Gambling can assume many forms, particularly within the cryptoconomy, which is an entire industry predicated upon speculation. From conventional gambling – think slots, dice, and blackjack – to wagering on the price of cryptocurrencies, there are a lot of ways to grow your crypto stack.
If crypto is one big casino, its large tent accommodates an array of side stalls where wagering of all kinds can be enjoyed in a permissionless manner. Here are four of the best places for risk-on cryptocurrency holders to put their assets to use in the hope of winning big.
1. Hit up the Casino
If you’re looking to gamble with crypto in the classic sense of the word, the online casino has to be top of your list. Platforms that accept cryptocurrency provide greater privacy than their traditional counterparts, thanks to the pseudonymity that is inherent to blockchain.
This obviates the need to trust the online casino with your credit card details, and prevents curious partners, employers, and other busybodies from scrutinizing your bank statement. Crypto was made for casinos, in other words, and vice-versa.
Choose a crypto casino with a long-standing record and a good selection of the latest and greatest games. Think live roulette, branded slots, keno, and a regularly changing smorgasbord of promotions, from cashback to free spins. Ideally, pick a crypto casino that supports provably fair gaming.
These are games that use a hashed algorithm that can be independently verified after each turn to ensure that the house hasn’t cheated the player. In the future, every casino will offer provably fair; until then, stick to the ones that have already adopted this tech to demonstrate that they’re on the players’ side.
2. Make a Prediction or Two
Prediction markets are a simple but extremely fun way to profit from being right. From the outcome of political elections to the price of bitcoin on a particular date, prediction markets are where you go to wager, using the wisdom of the crowd to guide you.
Markets such as Guesser, which is built upon Augur, make placing predictions as easy as clicking a button and waiting for the event to play out. Omen, despite lacking the same high quality UI as Guesser, is also a popular platform with prediction market proponents.
The benefits of using a prediction market as opposed to a conventional betting platform include no requirement to create an account and automated market determination and payouts, all provided by smart contracts and oracles.
3. Ape Into Uniswap
Decentralized exchanges (DEXs) such as Uniswap provide a launchpad for new crypto projects, which can issue a native token and distribute it to the community in a fair and transparent manner.
At least that’s the official reason why DEXs exist. As anyone who’s spent a little time on them will attest, however, they’re a gambler’s paradise, filled with new tokens that anyone can ape into, swapping their ETH for ERC20 assets in an instant.
Naturally, YOLO’ing into unknown tokens from unproven projects can end badly, and thus it is incumbent upon you, the trader, to perform your own due diligence. Uniswap traders are apt to swap sob stories of “rug pulls” from projects that exit scammed after removing all liquidity and leaving holders with worthless tokens.
That said, Uniswap regulars will also talk fondly of that one token they bought that did a 100x. You win some, you lose some, and when you’re trading on Uniswap, expect your fair share of triumphs and defeats. It’s all part of the game.
4. Experiment With Algorithmic Stablecoins
If Uniswap isn’t degenerate enough for your tastes, you should take a look at algorithmic stablecoins. They are the purest embodiment of game theory, and a fascinating exercise in human psychology.
Basically speaking, every time the price of the stablecoin in question (ESD and DSD are the most popular) goes above $1, users who have staked their coins will receive additional tokens. And every time the asset dips below $1, token-holders are given incentives to burn their tokens, in exchange for a coupon that can be redeemed when the coin returns to over $1.
It’s a lot to wrap your head around, and like any form of crypto gambling, there’s no guarantee of profit. If you’re prepared to put in the work and do the research, though, algorithmic stablecoins can be a very profitable pursuit.
As these four examples show, there’s more than one way to gamble with your crypto. Pick your platform, choose your vice, and get to work. May the dice roll kindly and the markets shower you with satoshis.