Like all markets, there are good times and bad times when trading crypto. You can’t always get it right: there will be occasions when you buy a currency that almost instantly tumbles in price, or there will be “holding bags” when a slice of negative PR and sentiment hits the headlines.
There may be other occasions when you sell too soon – when an underperforming crypto suddenly gets a price boom that, to most at least, was completely unexpected.
How do you guarantee successful crypto trading? Well, you can’t – that’s the simple truth of the matter.
However, it’s no coincidence that many crypto traders also happen to play casino games, and that many casino enthusiasts also dabble on the side in a trade or two.
Why? Because in many ways, the thought processes of trading and casino gaming are very similar.
This is a guide to why crypto traders are thinking like casino studs – and why they are reaping the rewards for it.
Speculate to accumulate
You can’t get rich from winning a single hand of blackjack or baccarat. The most successful players of these games make their money by implementing a successful strategy – or by minimising the house’s edge – and picking up slow and steady wins.
That sort of “speculate to accumulate” tactic can, of course, be applied to crypto trading too, because it is those who can effectively juggle a selection of currencies – picking the right time to buy and sell – that enjoy long-term glory in the market.
Ultimately, a 2% ROI on a trade is better than nothing, and it is certainly better than a negative return. Patience is a virtue – both on the casino tables and when executing trades in this highly volatile market.
When the numbers make sense, go big
If you want to know how closely crypto is related to bitcoin poker, watch the pros and see how they go about their business on the felt.
There’s a noticeable period of time when they are weighing up their decision. Do they call, raise or fold? It’s tangible how they weigh up their options and make their call.
Why is there a pause? Well, occasionally there’s a bit of theatre to it: the key to a good bluff is to put on a show for your opponents.
However, for the most part, the individual is running some high-level maths through their brains, and at a rapid pace!
They are working out which is the percentage play, and which offers “positive expectancy” based on the cards on the table and also the probabilities of them receiving the flop that they need.
When the psychological equations have been calculated, that’s when you’ll see the player pull the trigger.
Crypto traders can take on board such calculated decision-making. There’s an assumption that lumping big bucks on a crypto is reckless, feckless and brainless, but actually that doesn’t have to be the case if you have done your research.
Think about the poker player’s pause next time you’re about to hit the buy or sell button. Only take action when you have done all of the necessary homework to ensure that your investment is well thought out and has the maximum chance of being a success.
Know when to fold ’em
The glamorous preconception about trading life is that it is all buy, buy, buy and then the money comes rolling in.
In truth, the most successful traders all have one thing in common: knowing exactly when to sell and/or cut their losses.
Occasionally, it’s a hunch that instinctively lets a trader know that the time is right to call it a day with a certain asset, but usually its studying market signals and sentiment that leads to the understanding that a currency’s price is about to drop and eat into their profits.
In the bitcoin casino, a similar psychology should take hold. Whether you’re sat on 16 at the blackjack table and don’t know whether to hit or stay, or you’ve got a bad feeling in your gut at the poker table that calling, rather than folding, will lead you into trouble, take the easy way out: it might just be a bankroll saver.
Kenny Rogers sang about knowing when to hold ’em and when to fold ’em – and you’re not going to go against what Kenny Rogers says, are you?
In it for the long haul
If casino players jacked it in after one tough day at the tables, there would be few professional gamblers left!
The nature of any pastime where the house has an edge dictates that you will embark on losing streaks and return a loss from your gaming session once in a while.
This confirms what you probably already knew: it’s all about the long haul for bitcoin poker, blackjack and baccarat enthusiasts.
It’s a philosophy that crypto traders could learn a lot from. Day trading is, at its very essence, unpredictable, volatile and seemingly at times wholly random, and so the pitfalls of a bad day at the office are very real.
Successful day traders are absolute specialists in their field who are able to pre-empt the markets before a price move occurs. It’s tough work, and only a few can pull it off.
And yet, think about those who have held their bitcoin bags, picking up some coins for a few pennies years ago and at one time seeing their investment swell to a staggering $20k valuation.
Thinking long term, traders are advised to implement stop losses and stop wins on their investments, to at least offer some kind of assurance and lock in a profit.
Remember, investors set stop points. Gamblers don’t.
Think like a casino
Why are so many casinos thriving worldwide? That’s simple: their house edge hasn’t changed since the first games-houses were developed centuries ago.
They understand that some players will beat them – either through the implementation of a brilliant blackjack strategy or through pure luck alone.
However, in the fullness of time, they will recoup those losses from players without the nous and knowledge to turn the house edge on its head.
It’s the same with crypto trading. Every buy/sell trade you make has an opposing force, and so if you trade with high emotions or without understanding basic predictive charts, then somebody, somewhere is benefiting from your questionable trading.
Think about your own edge as a crypto trader: never lose sight of your advantages, and never trade outside of your comfort zone.
Lots of casino players flock to us here at Bitcasino, where you can test out your skills learned from trading on our extensive selection of crypto casino games. We may have an edge, but we always welcome winners!
Words: Sean McNulty