The latest and most popular trend in online gambling is cryptocurrencies. As cryptocurrencies become more and more popular, their acceptance across different industries is also spreading. At the moment, the online gambling world is dominated by the crypto trend and there is a good reason for that.
Many people prefer to bet with cryptocurrencies over traditional fiat money just because of the many benefits that come from this technology. First of all, betting with cryptocurrencies is more secure just because this technology is backed by a decentralized blockchain network. Additionally, cryptocurrencies come with faster transactions and lower transaction fees, which is like music to the ears of the players.
However, apart from the many benefits that come from using cryptocurrencies in gambling, there are also a few disadvantages.
One of the biggest disadvantages is the volatility of cryptocurrencies. As of now, most cryptocurrencies are not stable and they are very responsive to market news, making the price go up, down, and sideways in minutes.
This is a negative thing especially if you decide to engage in Bitcoin betting at crypto casinos just because you can lose all of the assets you’ve earned if the price drops below a certain point.
So, how to deal with volatility when gambling with crypto?
What is Volatility?
Volatility is a process in which an asset like Bitcoin, for example, increases or depreciates in value. The frequency of the volatility in this asset determines whether or not the asset has high, medium, or low volatility.
In order to analyze all the potential risks in an investment, price volatility is one of the most important things to consider. Every form of investment whether we are talking about stocks, bonds, or crypto can experience volatility. However, the big question is which form of volatility its experiences and on what levels.
What Makes Crypto Volatile?
There are numerous reasons why cryptocurrencies are so volatile, but the biggest one is that it is relatively a new asset class only a decade old, and it is still largely unregulated.
Crypto is volatile for many reasons, such as real-world events, new market and regulatory bodies, trending news about the technology, and even Elon Musk Tweets.
It seems like crypto is so volatile at the moment that anyone with a higher influence can mess with the price of these assets. However, as cryptocurrencies are more adopted by different organizations and into different industries, the price will eventually stabilize and it won’t be so volatile.
How to Deal with Crypto Volatility?
The goal is to buy cheap and sell high, but when gambling with Bitcoin or other cryptocurrencies, you’ll need extensive research and experience in order to get an idea of where the market is heading. Additionally, no matter how much knowledge you have around crypto, nobody can time the market. Since the price of these assets heavily depends on outside factors, nobody could know if the price is going to go up, down, or horizontally.
This is why there isn’t much to do in order to avoid the volatility in crypto. However, here are some things that will make the process go smoother.
Hold Your Investments
As Warren Buffet says, you’ve never lost money until you’ve decided to sell. The same goes for cryptocurrencies. If you believe in the technology, you’ll know that the price will eventually stabilize and even grow in the future, which is why sometimes doing nothing is your best option.
So, instead of focusing on how much your crypto portfolio is worth, try focusing on getting as many cryptocurrencies as possible out of gambling. If you walk away with more BTC from a casino, if the price drops holding your investment until the price climbs back up is the best option.
Manage Your Emotions
If you are new to crypto, make sure to strap on and enjoy the wild rollercoaster ride where the only way you can survive is if you manage your emotions. The crypto industry will test you on many occasions, especially if we combine it with gambling.
This is why it is really important to balance your emotions and avoid unnecessary fast-decision making that can only lead to more losses. So, the next time the price drops, take a deep breath and relax. Or, if the price continuously climbs and you get a feeling of FOMO (fear of missing out) make sure to balance your emotions.
Another way to avoid big price shocks in the world of cryptocurrencies and gambling is to use stablecoins. These stablecoins are digital currencies that will always have the same value as the dollar for example.
The idea here is to exchange your Bitcoin portfolio with a stablecoin when you think that the price will drop, and then buy back into the market at a lower price.
For this, you’ll need to have some kind of knowledge of cryptocurrencies and understand the market.
Staking is also a great way to soften the impact of huge price drops. As cryptocurrencies become more popular, many businesses and even online casinos offer staking options in which you lock in a certain amount of cryptocurrencies for some time and get paid in interest.
Basically, that way you’ll earn money by keeping cryptocurrencies in your wallet. However, make sure to leave out some of your crypto just so you can use it for gambling.