Exchange Betting with Crypto

Think of a betting exchange as a place where you can bet directly against other people instead of going through a bookmaker. You can choose to back (bet for) or lay (bet against) different outcomes. This setup gives you more flexibility with the odds and might even offer better value, though there’s usually a small commission on your winnings. It’s a different way to bet that can be pretty interesting.

What is the Difference Between a Traditional Bookmaker and a Betting Exchange?

A bookmaker is the traditional way to place bets. In other words, you are betting against the house using crypto or FIAT currency, which means the bookmaker sets the odds and takes your bet. If you win, you get paid based on the odds they offer, but if you lose, the bookmaker keeps your money. The bookmaker’s goal is to make a profit by setting odds that favor them.

A betting exchange, on the other hand, is like a marketplace where you bet against other people, not against the house. You can either back a bet (bet on something happening) or lay a bet (bet against something happening). The odds are set by the users, so you might find better deals here. The exchange itself makes money by charging a small commission on winning bets, but they don’t care who wins, they’re just facilitating the bets between users.

You could look at it as though you were sitting in your lounge and making a bet with your friend. He may say that Everton will win, and you say that Manchester will win. It is the same concept.

So, the big differences? With a bookmaker, you’re betting against the house with fixed odds, while on a betting exchange, you’re betting against other people. Plus, betting exchanges allow smart strategies like arbitrage and Lay Betting, which aren’t always possible with a traditional bookmaker. We will explain these 2 terms below:

Arbitrage Betting?

Arbitrage betting, often called “arbing,” is a way to make a guaranteed profit by taking advantage of differences in odds between betting markets. It’s a bit like trading stocks where you buy low on one market and sell high on another, locking in a profit no matter what happens.

In the world of sports betting, this works by placing bets on all possible outcomes of a game or event at odds that ensure you’ll make money no matter which outcome happens. It’s different from regular betting, where you’re taking a risk; with arbitrage betting, you’re aiming for a low-risk, steady profit.

In the past, people would have to secretly place bets at different bookmakers to pull this off. But with the rise of betting exchanges and online betting, arbing has become easier and more accessible. Namely, you don’t have to run around the town placing bets with all of the bookies, you can do it from your armchair at home!

Lay Betting

Lay betting lets you act like a bookmaker on a betting exchange. Instead of betting on something to win (which is called a Back Bet), you’re betting on it not to win. If you’re right and the selection loses, you win the money that someone else bets. But if you’re wrong and the selection wins, you’ll have to pay out the winner based on the odds you set.

Lay betting might sound complicated at first, but it’s actually pretty simple. Think of it like this: when you place a lay bet, you’re betting that a certain outcome won’t happen.

Let’s say you’re at a horse race. You’ve heard through the grapevine that one of the horses is sick. You think it’s a great chance to bet against that horse winning. Before lay betting, you would have had to place bets on every other horse in the race to cover your bases. But with lay betting, you can just bet against that one sick horse. If the horse doesn’t win, you win the bet and take home the other person’s stake.

For example, if someone bets on the sick horse and you’ve laid the bet, you’ll see your potential losses in red if the horse wins, and your potential winnings in green if it loses. The key is, that as long as the horse doesn’t win, you’re in the clear!

Main Components of a Betting Exchange 

Users: A betting exchange works on the idea of people betting against each other rather than against a bookmaker. For a bet to be matched, you need at least two bettors—you’re not up against the house.

Back and Lay Bets: There are two types of bets you can make. A ‘back’ bet is when you wager on something to happen. A ‘lay’ bet is when you bet against something happening.

Odds: On a betting exchange, the odds and how much you can bet are set by the users. This often means you might get better odds compared to traditional bookmakers.

Commission Fees: Betting exchanges make money by charging a small fee on each matched bet. This fee is usually taken from the winning side and can vary between platforms and accounts. Lower commission fees can mean more profit in the long run.

Pros and Cons of Crypto Exchange Betting

Pros

Great Odds: You can get really competitive odds, which means more chances to win more.

Secure and Private: Using Bitcoin and other cryptocurrencies gives you high-level security and keeps your identity private.

Accessible Everywhere: These services are available in many different regions.

You won’t get Banned: You won’t get banned or limited by the operator. If you’re a pro bettor who’s been restricted by traditional sportsbooks, an exchange might be a better fit for you. The key is finding someone willing to take the other side of your bet. The operator doesn’t care if you’re successful since your wins don’t affect them directly.

Cons

Limited Promotions: There aren’t many special offers for new customers.

High Commissions: The commission rates can be pretty steep and might put some people off.

Limited Exchanges: There are not many sportsbooks that offer a betting exchange.

How to Choose the Right Betting Exchange

 Reliability

Before choosing the first betting exchange you come across, make sure it’s trustworthy. A reliable platform will have proper certifications and licenses, which you can verify. This not only ensures the service is legal but also reliable. Be cautious of platforms without these credentials, as they might not be safe to use. Checking customer reviews is another great way to see what others have experienced with the site.

Liquidity

When it comes to betting exchanges, liquidity refers to the amount of money available for bets. For a bet to be successful, there needs to be another bettor to match your bet. If an exchange has low liquidity, there may not be enough users to match your bet. Make sure the exchange you choose has a good amount of liquidity so you can place bets without issues.

