5 Things to Know About Betting Online
Online betting can be safe and fun entertainment, though using it as an investment strategy comes with great risk. Learn more about online betting.
To include betting as an aspect of personal finance, even in your own private thinking, is a risky prospect. Betting is not typically seen as a particularly responsible or strategic way to use one’s money. And, despite clear similarities, it is not the same as investing. There is more uncertainty, there are more variables, and there are fewer proven methods for finding success in the markets.
With all of this said, more and more people are engaging in betting and betting-adjacent activities. Some do this with the specific goal of growing their finances (rather than just enjoying some recreational betting). So, it seems only right to devote some time to the analysis of modern, online betting from a strategic standpoint.
Our only strict recommendation, before we start, would be to consider betting purely as a recreational activity. Always remember, even if you do enjoy the activity, you should be very guarded with your finances when doing it. Keep in mind, unlike the stock market or other conventional investments, betting is intentionally and directly weighted against you. It’s designed so that the bookmakers can profit. Never bet more than you can afford to lose.
5 Things to Know About Betting Online
Again though, it still pays to be educated on some of the specifics of betting as a fringe mode of investment. That’s the way some people seem to be looking at it these days. Five things in particular are worth being aware of about online betting, as highlighted below.
1. Betting Is Becoming More Widely Legal
Despite having been legal in large swaths of the world for quite some time, betting businesses are expanding. This is most notable in the United States. Per Forbes, six new states added regulated gambling in 2018. And, it appears clear that more are going to be joining the club. In very short time, we could be looking at a United States market in which most or all states allow some form of legal betting.
This doesn’t necessarily speak to the methods and strategies behind applying one’s finances to this kind of activity. But, it does help to explain why more people are, in fact, looking at betting as a sort of entertainment-centric investment. Betting is simply becoming more available, to millions of people all at once. And, where there is fresh potential for growing finances, there are sure to be people giving it a shot. Coupled with the fact that it’s trendy to seek alternatives to ordinary stock market investments, it’s clear that betting will only get more popular as a personal financial endeavor. And that’s why this advice is necessary in the first place!
2. There Are Safe & Secure Sites
If you aren’t accustomed to the world of real-money betting, it might be easy to imagine that it takes place only on sketchy offshore sites or less-than-reputable platforms. Indeed, such sites have always existed. They cater in particular to areas that don’t have legal and properly regulated betting. While these sketchy platforms can still be found, however, they’re no longer the norm in online betting.
Thanks mostly to a thriving industry in the UK, there are now regulated, licensed, trustworthy platforms that do, in fact, make it safe to place bets. Over a dozen sites listed by Freebets can give you an idea of the breadth of companies we’re talking about here. It includes famous names like 888sport and Bet365, to more obscure options like Volt Sports and Karamba. Even if those names mean nothing to you, you can understand the basic idea. These are public, visible companies subject to regulation and fitted with advanced security protocols. They give people ways to make sure none of their personal or financial information is at risk while betting.
We always suggest using a reputable betting site for any online betting activities. It’s just good sense.
3. It’s Not A “Safe” Investment
As safe as betting platforms may have become, it’s still important to avoid equating this improvement of quality with the nature of the actual investments. That is to say, while the sites may be safe, betting as an investment remains anything but.
While betting sites themselves can be regulated, reliable, and downright appealing, betting is no more “safe” than your average investment. There is always – always – risk. Most would go a step further in fact, and argue that in most cases betting is actually riskier than investing. As discussed earlier in this article, it’s weighted against the gambler by design. This is broadly holding true, even as some advanced analytical methods are being developed to give a very small class of elite bettors an advantage. Again, bet for fun if you like – but don’t consider it a reliable way to grow your finances. Because, even if you do your homework, so to speak, you’re more likely to lose money than make it.
4. Betting Covers More Than Sports
This seems to be more and more true with each passing year. As general interest in betting expands, people seem to be finding more things to bet on. Really, this can include just about anything, but a few side markets in particular are catching up to sports. There is always a lot of activity around the film and music award shows these days, for example. And, betting on politics has become so active that some have questioned if bookies are more accurate than polls!
Considering betting from an investment perspective, it’s still important not to look at this expanding nature as incentive to “diversify” with different bets in the same way you might make separate, unrelated investments to protect a stock portfolio. There are simply different principles at play. When you diversify a stock portfolio, you’re protecting yourself against unforeseen losses by giving yourself multiple low-risk avenues with which to make money. If you bet in multiple markets, you may be increasing the likelihood that one bet is lucky. But, you’re spreading your money over multiple high-risk options, because betting is more inherently high-risk than investment. Nevertheless, if you are interested in betting, you should be aware of the breadth of options available to you.
5. Betting Is Unstable Because It’s Non-Essential
Maybe the most important thing to understand about betting if you’re thinking of it from an investment perspective is that it is a non-essential activity where subjects are concerned. What this means is that a basketball game is going to happen whether or not anyone bets on it. And, the outcome is going to be the same regardless. The event you’re wagering on is independent of the wager itself. Thus, your bet has no bearing on the activity.
This isn’t true in investments, which is what makes them more stable (though still far from sure things). Apple’s stock, for instance, cannot sustain itself without investors. And, in fact, it is a direct reflection of their activity. By and large, this is what makes it easier to lose money betting than investing. In a typical investment, you’re actually playing a known, defined role in the success of a company. You’re essentially taking part in a collective effort to keep this company trending positively. In betting that’s not the case, and it’s less stable an investment as a result.
Hopefully all of this has given you a fairly comprehensive understanding of the online betting industry as it exists today. It’s getting bigger and more popular. And, despite these warnings, there are undoubtedly those who will be tempted to get involved with it in the genuine hope of financial gains. We’d still contend that this is a poor financial strategy. However, the above information can also help you to enjoy yourself more if you decide to bet for fun and entertainment.
But remember, please gamble responsibly!
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