Explained: Crypto lotteries and how they work

If you’re looking for a fun and easy way to win some cryptocurrency, then you might want to consider playing a crypto lottery. Crypto lottery platforms are a new way to gamble on the rise of cryptocurrency values. They work by allowing users to pool their money together to buy lottery tickets, with the chance to win a share of the jackpot.

There are a few different platforms that offer crypto lottery games, and in this article, we’re going to compare two of the most popular ones: Pooltogether and Finblox. Both Pooltogether and Finblox offer weekly lottery drawings with significant jackpots.

Both platforms allow people to pool their money together to win prizes. It’s similar to a lottery, but with one big difference: the more people who join the pool, the bigger the prize becomes.

To play, you simply need to deposit with the cryptocurrency of your choice. The bigger your deposit, the better your chances of winning. Each platform has different algorithms that determine your chances of winning.

PoolTogether and Finblox are both a “no loss” lottery that allows people to contribute cryptocurrency to a shared pool that reinvests funds in yield-generating DeFi products. The income generated by these products is then paid out as rewards to a few lucky “ticket” holders every week.

Although you may not "win" using PoolTogether or Finblox, you will not lose any of your original investment. Both tools are a liquidity provider for the industry and a way for crypto holders to potentially be rewarded for holding crypto or participating in these community games.

So, how do these two platforms differ? For starters, Pooltogether doesn’t actually use cryptocurrency. Instead, it uses “USDC,” which is a type of stablecoin that’s pegged to the US dollar. This means that you don’t have to worry about the value of your ticket fluctuating (like it would if you were playing with Bitcoin, for example).

Finblox, on the other hand, does use cryptocurrency. This means that the value of your deposit could go up or down depending on the market. Finblox also offers a wider variety of assets to choose from.

Finblox is the newer platform, and currently has a smaller user base. However, it offers a more comprehensive service, with features such as a mobile app and support for a range of different cryptocurrencies, as well as swap and yield-farming features.

On the other hand, Pooltogether is a larger platform, which has quickly gained popularity due to its simplicity. It also has a more user-friendly interface. Both Finblox and Pooltogether, use a "pooling" system where the prize is divided between the winners based on their contribution to the pot.

So, which platform is better? It really depends on what you're looking for. If you want a more comprehensive service with support for multiple cryptocurrencies, then Finblox is the better choice as your assets will also generate yields. However, if you're just looking for a simple way to gamble with crypto, then Pooltogether is probably the better option as it also has a bigger prize pool.