Differences between Traditional and Bitcoin Sports Betting
The name of the game in sports betting is finding value, picking winners and taking profits, whether the wagers are being made with Bitcoin or other digital currencies like Ethereum or fiat money. That said, there are a few nuances and distinct differences between traditional sports betting sites and Bitcoin sports betting sites that make the two experiences a little bit different for hungry bettors.
Here they are spelled out in the table below.
|Traditional Sports Betting Sites
||Bitcoin Sports Betting Sites
||Pay a few Satoshis to the blockchain.
|Know Your Client verification.
|Gamble in one, maybe two currencies.
||Gamble with Bitcoin and many other digital currencies.
|Longer processing times.
||Deposit and withdraw in minutes.
|Strict deposit and withdrawal limits.
||Wider range of minimum and maximum limits.
|Significant house edge on odds.
||Lower fees equal better odds.
||Lower fees equal better promotions.
|Significant third-party involvement.
||No third parties involved.
First let’s go over traditional sports betting sites. Just consider for a moment how many intermediaries they have to deal with. First comes governments. Professional gamblers who view their wagering as an investment know from experience that paying taxes on gambling profits can eat up between 30-40% of those profits. A traditional site running under a proper business license has to register all kinds of information (including your identification) with those agencies just to stay open. That cost gets handed down to gamblers, and your identification gets handed to third parties.
When it comes to gambling in the currency of your choice, a traditional site will offer only one option to gamble with, maybe two if you’re lucky. A Bitcoin sports betting site, on the other hand, will allow users to wager with Bitcoin as well as altcoins like Ethereum and Bitcoin Cash among others.
This also means that with Bitcoin, the same sports are available for betting. This includes, but is not limited to:
- American Football
- Ice Hockey
Perhaps one of the most overlooked advantages of using Bitcoin to bet on sports is the impact it can have on bankroll management. Sure, experienced players understand the value of portioning their bets according to the likelihood of a winning wager, or implementing a variety of other betting systems for that matter. There is, however, one key advantage that Bitcoin offers over fiat money that will help players manage their bankrolls to an even higher degree.
The advantage comes in the fact that Bitcoin is traded down to 12 decimal places. Contrast that with fiat money, where gambling for pennies is as low as one can go. While most Bitcoin sites won’t allow users to gamble 0.000000000001 of a Bitcoin, they will usually accept wagers worth much less than a penny. This means a newbie who is either scared of using Bitcoin or scared of losing their bankroll can portion their bets down to a really small, granular level. Therefore, a patient gambler willing to learn can start with a much smaller bankroll in the first place and thus take on much less risk while learning the ropes.
Weighing risk versus reward and placing wagers that reflect one’s own tolerance and adequately account for losing streaks and bad beats is one of the keys to long-term success in sports betting. We’ll talk more about that in the sports betting strategy and betting tips sections below.
Playing with Stablecoins to Curb Volatility
One unique aspect of betting on sports with Bitcoin is the fact that bankroll management can also mean currency management. In March, 2020, the price of Bitcoin saw 40% dip in one week. Stablecoins are tokens (usually built on Ethereum) that are backed by fiat currencies that don’t fluctuate. It essentially allows gamblers to bet with digital currency that is as stable as fiat but opens the door for wagering with the benefits of crypto. That way, when the price of Bitcoin falls dramatically or shoots up, gamblers can trade their Bitcoin for stablecoins or vice versa and do whatever is advantageous to them.
Sports Betting Strategy
All of the Bitcoin and sports knowledge in the world is not worth anything to gamblers who don’t know how to manage their bankroll or don’t have a set sports betting strategy in place. Having a basic strategy that works and sticking to it is the key to long-term success.
Consider that professional gamblers usually bet in units or percentages ranging anywhere from 1%-5%. In other words, they only gamble as much as 5% of their bankroll on a single event – that’s if they think the likelihood of winning that wager is high of course. On the other hand, if they think their odds of winning are only slightly above 50%, they’ll wager closer to 1% of their bankroll.
Some gamblers prefer to organize their bets into units. Assuming they are playing with a $1,000 bankroll, they may decide that one betting unit is just $10, which is 1% of their bankroll. On a wager that is likely to win, that means a 5% wager would be $50.
The bottom line is, beginners need to have a strategy. Going big on a huge favourite will win a lot of wagers, but one significant loss can wipe out the entire bankroll.
Top Bitcoin Betting Tips
Aside from bankroll management and sports betting strategy, Bitcoin newbies need to be cognizant of other keys to success in betting on sports with digital currencies. Consider these tips and let the profits roll in.
Bag a Bonus
Many Bitcoin sports betting sites will offer new users a welcome or first time deposit bonus by matching up to 100% of a new user’s deposit. That’s one quick way to double the bankroll. Take advantage of these bonuses for sure. Just keep in mind that players need to rollover their bankroll between 30 and 50 times over depending on the site in order to receive their bonus. Remember, they are offering you the bonus to keep you coming back for more.
As mentioned several times in the sections above, there is no need to share your name or identification on Bitcoin betting sites. Keep it that way. How you choose to spend your entertainment dollars is your business. If you want to wager on the big game and keep that information to yourself, Bitcoin betting sites let you do just that.
Store Funds in a Wallet, Not On a Sportsbook
One important principle to understand is the fact that Bitcoin doesn’t have a central authority overseeing transactions. All exchanges of value are validated by the participants on the Bitcoin network. The moment you send your Bitcoin from a private wallet to a sportsbook, you are at risk for getting hacked. Though the risk is minimal, storing Bitcoin in an offline wallet (an offline device that resembles a USB key) is the only way to be sure that your value remains secure.
Find a Bookie with a Low House Edge
Succeeding in sports betting is all about finding the best price on a wager. If one site is paying out 4 to 1 on an underdog and another is paying out 4.5 to 1 on the same selection, it makes sense to go for the extra value. Using Bitcoin to bet on sports means being one step ahead of brick-and-mortar sportsbooks in most cases because players are getting better odds in general. After all, the fees on Bitcoin sportsbooks are lower so there’s a higher profit margin that can be offered to players. Shopping for the best betting odds among Bitcoin-specific sites can sometimes result in finding even more value.
Point Spread Betting with Bitcoin
Betting on the point spread with Bitcoin means betting on matches where the odds are even and the favourite must win by a margin in order for the bet to be a winner. If the NFL’s Buffalo Bills are favored at -2.5 points over the New England Patriots, it means winning by a field goal results in the wager paying out even odds minus whatever vig the bookie takes. Either way, a win results in more Bitcoin moving into your bankroll.
You’re officially primed and ready to bet on sports with Bitcoin. It’s now time to take the leap and move from newbie to veteran. As you move throughout your Bitcoin sports betting journey, keep in mind that no matter the currency being used, the name of the game is still the same. Wager only what you can afford to lose, manage your bankroll, develop a refined strategy and let the Satoshis fall where they may.
Good luck and happy sports betting!