The cryptocurrency market is often compared to casino gambling. After all, crypto investing involves plenty of risk and uncertainty.
Casino gaming and cryptocurrencies are similar in a number of ways beyond just the gambling aspect. I’m going to discuss seven of the main ways that crypto investing and online casino games are similar.
1 – Crypto and Casinos Feature Plenty of Risk
As mentioned at the outset, both cryptocurrencies and casino games both involve a large amount of risk.
The house holds an edge in casino gambling. Therefore, you need to win over 50% of the time to overcome the house edge and make profits.
European roulette carries a 2.70% house advantage. You must win over 51.35% of your even-money wagers to make money in this game.
Cryptocurrency risk is a little different. No house edge exists, although you must pay a small trading fee (e.g. 0.5%) every time that you buy or sell a cryptocurrency.
The main uncertainty comes in how you never know if an asset will increase or decrease in value. You may think that Ethereum (ETH) will moon in the future, but you have no guarantees of knowing this. ETH could skyrocket 1,000% by next year, or it could fall by the same amount.
In a sense, cryptocurrencies are actually riskier than gambling. However, they also have more long-term profit potential when considering the lack of a casino house edge.
Casino games, on the other hand, usually involve small theoretical losses. If you’re playing baccarat (1.06% house edge), for example, you’ll theoretically lose just over a dollar for every $100 wagered.
2 – Both Involve Strategy
Casino gambling can either feature a high or low degree of strategy, depending upon the game. But the key point is that many games do call for some strategy.
Poker is definitely one of the most complex casino games. You need to use critical thinking skills to consider what your opponent may hold, especially as you move up the stakes.
Roulette has far less strategy than poker. But you still need to know which games pay the best (i.e. French and European roulette) and properly manage your bankroll.
The cryptocurrency market also involves plenty of strategy. You can use different strategies depending on what your goals are.
One of the easiest plans is to “hodl,” or buy and hold an asset for a long time.
You can also use dollar cost averaging (DCA) to minimize your risk in the short run. DCA involves spending a fixed amount on cryptocurrencies at a predefined (e.g. $500 on the first of the month).
You can also use more-complex strategies, such as day trading and swing trading. However, you should really get to know the market as well as the basics of both types of trading before using either.
3 – Casinos and Trading Sites Offer Bonuses and Promotions
Online casinos have become well known for offering bonuses. You’ll be hard-pressed to find a gaming site that doesn’t at least offer you a deposit bonus.
You can look forward to plenty of other rewards at casinos too, such as free spins, cashback, birthday gifts, and faster casino deposits/withdrawals.
Cryptocurrency trading sites have taken a cue from the online gambling world and offer their own bonuses. For example, they may reduce your trading fees or even give you free crypto.
Many trading sites also run frequent promotions to keep you engaged. For example, a trading platform might feature a trading contest, where the highest-volume traders receive free cryptocurrencies.
You should never choose an online casino or trading platform based solely on bonuses and promotions. However, these offers can definitely improve your bottom line in either discipline.
4 – Certain Forms of Gambling Are Also Zero-Sum Games
Much like the stock market, the crypto world is often described as a “zero-sum game.” This term refers to the fact that when somebody makes money in crypto, one or more people must lose it to balance everything out.
You can make the argument that crypto isn’t exactly a zero-sum game. After all, many assets have increased greatly in price since initially being released. But generally speaking, somebody does lose money when another person gains it in the short term.
However, poker is a prime example of a zero-sum game. For every winner, there are usually plenty of losers who are providing the profits.
The zero-sum aspect of both cryptocurrencies and certain types of gambling is why you want to study strategy. You have a better chance of making money when you’re more skilled than the competition.
5 – Both Industries Have Scammers
You should always do your research before depositing at a crypto trading platform or online casino. After all, both Industries have scammers.
The cryptocurrency world became notorious for scammers during the bull run of 2017. Everybody from YouTubers (e.g. CryptoNick and Trevon James) to projects (e.g. Bitconnect and OneCoin) were ripping off dumb money coming into the market.
Some scams weren’t even so blatant. Instead, projects gather lots of funding, put in minimal work, then abandon ship under the guise that things didn’t work out (i.e. a soft-exit scam).
Online casinos have also entailed gamblers’ worst fears about the industry. For example, the Virtual Casino Group failed to honor bonuses, didn’t pay certain players, and allegedly beat an unhappy customer.
You want to know the backgrounds of any operation you’re dealing with so that your money doesn’t get stolen.
6 – You Need Discipline to Survive in the Casino and Crypto World
Most people view casino games as a simple form of entertainment. However, some gamblers get carried away and become addicts.
They may start betting money that they don’t have in hopes of winning everything back. Considering the house edge, these efforts usually just result in more losses and misery.
The crypto industry isn’t known for creating “addicts” in the traditional sense. Nevertheless, many people have put too much money into the market and lost big, especially during the bear market of 2018 and early 2019.
You definitely don’t want to be in a situation where you’re either gambling too much or over-buying cryptocurrencies. This is why it’s important to remain disciplined with either pursuit.
Bankroll management is a great way to keep yourself from blowing too much on casino games. You can use a variety of bankroll management methods, but the key is to put some consideration into the matter.
DCA-ing is one of the best methods of remaining disciplined with cryptocurrencies. You’ll be less susceptible to the highs and lows of this volatile market when you buy at predefined points.
7 – Cryptocurrencies and Casinos Have a Close Banking Connection
Risk isn’t the only reason way online casinos and cryptocurrencies are compared. They also have a very close bond when it comes to making internet casino deposits.
Some gaming sites have begun accepting Bitcoin and other cryptocurrencies as deposit methods. US-friendly casinos are particularly fond of cryptocurrency. They use Bitcoin to get around the restrictive Unlawful Internet Gambling Enforcement Act (UIGEA).
Some players really enjoy using crypto over traditional deposit methods, such as e-wallets, bank transfers, and wire transfers.
Cryptocurrencies don’t look like they’re just a fad in the casino gaming world. Instead, more and more sites are accepting these digital currencies each passing year.
If you have a tolerance for risk, then you may appreciate both casino gambling and cryptocurrencies. After all, both have plenty of similarities.
First off, you can make a lot of money with each. But you should definitely know the risks associated with both crypto and casino games ahead of time.
Another similarity is that you can use strategy in both pursuits. Crypto and some casino games require a high degree of strategy to overcome the competition.
You can also pick up some nice bonuses at online casinos and trading sites. You’ll normally receive some type of deposit bonus after funding your account.
Before making a deposit, you want to research whatever trading site or casino site you’re dealing with. This research helps you avoid scammers in either industry.
You also need to remain disciplined with either cryptocurrencies or casino gambling. Each involves a large amount of risk and can tempt you into betting or investing more than you should.
Assuming you’re into both casino games and cryptocurrencies, then you can find a common link between the two. Many gaming sites now accept crypto as a deposit method.