Your Guide To Crypto Betting Strategies
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Betting on cryptocurrencies is one of the most popular ways to play fantasy trading contests. Their high volatility can make for more exciting and unpredictable contests, and cryptocurrency markets trade 24/7 making it easier to play in your spare time.
It is easy to get started with fantasy crypto betting, but you can be much more profitable by implementing the right trading contest strategy.
Why Bet On Crypto In Fantasy Trading contests?
If you are interested in crypto betting, you might be wondering why so many people choose to profit on crypto by playing fantasy trading contests instead of trading on the markets themselves. There are a few reasons for this:
Traditional trading can require a significant amount of money to get started and can involve putting a lot of money at risk. In contrast, most fantasy trading contests are structured with a clear, upfront cost or stake, and no risk of losing more than that. For example, StockBattle players pay a fee to enter a match and compete for the prize pool, and losing simply means they don’t get that fee back.
Easier to Play
Traditional trading just isn’t fun for a lot of people, especially when there is a lot of money on the line. By condensing core trading concepts down into simpler, rules-based contests of skill, you don’t need to be a financial expert to start playing and developing a strategy. This makes platforms like StockBattle the only way you can double your money betting on crypto in just 15 minutes.
If you want to approach crypto betting as a fun activity you can dip into whenever you want, trading on the markets directly is not really an option. That’s because you can’t just close positions whenever you want to stop without losing money. Fantasy trading contests, on the other hand, are designed with this kind of approach in mind.
Win Fantasy Crypto Contests Using These Trading Contest Strategies
Each fantasy crypto trading contest has its own rules for winning. In StockBattle, for example, players have to pick a team of stocks or cryptocurrencies that they think will have the largest rise or fall in price over the course of the match, with the winning player decided by the final prices when the contest ends.
This makes this type of fantasy trading contest similar to spread betting, albeit with greatly reduced risk, and it can reward similar strategies to spread betting.
Hedging is probably the most well-known spread betting strategy. It is just as common in both fantasy trading contests and sports betting. The basic idea of hedging a bet involves betting against your own position.
No matter what, one of your bets will win - either the original bet or the one that contradicts it. Depending on the numbers involved, this could result in collecting a smaller profit even if your main bet is wrong or at least covering some or all of your losses with the winnings of the second bet.
Online hedging calculators can do the math to find viable strategies for you:
The simplest way to apply this as a fantasy trading contest strategy is by playing several contests at the same time. Picking the right matches to play is just as important as picking your team for this contest strategy. This is because you don’t just need to find a match covering the market you want to play; you need to find at least two with different entry fees. Then you can play your main bet in the contest with the higher prize pool, and hedge that with an opposing bet in the less profitable match.
Base Your Contest Strategy Around Match Length
Knowing which cryptocurrencies will rise and fall in price over the next few days or weeks is a very different process to picking the ones that will show the greatest change over the next 5 minutes. Different fantasy games can have very different match lengths that you can choose from to suit your playing style. For example, you can play a match as short as 5 minutes on Stock Battle, or compete in seasons that last several months on a platform like TradeOff.
For example, entering a short match rewards the ability to analyze the market in real-time and make quick, effective decisions, as you won’t have much time to assess the situation and choose your team of cryptocurrencies. Conversely, a longer match requires the ability to understand longer market trends over graph reading and fast decisions.
Similarly, a contest with more players usually has a bigger prize pool, but can require riskier picks to secure the top spot.
Crypto Betting Using the News
News-based crypto betting is exactly what it sounds like. This is how a lot of people first develop an interest in cryptocurrency, following the news stories and speculating on how they will impact the market. You can build a strategy around making a profit on crypto news more consistently by understanding the crypto market and how it responds. If you already spend your spare time watching and reading the latest crypto news and market analysis, this strategy can be a great place to start.
Following the news is not the same as following trends, however. You need to be able to interpret events yourself and come to your own conclusions. If you simply adopt the same positions as everyone else that heard the same news as you, it is harder to win even when your predictions are correct because you probably won’t be the only person in the contest playing by the same strategy.
Assess and Optimize Your Fantasy Trading Contest Strategy
If you want to make your fantasy gaming more profitable, you need to spend some time evaluating how effective your strategies really are. Keep track of the results of every match you play, and the picking strategy you used in that contest, so you can assess their profitability using their:
- Win rate
- Average profit from wins
- The average cost of losing
The cost of losing in a fantasy trading contest can vary from platform to platform. For example, in StockBattle the cost of losing is simply the fee to enter a match, or less if you employ a hedging strategy.
All three of these factors need to be taken into account to understand your real profit on crypto betting and improve your chances of making money reliably. More importantly, it helps you see more ways to profit on crypto using fantasy trading contests.
Think of it this way, you don’t necessarily need a high win rate or per-win profit to make money consistently. As long as your average per-win profit covers your losses at your calculated win rate, the strategy is profitable in theory. In other words, if one win covers five losses using your strategy, then a win rate of one in five is still profitable over enough time. If it took five wins to win back one loss, you would have to win at least 80% of your matches to make money.
The margin for error is an important consideration, however. Markets change and your strategies will need to change to keep up. As a result, your calculated win rates, profitability, and other analysis of your strategies will never be an entirely accurate picture of how well they will work today. The most reliable strategies can survive slight changes in their win rate or per-contest winnings while remaining profitable overall.
Pick the Strategy That Works For You
The right crypto betting strategy can make your fantasy gaming sessions much more profitable. Find an approach that fits not just your skill set but also your personality and the time you have available to play, as these can have a huge impact on the success rate of your crypto betting strategy.
Which fantasy trading contest strategies get the best results for you? Let us know in the comments!