Crypto Betting – What is Crypto Betting and how is it unique?
Crypto betting on esports or sports is becoming a fast-growing market. More than ever, esports bookmakers and other crypto gambling sites are taking deposits in the various forms of currency that are out there.
Whether you’re buying cryptocurrency as an investment or to use for a specific purpose, crypto gambling allows you to do more things without having to transfer crypto back into fiat currency. However, it is inherently a little more complicated than normal esports betting. Cryptocurrencies, especially meme coins, fluctuate in price regularly. This can make betting with crypto a little harder to grasp. There are a few different ways that crypto bookmakers can work. Some of them allow you to place bets directly in crypto, using their own currencies. Whereas others just allow it as another currency for deposits. The exact details of a bet with cryptocurrency does depend on where you go.
This is what you need to know about how crypto betting works.
What is Crypto Betting?
Crypto betting is a relatively simple concept. It is the same as normal esports betting, but with cryptocurrency. It works the same as doing anything else with crypto, like purchasing goods. Whether you’re looking at betting vs gambling, betting with cryptocurrency essentially works the same.
Although, cryptocurrency is a lot less stable than fiat currency right now. It has the potential to rise and fall in value quite quickly. That’s why people play crypto mobile games, to try and get more in the hopes it rises in value. So this type of betting can be a bit of a double-edged sword. Sometimes, the value of your crypto could rise and you could compound the wins. Equally though, the value of your crypto could drop and mute your win a bit. Crypto can be a different way to look at things. However, you do need to know how it works.
How Does Crypto Betting Work?
Crypto betting works just like normal betting, but with cryptocurrency. However, the difference is that the price and value of crypto fluctuate quite a bit. Bitcoin betting won’t return the same value from when you place the bet to when you cash out if you have to move things into fiat to withdraw. That’s why the method of dealing with crypto varies quite a bit depending on where the betting on esports is. This is how it all works:
How Do Betting Sites Take Crypto Deposits?
Betting sites sometimes offer crypto betting. However, that is quite a big term. There’s bitcoin betting, or betting with different tokens. Some only take crypto as a deposit currency. These are the different versions mainly in use to bet with cryptocurrency:
Deposit in Crypto, Bet in Fiat – Convert to Currency
A lot of crypto betting sites offer the opportunity to deposit in crypto, and sometimes to withdraw in crypto too. In these sites, cryptocurrency is just another way to add money to your account. The sites take your crypto and they credit your account with an amount in cash that is ‘equivalent’ to the cryptocurrency. This method of crypto betting is a bit tricky, it has some ups and downs. Betting with crypto here is more than just using it to move money around.
The pros to this type of crypto betting are that you’re protected from price swings while betting. If you withdraw into crypto too, you can still reap all the benefits of betting in crypto without much of the risk. However, there’s a clear downside here. You’re completely reliant on the bookmaker’s conversion rate.
The bookmakers that offer crypto don’t always give you the best exchange rate. It is often quite a bit below standard. Once you factor in this exchange rate, you could be losing a lot of money with this type of betting just changing your currency around.
Using Existing Tokens
This type of crypto betting is probably the cleanest and the one that most people look for. In this type of betting, your currency replaces fiat cash. You deposit in crypto; the bookmaker holds your balance in crypto, and you get payouts in crypto. The price can fluctuate, but it will only change as it would if you were simply holding the crypto outside of the bookmaker. This method is nice and clean, and it treats the tokens the same as normal currency to bet with cryptocurrency.
Using Their Own Tokens
This is another form of betting that some bookmakers offer. This one is pretty unique but a few different bookmakers do offer it. In this situation, you can bet using a proprietary cryptocurrency used only by that bookmaker. They mint their own tokens, which you can buy and then bet with. This method is definitely interesting, it takes a more full-on approach to utilize cryptocurrency. However, it has some drawbacks too.
Much like exchanging your crypto for cash inside of a bookmaker, you’re relying on the bookmaker’s exchange rates. Typically, they control the supply of their token. This might mean it’s technically betting with crypto. However, it removes the decentralized benefits that most people look for in. With one entity controlling the exchange and flow, you’re still definitely vulnerable to the changes. So, while this is a fun type of crypto betting, it carries some of the same downsides.
Exchange Rates for Crypto Betting Sites
Those are the main types of crypto betting that you’re going to find. However, most of them do rely on exchange rates for cryptocurrency that betting on esports. If you’re relatively new to this, that could be a bit confusing.
Each cryptocurrency or token has a current price and exchange rate to fiat currency. This is essentially just the value of the crypto, how much people are willing to buy and sell it for. Most exchanges tend to offer the same rates for crypto changing to cash. However, betting sites don’t always. They operate more like a foreign cash machine! It isn’t normally a service that they offer, so you usually end up paying a premium.
You’re mainly reliant on what they chose to give you as a crypto exchange rate. So sometimes it might be better to just buy fiat with your crypto before you deposit, and rebuy your crypto after you withdraw. This can be a little frustrating if you’re just trying to bet with cryptocurrency.
Is Crypto Betting Different to Esports Betting?
If you’re looking at crypto betting then you might be wondering if it is different to esports betting at all? Crypto betting is just a different type of currency you can use to bet with. You’re still betting on the same events and outcomes. So, you can look at esports betting and sports betting, along with anything else you want to use crypto for!
Crypto betting is a fun and new area for those interested in esports betting. It is going to be helpful to be aware of the different types though. The best crypto betting sites will give you a great experience without stressing about exchanges. Things can be pretty different from site to site, so make sure you know exactly which type it is you’re going to be using!