How Betting Exchanges Differ From Traditional Crypto Sportsbooks

When most people think of sports betting, they picture placing a wager with a bookie who sets the odds. The bookie then takes your money and pays out if you win. That’s the traditional way it’s been done since years back. But today, it’s no longer just about picking a team and placing a bet.

Now, you have different types of platforms to choose from particularly with the existence of betting exchanges. These platforms turn the usual model on its head. So instead of betting against the house, you beg against other gamblers. At first, it might sound like a minor difference but it completely changes how bookies set odds, players make bets and money gets won or lost. 

That said, for anyone using crypto to bet on sports, understanding the difference between a betting exchange and a regular sportsbook is key. So let’s get right into it.

What Is a Betting Exchange?

A betting exchange is a platform where people bet against each other, not against a bookmaker or “the house.” It works more like a marketplace, where users create and accept bets with one another.

You can do two main things on a betting exchange:

• Back a result (bet it will happen), or
• Lay a result (bet it won’t happen)

For example, if you think a team will win you back them. If you think they will lose or draw, you lay them and someone else who disagrees can take on your bet. Keep in mind that the exchange doesn’t set the odds; the users do. After both sides have agreed on the odds, the platform then matches the bet and takes a commission (usually 2-5%) of the winner’s profit. 

What Is a Traditional Crypto Sportsbook?

A traditional crypto sportsbook is just like your regular online bookmaker. Instead of cash or credit cards, you fund your account with cryptocurrency like Bitcoin, Ethereum or USDT. You browse the sports, pick your bet, and the bookie gives you set odds. If you fancy the odds, you bet against the house, not another person.

These platforms are popular as they offer speedy and safe transactions with complete anonymity and better odds compared to their fiat rivals. You can wager on any sport you desire including football, tennis, basketball, cricket and eSports while using your favorite digital coins.

Key Differences Between Betting Exchanges and Crypto Sportsbooks 

Below are the biggest differences in how these two platforms operate:

	Betting Exchanges	Crypto Sportsbooks
Who Do You Bet Against?	You bet against other players either by placing a bet or laying someone else’s.	You are always betting against the house. The sportsbook sets up the odds, takes the risk and pays out if you win.
Betting Options and Flexibility	You have significantly more control. This is because you can set your own odds, lay bets and even switch your position in the middle of a live game which is similar to how traders buy and sell stocks in the middle of a live market.   So if you like the flexibility of adjusting your bets as the action plays out, exchanges provide that.	These are more straightforward. You choose from preset odds, place bets before or during the game and sometimes get a cash-out option but only if and when the sportsbook allows it. By doing this, sportsbooks keep things simpler but offer fewer options once you place the bet.
Odds	Users set the odds, not the platform. And since there is no built-in profit margin, you will usually find better odds here.   On a betting exchange, you can even offer your own odds and wait for someone to take your bet which can give you control over your potential returns.	The odds come with a margin built in for the house. Even though crypto sportsbooks often have high odds, their odds are still usually a bit lower than what you’d find on an exchange.
Liquidity and Bet Limits	Your bet only goes through if someone else is willing to take the other side. That is, you are counting on other players’ liquidity. If there are no takers, then you’ll have no bet.   Also, betting exchanges usually enforce no limits, as they’re not the ones risking money. They’re merely matching bettors.	The sportsbook is always ready to accept your bet as long as it is within their set limits. The house takes the risk, not other players. As such, sportsbooks will usually restrict high-rollers or limit frequent winners.
Anonymity and Privacy	These usually come with more rules especially if they are regulated in places like the UK. You’ll likely need to go through KYC checks which means uploading ID, proof of address and sometimes even a selfie.	If you value your privacy, this is where crypto sportsbooks shine. The majority of them just require you to register with an email address and connect your crypto wallet.

Trusted Traditional Crypto Sportsbooks You Can Try

If you wish to bet with crypto, here are some reliable sportsbooks known for fast payouts:

• Stake
• Jack Bit
• Freshbet
• Velobet
• Bitsler
• Duelbits
• Rocket Play
• Coinplay

How Betting Exchanges Differ to Crypto Sportsbooks – Wrap Up

While both betting exchanges and crypto sportsbooks have the same goal, they offer relatively different experiences. If simplicity, quick bets and a familiar setup are your preferences, then crypto sportsbooks are the way to go. But if you require greater control, higher odds, and the ability to bet against other players, a betting exchange might suit you better.

Ultimately, it is all a matter of your style so good luck and enjoy.

Bitcoin Betting Sites