Arbitrage Betting, Trading and Hedging

What is Arbitrage Betting?

Crypto arbitrage betting, also known as sure betting or arbing, involves sports bettors placing wagers on all possible event outcomes on different sportsbooks. The main goal is to lock in guaranteed wins and take advantage of the odds differences between sportsbooks.

These discrepancies primarily result from price volatility, market inefficiencies, and fluctuations in exchange rates between cryptocurrencies.

➡️ What’s unique about crypto arbitrage betting is that you focus only on your odds, not predicting the winner. These strategies often demand quick execution and precise calculations.

Difference Between Arbitrage and Hedging

Arbitrage

Sports betting arbitrage is about placing bets on all of the possible outcomes of a certain event on multiple sportsbooks. This reduces your risk of losing and guarantees you’ll earn a prize, something like risk-free betting.

• If US crypto sportsbooks favor an American team to beat Germany in the World Cup, this may increase Germany’s odds to balance risk.
• In other words, if Germany has a probability of 1.65, you can find it for 1.80.
• At the same time, German sportsbooks may have the USA odds at 9.50 instead of 6.66.

➡️ If you bet on the US team on the German crypto betting platform and the German team on the US sportsbook, while also covering the draw, you can create crypto arbitrage betting. This arbitrage betting Germany vs. arbitrage betting USA approach will provide you with a positive outcome regardless of the match result.

Hedging

Hedging is about sports betting on a particular event and then betting against yourself. This reduces the possible loss you can encounter.

Imagine the following scenario: You place a bet of 100 m฿ on some team that has odds of 6.00. However, as the match progresses, you start losing confidence, meaning your bet is at risk. This is where hedging comes in to reduce your losses.

• If the team’s odds drop to 1.15, for example, you can place a hedge bet with a stake of 550 m฿ to soften your losses.
• Instead of losing 100 m฿, you’ll now lose 45 m฿.

The main difference between arbitrage and hedging is that one guarantees a profit,
while the other only minimizes risk.

How Crypto Arbitrage Betting Works?

You’ll understand the sports betting arbitrage process best through an example, so here’s how this betting method works:

1. There are two teams, the USA and Mexico.
2. One sportsbook has 2.00 odds for the US team to win, and the other has 2.5 odds in favor of Mexico.
3. As arbitrage bettors, you should calculate how much you should wager on each outcome, regardless of the winner.

Suppose you place a crypto bet in the value of $100 for the US and $80.89 for Mexico. The total stake is $180.89 in your respective cryptocurrency.

➡️ If the USA takes the win, you’ll earn $200, meaning you’ll make $19.11 in terms of crypto.

➡️ On the other hand, if Mexico wins, you’ll get $202.22, or a profit of $21.33.

Either way, you benefit from your wagers, receiving a return that’s higher than your initial crypto stake.

Tools & Platforms for Crypto Arbitrage

Tools

1. Arbitrage betting calculators
2. Arbitrage bet finders

Is Arbitrage Betting Legal?

While the legality of arbitrage betting can vary based on different jurisdictions, it’s overall legal.
However, you still need to keep an eye on the crypto-friendly license and the trustworthiness of the sports betting platform you select.

Risks & Challenges

Although arbitrage betting is usually risk-free, there are still some potential challenges that you need to watch out for.

Some of the most common ones include:

1. Different rules for placing a bet
2. Fluctuations of exchange rates between sportsbooks
3. Sportsbooks limitations
4. Blockchain network congestion
5. Regulatory uncertainties

The Best Arbitrage Betting Strategies for the US and Germany

Arbitrage betting strategies in Germany and the USA are quite similar. The main difference is in the type of bets.

The European market utilizes decimal odds, which refer to the total amount you’ll get for a win, compounded by the initial stake.

On the other hand, the American market uses positive and negative numbers that depict the underdogs and favorites, respectively.

Other helpful strategies for both crypto betting rookies and whales are:

• Comparing different sportsbooks’ odds
• Focusing on not-so-popular markets
• Using an arbitrage calculator
• Staying up-to-date with the latest information

Calculating Sure Bets

To calculate your sure bets, you need a reliable arbitrage calculator. By entering the odds of at least two different bets, you’ll be able to determine how much you may need to stake to guarantee a return on your total wager.

The Future of Crypto Arbitrage Betting

As crypto sports betting grows, the future of crypto arbitrage betting is shifting towards the integration of decentralized finance and blockchain technology.

Key trends – the future of sports betting arbitrage are:

• Adoption of stablecoins like USDT
• Enhanced AI betting tools
• Sportsbooks operating on blockchain networks

Conclusion

Crypto betting arbitrage is a way to guarantee a positive outcome by betting on all possible outcomes of a sports event on multiple platforms. So, even if the outcome of the match is negative, you can still be in profit. Just find the platforms with the best odds, and you’re good to go.