We all know about the erratic changes in cryptocurrency prices, but do we consider how such volatility could affect our online gambling experiences?
Crypto volatility, on the surface level, can strongly impact the luck of casino players who decide to bet using digital currencies.
In this article, we’ll examine the intricate relationship between crypto market fluctuations and casino games and answer the looming question–does volatility affect your game balance?
What’s the Deal with Crypto Volatility?
Crypto volatility is like a roller coaster for prices. One minute you’re up, the next you’re down, and it all happens in the blink of an eye. These price swings can happen in minutes, hours, or days, which can directly affect the value of your crypto balance.
If you play in a casino, the real value of your deposits and withdrawals might change while playing games.
To better visualize it, we’ll provide you with two scenarios:
Case 1 – The Price Drop
You deposit $50 worth of Dogecoin into your casino account. A week rolls by, and boom —Dogecoin’s value takes a 15% nosedive.
When you go to cash out, you’ll notice your DOGE doesn’t stretch as far in dollar terms as it used to.
But hey, it’s not all doom and gloom. Sometimes, volatility can be your best friend.
Case 2 – Winner, Winner, Chicken Dinner
Of course, negative scenarios are possible. But so are the positive ones. Let’s say you deposit 0.001 Bitcoins when it’s trading at $45,000. You play for a bit and your balance is more or less the same over a few months.
When you want to cash out, Bitcoin’s price has shot up to $65,000.
The Numbers Game: Crypto Gambling Stats
Of course, we can’t really back our thesis without some stats to justify those claims. Let’s crunch some numbers from a crypto gamblers’ habit survey and see what they tell us about crypto casino users:
● 31% of crypto casino users reduce their activity when cryptocurrency price volatility is high.
● On the flip side, 41% of crypto casino users keep calm and carry on, no matter how wild the market gets.
● 42.76% of crypto casino users prefer to play when crypto prices are rising.
● If prices are taking a nosedive, 38.82% of casino users still feel lucky enough to place their bets.
These statistics demonstrate that while volatility does influence some users’ behavior, a significant portion remains unaffected. That 41% who keep playing regardless of market conditions suggests either a high tolerance for risk or a perspective of playing primarily as entertainment rather than a financial activity.
How Different Cryptocurrencies Handle Volatility?
There is “general acceptance” that crypto is volatile. However, that’s only half the picture.
First of all, stablecoins like USDT (Tether) and USDC (USD Coin) are very common because they are “pegged” to a commodity or currency—in the case of USDT and USDC, US dollars. This guarantees their liquidity and price stability. Both tokens have had under 2% price volatility over the year.
The other coins are generally volatile. Still, we need to mention that volatility can be moderate or extreme.
Let’s see how the most popular tokens and their annual lows & highs:
● Bitcoin: It recorded its lowest price in January when it was traded for $39,518, and in March, it reached its all-time high at $73,738. (86.59% price volatility)
● Ethereum: In a similar fashion to Bitcoin, Ethereum had its lowest price in January—$2,233, and it peaked in March, when it reached $4,066. (82.09% price volatility)
● Litecoin: $LTC also peaked in March when it was trading at $109, but it crumbled in August when it was below the $56 ($55.98) mark for a few hours. (94.71% price volatility)
Stats are taken from CoinMarketCap
How to Better Deal With Crypto Volatility in Online Gambling?
Of course, there are some tips and tricks that you can use to minimize volatility risks. Here are some good takes for starters:
1. Utilize Stablecoins: Opt for stablecoin options to maintain the value of your gambling funds while still benefiting from crypto transactions.
2. Strategic Timing of Transactions: Pay attention to market trends. Aim to deposit when prices are low and withdraw when they’re high.
3. Establish Clear Limits: Set definitive boundaries on your gambling budget and take potential volatility into account.
4. Stay Informed: Keep abreast of cryptocurrency news and market trends to make more informed decisions about when to gamble and when to cash out.
Conclusion: What’s Next for Crypto Gambling?
As the crypto market grows and gets its act together with regulations, we might see some of the volatility settle down. But let’s be real—it’s probably never going to be as smooth as a millpond. It’s just part of crypto’s DNA.
