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Introduction
When comparing cryptocurrencies to traditional fiat currencies, crypto is undoubtedly the new kid on the block. Despite being new it came out of the gates fast intending to make the biggest splash possible. This has splashed over in a big way into several other industries including betting with many esports and sports books accepting a wide variety of cryptocurrencies and allowing customers to place bets with crypto rather than fiat. To this extent, several bookmakers have come up with inventive ways to give crypto users more options and games that go far beyond just simply converting crypto to fiat.
What is Crypto Betting
With many of us still feeling like we are nursing a Super Bowl betting hangover, especially if we thought the Eagles had it in the bag, the world of sports and esports betting continues and is providing customers with some novel opportunities? Before these opportunities can be unlocked it's wise to look at what exactly one of these opportunities, namely Crypto Betting, is.
Fundamentally, Crypto betting is just like regular sports betting but the mode of exchange is a cryptocurrency rather than the dollars or euros in your bank account. The major differences come in the value of a specific cryptocurrency which fluctuates far more than fiat currency opening up new opportunities to profit from successful bets.
Given that crypto values fluctuate more than their fiat counterparts crypto betting does require the customer to look at things differently. Often the savvy customer will look to cash out bets when values are higher but the value is determined by the market so understanding the crypto market can help greatly in knowing when to cash out.
Conversion Services
Knowing when to cash out of a crypto bet can be intimidating for those who don’t follow the market. This has been picked up by several bookmakers who now offer conversion services for those not looking to time the market. It should be noted that if you use the platform's conversion service if one is offered, you are reliant on the conversion rate provided by the bookmaker, this is often lower than the current market values. The next thing to note is that if you are converting from crypto to a fiat currency for several bets you may be paying significant amounts of cash over in conversion fees.
Using Existing Tokens or the Bookmakers Custom Tokens
In this type of betting offering your cryptocurrency replaces fiat cash and is possibly the cleanest way to bet using crypto. All you need to do is a deposit in the crypto of your choice as long as the bookmaker accepts said crypto, the bookmaker holds the deposited crypto, and you get paid out in crypto. This method by no means negates price fluctuations but the price fluctuates as it does on the market. This method prevents the paying of conversion fees and you are getting market value for the crypto rather than a reduced rate of exchange.
Some bookmakers now offer their tokens to be used in bets. Here your cryptocurrency is converted to the bookmaker's token. You are reliant on the bookmaker’s exchange and you negate the decentralized benefits of using a cryptocurrencies blockchain, such as increased privacy. To provide more advantages to customers that use this method the bookmaker will provide a bonus that if used right can offset the disadvantage mentioned above.
Conclusion
Crypto betting has provided several opportunities to both the customer and the bookmaker. Despite the concept of using cryptocurrency to place bets being relatively new, it has breathed new life into the industry as those wanting to bet on esports shunned traditional bookmakers and prefer using technology to facilitate their betting.
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Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.