How Do Crypto Betting Sites Offer Odds?

Trying to understand online crypto betting odds can seem a fool’s errand. The behind-the-scenes dynamics at play, paired with the fluctuating nature of cryptocurrencies, make it a brain twister to calculate. But the betting business is booming in this day and age. So how do they do it?

The manufacturing of betting odds used to be the domain of Vegas oddsmakers for decades. With the advent of online sportsbooks and the refinement of betting software and algorithms, odds are now the product of a much broader scope. It’s true that real live bookmakers still rely on their gut feelings and “horse sense,” as they call it. Yet those sentiments are now forever fused with the data of statisticians and mathematicians, assisted by contemporary computing power. The oddsmakers of old would not have enjoyed the benefits of immediate and up-to-date vast sums of data.

How Are Odds Calculated?

The ultimate goal of any sportsbook, crypto betting included, is to achieve equal action on both sides of the betting line. In a perfect world, they would receive an equal volume of bets on both sides of a wager. If that were the case, win or lose, they would still make a profit based on the fee they charge for the privilege of betting with them. This fee is often called the “juice,” “vigorish,” or just “vig” for short. The vig is factored into the sportsbook’s odds, on top of the predicted outcome of any event, and it affects the odds that are shown.

Their predictions and percentages are generated from highly guarded proprietary systems; in a nutshell, computer programs that can accurately guess “who will win” between sports teams, boxers, horses, or any other competitions you can imagine. Computers can calculate more data than any human is capable of, and crypto betting websites will use this to their advantage. The odds they give are based on these algorithms, mathematically managing risk, calculating the vig, and the intuition of the oddsmakers themselves.

This chart shows the equivalent odds across a few different types. For instance, if a boxer is a -500 favorite, oddsmakers are implying the probability of victory is 83.3%

Fractional Odds are used in the UK — Decimal odds are used in some parts of Europe, Australia, New Zealand, and Canada — American odds are, well, American

How Do Crypto Betting Sites Offer Odds?

Do Crypto Betting Sites Use The Same Odds As Fiat Betting Sites?

The short answer is yes, but there’s a catch. Crypto betting services typically use the same oddsmaking tactics as standard sportsbooks, but their fees and conversion rates may alter the odds in some cases. Remember, these organizations are about minimizing risk while maximizing profit. Unlike fiat cash (USD, CAD, etc.), cryptocurrencies like Bitcoin and Ethereum often must be exchanged for proprietary tokens used to place bets. Other sites will allow you to use the crypto itself to place bets. Both have their advantages and disadvantages, but there is a conversion fee associated with these transactions in almost every case.

These conversion fees and exchange rates set crypto betting apart from its contemporaries. In order to minimize their risk, crypto betting websites might have better or worse odds displayed, dependent on the fluctuating crypto market and exchange rates. While this does not apply to all websites, it is something to keep in mind.

Why Do The Odds Change Between Different Sites?

Predicting the outcome of anything in life is not an exact science. It sometimes just boils down to opinion, regardless of all the advanced algorithms, computers, statisticians, and mathematicians out there. The operators of any given crypto betting site might have a hunch that offering specific odds will net higher gains. That’s just how oddsmakers operate; there’s only so much you can predict until the unpredictable occurs!

Lastly, not all cryptocurrencies are created equal in terms of traffic fees. Some require a percentage to be paid just to transmit them from your digital wallet to a crypto betting website. The oddsmakers will know this and may adjust their odds based on current traffic fees and market conditions. Make sure you always do your research to see which crypto betting websites offer the best combination of odds, fees, and user experience!