Arbitrage betting is a legal form of betting which has advanced to financial markets even. Earlier, betting used to be done usually in sports or some games, but now investors are exploiting this practice of arbitrage betting by compassing financial instruments as well. The price difference in various markets is exploited by the arber.
What is Arbitrage Betting
In order to understand arbitrage betting in simple terms, it can be considered a betting scenario, wherein the arber, places bets on all the outcomes of an event. Now the bets are placed in such a manner that whatever scene the event wins, the net profit of the arber exceeds the total betting money he placed along with the transaction costs and the involved fees for arbing. Consequently the arber always ends up making money. Now-a-days, cryptocurrency is trending to be used as a betting instrument in arbitrage betting. However, there are many associated complications as well.
How to do Arbitrage Betting with Cryptocurrency
1. The arber chooses the cryptocurrency that he wants to use and then looks for a betting possibility that allows the cryptocurrency.
2. The arber places the fiat to get the crypto in exchange, at some reputable platform like executium.com which has many exchanges like Bitfinex, Bitstamp, Kraken etc.
3. The cryptocurrency that the arber gets is then divided equally or unequally on the various possible outcomes, depending upon the probability of the success of an outcome, in a betting event.
4. Once the results are declared, the arber gets his profits from the winning outcome.
5. Profits can be received either as a cryptocurrency, or as a fiat currency depending upon the rules and regulations of the arbitrage betting medium.
6. If cryptocurrency is received, it can be exchanged for fiat over an exchange or can be used for further arbing, crypto trading etc.
Tips for Arbitrage Betting with Cryptocurrency
Try placing your bets across different geographical regions, as online arbing using cryptocurrency has no geographical restrictions.
Different sites have huge variations over crypto rates, so check where you want to exchange your currency. You can also go for platforms like exeutium.com, which have multiple exchanges and this offers you the most competitive prices.
Beware of fraudulent websites. There are hundreds of sites claiming to be online betting websites, but most of them are there just to make some money for themselves and then wind up unexpectedly.
Choose a platform that offers quick transactions, as you might want to invest the profits of one betting into the next one immediately.
It is better if you can maintain a cryptocurrency wallet; say a Bitcoin wallet, so that you always have your funds ready in advance.
Betting with Bitcoin
While more cryptos have emerged, like altcoin and all, Bitcoin remains the market leader. Therefore, many online sites that allow arbitrage betting with cryptocurrency, give preference to Bitcoin. Traders can have a wider scope if you choose Bitcoin as your trading channel for arbitrage betting online.