Range of Markets

When choosing a betting exchange, have a look at the variety of markets they offer. Even if you prefer a specific sport, it’s always nice to have options to explore other sports or events.

Commission Rates

Betting exchanges make their money by charging a commission on winning bets. This can range from 0% to 5%, but some platforms might charge higher fees. It’s important to choose an exchange with reasonable commission rates. Look for platforms that charge around 2% if possible.

Welcome Bonuses

Some crypto betting exchanges offer bonuses to attract new users. These might include free bets and welcome bonuses. Choosing an exchange with good bonuses can give you a head start without risking too much of your own money.

Payment Methods

If you are using cryptocurrency for payments, make sure the exchange you choose supports Bitcoin and other cryptos. While cryptocurrencies like Bitcoin are generally secure, you still need to verify that the platform itself is safe and reliable.

Usability

The platform’s usability is very important and a good betting exchange should have a user-friendly interface that’s easy to navigate, even if you’re not tech-savvy. Look for a website or app that’s well-designed, responsive, and optimized for mobile devices.

Customer Support

Lastly, good customer support is essential. The exchange should also offer you various ways to contact support such as live chat, email and telephone. They should also be available 24/7.

Best Sports for Exchange Betting

Here are five popular sports that people often use betting exchanges to bet on:

Football (Soccer)

Football is one of the most popular sports for betting exchanges, especially in Europe and South America. The vast number of matches, leagues, and tournaments means there’s always something to bet on. Whether it’s betting on the outcome of a match, the number of goals, or even specific player performances, football offers a range of markets that are perfect for both back and lay betting.

Horse Racing

Horse racing has a long history with betting exchanges, particularly in the UK and Ireland. Bettors can back or lay horses in various races, from small local events to major international competitions like the Grand National or the Kentucky Derby. What makes horse racing appealing on betting exchanges is the dynamic nature of the odds, which can change in the blink of an eye as more information about the horses, jockeys, and conditions becomes available.

Tennis

Tennis is another sport where betting exchanges are widely used, especially during major tournaments like Wimbledon, the US Open, and the French Open. Tennis matches offer loads of betting opportunities, from predicting the overall winner to betting on individual sets and points. The fast pace of tennis also means that odds can change quickly, providing opportunities for in-play trading.

Cricket

Cricket betting on exchanges is particularly popular in countries like India, Australia, and the UK. The long duration of cricket matches, especially Test matches, allows for lots of in-play betting, where odds can fluctuate dramatically during the game.

Basketball

Basketball, particularly the NBA, is a favorite among betting exchange users, especially in the United States. In-play betting is particularly popular in basketball, as the odds can shift significantly with every quarter.

Frequently Asked Questions

Below we have compiled a list of common questions asked about Crypto Betting Exchanges.

• What is a crypto betting exchange? +
  A crypto betting exchange is a platform where you can bet using cryptocurrencies like Bitcoin, Ethereum, or other cryptocurrencies. Instead of betting against a bookmaker, you bet against other users. This often leads to better odds and more control over your bets.
• How does a crypto betting exchange work? +
  On a crypto betting exchange, you can either back a bet (bet for an outcome) or lay a bet (bet against an outcome). If someone else on the platform takes your bet, it’s matched, and you’re good to go. The exchange itself doesn’t take any sides, it just connects bettors with each other.
• Is crypto exchange betting safe? +
  Crypto betting can be safe, but it depends on the exchange you’re using. Make sure the platform is licensed and has good reviews. Use GOSUBETTING to find reputable sites.
• What are the benefits of using crypto on a betting exchange? +
  Using crypto offers several benefits, like lower transaction fees, faster withdrawals, and more privacy. Plus, some exchanges offer special promotions for crypto users, making it a potentially more profitable way to bet.
• Can I still get bonuses on a crypto betting exchange? +
  Yes, many crypto betting exchanges offer bonuses, just like traditional sportsbooks. You might find sign-up bonuses, deposit bonuses, or even special promotions for using specific cryptocurrencies. Always check the terms before claiming a bonus.
• Are there fees on crypto betting exchanges? +
  Yes, most crypto betting exchanges charge a small commission on winning bets. The fee varies by platform, but it’s usually lower than traditional bookmakers. This fee is how the exchange makes money.
• What cryptocurrencies can I use on a betting exchange? +
  The most common cryptocurrencies used on betting exchanges are Bitcoin, Ethereum, and Litecoin. However, some platforms support a wider range of options. It’s best to check the exchange’s deposit methods to see what’s available.
• How do I withdraw my winnings from a crypto betting exchange? +
  Withdrawing your winnings is usually easy. Go to the withdrawal section, select your cryptocurrency, and enter your wallet address. The process is often faster than traditional methods, with many withdrawals being processed within minutes.
• Can I be banned from a crypto betting exchange? +
  Unlike traditional sportsbooks, betting exchanges don’t normally ban successful players. Since you’re betting against other users and not the house, the exchange doesn’t care if you win or lose as long as they get their commission.
• Is it easy to start betting on a crypto exchange? +
  Yes, getting started is usually simple. You’ll need to create an account, deposit some crypto, and then you can start placing bets. If you’re new to crypto, you might need to learn a bit about how to use wallets and transfer funds, but once you get the hang of it, it’s pretty easy.