Thursday Sep 29, 2022

CRYPTO BETTING: WHAT IS IT AND HOW IS IT DIFFERENT?

crypto betting

Crypto is a buzzword that is reshaping the global economy as we know it. Many companies offer cryptocurrencies as legitimate payment methods because they are more secure than credit and debit card payments. When customers use cryptocurrency to pay, their information is not stored in a centralized hub, where data breaches are common.

Many world-class business people are investing in crypto; some even create their own cryptos, like Akon. Crypto summits, crypto games, everything these days are about the crypto and blockchain. 

But what about online betting? Let’s dive into this topic in the following paragraphs and be prepared for stepping into the future of online betting. 

WHAT EXACTLY IS CRYPTO BETTING?

Crypto betting is a straightforward concept. It works similarly to traditional esports betting but with cryptocurrency. It works exactly like any other cryptocurrency transaction, such as purchasing goods. So whether you compare betting to gambling, betting with cryptocurrency works similarly.

However, cryptocurrency is currently far less stable than fiat currency. Its value has the potential to rapidly rise and fall. That is why people play mobile crypto games to try to get more in the hopes that the value will rise. As a result, this type of betting can be a double-edged sword. Sometimes the value of your cryptocurrency will rise, allowing you to multiply your winnings. However, the value of your cryptocurrency may fall, muting your win somewhat. Cryptocurrency can provide a new perspective on things. However, you must understand how it works.

Crypto betting on esports or sports is a rapidly expanding market. Esports bookmakers and other crypto gambling sites are now accepting deposits in more currencies than ever before.

Whether you buy cryptocurrency as an investment or for a specific purpose, crypto gambling allows you to do more without having to convert it back into fiat currency. However, it is inherently more complicated than traditional esports betting. Cryptocurrencies, particularly meme coins, experience frequent price fluctuations. This can make crypto betting more difficult to understand. 

Crypto bookmakers can operate in a variety of ways. Some of them allow you to bet directly in cryptocurrency, using their own currency. Others simply accept it as another currency for deposits. The specifics of a cryptocurrency bet vary depending on where you go.

HOW DOES BITCOIN BETTING WORK?

Crypto betting works in the same way that traditional betting does, but with cryptocurrency. The difference is that the price and value of cryptocurrency fluctuate a lot. Bitcoin betting will not return the same value from the time you place the bet to the time you cash out if you have to convert it to fiat currency to withdraw. As a result, the method of dealing with cryptocurrency varies greatly depending on where esports betting takes place. 

HOW DO BETTING SITES ACCEPT BITCOIN DEPOSITS?

Crypto betting is occasionally available on betting websites. However, that is a broad term. There is bitcoin betting and betting with various tokens. Some only accept cryptocurrency as a deposit currency. These are the most common versions used to bet with cryptocurrency.

DEPOSIT IN CRYPTO, BET IN FIAT – CURRENCY CONVERT

Many crypto betting sites allow you to deposit and sometimes even withdraw in cryptocurrency. On these sites, cryptocurrency is simply another way to fund your account. The sites accept your cryptocurrency and credit your account with the ‘equivalent’ amount in cash. This crypto betting method is a little tricky, with some ups and downs. Here, betting with cryptocurrency entails more than just moving money around.

The advantages of this type of crypto betting are that you are protected from price fluctuations while betting. If you withdraw into crypto as well, you can reap all of the benefits of crypto betting without much risk. However, there is a clear disadvantage here. You are completely reliant on the conversion rate of the bookmaker.

Bookmakers that accept cryptocurrency do not always provide the best exchange rate. It is frequently far below standard. When considering the exchange rate, you could lose a lot of money by simply changing your currency.

APPLYING EXISTING TOKENS

This type of crypto betting is most likely the cleanest and most sought after. Your currency replaces fiat cash in this type of betting. You deposit in cryptocurrency, the bookmaker holds your balance in cryptocurrency, and you receive payouts in cryptocurrency. The price will fluctuate, but only as much as it would if you were simply holding the cryptocurrency outside the bookmaker. This simple and straightforward method treats tokens the same as regular currency when betting with cryptocurrency.

THEY ARE USING THEIR OWN TOKENS

This is another type of wager that some bookmakers provide. This one is quite unique, but it is available at a few different bookmakers. In this case, you can place a bet using a bookmaker’s proprietary cryptocurrency. They create their own tokens, which you can purchase and use to wager. This method is definitely intriguing; it employs a more comprehensive approach to utilizing cryptocurrency. It does, however, have some drawbacks. 

You’re relying on the bookmaker’s exchange rates when exchanging your cryptocurrency for cash. Typically, they have complete control over the supply of their token. This could imply that it is technically betting with cryptocurrency. However, it eliminates the decentralized benefits that most people seek. You’re still vulnerable to changes when one entity controls the exchange and flow. So, while this is a fun type of crypto betting, it has some of the same drawbacks as the others.

CRYPTO BETTING SITE EXCHANGE RATES

These are the most common types of cryptocurrency betting. However, the majority of them rely on cryptocurrency exchange rates when betting on esports. If you’re new to this, this could be a little perplexing.

Each cryptocurrency or token has a current price and a fiat currency exchange rate. This is essentially just the cryptocurrency’s value, or how much people are willing to pay to buy and sell it. Most exchanges offer the same rates for converting cryptocurrency to cash. Betting sites, on the other hand, do not always. They function more like a foreign money machine! They don’t usually provide this service, so you’ll have to pay a premium.

You mostly rely on the crypto exchange rate they choose to give you. So it’s sometimes better to just buy fiat with your crypto before depositing and then rebuy your crypto after you withdraw. This can be a little frustrating if you’re just trying to bet with cryptocurrency.

IS ESPORTS BETTING DIFFERENT FROM CRYPTO BETTING?

If you’re considering crypto betting, you might wonder how it differs from esports betting. Crypto betting is a different currency that can be used to place bets. You continue to bet on the same events and outcomes. So, you can consider esports betting and sports betting, as well as anything else you want to do with cryptocurrency!

Crypto betting is a new and exciting area for esports bettors. However, being aware of the various types will be beneficial. The best crypto betting sites will provide you with a fantastic experience without worrying about exchanges. Things can vary greatly from site to site, so make sure you know exactly which type you will use!

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