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Crypto Bankroll Management

Since cryptocurrencies were introduced more than a decade ago, many industries have slowly adopted blockchain technology as a new industry standard. One sector has benefited from the adoption of cryptocurrencies in the gambling industry. This adoption in gambling has led to what is known as crypto gambling.

Crypto gambling is gambling with cryptocurrencies. Players can place bets using cryptocurrency instead of multiple fiat currencies on gambling sites and online casinos. Although the only difference between traditional and crypto gambling is the currency, this currency change comes with more risks and liabilities that gamblers must be careful about. 

Top of the list of concerns for crypto gamblers is crypto bankroll management. Do the rules for managing your funds change when the currency is crypto?


What is Crypto Bankroll Management?

Bankroll management simply refers to how a gambler uses his available betting amount for maximum profit and minimum loss. For players using crypto, it explains how they use their public crypto to position themselves for maximum profit and minimum loss.

Managing your bankroll is gambling 101. It ensures that players can comfortably play for a set amount of time per session without being stopped by a lack of funds. It also serves as a stop-loss measure for players to control how much loss they may experience per gambling session. To manage his bankroll, a player must calculate how many bets he can make per session on a particular slot or table. With fiat currencies, this calculation is easy, but when it comes to crypto, players have to deal with its volatility.

Cryptocurrencies Are Very Volatile

Cryptocurrencies are very volatile is a statement of fact, and for crypto bankroll management to be successful, the biggest challenge is crypto volatility. What volatility means is that the price and worth of cryptocurrencies change quickly and constantly.

This volatility causes a problem for both gamblers and casinos. For a gambler, the price volatility could favor them by making them earn more than they could gain from a gambling session, especially when it’s time to cash out. But, on the other hand, they could also be on the losing end when it’s time to cash out.

For casinos, price volatility could affect their algorithms and put them in a loss or win position after their players cash out.

Why is the Crypto Market so Volatile?

It’s a fact that price volatility is an unfortunate characteristic of cryptocurrencies. The million-dollar question is; why the crypto market is so susceptible to price changes? Here’re a few reasons why.

It is a Digital Asset

Cryptocurrencies are digital-only assets, meaning any physical commodities or currency doesn’t back them for stabilization. This means that cryptocurrency prices are determined by supply and demand dynamics. This fallout is only worsened by the limited supply of cryptocurrencies worldwide. For example, Litecoin has a total volume of 84 million coins, while Bitcoin has a volume of 21 million. So, when demand rises, the price also increases, and when there’s surplus supply, the price falls. 

So, should anything influence the mass buying and selling of cryptocurrencies, such as bad news, wrong information, or fear, the value would drop significantly as investors start panic selling.

They're New

Blockchain technology and cryptocurrency is an emergent market that has been around for less than two decades. Nevertheless, the adoption is widespread, considering the time frame is not enough to limit the impact of its technological innovation. The issue is that bigger players with higher capital could potentially influence the market and affect Bitcoins volatility.


Market speculation is another factor that plays strongly in cryptocurrency volatility. The crypto market is open to speculation by investors who use it to drum up profit for themselves based on its volatility. They make bets on the future price and make money if they are right. In addition to critics and short-sellers, crypto prices are always teetering from one value to the next without any fixed stability.

Influenced by Public Opinion

Public opinion is one of cryptocurrency growth’s most significant drawbacks and advantages. Bad news influences the value of Bitcoin and sends investors and buyers scrambling to sell and recover their money. Suppose the value of bitcoin drops a little, people panic and start making doom statements, influencing others to sell. The reverse is also the case. Public opinion affects mass buying when things are great, increasing the price further. 

Understanding the factors that affect cryptocurrency volatility is essential to adopting tactics that protect your funds and put you in the best position for a profit. One of those tactics is risk management and position sizing.

The Basics of Risk Management and Position Sizing in Cryptocurrency

Risk management and position sizing are crucial tactics to employ when making any investment with potential loss. In light of the volatile nature of cryptocurrencies, crypto traders use these strategies to protect their funds and keep them from making too many losses. They are also very important tactics to adopt when gambling with crypto.

