There’s gambling, and then there’s hard-core gambling. Loyal followers of Bitcoin Gambling Guide, we’re putting you on notice. If you’re into Bitcoin and you’re into gambling, there’s a chance you’re penchant for risk is very much alive and well. After all, you’re taking a chance on table games and sports bets, and you’re also taking a chance on Bitcoin and other digital currencies. The price of cryptocurrencies can swing 30 to 40% in a DAY for heaven’s sake, never mind a week or a month.
What do you think is more volatile though, your investments in cryptocurrency or your betting strategy?
Odds are in order to answer that question you need to engage in some personal reflection and be honest with yourself about how you placing your wagers and how you decide which cryptocurrencies to invest in. In this post will go over some of the things you should think about in terms of determining what kind of volatility you can handle and whether or not what you’re currently doing rock the boat little bit too much in that department.
What Makes a Sound Investing Strategy?
For a beginner investor, regardless of whether the investing instrument is a stock, bond, mutual fund or Bitcoin, dollar cost averaging works well. You commit to investing a set amount every week or every month, or even every year, and you stick to that amount no matter what the market is doing at any given moment.
On the other hand, more advanced investors might spend their time trying to figure out whether the market is going up and down in the next few hours and try to capitalize on the volatility. That’s day trading. Only the top percentile of day traders make serious money. Most people fail with the strategy.
At the end of the day what makes a sound investing strategy comes down to personal preference. The average person regardless of how much they know about cryptocurrency or any other asset classes best off investing in a diversified portfolio that touches on a range of classes and puts your wealth into different industries and different types of investments.
What Makes A Good Betting Strategy?
A good betting strategy allows you to grow your bankroll at a desirable pace without you having to risk going completely broke. Part of avoiding going broke his either being able to play the odds really well at the tables, or understanding sports betting enough to pick winners consistently. If you can’t do that, no bankroll management strategy will save you.
Most astute sports gamblers will bet no more than 5% of their bankroll on a single game, and those 5% plays rarely ever happen, because the best gamblers know that you should only make that kind of a wager if your degree of certainty on a given outcome is very high. The most ideal way to bet is probably to wager 1 to 2% of your holdings at any given time.
Another strategy is to bet your bankroll based on units. The unit is simply an equal measure of a wager that you’re comfortable putting down on events over and over again. If you only feel comfortable wagering $10 worth of Bitcoin at a time, you wager that $10 and you only increase the number of $10 increments if you’re really confident in the bet.
The Most Volatile Betting Strategy of All
The Martingale System is arguably the most volatile betting strategy of all. It holds that if you lose a bet on an event that pays out close to even odds, you simply double your wager on the next bet. You continue to double your wager until you win, and then start the process back at a smaller bet again. On the one hand, this strategy can be a really quick way to increase your bankroll. On the other hand, it doesn’t take very many losses in a row for your bet size to increase exponentially, and let’s face it, most people don’t have an unlimited bankroll to gamble with.
So What’s More Volatile?
As gamblers and Bitcoin enthusiasts if were all honest with ourselves, over the long-term is likely that our gambling strategies aren’t necessarily making us rich which means that the average person’s bankroll management is much more volatile than the crypto market. That’s especially true when you consider that Bitcoin’s value was close to $20,000 USD at the end of 2017, it’s gone as low as $3,100 this past March and is now bouncing around the $11,000 mark again. Anybody holding long term before 2017 is laughing all the way to the bank now, but only if they had the guts to stay in the game all the way through. That’s really what winning in the long term is all about.