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How to build your bankroll with stablecoin sports betting

Warning: This is a long one, so if you want the TL;DR, click here to jump right into it. Otherwise, read on for an in-depth, high-level crypto betting strategy you probably never knew you needed. You will not regret it.

Several online sports betting sites offer stablecoin support in their bet funding suites.

In fact, BetOnline Sportsbook supports two different stablecoins: Tether and USD Coin.

These are cryptocurrencies in the truest sense of the word – that is, they are built on blockchain networks and record all transactions on an immutable open ledger.

For those just starting out with crypto – or for gamblers who use crypto solely for online sports betting – their use cases may not be outwardly clear.

Finally, both Tether (USDT) and USD Coin (USDC) are pegged to the US Dollar at a 1:1 ratio.

So as investments they are not ideal.

Your values ​​can never increase.

Tether and USD Coin will be worth exactly one dollar next week, next month, next year and next decade.

When other cryptocurrencies like Bitcoin, Ethereum, and Dogecoin have gained hundreds of percent in value since 2020 alone, it might seem like a waste to deposit or withdraw using USDT or USDC.

You would miss out on all those potential gains just because you chose a stablecoin to meet your banking needs instead of any other supported cryptocoin.

Remember that you always have multiple options when it comes to depositing, and the sites that accept these stablecoins will also accept all or most of the following:

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Ethereum (ETH)
  • Dogecoins (DOGE)
  • Stellar (XLM)
  • Ripple (XRP)
  • chain link (LINK)

And more are being added all the time.

Given that each and every one of the above crypto assets has posted significant year-over-year gains (see the numbers here), why would anyone fund their sports betting with USDT or USDC – or request payouts in USD?

Well, there are actually a couple of reasons.

The most popular crypto coins are going through many price declines despite significant monthly and yearly positive gains.

In fact, we are in a bottom right now.

In most cases, these dips don’t last for months (although sometimes they can), and they rarely last a year or more.

Typically, any given drop is as short-lived as a significant boom, and most crypto assets naturally fall and/or rise by up to 10% per day.

As a bettor, this can help you.

But it can also hurt you.

Let’s say you deposited in bitcoin and the bitcoin price goes down immediately.

Since you can (and should!) leave crypto in your betting account as crypto, you may now find yourself in a position where you’ve already lost the value of your deposit without ever wagering!

Of course, the reverse scenario also applies.

Let’s say you deposited in Bitcoin and the BTC price increases immediately.

If you left that BTC in your sports betting account as BTC (or mBTC, aka MilliBitcoin), you can realize those wins while your bitcoin is tied up in your betting bankroll.

This gives you extra money to bet with, and if the BTC price is still high when it’s time to collect, your associated payouts are worth so much more.

But!

When the price drops and you need to request a withdrawal immediately to deal with the various running bills and one-off surprises of everyday life, you are actually losing money.

Or at least you withdraw less than you could have previously withdrawn.

The following sections demonstrate the usefulness of stablecoins as they fit into the above scenarios.

Stablecoin Deposits

When making deposits, stablecoins allow you to increase your betting bankroll whenever you want to lock in a crypto prize that is trading at a low dollar amount.

This requires some strategy and foresight on your part (which should actually help fuel your commitment, given that such things are what make sports betting so entertaining in the first place).

For example, imagine you just signed up with BetOnline AG and want to enjoy all the benefits of betting with crypto (i.e. guaranteed deposits, no additional fees, enhanced bonuses, etc.), but the crypto market is booming.

Given that historically every big surge is followed by a fairly decent dump in a short amount of time, it wouldn’t be wise to invest in Bitcoin, Litecoin, Ethereum, etc. at this point.

The values ​​of these coins are sure to fall between now and when you meet all your sports betting bonus rollover requirements to withdraw your winnings.

When that happens, your net winnings will be lower than they otherwise would have been.

Stablecoins like USDT and USDC protect against this.

By depositing in stablecoins, you still get the crypto benefits your legit sports betting site offers, but you don’t take the risk of crypto prices falling when the market slows down.

Sure, you could just leave your crypto balance in your sports betting account until the market picks up again, but that will prevent you from doing other money-making things like swing trading, day trading, and so on.

Crypto holders and investors want to be able to take advantage of hedging between assets, trading one asset when it is high against another asset when it is low, and various other stack building strategies.

More advanced traders even take advantage of arbitrage opportunities between exchanges themselves.

But you can’t do any of these things until your crypto is off your betting site and in your exchange account.

So, to set yourself up for maximization (and maximization is always key) when the market is going up fast, make stablecoin deposits – that is, deposits using “US dollars” in cryptocurrencies that are readily available against other cryptocurrencies. Trading assets as soon as they are relisted is the smart thing to do.

Yes, you could achieve the same thing by depositing directly in USD, but then you would be hit with additional fees, subject to potential UIGEA interference, and you wouldn’t get the best bonuses.

This is also about maximization.

Simply put, if you think the popular assets backed by your favorite betting site are currently trading at a temporary high and you expect a drop in the short-term, then don’t deposit using BTC or other typical altcoins.

Deposit with Tether or USD Coin instead.

Stablecoin Withdrawals

When it comes to withdrawals – regardless of how you deposited – you can use stablecoins to your advantage depending on the conditions of the crypto market.

The concept – Buy Low, Sell High™ – remains the mantra, just like with deposits.

For example, imagine you have bet in BTC and you are ready to withdraw your winnings.

But bitcoin is trading high and a small crash seems to be on the cards.

You want to spend your money so you can take advantage of this stock market crash by grabbing various altcoins at below-average prices and expanding your portfolio.

But if you pull back when BTC is high — and you pull it out as BTC — you risk a dump before you can capitalize on that high price.

Most betting sites process crypto requests extremely quickly (under two hours), but even that long wait can sometimes severely impact your winning potential.

In this case, withdrawing in Tether or USD Coin is the answer.

This locks the dollar value of your bitcoin betting winnings at their peak and sends those winnings directly to your exchange as USDT or USDC.

Meanwhile, if BTC falls, its associated dollar value does not.

Then just follow the dip and buy back — whether you’re picking up BTC, LTC, ETH, DOGE, etc. — when those assets are trading lower.

This gives you more of any given asset in terms of total coins, meaning the next inevitable bull run will bring payouts that are even greater than your sports betting yield.

Now many players may be wondering why this is necessary on the withdrawal page.

You could simply withdraw your funds in BTC and, once it’s on the exchange, exchange that BTC for a stablecoin that you can use to time your trades.

While this is true, there are crypto fees to consider.

Keep in mind that every time you make a crypto trade — that is, every time you move crypto from one wallet to another — you will be charged a native blockchain fee for the crypto transaction in question.

Why get charged twice?

Claiming withdrawals in stablecoin and sending those coins directly to your exchange account is a wire transfer. Ergo, a fee.

Similarly, claiming withdrawals in BTC and sending it to your exchange account is one transfer and one fee, but converting that BTC to a stablecoin once it’s on the exchange is another transfer and one more fee.

Also, each additional transfer you make takes time, and when you’re buying dips, time is not your friend.

But we’re your friend, and that’s why we put together this little stablecoin betting PSA.

TL;DR: If the crypto market collapses and is at or near its monthly low across the board, go ahead and deposit with an unstable cryptocurrency. When the crypto market is booming and at or near a monthly high, deposit with a stablecoin (USDT or USDC).

When the market is rising and it’s time to retire, withdraw your money in a stablecoin. If the market is down when it’s time to claim your withdrawal, request your money in the form of an unstable coin. Trade swing, rinse and repeat.

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