Risk management refers to the tactics used to manage the risks of crypto investment, while position sizing has to do with the amount spent on a bet relative to the entire bankroll. So why are these two strategies essential when crypto betting?

They help crypto gamblers control the risk they are open to while maximizing the returns they are liable to get. Gambling can get very emotional very fast, and succumbing to that emotion is one of the reasons many gamblers have run up astronomical losses. Using risk management and position sizing keeps betting decisions as objective as possible.

There are two things to consider when using these strategies to bet – statistics and risk. Gambling is a game that prioritizes both, and the best way to stay solvent is to do the same. In choosing your position sizing, statistics show that larger bid sizes incur higher risks. A significant position size only opens you up to higher chances of loss and fewer chances of a win. On the other hand, smaller position sizes while posing the same aggregate amount of risk present more opportunities for a win.

In risk management, some procedures help gamblers limit their losses.

1. Stop Loss

A stop-loss is a beneficial strategy to limit the loss you can incur gambling in a decentralized casino. You can have a single stop-loss that cuts off your bankroll supply if you’ve lost a fixed amount on a particular game. Rolling stop-loss sets a limit position that covers all your bets and ensures you’re never out of the game because of a lack of funds.

2. Risk and Reward Ratio

The risk and reward ratio is a mathematical formula that presents you with a bet’s most probable risk/reward ratio. With this ratio, you can make bets with a higher chance of winning than losing.

3. Avoiding FOMO 

The fear of missing out has sunken many gamblers enabling them to make bad decisions like overextending their bankroll. This happens when gamblers are taken in by the emotional excitement of what they consider an easy win. An excellent technique to avoid falling prey to FOMO is to stick with the strategy over emotion regardless of how attractive a bet might be.

With risk management and position sizing, gamblers can stay liquid and make gains regardless of the volatility of the crypto market.

How to Apply Gambling Bankroll Management to Crypto Bankroll Management

Gambling bankroll management is nothing more than professional bettors’ techniques to ensure they don’t incur too heavy losses. Gambling is a sport; like most sports, emotions quickly get involved, and tempers run high when winning or losing. Successful gamblers know that these are the moments when it is easy to make mistakes. But more than that, they know that everyone can make mistakes. So to avoid that, they apply gambling bankroll management.

What exactly does this mean?

It means that gamblers are careful to make bets that afford them the highest chances of winning with the slightest chance of losing. Using strategies like stop-loss, they can limit how much loss they can make. Gamblers do this because they understand that betting is a game of chance, especially on difficult-to-win games like the slots. While betting, they are careful not to bet more than their bankroll can absorb.

Crypto bankroll management is built on the same idea as gambling bankroll management. Both are wired to protect gamblers from experiencing massive losses. The only difference with crypto bankroll management is that the volatile nature of crypto requires adopting more robust techniques beyond being strategic. For example, using stop-losses and position sizing help crypto gamblers avoid incurring heavy loss due to volatility. In addition, crypto gamblers must carefully calculate bets to ensure they don’t run out of bankroll or make more losses than gains.

Gambling with Crypto - Bankroll Management

Crypto gambling is slowly getting a foothold in the gambling industry. With cryptocurrencies, gamblers can avoid the pesky transaction fees for depositing and withdrawing. But before porting to crypto gambling, how do you gamble with crypto bankroll management to keep your bankroll and winnings safe?

Here are five ways to effectively manage your bankroll with crypto bankroll management.

1. Use a Trusted Casino

Many crypto casinos are offering crypto only deposits , but not all of them are trustworthy enough, which is why you need to know which ones to avoid gambling out. Unfortunately, there are no blacklists, but you can check a site’s trustworthiness by checking if they have standard features like customer support, security, provably fair casinos or those that have shared profit margins.

