See what crypto volatility means for crypto gambling. Understand your exposure and risks inside and outside online gaming venues. Learn how you can adjust your gaming habits to the crypto market and more with this quick insight.
Every time you hear about cryptocurrencies on the news, they either have an astronomical rise or an astronomical fall. Volatility has become a synonym for cryptocurrencies, and they are a matter of time, even for the biggest coins such as Bitcoin. Just such an event occurred recently, with Bitcoin losing a big chunk of its value. So, how can you protect yourself and your crypto casino deposits in times of high volatility?
A common trend among those who hold Bitcoin and decide to gamble with it is that they are focused on their coins and nothing else. Instead of being focused on the bare number, punters should be focused on the USD or other fiat equivalent of their held coin balance. This will not only give you a clearer picture of how much cash you have on hand but also how you can best use it to make use of bonuses, whose matching is often tied to just the bare BTC numeric value rather than the underlying fiat sum.
Whenever you are dealing with crypto in gaming, you are dealing with two distinct risks. One is game variance, which is intrinsic to wagering your cryptocurrency and depends entirely on the casino game that you choose to play. The others are market dips that occur completely separate from your gambling losses, but can induce stress and cause impulsive decision-making.
You may be pushed into impulsive decision-making when the crypto markets falter, and the value of your crypto falls, but do not make this mistake. Instead, keep a cool head and simply lower the size of your wagers. The market will fluctuate up after a while, and there is no point in gambling your entire bankroll away before that happens.
Make hay when the sun shines and consider stablecoins when it does not. Smaller coins that are less popular and, therefore, less exposed to large fluctuations may be a safer bet when Bitcoin is being volatile. Coins such as USDT and UDSC specifically have been known to lower price fluctuation risk.
We have been talking about negative emotions such as stress and anxiety, but even positive emotions can be negative in the wrong context. If Bitcoin went drastically up and you want to celebrate with a few wagers, you simply dull your senses. You are then more susceptible to risk and less prone to regret losses, which can lead to mounting losses. Once these start rolling in, you start trying to “recover” lost BTC, which always leads to larger losses.
Whenever volatility hits, you need to batten down the hatches. An incredibly important aspect of limiting your exposure is the various gambling limits, which you can set at online casinos themselves. These so-called stop-loss thresholds can prevent impulsive behavior or distracted gambling from wasting away your entire Bitcoin deposit.
There is very little reason to deposit large amounts of Bitcoin unless you are trying to maximize a crypto bonus. Holding large sums of crypto in your casino wallet is pointless, as you will probably not wager all of it. Moreover, if a cryptocurrency loses a lot of its value at once, an online casino might check whether payouts with said crypto even make sense at the moment, which can potentially lock away your Bitcoin.
Do you think that you will need fiat currency soon? Then you may want to reduce your crypto exposure and cash out of your online casino wallet. Moreover, you should plan such exit strategies in advance, as your daily withdrawals may be limited. All in all, adjust your crypto holdings based on your liquidity needs with a view to medium and long-term plans.
We touched on daily withdrawal limits, but what about other types of crypto casino limitations? A casino that does not support multiple cryptocurrencies and does not do fast currency conversions can be disastrous when crypto volatility hits. You should, therefore, only play at the best online gaming platforms from our list of quality ones.
Not all online casino games are made equal. Those that have lower volatility are to be favored during downturns, so that the combined effect of market swings and game variance is minimal. What is more, games with smoother payouts can keep your bankroll performing somewhat stably.
While our 10 tips are useful pointers that can help you keep your crypto gaming on the right path during volatile times, you may also find other OCR guides and insights useful. Subscribe to our newsletter, follow our reviews, and check out our guides to learn all there is to know about the world of modern iGaming.
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