How To Win Bitcoins With Arbitrage Sports Betting | 100% Risk Free | 2018 Guide
This matched betting method is for people that understand how to send, store and receive Bitcoin. There is no difference between regular matched betting and matched betting with BTC. We are still simply arbitraging between 2 bookmakers by backing the outcome on one and laying it on the other when the odds are favourable for arbitrage
We’re entering a new period of matched betting and arbitrage. For years we have been making risk free money off the bookmakers through the no risk matched betting technique with traditional bookmakers but with accounts being limited and bookmaker regulations it becomes increasingly difficult to sustain the larger profits as years go on. With most bookmaker sites in the UK it’s difficult to turn a decent profit, luckily in Australia we still get great offers but in a few years time who knows if it will slow down too. Fear not though, we can get ahead of the curve!
At the moment we don’t have too many betting sites that accept bitcoin, but the ones that we do have are very lucrative. I want to start with some benefits and drawbacks to the current arbitrage opportunities with betting sites that do accept bitcoin.
Benifits of Arbitrage betting with Bitcoin
- Anonymous accounts, this means you can not be banned for arbitraging on the sites.
- Large spreads in the odds on each website up to 8% arbitrage profits happen often
- No borders, you can do it from any country in the world, unlike regular matched betting.
Issues Arbitrage betting with Bitcoin
- Transaction fees, with network congestion it is expensive to send and receive Bitcoin. We factor this transaction % into our overall arbitrage profits.
- Transaction Times, same as above, it can take several hours to send your BTC.
- Security & Reputation – As these sites are quite new they don’t have reputations in the industry yet.
- Market volatility, unless you want to actually invest or hold Bitcoin it can be risky using it to do matched betting. The reason for this is because the value of it fluctuates dramatically. Personally the bitcoin I have i consider a speculative investment and want to grow my amount of it by using matched betting.
How do we work around these issues?
Most of the sites we will be using are well aware of these issue so for small deposits (under 1BTC) they only require 1 confirmation from the network and not the full 6. This drastically decreases waiting time and cost of transferring our BTC. Some of the sites also allow the transfer of other cryptocurrencies such as Litecoin, Bitcoin Cash, Game Credits and Doge.
I have been using the sites mentioned below to Arbitrage bet bitcoin. However I do withdraw my winnings at times when I am not using the account as I like to keep my BTC in a private wallet.
I would recommend you use a hardware wallet such as a nano ledger or trezor to keep your investment safe. You should be aware of all of this if you are going to start arbitrage betting on bitcoin sites.
Also a note regarding the fees to transfer BTC, this is temporary, soon transactions will be practically free and instant again with an update to BTC (Lightning network).
Dutch betting with arbitrage opportunities.
This is the exciting part, there are 4 bookmakers currently that are good for depositing and withdrawing your bitcoin. They often have large differences in the odds, this means that we can simply overlay or underlay one of the teams and no matter what happens, due to the discrepency between the odds on the two bookmakers we will make a guaranteed profit.
Here is a real world example of a recent arbitrage opportunity.
Competition Soccer; English Premier League
Game; Swansea City @ Brighton & Hove Albion
Bet 1; Swansea City +0 at odds of 2.645 at 1xBit for 41.2% of total bets.
Bet 2; Brighton & Hove Albion +0 at odds of 1.85 at mBit for 58.8% of total bets.
Guaranteed Profit – 8.86%
Here are the first bet that needs to be placed. Under the asian handicap market we select Brighton & Hove -0 and place 41.2% of our total bet amount.
For the next and the opposing bet and to cover each outcome making the bet risk free we select Swansea +0 for 58.8% of our total bets.
We can use the free dutching calculator here to enter our stake in and the odds for both results. In tis example I have used a total stake of $100. As you can see if I place approx 42% ($42) on the first bet and 58% ($58) on the other the guaranteed return is about 9%. You can do a lot more obviously but I recommend starting slowly to get a feel for doing this.
One mistake on placing a bet can set your profits back weeks!
NB. We always work in round numbers so the bookmaker does not know we are arbitrage betting.
As there is no betting exchange such as Betfair that accepts Bitcoin we must use another bookmaker to place out lay bet. This isn’t a problem, we simply use a calculator and enter the odds in for each team in a head to head game
The calculator tells you how much to place on each team. We only do this with games whose odds are favorable for arbitrage, ones that essentially guarantee a return if we back and lay them
Which Bitcoin bookmaker should I sign up with?
There are 4 main ones that I use to Arbitrage between, the sign up is outrageously simple, no verification is even required! Once you sign up you are given your BTC address that you can use to deposit and withdraw with.
Most of these have a one click sign up, this generates a random numeric username and password for you, this is normal with new Bitcoin websites, I would recommend going into the settings and setting up a standard username and password for the account a soon as you login to the account.
The 4 bookmakers we use to arbitrage.
Where do I find these opportunities?
At the moment I am working on some automatic software to detect these opportunities, at the minute I can only access a few a week but hope to increase this through 2018. Still though with up to 10% profits to be made it is definitely worth getting involved in.
If you want to get notified when there is a arb opportunity with a bitcoin website you can join the group. (It is separate from our regular Matched Betting Facebook Group so if you’re already a member you can follow the Bitcoin one here)
When you receive notification of an arb opportunity simply fund your account, follow the instructions to back and lay each team for the correct amount and then wait for the profit. They are usually a few days to a week in advance so we generally have plenty of time to transfer and place our bets.