2. Set up a Bankroll Budget

Not everyone can keep their emotions in check but setting up a bankroll budget before you start betting helps keep you in check. It also gives an end-point after which you can’t continue playing during a winning or losing streak. So when deciding how much to set aside for your bankroll, it should ideally be an amount you can comfortably lose.

3. Know the Betting Rules

Knowing how to play each game is as important as working out your risk-reward ratio. So, be sure to read and understand the rules of each game before betting, especially if it involves playing new crypto games. Then, if possible, play the free version of the game to understand how it works before betting with real money.

4. Track Your Wins and Losses

It’s easy to get into the spirit of gambling and forget to track your wins and losses. When you can’t tell how much you’ve won or lost, it’s easy to overextend yourself and spend more than planned. 

5. Know when to Stop

Gambling is a game and should remain that’ could be the best crypto bankroll management strategy out there. FOMO is a dangerous feeling that could make you lose more than you should have. Knowing when to fold and cash in your earnings is the best way to manage your bankroll and ensure you stick to your limits.

Crypto Slots Bankroll Management Tips and Techniques

Managing your bankroll is arguably the most challenging part of crypto betting. While getting lucky enough to generate outcomes that favor you randomly is also quite tricky, many players run out of funds before they can even get a chance to get lucky. If randomization requires constant retries to increase the chances of yielding an outcome that finally favors a player, then being able to stay in the game for longer is crucial to the crypto slot’s success.

To further expand on our techniques, here are five crypto slots bankroll management tips and techniques that every serious player must have down pat:

1. Choose Your Games Wisely

Different crypto slot games present players with different opportunities and chances of winning, and the drive to try new games is especially high on new platforms such as NFT casinos or Metaverse casinos because it generates new gambling habits for experienced or new gamblers. While the temptation to go for games with very high returns may be great, it is essential to remember that the offer of these high returns is possible because of the increased risk of playing them.
If your goal is to maximize your chances of success by extending your gameplay, it is crucial to choose your games carefully. Do not choose games that will likely make you lose your money quickly, eventually causing you to run out of funds faster than you usually will.

2. Have a Pre-determined Limit

This strategy is critical to success and sustainability in playing crypto slot games. It is also a challenging aspect of crypto gambling because it demands high levels of discipline and self-control.

Before a game, always make sure to set a wagering limit for yourself. This is the maximum amount you intend to stake on games, after which, if there are no substantial wins, you quit the game. Setting a wagering limit for yourself will help prevent overspending and, ultimately, prevent a gambler from wrecking themselves.

3. Define Your Goals

Setting goals tied to setting limits for every wagering session. Before starting a game, players should decide what they aim to achieve at the end of the session and why they have decided to begin the game. Small wagers are acceptable if the goal is for leisure or as a pastime. If the goal is to make a profit, how much profit?

4. Keep a Lid on Your Emotions

Gambling, in general, is a venture that requires players to take calculated risks. Letting emotions get in the way of this can cause disruptions to your gaming strategy and lead to losses beyond what your finances can reasonably take.

Cryptocurrencies Have Yet to Achieve True Adoption

When it comes to crypto adoption, there isn’t a net negative or positive stance. In the last decade, many industries have adopted it, yet there is still a healthy dose of fear and worry about true adoption. Chief amongst these fears are the worries that crypto is a fad that has lasted longer than most social fads and the fear of what the volatility of cryptocurrencies would mean for true adoption.

So, while people and industries are in love with the idea of cryptocurrencies and making strong moves to adopt this technology, we are still far from an actual adoption.

Meanwhile, in the gambling industry, adoption is slow and steady across offline and online casinos with new crypto gambling sites appearing almost on a daily basis. The major concern against a full adoption is still hinged on the instability of crypto prices which makes it difficult for casinos to permutate properly to avoid a loss and players to manage their bankroll correctly. That’s why following specific rules and guides are important when NFT gambling.

