While cryptocurrencies are becoming a more common form of payment within the iGaming industry, there is one challenge unique to them: volatility. Cryptocurrencies can increase and decrease in value quickly, so when deposits or withdrawals are made, users can gain or lose different amounts depending on their value.
For someone who is using crypto in iGaming, it is important to understand why crypto is so volatile and how it might affect transactions. In this article, we take a look at why crypto users can become more informed about such price changes and how to manage risks in iGaming.
Why does crypto volatility exist?
Several reasons lead to variations in the prices of cryptocurrencies in the market. First, it is vital to note that the cryptocurrency market is decentralized, and nobody controls it; thus, the prices are determined by the common desire for cryptocurrencies. Price fluctuations may also occur on fundamental news and events such as a change in regulatory framework or major macro events.
Additionally, the markets of cryptocurrencies are less liquid than those of traditional currency, and therefore, the prices are significantly affected by even the slightest of transactions. These factors contribute to the volatility of cryptocurrencies, capable of potentially causing price changes that affect all the users of cryptocurrency, including iGaming. This knowledge, therefore, becomes relevant when addressing the need to regulate the use of cryptocurrency in risky operations like the iGaming business.
How crypto volatility impacts iGaming payments
iGaming transactions are also directly affected by crypto volatility, as deposits and withdrawals rise and fall with the value of the market. Players are unsure if a deposit in Bitcoin today could be worth more or less tomorrow.
However, risks such as these can be mitigated with options such as free spins and no deposit bonuses provided by several iGaming platforms. You can redeem them on Oddschecker and start getting a feel for the games available before wagering any of your digital currency. Depending on the crypto market’s variables, volatility can lead iGaming users to withdraw less than what was deposited or more if the market rises. Players should be aware of the dynamic of digital currency with this added layer of financial risk.
Why staying informed is important for crypto users
Cryptocurrency users in the iGaming industry must be aware of current trends in the market. Deposits and withdrawals vary depending on social media, government, and news reports and, within a short period, can lead to variations in the value of the holding. This makes it easier for users to monitor the market and identify what they need to transact in.
By monitoring the market, users can avoid depositing when prices are high and withdrawing when they are low, thus minimizing potential losses. It has become customary to monitor the iGaming space with crypto market trends, and this comes in handy for users since it saves their funds and time from being wasted on various scams.
How to manage crypto volatility risks in iGaming
To minimize the impact of the crypto fluctuations in the iGaming sector, it is advisable to swap the obtained crypto to stablecoins like USDT or USDC before making the deposit. Stable coins are backed by fiat currencies, making them more stable than other classes of cryptocurrencies. Another important factor is the timing of transactions, whereby you affect withdrawals when prices are at their highest to maximize profits and avoid big deposits when prices are at their lowest to minimize losses.
Furthermore, due to these fluctuations, a user should avoid holding significant amounts of crypto in iGaming accounts. These strategies assist users in averting the common problem of fluctuating crypto prices that are related to iGaming transactions, giving users more control over the value of their money.
Conclusion
iGaming users should know about crypto volatility and take care in managing risks. Users are able to minimize the effects of uncertain price changes by increasing their knowledge of market trends and developing strategies such as utilizing stable coins and timing transactions.
Despite its flexibility and benefits, cryptocurrency is also highly volatile and needs safeguarding of funds in the iGaming space. A proactive risk management approach is recommended to mitigate losses and take advantage of crypto.
