It would be a curious study to survey 1000 cryptocurrency owners to find out their motivations. In other words, why do they own coin and what do they do with it? In all likelihood, the answers would span the entire spectrum from buying Bitcoin as an investment to using it as an alternative money source.
In light of that, Rumor Fix magazine published an interesting article on September 15 (2020) from contributor Jerry Clark. The article's headline boasted "10 Best Ways to Make Money Through Bitcoin in 2020".1 It was intriguing enough to encourage this writer to take a look.
The title explains everything you need to know. The article is a list of 10 suggestions for making a profit with your Bitcoin holdings. There is nothing wrong with doing so. Bitcoin ownership can be profitable if you know what you are doing. The only difficulty with Clark's piece is the third item on the list: using Bitcoin to gamble.
Gambling as an entertainment option
Encouraging people to make money by gambling is not wise. Gambling has never been designed to be a moneymaking enterprise for gamblers. For casinos, yes. But for gamblers, playing slot machines and table games is supposed to be entertainment. You pay to play in the same way you would pay to see a live sporting event.
Gambling experts and government officials alike are very wary of anyone who promotes gambling as a way to make money. Bitcoin notwithstanding, approaching casino gaming as a means of generating income can put one on slippery slope to ruin. It should never be done.
Here's the thing: more than one casual gambler has fantasized about making a living playing cards or betting on the craps table. How many of us haven't envisioned ourselves alongside super spy James Bond ordering extra dry martinis - shaken, not stirred - and playing baccarat until the wee hours of the morning?
There certainly are some professional gamblers who make a nice living at the casino. But they are the rare exception to the rule. Compared to the total number of people who gamble and the money they spend, professional gamblers and their annual incomes are a mere pittance.
Other ways to make money with Bitcoin
With the exception of recommending gambling, the Rumor Fix piece offers some pretty good ideas. Needless to say that there are multiple ways to make money in the cryptocurrency space. If you are an investor, there is always the option of buying low and selling high. People do it all the time, and some do quite well.
Another suggestion Clark made was to get into affiliate marketing. There are affiliate marketers willing to pay their affiliates in crypto. There are also growing numbers of crypto-based businesses that are looking for affiliates to help spread the word.
The point of all this is to say that Bitcoin and the other major cryptocurrencies are assets that can be utilized to generate profit. Making money in cryptocurrency is no different than making money in any other business. You simply have to find a niche and exploit it. Find a need and fill it. Just do not rely on gambling to be an income generator.
How to gamble responsibly with Bitcoin
At this point it seems reasonable to remind readers of the basic tenants of gambling responsibly with Bitcoin. We are all for making online casino deposits with cryptocurrency. Where crypto withdrawals are possible, we are in favor of them as well. We are also in favor of responsible gambling.
Have you ever noticed that at the bottom of most gambling sites is a statement about responsible gambling and links to organizations that help problem gamblers? Those things are not there by accident. Online operators are very aware of the risks of problem gambling. They want their customers to be aware as well.
We share the concern shown by gambling operators and regulators. To that end, we offer the following tips for responsibly gambling with Bitcoin:
1. Establish financial limits
The easiest and most effective way to avoid problem gambling is to establish financial limits for every session. There are two types of limits loss limits and win limits. The idea is to limit yourself on both sides of the equation so that you do not stick around too long.
If we had to choose one over the other, the loss limit is more important. A loss limit is the amount of money you can afford to lose in a single session. Let us just to pick a random number: £100. You make a deposit and start playing. If, at any point, you lose your entire deposit, it is time to stop gambling and go find something else to do.
A win limit works in the opposite direction. If you set the limit at the same £100, you tell yourself to end the session if, at any point, you double your bankroll. Why establish a win limit? To avoid the risk of getting too greedy and turning your big win into a big loss.
2. Establish time limits
As long as we are talking limits, establishing a time limit for each session also helps. A good starting point is 30 minutes. Assuming you do not reach your loss or win limits during that time, still commit to stopping when you reach the 30 minute mark. Shut down your device and call it a day.
Some casino websites have built-in timers. They automatically interrupt you and flash a message on your screen to let you know how long you've been playing. Others offer manual timers that you can set yourself. In the absence of an online timer, you can set a timer on your phone or watch.
Time limits work because they interrupt what you are doing. They prevent you from getting so engrossed in playing that you lose your grasp of time to the extent that you're neglecting other things. A time limit is a good idea even if you do not have trouble controlling how much you spend.
3. Use cold storage methods
There are some things you can do specific to Bitcoin and other cryptocurrencies. For example, utilize cold storage for your coins. Cold storage is storage that is not directly connected to the internet. Some people use standard flash drives. Others use specialized flash drives with built-in encryption. Still others simply write down their public and private keys on a notepad they keep at home.
The point of using cold storage is two-fold. As far as gambling is concerned, cold storage is not as convenient as online storage. It takes a little more effort to transfer coin from your cold storage to your wallet and then on to the casino. It is just inconvenient enough to allow you to pause before consciously making the decision to deposit.
The other thing about cold storage is that it is just a safer way to store your coin. Any coin you store in an online wallet is subject to the same security risks as your fiat. It can be stolen. It can be lost. Using cold storage eliminates those risks.
4. Don't attempt to recover losses
The next tip for Bitcoin gamblers is to not use casino gambling as an opportunity to recover your losses in the crypto market. Remember that cryptocurrencies are volatile. The price can be up one day and down the next. On those down days, gambling is not an appropriate venue for recovering losses created by falling prices.
Trading experts generally recommend waiting things out on those bad days. In any kind of public trading platform, heavy losses usually self-correct over time. That is why investing is considered a long-term financial strategy.
If you absolutely cannot wait it out, fine. Sell your coin, cut your losses, and learn your lessons. Just don't hit the slot machines or online casino tables in an attempt to recover from a bad day in the market. The likelihood of you making matters worse is pretty high.
5. Pay your bills first
This final tip applies to all gambling whether you deposit Bitcoin or fiat: pay your bills first. Remember, gambling is an entertainment option only. All of your entertainment options are at the bottom of the priorities list. Paying your bills is at the top.
To that end, never gamble with money you need to pay for necessities. Do not gamble your mortgage payment or your rent money. Do not gamble with the money that is supposed to be putting food on the table and keeping the lights on. Gambling funds should only be those funds that are not needed to meet your other obligations.
Rumor Fix magazine's 10 suggestions for making money with Bitcoin are interesting. Admittedly, some of the suggestions are things we hadn't considered before. For example, engaging in the crypto version of pay-per-click advertising would never have crossed our minds. But it is out there. Just remember the one fundamental truth in all of this: gambling should never be used as a way to make money - whether you deposit BTC, some other crypto, or fiat.