Crypto betting is exciting but risky. Volatile coins can make your winnings huge, or wipe them out. It all depends on timing. When playing online in casinos like 22Bet, they always make sure that you’re on the right track when playing with cryptocurrency.
Understanding Volatility in Crypto Betting
Cryptocurrencies often change value quickly. A coin might be worth $100 today and $60 tomorrow. This price swing is called volatility.
When you bet with a volatile coin, your potential reward changes constantly. You may win a bet, but the coin’s value might drop before you withdraw.
Case Scenario 1: The Lucky Rise
A bettor places a $100 bet using a coin like Solana. After winning, the value of Solana doubles within days. The bettor now has $200 in winnings, plus an extra gain because of the coin’s price increase. Here, volatility works in the bettor’s favor.
Case Scenario 2: The Sudden Crash
Not all stories end well. One gambler bets on a new altcoin. They win the bet, but within hours, the coin’s value plummets by 70%. The bettor’s profit shrinks instantly. Even though they made the correct bet, market volatility turned a win into a loss.
HODLing After Betting Wins
Some bettors keep their crypto after winning, hoping the price will rise. This is called “HODLing.” In one case, a bettor won 1 ETH betting on a soccer match. Instead of cashing out, they held it. Months later, ETH doubled in price. The choice to HODL paid off.
Fast Cash-Outs: Playing It Safe
Other bettors prefer to cash out quickly after a win. They fear sudden price drops. For example, a gambler wins a bet with Dogecoin. Right after the win, they convert it to USD. Hours later, Dogecoin’s price crashes. The fast cash-out saved their profit.
Stablecoins vs. Volatile Coins
Some betting platforms offer stablecoins like USDT or USDC. These coins are tied to the US dollar and don’t change much in value. Using stablecoins reduces risk. A bettor using USDT can be sure their $50 bet stays worth about $50, no matter what happens in the market.
Case Scenario 3: Chasing Losses in a Volatile Market
One gambler loses a bet and tries to recover by placing a larger bet using a volatile coin. The coin’s price drops further, compounding their loss. This double risk, from betting and coin volatility, can cause serious financial harm.
How Betting Sites Manage Crypto Volatility
Betting platforms deal with crypto volatility in different ways. Some convert your deposit to a stablecoin immediately.
Others let you bet with the actual volatile coin. This gives you exposure to both the betting risk and the coin’s price swings.
Leveraging Volatility for Bigger Gains
Some advanced bettors use volatility to their advantage. They monitor the crypto market and place bets when they expect the coin’s price to rise.
For example, a bettor wagers with Ethereum before a big software upgrade. They win the bet, and ETH’s price surges. Their profit is magnified.
Case Scenario 4: Winning During a Bull Run
A bettor places several bets with a volatile coin during a crypto bull run. They win multiple wagers. Meanwhile, the coin’s value is also rising fast. Their total profit skyrockets. This scenario shows how crypto market trends can multiply betting gains.
Using DeFi Platforms for Betting
Some decentralized finance (DeFi) platforms offer crypto betting. These platforms run on smart contracts and remove intermediaries. But they often use volatile tokens, which can make betting even riskier.
Example: A bettor wagers on a DeFi site using a new token. They win, but the token loses 80% of its value due to a security breach.
Strategies for Safer Crypto Betting
- Use stablecoins when possible.
- Cash out quickly after a win.
- Set price alerts to monitor coin values.
- Avoid chasing losses in volatile markets.
- Understand platform features, like value locking.
Emotional Control in Volatile Betting
Betting with volatile coins requires strong emotional control. It’s easy to get greedy when prices rise or panic when they fall. Good bettors make decisions based on strategy, not emotions.
Learning from Real-Life Bettors
Some bettors share their experiences online. One Reddit user bet with Shiba Inu and won big, but didn’t cash out in time. The coin’s value plummeted, turning a $5,000 win into $500. These stories offer valuable lessons about the risks of volatility.