Stablecoin Gambling 101: Escape the Volatility

It is a fact that the demand for cryptocurrencies keeps rising. A study recently mentioned that almost half of the world’s ultra-rich are interested in crypto. Another point is that stablecoins have been a major contributor to crypto advancement. These are cryptocurrencies designed to keep a steady value. This is why they bring together the good of crypto without the inherent volatility of stablecoin gambling.

Volatility is a major issue in crypto, which, on a good day, can multiply your bankroll overnight. On the other hand, a bad day may severely diminish your funds’ value. This is very off-putting and a major obstacle for many players who may wish to tip their toes in it. By using stablecoins, you can bypass this volatility and keep your bankroll at a steady value, avoiding the risk of diminishing prices traditional cryptocurrencies entail.

Stablecoin bookies are already aware of this, so they have adopted the most popular ones, USD Coin (USDC) and Tether (USDT). These tokens have their namesake value by being pegged to a specific asset, usually the US dollar. Let’s move on and go through all you need to know about stablecoin gambling, starting with the best places to bet with them.

The Best Stablecoin Gambling Sites

Nowadays, many betting sites accept crypto, while some only deal in stablecoins. This article includes all the verified crypto bookmakers who take these coins. Check our articles on USD coin betting sites and Tether bookmakers to focus on the two most popular tokens.

Decoding Stablecoin Bookmakers

As mentioned, stablecoins refer to a certain group of cryptocurrencies designed to exchange within crypto at a stable price. They have been around roughly since 2014 but gained traction towards 2018 and even more during the last year, with the explosion of Decentralized Finance applications in crypto.

Stablecoins achieve stability in their price of 1 USD, supposedly by backing each supply with the equivalent of USD, gold, or similar assets. Below is a quick look at the most popular and widely used stablecoins:

• 1
  Tether (USDT) is perhaps the most notorious of all. Owned by Tether, a private firm with a nebulous reputation, USDT is the most widely used stablecoin. It is backed by the US dollar and is very common in almost every crypto exchange and crypto bookie.
• 2
  USD Coin (USDC): USD Coin is a cryptocurrency with major backers, such as Coinbase, the second largest exchange globally, and Circle, a large corporation offering payment services. USDC and Tether are the two most popular among crypto bookmakers.
• 3
  DAI: The most decentralized stablecoin of all. It is pretty much loved by crypto enthusiasts because it achieves stability utilizing a truly cryptocurrency-centric algorithmic system. It is less common to find than the others.

Another notable stable token is TrueUSD, to TUSD. It is a respected coin, with major backers in terms of exchanges, communities, and even networks to which it can bridge. However, it is very difficult to find in bookies.

As you can see, there is no shortage of options. However, despite this plethora, crypto bookmakers that accept stablecoins mostly offer them as an additional option to the most popular ones, such as BTC, ETH, LTC, and XRP. It is not their main crypto course.

However, in today's betting industry, some bookies only accept USDT. Using it or USDC to gamble with top brands would not be an issue. Smart players should opt for stables to minimize exposure risk and enjoy the best of both worlds. 

Stablecoin Gambling: Step-by-Step

Starting with crypto can indeed be a complex undertaking for many. Ensure to read all our articles about the subject to make the process as simple as possible. You need to follow the steps below. For a more in-depth look, check our guide, Crypto Gambling.

• 1
  Purchase some from a reputable exchange. We recommend Coinbase, Kraken, or Binance. Depending on your country of residence, there also may be local exchanges that might suit you best.
• 2
  Next, if you haven’t already done so, create your wallet and send your stables to it. Never deposit straight from an exchange to a bookie. For top-ups, sign up for your bookie that accepts the stablecoin you decided on. Go to deposits, select your stable, and copy the address.
• 3
  Back to your wallet, paste the address. Check that the network you choose is the correct one to avoid losing money. The most common networks are Ethereum, Tron, and Binance Chain, supporting ERC20, TRC20, and BSC tokens. In most betting sites, USDT tether can be transferred using any of these networks. If this sounds gibberish to you, look at our Crypto Gambling Glossary. Once the transaction is made, wait for network confirmations before the balance shows up in your account.
• 4
  Once you are ready to withdraw, follow the same steps as above, but this time, send the winnings to your private wallet. Now, you decide whether to cash out or invest your winnings. 

Stablecoin gambling sites vs Crypto & fiat bookmakers

As already mentioned, stablecoins started as a means to introduce stability in the price of a cryptocurrency. This is the main difference from other crypto options in betting sites. You get the best of both worlds without the intimidating price swings that Bitcoin and the other popular crypto options have.

For that reason, by opting for stablecoin gambling, you also avoid a double gambling situation, where you risk your gambling and the price swings that affect your bankroll’s value. All this is pretty neat, but is it legal?

What about Legality, Safety, and Taxes

The truth is that stablecoin betting sites are legal. For the most part, this is defined by whether you play at a trusted bookie, and we strongly recommend you choose one from our list. Do not forget also to check if gambling is legal in your region. As for taxes, in most cases, you do not have to pay anything if you do not convert crypto to fiat. Extra diligence is required if you live in the USA or Europe, as you might need to familiarize yourself with existing laws.  

Once again, the legality is very dependent on the country in which you reside. You can learn more about it and its taxation in our article, Bitcoin Legality and Taxes. In short, we recommend against selling stables to fiat when you make a winning. Holding crypto for a long time could benefit you from reduced taxes.

Also Read: Litecoin Betting Sites

Unique Features of Stablecoins in Gambling

Furthermore, another exciting part is that you can keep them in your wallet, but why not indulge in other options? If you still don’t know what a wallet is, make sure to check out our guide on the Best Crypto Wallets for Online gambling. Back on the subject at hand, mostly due to the birth of Ethereum smart contracts and the subsequent rise of Decentralized, the possibilities for a passive income are endless.

Once you finish playing on Stablecoin Gambling Sites, look for the countless options out there which allow you to deposit your stables and earn passively. Sure, it may not be the degree of gains you could achieve on the rise of BTC or ETH, but the risk is by far smaller. Many of these options offer cards too. So you can directly spend the fruits of your labour without any banks denying you or slowing you down. For a more detailed look at crypto cards, check out our article Best Bitcoin Card for Gambling.

And the best part, unless/until you pull them again to sell them, you will not be taxed about it. We have already touched on this earlier but keep in mind that you can always partly cash out your winnings. This way, you successfully break down the amount of tax you pay. You also have your locked gains to compound.

Our verdict on Stablecoin gambling

We strongly believe and recommend that you try out stablecoin gambling, at least as your initial dive into crypto. You will most certainly get the best of both worlds without the increased exposure to crypto’s wild price swings. We also recommend that you opt for stables such as USDC or Tether. They are more transparent and have the US government’s blessing unofficially. 

Tether is the most trusted and available option, although it brings a different risk: lack of transparent auditing. All in all, stables are a fascinating opportunity. So don't forget to check out our list of the best crypto bookmakers.