Crypto gambling is all the rage right now, and for a good reason at that. The total size of the global crypto gambling market is estimated at $250 million. In fact, more than 4% of all gambling in the last couple of years has been related to cryptocurrencies, and wanting a piece of the action sounds like a sound business plan, right?
No argument there. However, not everything about investing in crypto gambling is going to be smooth sailing. Anything in business rarely is and cryptos are no different. That’s, in part, what makes it so exciting. The value of cryptos goes up and down constantly and state financial regulators look to impose restrictions on the use of cryptocurrencies all the time. However, the players seem capable of overcoming those hurdles and more of them are resorting to top crypto gambling sites to enjoy casino gambling.
Join us as we explore the risk and potential rewards of investing in crypto gambling further. Let’s dot all the i’s and cross all the t’s of the world of crypto gambling below.
Risks of Investing in Crypto Gambling
It would be wise to kick things off with a word of caution here. What is Bitcoin gambling if not a money-making machine is something you might hear layman saying when discussing the potential of the crypto gambling market. In reality, things are not as simple as that.
One of the major issues with crypto gambling that always puts investors on guard is the fact that no centralised financial authority governs cryptos. The value of Bitcoin, Ethereum, Litecoin, you name it, is driven mostly by supply and demand. No Fed rate hikes can affect it like they affect the US dollar.
Moreover, countries worldwide are just starting to accept cryptos as legal tender, and so are licensed casinos. For example, the UKGC requires casinos to perform due diligence on users playing with crypto, which beats the very purpose of crypto gambling — anonymity.
Therefore, the crypto markets are intrinsically volatile and notoriously difficult to predict. In November 2022, Bitcoin dropped to $16,000, its lowest value in three years, and it happened just a year after it hit a record high of $69,000.
There’s also an issue with potential frauds and scams. The latest scandal that shook the world of trade was the charges brought up against FTX founder Sam Bankman-Fried claiming he cheated investors and looted customer deposits worth billions of dollars on his cryptocurrency trading platform.
Finally, whenever there’s gambling, there’s a possibility of taking it a step too far and falling into gambling addiction, warranting more detailed Know Your Customer mechanisms that many players simply don’t appreciate.
Rewards of Investing in Crypto Gambling
The crypto volatility in 2023 is not necessarily a bad thing. We can see Bitcoin slowly picking up some steam and starting to ascend to its former glory, meaning online casinos that took BTC when it was down to its lowest point can now relish in their increased profits.
Furthermore, crypto gambling platforms are seeing a constant rise in users, and thanks to the very nature of gambling where the house always wins, the potential for considerable returns is always there.
Gambling with cryptocurrencies also brings an additional level of privacy and anonymity. Players are no longer required to divulge personal and banking information to operators when playing. The only transaction between the two entities happens at the level of crypto wallets and their respective addresses.
Moreover, crypto gambling is now only a tap away from the users considering how all crypto platforms are developed to be fully optimised for all Android and iOS devices. Not only are crypto gambling platforms mobile-friendly, but so are crypto wallets, adding to the overall convenience.
Ultimately, as we could see with the launch of NFTs and the craze that ensued, the world of cryptos is always open to novelty, especially that which easily translates to revenue opportunities.
Strategies for Mitigating Risk and Maximizing Rewards in Crypto Gambling Investments
The same tenable strategies of investing apply to crypto gambling investments as well. Putting all of your eggs in one basket is never a good solution. Rather, the diversification of portfolio with a variety of investments that have different ranges of expected returns and risks is. A portfolio with different assets stands a much better chance of protecting you against events that could harm your investments.
Next in line is performing due diligence on the market. The numbers don’t lie, and if you dedicate enough time to go through the market movements in the past few years, focusing especially on the events that send the reverberations across the markets. This way, you can catch a trend and see how the financial markets react, which can help you move your assets accordingly when needed.
Assessing all those risks that come with any kind of investment and asset management are two of the most important skills to have. When potential rewards outweigh the risks, you have a good starting point, but that won’t suffice. In the long run, you are probably going to have to cut some loose ends and resist the panic urge to sell to save at least something.
The line that differentiates the two is very thin, and according to many financial advisors, during a market crash, you should not panic sell. In fact, you might want to go shopping during the crash and dollar-cost average all the purchases.
When investing in crypto gambling, you must also focus on upholding responsible gambling policies imposed by regulators and implement tools aimed at reducing the harm of excessive gambling. Running a crypto gambling platform entails the establishment of Anti-Money Laundering checks that ensure the funds used on the platform are clean.
Taking a step forward and investing in crypto gambling platforms is a gamble. Pun intended. Still, rarely can you find an industry with so much revenue potential at such a fast pace. Launching a crypto gambling site where players can gamble safely and anonymously is bound to attract attention from players constantly looking for new gaming opportunities. The important thing is to always diversify your investments into several projects of different risk/return ratios so that you can stay afloat more easily when the markets get churned.