In other words, what steps you should be following.
How to bet with cryptocurrencies
Find a bookmaker that allows you to bet in crypto the way you want to
We explained earlier that bookmakers have several ways to allow punters to bet in crypto. Some let you make a deposit in crypto, bet in crypto, and withdraw in crypto. Other bookmakers let you make a deposit in crypto but credit a sum equivalent in fiat currency to your account, while a few make you buy their own cryptocurrency.
As a punter, it’s extremely important for you to find a bookmaker that lets you bet in crypto exactly how you want to. Avoid situations in which a bookmaker ends up imposing conditions on you that you aren’t comfortable with.
Check out the exchange rate of crypto and commissions of a bookmaker
While selecting a cryptocurrency, you should consider its exchange rate over the last few months. It is important to notice fluctuations in the value of a cryptocurrency. Once you’re aware of fluctuations, check the liquidity of the crypto, which tells you whether there are sufficient buyers and sellers for it or not.
You should also check the commission of a bookmaker. Often commission is built into betting odds; so be careful about that. If a bookmaker converts your crypto balance into cash, then commission will be built into the rate of conversion as well.
It’s advisable to have a thorough understanding of commissions of various bookmakers while making a selection.
Read more: Full Tutorial: How to place bets on Esports using cryptocurrency?
Analyze the betting odds offered by various bookmakers
At the end of the day, betting in crypto is betting after all. Whether betting on sports, esports, or live casino, it’s a must that you compare betting odds offered by various bookmakers to select the one offering the most genuine odds.
Betting odds tell you how much you stand to gain (lose) for winning (losing) a bet. Often bookmakers’ commissions are also built in the betting odds.
Open a digital wallet in crypto and make a deposit on a betting site
Opening a digital wallet in crypto is very easy. Several options are available online to create a digital wallet, which includes hosted wallets, non-custodial wallets, and hardware wallets. Read about the benefits and limitations of each of these wallets before making a decision.
After creating a wallet, you’ll be able to transfer and move crypto with ease. Then, you should make a deposit in crypto on the online gambling site you’ve selected. Get the address of the site operator’s digital wallet. Use this information to start transferring funds in crypto. You’ll be amazed to see how fast fund-transfer happens in cryptocurrencies. For example, BTC365 allows punters to deposit/withdraw money on its site in under five minutes.
Betting in crypto offers several benefits, but to reap them, you should find a reliable betting platform. BTC365 has made a solid reputation for itself for being one of the best crypto betting sites in the business. Licensed by E-Gambling Montenegro (a reputed authority, which grants licenses to gambling operators) and with over ten years of experience, BTC365 is a name to reckon with in the online betting space.
It has tons of options for betting on sports, esports, casino, and slot games, offering competitive betting odds. Besides, it also has a user-friendly website and a mobile app (available in both Android and iOS variants). So, what are you waiting for? Visit BTC365 now and start betting in crypto.