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For those of you who have been in the bitcoin gambling industry for a while now, it’s possible that you are used to certain terms and conventions.
However, these terms might be completely foreign for those new to bitcoin betting. Here are 16 terms that you should definitely know if you want to learn more about bitcoin gambling and how it works.
1. Winning Percentage
A winning percentage refers to the percentage of bets that a person wins. It is usually used in sports betting when determining the likelihood of a team or player winning.
A good winning percentage should be around 60% or higher. This percentage means that a person who bets $100 wins $60 or more during the same betting period.
2. Bitcoin Arbitrage
Bitcoin arbitrage is taking advantage of price differences between different bitcoin exchanges or various markets by simultaneously buying from one exchange and selling on another at a slight profit.
The risk with bitcoin arbitrage is that prices between exchanges, or markets, could have moved when you execute your trade, thus wiping out your potential profit.
One trick you should use to minimize these risks is by using leverage.
3. Bitcoin ATM
A physical machine that allows users to exchange bitcoin for cash and vice versa. Bitcoin ATMs are present worldwide, with many of them being located in large cities.
There are also online exchanges. The advantage of online exchanges is that you usually don’t have to pay any fees and can access a wider range of options.
These ATMs are particularly useful for gamblers as they can easily exchange bitcoins for cash.
4. Betting Limit
A limit placed by the gambling website to the total amount of money you can bet on a certain event.
This limit is usually indicated when placing your bet, with a message saying something similar to “maximum bet of 0.5 BTC.
This betting limit applies to each individual bet you lay, not your total winnings if you win an event that pays multiple bets.
5. House Edge
House edge is the difference between what the house makes in revenues and what you win if you bet.
This amount varies depending on how much action is on the gambling website and how proficient the players are.
6. Player Value/ Rake
A rake is the money you pay to the house to place a bet. It will vary depending on a few factors, particularly how popular the site is.
These days, it’s not uncommon for some sites to get up to 5% of each bet placed by the players.
That’s why, when looking for your favorite betting website, look at how much rake the site takes from you to bet as well as its overall popularity.
7. Provably Fair
A method by which casinos prove that the games they offer are fair and that the players can verify the results on the server in an unbiased manner.
Proving is done by ensuring that each player has access to a seed generator, which generates mathematically random numbers.
If both parties have access to these numbers and they match, it means that there was no tampering with the game’s outcome.
8. Random Number Generator
A random number generator is a function used by counterfeiters to create fake signals sent to the gambler.
9. Scam/ Fake Betting Site
Scam gambling sites use a range of fraudulent strategies to achieve a very high percentage of return on turnover. The scam gambling sites will offer very attractive winnings and large betting limits. You must check out the list of Best and trustworthy bitcoin casinos.
The scamming tactics employed include:
- Use of bots.
- Using a very low house edge and negatively balancing the players who lose.
- Using a third party to purchase bitcoins and then withdraw them before they can be wagered.
- Use of VPN services to route their traffic through various locations.
- Use of P2P betting sites.
- Use of aggressive marketing techniques.
- Using fake surveys to get you to sign up for a paid membership.
10. Referral bonus
A referral bonus is a form of commission paid by the betting website to those who introduce new players to their website.
Bonus rates and conditions are typically established to balance out the commission paid and encourage new players to come.
11. Seeding server
A seeding server is used to manipulate an RNG in such a way as to guarantee certain results.
Scammers often use this to manipulate results on betting sites to win a certain number of bets.
12. Teaser
A teaser is a wager type in which you get to place a certain amount of money on the outcome of multiple different events in a single bet.
Doing this means you will be betting on the outcomes of multiple bets within a single event.
13. Top Tier
According to statistics provided by industry players and analysts, these are the top 5 most popular gambling sites in any given market.
Some industry experts estimate that up to 500 or 600 different bitcoin betting websites are in the market, but only a handful can reach these rankings.
14. Verification
A process that allows websites to ensure that players are who they say they are.
This process is important as it prevents the players from being scammed by fake accounts or sites created by scammers.
15. Value Betting
Value betting is when you have some advantage over the bookmaker or when you have an idea of what might happen in a certain match.
16. Range
Range is the distance between the lowest possible winnings and the highest possible winnings for an event or a wager type.
For example, if you bet on a game with two outcomes – A and B – which payout 1 BTC, each outcome can potentially award you 0.5 of a BTC or 1 BTC.
If you bet on outcome A and it pays out 1 BTC, then your range is 0.5 to 1.0 BTC.
It means that you could lose up to 0.5 BTC with this wager type or win up to 1 BTC.
