Investment Options in Crypto Casinos | 2024

Investing in crypto casinos currently involves putting money into platforms that integrate cryptocurrency. Crypto casinos use blockchain technology to offer games and experiences and sometimes provide investment opportunities such as staking.

Staking involves holding a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network. Participants are then rewarded for helping maintain the network’s security and operations.

In crypto casinos, staking typically involves locking up the casino’s internal cryptocurrency to earn rewards, which are in the form of more of the same or other cryptocurrency and sometimes other benefits within the casino.

Crypto casinos often offer varying APYs and APRs based on the amount staked and the duration of the staking period. Some casinos provide lower rewards, while others are higher for more extended staking periods or more significant amounts staked. The only way to “get ahead” is by understanding the specific terms and conditions of staking in a given crypto casino. They can significantly impact the potential returns and the flexibility of accessing staked funds.

Before proceeding any further, I would like to take this opportunity to say that this isn’t financial advice and that I just gathered publicly accessible information and included it in this blog post for comparison. Furthermore, gambling or any form of investing, for that matter, is inherently risky, and you should always exercise caution.

APY, or Annual Percentage Yield, represents the real rate of return earned on an investment, considering the effect of compounding interest over a year. It shows the percentage of return you can expect over a year when your staked tokens earn interest that is reinvested.

Compound interest is earned when you earn interest on the money you’ve saved and the interest you earn by reinvesting said interest.

Meanwhile, the APR or Annual Percentage Rate indicates the annual rate charged for earning or borrowing money without considering compounding. APR reflects the yearly return rate on your staked tokens in cryptocurrency staking without considering the compounding effect. Unlike APY, APR is more straightforward and doesn’t show the additional earnings from reinvested rewards.

Casinos rated based on the possible returns in their staking program:

1. BetFury
2. BC.Game
3. Kineko
4. TrustDice

Heading forward, to give you a better idea of what is a good investment opportunity and what isn’t, here are the current “industry standards” by two company giants:

• The S&P 500 has been the safest fiat investment, with an average yearly return of 10.47% over the last 30 years. (I would like to point out that the return rate fluctuates; for example, in 2023, it was 24%, while in 2022, it was -19.44%.) But you’d get an average of 10% yearly increase over an extended period.
• Binance has a Binance Earn program, where you can stake different cryptocurrencies. If you were to stake 10,000 USDT for 1 year, you would get $382.5 (3,85% APY), and if you were to stake a volatile cryptocurrency for 1 year, like 3 ETH (which is roughly $9,500 in current value), you’d get 0,02 ETH, which is about $67.

They have 2 internal cryptocurrencies: BFG and stBFG. The first difference is that stBFG has no contract address. Therefore, it is not based on any blockchain but only backed up with BFG tokens stored on the on-chain lock contract. The second difference is that it brings you double the rewards from staking you would otherwise get from BFG.

However, the only drawback of stBFG is that you have to lock up your coins for 1 year. Once you commit to the stBFG staking, if you decide to redeem them early, you will receive a 50% penalty fee.

The APY or annual percentage yield you’d get from staking:

• BFG for 1 year: 15.48%, so for staking $10,000, you’d get roughly $1,540
• stBFG for 1 year: 30.98%. For staking $10,000 you’d get about $3,140

If you stake BFG, however, the rewards are distributed every 30 minutes, and you can choose which of the five cryptocurrencies you wish to receive the rewards in: BTC, ETH, USDT, BNB, and TRX.

As mentioned earlier, there are 7 different cryptocurrencies for staking on BetFury. The amount you get is pretty much the same, so it’s up to you to decide if you wish to choose a volatile or stable cryptocurrency. The only stablecoin they provide is USDT (Tether). The benefit of having a stake in a stable currency is not worrying about fluctuating value since it is always tied to the U.S. dollar in a 1:1 ratio.

You can choose from a few options when deciding how to stake your cryptocurrency.

There are three different term types:

1. Flexible Term 11% APR (you don’t need to lock your funds)
2. Fixed-Term 27% APR (you have to lock your funds for a predetermined period)
3. Boosted Fixed-Term 60% APR (you have to wager 6x the amount you want to stake in the casino)

The fixed-term and boosted term contain auto compounding, which means that your earnings are reinvested, resulting in a higher profit at the end of your term (that also means that the percentage should be stated in the APY instead of APR, but they have it this way on their website and I wanted to avoid confusion).

The predetermined periods are 30, 60, 90, 180 & 365 days. Let’s look closely at an example of how this would work.

If we were to stake $10,000, after a year, we would have a profit of:

1. With flexible term: $1,075
2. Fixed-Term: $2,700
3. Boosted Fixed-Term: $6,000, BUT we would have to play through $60,000 first.

I found the first information on Monday. But then, on Thursday, the following information was correct, showing how volatile these investing options are. I tried contacting support, but they were clueless about the staking operations. The only valuable thing they could tell me was that the staking rewards differ daily based on the staked amounts.

For staking 2,990,000 of TXT or $10,080 (June 27, 2024) you would receive the following:

• $0.06 per day
• $1.91 per month
• $23.35 per year

I was surprised by the rewards you’d get from BetFury’s in-house currency, stBFG. 30% APR is insane! But higher rewards usually also come with higher risks, and the percentage rate of what you’re supposed to get is ALWAYS AN ESTIMATE. I know what you might think: “Does that mean I can earn even more if the APR increases?” Well, you’ll just have to try it and find out.