Bad Press Has Created a Negative Perception of Crypto

More than anything, bad press has contributed heavily to the negative perception of crypto. Crypto is a digital asset whose price is riven by the forces of demand and supply, which are controlled by public perception. Keeping this in mind, it is easy to see how much impact bad press can have on the perception of crypto. But making crypto look bad isn’t where the effects of bad press end; it also affects the adoption of crypto. Businesses and individuals could be discouraged from adopting cryptocurrencies if they are constantly exposed to bad press.

However, the worst effect of bad press on crypto is the price. According to this study published in April 2022 in the Royal Society Publishing, the impact of the news on Bitcoin prices showed that the most negative bitcoin changes were prefaced by bad press 24 hours before. Bad press contributes to the high volatility of crypto prices.

Perceived Value of Cryptocurrencies Changes Regularly

Cryptocurrencies are very vulnerable to public perception. This is why the bad press and negative discourse on social spaces can affect their value. It is also the reason why the perceived value of cryptocurrencies changes regularly.

Another contributing factor to this instability is the power of the few investors and individuals. Take Elon Musk, for example. His tweets have sunk the price of Bitcoin from $56,800 to $49,500.

Lastly, social media plays a significant role in controlling the perception of cryptocurrencies. The biggest drives for cryptocurrencies started on social media platforms. Conversations around the crypto coin can influence the demand and supply of cryptocurrencies. The regular change in public perception is only a reflection of the fleeting and fickle stands and ideas of the people who drive those conversations.

Uncertainty Regarding Taxes

There aren’t any proper taxing procedures for the winnings from crypto gambling. This lack of regulation poses a problem for people who might want to gamble with cryptocurrencies. The laws vary from country to country, and each country’s law determines taxes.

In the United States, the laws are determined from state to state. Some states require crypto gambling wins to be declared on tax sheets as income, while others don’t. While there are no laws banning crypto gambling and making it illegal, there aren’t clear laws on paying taxes on winnings. However, there are laws on general gambling tax. These laws show how much tax should be paid depending on the win. There are three categories:

  • Betting Crypto 
  • Winning Crypto 
  • Selling winnings for fiat currency

This tax uncertainty is one of the factors affecting the adoption of crypto gambling.

The Biggest Mistake That Cryptocurrency Gamblers Make

The biggest mistake that cryptocurrency gamblers make is mismanaging their bankroll. This is the beginning of most sob stories in the crypto gambling space. The effects can be mild or catastrophic depending on how much more the player overextends themselves. Usually, when there isn’t a management plan in place, the player tends to bet more than they can afford to lose is high; there are also no risk management strategies put in place to limit their loss. If they are emotional gamblers, the risk of a loss only multiplies exponentially. You could argue that a lucky gambler may not be affected much by this mistake, but even on a winning streak, the gambler is at risk without an effective bankroll management plan.

When the player is winning, there is a strong tendency for them to be in high spirits and try to take advantage of their winning streak by placing higher bets. This action would put them at a high risk of incurring heavy losses. One single loss could wipe out the wins of the session. Once this losing streak starts, the gambler feels even more compelled to win it all back and makes more potentially disastrous bets, thereby setting off a cycle of risky moves and heavy losses.

Bankroll management is too important because the risk is too great for crypto gamblers not to manage their bankroll from the get-go.


In conclusion, crypto gambling is not perfect; however, it has its advantages and disadvantages; a key strategy to ensure players are not affected by the volatile nature of crypto is crypto bankroll management. Players who implement management strategies can bet comfortably without a high level of risk. With crypto bankroll management, players can control how much loss they incur while ensuring that they don’t bet more than they can comfortably lose.

Vlad Hategan
Vlad Hategan - NFT Gaming Specialist
158 Articles

Vlad has been active in the crypto space since early 2013 with a hands-on approach since late 2017. His focus has always been being able to showcase the value crypto brings to our digital landscape. That's why he tried almost every possible category from mining to NFT and ICOs - back in the day. In short, he enjoys every part of the blockchain space, from the community to the nitty gritty technological details.

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Reviewed and Fact Checked by Eugene Abungana , Investment Analyst, Financial Analyst, and Institutional Trader