Crypto Trading and Its Associations with Online Gambling
When you first heard about crypto trading, you probably thought of a backroom full of Armani suit wearing Wall Street robber barons looking to move the market in their favor.
But crypto trading is more in line with you and your friends deciding which team to play to cover the spread in the Super Bowl than Gordon Gecko’s investment firm. Check out four ways crypto trading is associated with online gambling.
Four Things Crypto Trading and Online Gambling Have in Common
Sports bettors and crypto traders both consider risk versus reward
Whenever a crypto trader invests in a cryptocurrency, the trader always considers the reward potential based on the investment.
Sports bettors do the same thing. Let’s say the Raiders are at -6 to beat the Broncos. If we bet on the Raiders, we must consider if laying the -6 constitutes value.
As sports betting handicappers, we determine value by deciding if the reward of backing the Raiders at -6, or winning the bet, is worth the risk. So, we must decide if the -6 is a fair spread line.
Should the Raiders be -4 instead of -6? If so, the risk is too great in relation to the reward. Should the Raiders be -7 instead of -6? If so, the risk versus reward favors the sports bettor.
Crypto traders and sports bettors use trend and stat analysis
Whenever a crypto trader invests in a cryptocurrency, the trader always considers the reward potential based on the investment.
For crypto traders, like stock traders, the trend is your friend. The saying isn’t always true, but in a lot of ways it is.
Sports bettors use trend analysis all the time. When we see a trend that says something like The Cowboys are 8-2 ATS at home, we know that, more than likely, the Cowboys will cover the spread when they play at home.
Crypto traders use stats, whether a cryptocurrency has gone up and down in price and when it has made up and down moves. We use stats in almost the same way.
For example, it’s well-known among professional football handicappers that the better rushing team can account for 1 to 3 points on the spread line. So, the team that rushes the ball better than their opponent is often the value play to cover the spread.
Public sentiment and news
Crypto traders must consider news and how the public feels. Ethereum’s price went down by close to 3% the day after Kraken pulled out $1 billion worth of previously staked ETH.
The public didn’t like the move, but should a crypto trader purchase ETH because it's down, or decide to sell and go with the public? It’s up to the trader.
For every sporting event where we bet for or against the spread, handicappers like us must decide if the public is right. If the public is, we go with them. If they aren't, we go in the opposite direction.
FYI, there is no magic formula to figure this out. Sometimes the public has no idea. Other times, the public is right. We must use trend and stat analysis as well as our intuition as sports handicappers to come to a decision.
Sports bettors and crypto traders must have excellent self-control
This is the most important association between crypto traders and sports bettors. Without self- control the crypto trader can lose their entire investment and their investing account will crash to zero.
The same goes for us. We must have self-control. Without it, we are continually chasing, continually funding our sports betting bankroll, and never getting ahead.
Where to Bet with Bitcoin
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