Most first-time crypto bettors take their time to research which betting site to open their first account with, considering factors such as signup bonus, withdrawal processing time and limits, etc. However, crypto betting is different from fiat betting in another key way currency.
As crypto bettors are aware, cryptocurrencies, aside from Bitcoin, come in two different varieties stablecoins and altcoins.
Altcoins are coins issued by various crypto projects and alternate in price considerably over time. Conversely, stablecoins are pegged to a fiat reserve, typically denominated in USD, and have little to no price fluctuations.
Depending on the coin of your choosing, you may have to structure your betting strategy differently. For instance, when betting using altcoins, you have to consider the price fluctuations over time to structure your bets in a time-sensitive manner.
While this adds a degree of complexity to betting, crypto betting can also give bettors more flexibility and allow them to compound the dollar value of their winnings in some scenarios as well.
Betting using stablecoins is a straightforward process that is practically indistinguishable from fiat betting, as stablecoins are pegged to the U.S. dollar, which makes it easy for bettors to manage their balances and bets.
The difference between stablecoins and altcoins in betting becomes more prevalent when dealing with long-term bets, such as sports bet slips, which can be placed months prior to the actual event taking place. We will discuss these differences in more detail later.
Betting using USDT is one of the most popular methods for crypto holders. Quantifying your bets and managing your balance are considerably easier when your crypto balance has the same buying power as a fiat balance would.
For example, let’s consider a real-world example of a bet made on the football match between Liverpool and Manchester United:
The odds in favor of Liverpool winning the match are 1.40, which means that a stake of 100 USDT would yield 40 USDT in profit if Liverpool wins. Many crypto betting sites denote balances in a major fiat currency, such as USD, EUR, or GBP. This way, it is easy for bettors to manage the potential profit generated by their positions without the need to consider price fluctuations of their account currency.
Tether’s flagship stablecoin, USDT, is the most popular stablecoin on the market and widely used in crypto casinos, particularly in sports betting, slots, card games, etc.
The best USDT crypto betting sites also offer various welcome bonuses, such as free bets and free spins.
Similarly to USDT, bettors can use Binance’s stablecoin BUSD as their primary account currency to place bets and make withdrawals. The BEP-20 chain makes it easy for bettors to make near-instantaneous withdrawals and is supported by a wide variety of betting sites.
BUSD is also pegged to the U.S. dollar, which makes it convenient for bettors to use.
However, it must be noted that since BUSD is a product of Binance, it does carry a degree of counterparty risk for bettors.
Using altcoins when betting adds a degree of complexity to a betting strategy, as altcoins tend to be volatile and their price may change from the point of placing a bet, to the eventual outcome of the bet.
For example, if you bet 1 LTC on a position with 1.2 odds, you would expect your eventual profit to be 0.2 LTC, which would be true. However, the price of LTC could have dropped by 2% in the meantime, which reduces your potential profits in dollar value.
Conversely, the opposite might happen and an increase in LTC’s price can further add to your profits in dollar value .
Ripple’s XRP is a popular altcoin that is offered by many crypto betting sites around the world. The relatively low price of XRP makes it easier for traders to quantify by crypto bettors.
However, it must be noted that more crypto betting sites offer other altcoins as funding options, such as Litecoin and Bitcoin Cash, rather than XRP.
Regardless, using XRP is a convenient way for bettors to fund their accounts and make bets.
A more popular altcoin used in online betting, Litecoin is offered by a wide range of online casinos. Some of the best online betting sites that offer LTC include the likes of Cloudbet and BC.Game, among others.
Litecoin can be a volatile altcoin, which exacerbates the potential mismatch between the initial and final account values for bettors, which is an important factor to consider when using LTC as the primary cryptocurrency in online betting.
Using two of the largest and most popular cryptocurrencies in online betting is extremely common. Most, if not all online casinos, offer Bitcoin and Ethereum as viable options to hold balances in and make deposits/withdrawals.
Another upside of using BTC and ETH in online betting is the relative stability of these currencies compared to altcoins, which somewhat reduces the risk of sudden fluctuations between the placement and execution of bets.
Betting with BTC is available in hundreds of online crypto casinos worldwide. As the largest and most popular cryptocurrency on the market, Bitcoin is widely used in online casinos and sport betting sites. However, due to the high price of 1 BTC, most bettors will hold fractional balances in the currency, which may be a bit harder to manage.
Luckily, many online casinos solve this problem by displaying the going dollar value of the user’s going balance, while also allowing them to choose bet sizes denominated in USD, which is then displayed in accordance with the going USD/BTC price. This is done to avoid any confusion that may arise from balances displayed in BTC decimals, which can make calculating the buying power of the account a bit more difficult.
Ethereum, as well as its ERC-20 chain, is popular among online players and allows them to make deposits and withdrawals and place bets in a flexible manner.
While the withdrawal limits are upheld individually by online casinos, ERC-20 ensures fast transactions between the wallet and the betting account of the player.
The ERC-20 chain is also one of the safest blockchains in the world, which is another added benefit of using Ethereum in online betting.
The use of cryptocurrencies in online casinos and sports betting is becoming more and more popular each year. Bettors must consider the inherent differences between using stablecoins and altcoins in betting, as the price of altcoins are subject to market forces that can affect the dollar value of players’ payouts, especially in sports betting.
Using Bitcoin and Ethereum is another popular method of betting that also gives players relative price stability when compared to most other altcoins on the market.
When choosing which cryptocurrencies to use as the primary balance currency, it is important to consider the adoption rates of said cryptocurrencies and the ease and affordability of transfers between accounts and wallets.