In the past year, a number of investors have begun trading in Bitcoin in a bid to turn a profit on the popular cryptocurrency. Stories abounded of opportunists becoming billionaires thanks to their shrewd investments in this burgeoning space and mining Bitcoin has taken off alongside trading. But the sheer volatility of the crypto market makes this an extremely risky practice and investors are urged to proceed with serious caution if they are thinking of getting involved. It is a huge gamble, but many people love a bet and they wonder if there is anything sports betting can teach them about speculating on the Bitcoin market.
In some aspects the answer to that question is yes, and in other ways, it has to be a firm no. Pro sports bettors are cautious individuals and they really value sensible bankroll management. They also arm themselves with as much statistical information as possible before making educated decisions. These philosophies can certainly help you when it comes to speculating on the Bitcoin market. But in many ways, crypto investing differs totally from sports wagering.
At Bovada, you will see that they have made Bitcoin central to their offerings if you want to know more about their payment methods check out their review. It is really useful for sports bettors as this cryptocurrency is quick, anonymous and cuts out the need for middlemen that take a cut of the winning margins. But actually speculating on Bitcoin is another ball game entirely. In a sports wager, you have two teams or individuals going head to head and you can make educated guesses about what will happen. Ditto futures and prop bets. There is a raft of historical data to trawl through, and the variables affecting matters are relatively limited.
But Bitcoin is an international currency that is at the whims of the global markets. One piece of bad news like a big fraud in South Korea or a bust in Brazil can send the price plummeting by 15% in a single day. One negative comment from someone senior at a central bank or a leading politician can wipe $1,000 off its price in the blink of an eye. A recent story about Goldman Sachs ditching plans to launch a cryptocurrency trading desk caused a fall of 10%. The story proved to be fake, but the price did not recover.
Bitcoin has been treading water around the $6,500 mark for the last few weeks, and the lack of volatility has been surprising. But this is such a new frontier that the price can always rapidly spike or crash. Sports bettors can thrive as opportunists, and this might help you make a killing out of Bitcoin, but it is extremely difficult for the majority of people to forecast a potential positive or negative story about Bitcoin.
Speculating on Bitcoin is a lot more like playing the stock market than sports betting. You can take calculated risks, but the level of insight and knowledge you need for the two different pursuits is totally different. Many people did make a killing when its price shot up to almost $20,000 in December 2017, but it shows few signs of returning to those highs. This time a year ago, it was roughly where it is now, so you never know. But there are whales controlling large wallets and bulls and bears locked in an eternal battle, so to become a major player in this market, with the ability to manipulate it to your advantage, you need a lot of capital. Betting on Bitcoin’s price remains risky and highly speculative, and many investors would prefer to back something a little more stable, while sports bettors are likely to stick to pouring over points spreads and horses’ form instead.
Sources: wikipedia.org / coindesk.com