Sports Betting with Stablecoins: Is It a Safer Option or Missed Opportunity?

Betting with Bitcoin or Ethereum might sound cool but it comes with a clause: your money can change in value before you even use it. You could place a sports bet in Ethereum, win, and then see the value of your winnings drop overnight. That’s why stablecoins like USDC and Tether are gaining popularity. 

These digital currencies promise less risk and more predictability but on the flip side, you won’t see your winnings grow either. So the question now is: Is it a smart choice to play it safe with stablecoins or are you giving up a shot at higher gains? Come find out in this article.

What are Stablecoins?

First, let’s understand what stablecoins are and how they come into the sports betting picture. A stablecoin is a cryptocurrency with a value tied to something else that’s more stable, usually the US dollar. For instance, the design of 1 USDT (Tether) makes it to always be worth about $1. 

In other words, it’s a digital asset that doesn’t swing wildly in price and when its value shifts, the changes are usually very minimal. This stability comes from the fact that real-world assets back these stablecoins just like actual dollars kept in a bank account. As a result, they behave differently from cryptocurrencies like Bitcoin or Ethereum which can rise or fall sharply in a short time. Common examples are USDT (Tether), USDC (USD Coin), and DAI. 

Due to this price stability, stablecoins have quickly become a go-to option for gamblers involved in online betting. They give users the benefits of crypto (fast transactions, privacy, global access) while avoiding wild price volatility. With them, bettors can deposit, play and withdraw without worrying about the value of their funds changing dramatically in the background. 

Why People Choose Stablecoins for Betting

Online betting with crypto has been around for a while but many people now prefer stablecoins over traditional cryptocurrencies. Below are some main reasons why:

• Less Price Volatility: The biggest benefit of using stablecoins is that their value doesn’t swing wildly. If you place a $100 bet using Bitcoin, the value of your wager might drop to $85 or rise to $120 due to price changes. With stablecoins, you don’t have to worry about and your $100 retains its value. 
• Better Bankroll Management: Stablecoins also make managing your bankroll easier. Let’s say you budget $500 for the month, stablecoins help you stick to that. They are perfect compared to Bitcoin or ETH where the value of your balance could shift enough to throw off your whole plan. 
• Faster Transactions Without Volatility Risk: You can deposit, wager and withdraw quickly. And you won’t even have to worry about the value of your earnings before you cash out.
• Reduced Need for Currency Conversion: With USD-pegged stablecoins, you avoid extra fees or delays tied to converting between crypto and fiat especially on platforms priced in dollars. 
• Lower Psychological Stress: Players often feel less pressure using stablecoins. This is because they aren’t distracted by market charts or tempted to “hold” winnings hoping for a price jump. 

The Downsides

As you well know, no system is perfect and even the least volatile cryptocurrencies have their downsides. Here are some concerns to keep in mind:

• Central Issuer Risk: If the company behind a stablecoin (like Tether or Circle) runs into legal or financial trouble, the coin’s value could drop despite being “stable” by design.
• Limited Rewards and Bonuses: Some sports betting platforms offer special bonuses for using BTC or ETH which may not apply to stablecoins. While this might not matter to everyone, it’s something to think about especially if you like taking advantage of promotions.
• Zero Chance for Asset Growth: Unlike BTC or ETH, stablecoins like USDT and USDC don’t increase in value. So even if you win, your balance won’t grow beyond the original amount you earned.

Volatility Isn’t Always Bad

Here’s where the other side of the argument comes in because some bettors actually want volatility. Assuming you hold your winnings in Bitcoin or another rising asset, your earnings can grow even more over time. 

In this way, using volatile crypto is like a double bet where you stake on a game or event and also wager on the future value of your coin. So if Bitcoin doubles in value over a month, your winnings do too even if you’ve already cashed out of the game. And to be fair, that’s a big draw for people already bullish on crypto.

So if you’re willing to take more risk and want to gamble not just on games but also on crypto markets, using coins like BTC or ETH may offer more upside. 

When Stablecoins Make Sense for Sports Betting

To get a clearer picture, it helps to compare stablecoins to other types of volatile crypto like Bitcoin, which we’ve done below:

• Stablecoins keep their value better which is great for managing risk
• They don’t offer the chance to gain value through price increases
• They are usually less exciting for investors but more practical for regular use

With that said, using non-volatile coins makes the most sense in the following situations:

• If you’re betting often and don’t want the headache of price swings
• You’re in a country with limited banking options
• You value speed and low fees
• You care about fast deposits and withdrawals
• You want to avoid currency fluctuations
• You’re looking for a simple and stable way to manage your betting funds 

Crypto Sports Betting Sites That Allow You to Use Stablecoins

The following is a list of online betting platforms where you can place wagers on football, basketball and other sports using non-volatile cryptocurrencies:

• MyStake
• Velobet
• Bitsler
• Sportsbet.io
• Betfury 
• Coinplay
• Freshbet

Conclusion

In the end, it all comes down to your goals. If you’re looking for a calm and steady way to manage your betting activity, stablecoins are probably your best bet. But if your goal is to grow your wealth while betting, stablecoins might seem like a missed opportunity. Whatever you choose though, make sure you keep track of your spending and bet responsibly. 

Bitcoin Betting Sites