Mon. Nov 18th, 2024

Bitcoin was the first cryptocurrency and it has been around since 2009. Back then, the prospect of crypto trading was a tiny idea – a mere speck on the horizon that is the wider trading world. People scoffed at the idea of investing in digital money…and they were right, initially. 

Crypto trading didn’t take off until much later. Fast forward a few years and the original investors in Bitcoin were suddenly millionaires. Now, crypto markets are constantly watched and still provide a way for investors to make money. The rapid fluctuations and volatility make it a haven for day traders who can make thousands of dollars a day with some clever trades. 

This all led to the growth of cryptocurrency across other industries and parts of life. In 2024, we’re starting to see one particular industry grab a lot of attention: online gambling. The idea of crypto gambling is bigger than ever before and many are touting it as the next viable way to make money. Is this true? Let’s find out! 


Crypto Gambling Explained
When we talk about crypto gambling we’re speaking about any form of gambling activity funded by cryptocurrency. This is commonly done at casinos accepting credit cards and crypto payments. Players can join these websites and fund their accounts either directly via crypto wallets or from a credit card payment. The money can then be used to bet on different games or sports events with the hope of winning. 

If you win, you can withdraw your winnings and have them converted into cryptocurrency. You could technically make a big profit from this – just like all forms of gambling – but there’s something extra unique about crypto wagering. 


Crypto Trading Meets Gambling: The Perfect Storm

Partaking in crypto gambling means you’re also doing crypto trading by default. Your money may be paid in crypto or it gets converted from dollars to crypto when you withdraw it. So, you’re still technically buying and selling cryptocurrency – but with an extra step in between. 

It’s this additional step that grabs many people’s attention at the moment. This is where you have the potential to supercharge your crypto investments, and we’ll explain how with an example: 

  •  You have a crypto wallet with 5 Bitcoin Cash in it. You find a casino that accepts BCH and decides to deposit 1 BCH to play. 
  • Your 1 BCH gets converted to USD so you can bet on different games or sports. At the time of writing this gives you around $450 to play with. 
  • You spend some time betting on slots and other games and guess what; you get lucky. You turned your $450 into $900 – an epic win! 
  • Unfortunately, the price of Bitcoin Cash dropped while you were winning your money. It took you a few weeks to earn that amount of profit and withdrawing your funds back into BCH will mean you end up losing some of your winnings. 
  • Instead of withdrawing it right away, you hold onto your winnings until BCH starts looking up again. You take out your money when the price is at $450 again and now you have 2 BCH to add to your crypto wallet, giving you 6 in total. 

In this scenario, you’ve gained an extra 1 BCH despite the market dropping. Perhaps more importantly, the money you won was unaffected by the drops and fluctuations of the crypto market. Many investors are seeing crypto casinos or betting sites as a way to diversify crypto assets and keep them safe until the markets even out. 

When done smartly – like in our example – you can gain money where others may have lost some. 


Does This Mean Crypto Gambling Is A Viable Way Of Making Money?

No. 

Gambling in any form isn’t a viable way of making money. 

Why? Because your chances of success hinge on chance. Our example was completely made up – a completely different scenario could see you lose your $450 and be down 1 BCH. Moreover, factor in this research on ScienceDirect that explains the interrelations of cryptocurrency and gambling. It talks about how much of crypto trading is a risk and that makes it almost akin to gambling in many ways. 

So, when you combine it with actual gambling, you can never guarantee that money will be made. The bottom line is that you should never rely on gambling as a way to make money. What you can do is take some of your crypto investments and gamble them for sport. Take out as much as you’re willing to lose and see if you get lucky. You might, meaning you could improve your overall investment. Just don’t lean on it as a source of income or even a source of passive income!

By Xplayer