What is Crypto Volatility: Can It Affect Your Online Casino Experience?
Price volatility is one of the major concerns to consider when playing at crypto casinos. Depending on how the markets perform, you could go to sleep one night with a portfolio worth thousands, only to wake up to a portfolio worth half of what it was the previous day.
On the flip side, the price could go up by astronomical prices in one day, increasing your portfolio’s worth by more than double. In short, crypto volatility greatly affects your online casino experience.
On this page, we discuss different scenarios and how they can affect casino players, as well as point out solutions that can help players mitigate losses from volatility.
What is Crypto Volatility?
Simply put, volatility in crypto is the shift in prices. The value of crypto coins changes very drastically and without warning. Cryptocurrency value is driven by demand and supply and blockchain technology is free from price manipulation by governments.
Following this, the value of major crypto coins can change in a matter of days, depending on how many people buy or sell coins.
Crypto casinos allow players to deposit and wager using a number of coins. If you bank with one of the volatile crypto tokens, the changes in price can affect your balance either positively or negatively.
Positive Effects of Price Fluctuation
Picture a scenario where you deposit $100 worth of Bitcoin when one BTC token trades at $45,000 and log in a week later when the value has shot up to $60,000 per BTC token. Your deposit would now be worth more than $100, allowing you to play more games than you would if you used fiat currencies.
Similarly, a player who cashes out winnings in crypto tokens when they have a low value can simply hold on to their tokens and convert them to fiat when the price goes up.
Negative Effects of Price Fluctuation
Price volatility can work to your disadvantage. Say you deposit $100 worth of Bitcoin when the value of one coin is $45,000, then the price drops to $35,000 overnight. Your deposit would be worth less than $100, limiting you to play fewer games than you would with fiat worth $100.
Strategies To Mitigate Loses From Volatility
Volatility is part and parcel of crypto usage and gambling in particular. That being the case, there are several strategies that, if implemented correctly, can save you from the negative effects of volatility.
1. Use Stablecoins
Volatility is a major concern in crypto markets, so developers created stablecoins to mitigate the risk associated with price fluctuation. Stablecoins are crypto assets pegged to major currencies. For example, USDT is the most used stablecoin, whose price is pegged to the US Dollar.
As such, the price of one USDT is $1 at any given time. Opting for stablecoins instead of Bitcoin in crypto casinos allows you to enjoy fast and secure transactions in crypto without volatility affecting your balance.
2. Stay Up To Date with Crypto Markets
Keeping up to date with the daily events in the crypto space helps holders to know if they should hold to their assets or sell off their coins. Although shifts in prices are market-driven, some major events can be predicted.
A good example is the Bitcoin halving cycle, which happens every four years. This is usually followed by a bull run that drives the price of BTC tokens up by a great percentage.
3. Diversify Your Portfolio
Having a diverse portfolio comprising major crypto coins and assets in stablecoins allows you to take advantage of price fluctuations. When your crypto assets values rise above the value you bought them at, liquidate the assets to close in profits.
On the other hand, you can spend your stablecoin assets when your volatile assets drop in value to a lower price than when you acquired them.
4. Set And Adhere to Limits
Set limits to how much you can spend and avoid chasing losses. Gambling at crypto casinos should be purely for fun. Reputable casinos offer members free access to self-limit tools that you can use to put a limit on how much you deposit. In addition, there are many professional bodies that help players manage their gambling habits.
Future Trends in Crypto Casinos
Even with the risks associated with price volatility in crypto markets, new crypto casinos keep popping up. Professionally-run gaming sites include crypto deposit and withdrawal options alongside fiat currency e-wallets, enabling them to cater to a wide market.
Incorporating the latest technologies in blockchain enables operators to create their own tokens and distribute them to members, who can then use their holdings to vote on important decisions affecting how casinos operate.
Following this, crypto casinos are provably fair and transparent. Additionally, crypto transactions are not limited to any location. You can easily swap your coins to your preferred crypto token in a matter of minutes, fund your account, and start playing crypto games.
Conclusion
Since cryptocurrencies became mainstream, price volatility has been a major issue that users have had to bear. Therefore, crypto casino members cannot wish away the effects of volatility. Luckily, the crypto space has grown enough to offer solutions to volatility.
Stablecoins like USDT and USDC are great alternatives to volatile coins like Bitcoin, Ethereum, and Litecoin. Banking with stablecoins allows players to enjoy fast and secure crypto transactions at crypto-oriented sites without worrying about price volatility.
In addition, you can spread out your crypto assets to include several coins in your portfolio. That way, you get to enjoy the positive effects of crypto volatility while protecting your assets from its negative effects.
Marija Misita
Crypto Expert
Thanks to her journalism background, Marija has a methodical approach to writing about crypto casinos. With years of experience in research and analysis, she aims to provide clear insights into the world of crypto and online gaming and the points where they intersect. Whether discussing industry trends, regulatory changes or game mechanics, accuracy is her top priority.
