In recent years, people have been using cryptocurrencies to bet on sports, games, and other events. This activity is known as sports betting.
The trend is rising due to several factors, including the security, anonymity, lower fees, and speed of cryptocurrency transactions. As a result, betting with crypto is slowly becoming more popular than betting with fiat money.
A study by Crypto.com found that the number of crypto users worldwide doubled from 106 million in January 2021 to 295 million in December 2021. As of 2023, crypto agency Triple A estimated global crypto ownership to be over 420 million.
However, this number is merely an estimation due to the decentralized nature of Bitcoin and other cryptocurrencies. It does not trade through regulated markets or centralized exchanges.
One way to estimate the number of Bitcoin holders is to look at the number of wallet addresses. However, this approach needs to account for people who have multiple wallet addresses or do not use their wallets regularly.
Another way to estimate the number of Bitcoin holders is to look at the number of transactions. This metric is more accurate, as all Bitcoin transactions are recorded on the blockchain.
With the rise of global crypto adoption, more and more online casinos and sportsbooks enable betting with cryptocurrencies.
Cryptocurrencies for betting
Today’s crypto market sees an abundance of cryptocurrencies, but not all can be used for betting. Different sportsbooks usually have different policies regarding which tokens are accepted.
However, some coins are generally accepted across different sportsbooks. They are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether (USDT), Tron (TRX), Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), Binance Coin (BNB), Binance USD (BUSD), USD Coin (USDC), Polygon (MATIC) and The Open Network (TON).
These coins are popular and widely used, making it easier for sportsbooks to process the bets. As each currency has varying values on the broader market, sportsbooks also have different rules on the minimum and maximum deposit amounts for each.
Some sportsbooks also only allow a particular cryptocurrency to be used. A bitcoin sportsbook, for example, enables users to place bets on sporting events using only Bitcoin.
Each sportsbook also has varying betting methods.
There are three types of crypto betting available on the market. One is depositing in crypto but placing the bets in fiat. The second one is using existing crypto tokens like most bettors use. Lastly, using a special token specific to a particular bookmaker.
Betting with crypto vs. fiat money
Betting with cryptocurrencies works just like typical sports betting with fiat money. The difference lies in the fluctuating value of cryptocurrencies, which can be unpredictable at times.
If the value of the cryptocurrency you bet with goes up, you could make a lot of money. But if the value of the cryptocurrency goes down, you could also lose a lot of money.
The value of fiat cash worldwide can be more stable. However, it is not without its challenges.
Compared to crypto, fiat currencies’ payment can sometimes be drawn out and slow. It is also contingent on inflation. Fiat currencies are generally subject to government control, as it is a centralized system, as opposed to crypto.
A short study by Cryptobetting News comparing the odds offered by crypto betting and fiat betting found that crypto betting odds are potentially better. Although this finding might change depending on bookmakers and matches, it shows that crypto betting is a great alternative.
With these advantages and disadvantages in mind, you can decide which currency is right for you. Make sure to gamble responsibly with limitations and contact help centers if you have problems with gambling.