It may not be obvious at first, but poker and cryptocurrency trading actually have a lot in common. For starters, the markets for both activities are growing very quickly.
A report on the cryptocurrency market pegs its overall net worth at $2 trillion, with projections for growth in the coming years. Meanwhile, the poker market is part of a rapidly rising billion-dollar global gaming industry. The sheer size of these markets alone shines a bright light on just how much they’re changing the global financial landscape – which brings us to our first point.
Digital Money Trends
Both poker and crypto trading show how the money habits of the world are changing, with more people using digital money for both business and recreational purposes. With major cryptocurrencies like Ethereum and Bitcoin gaining momentum, some argue that crypto is well on its way to replacing fiat currency. And one sign that this is indeed the case is how there are a growing number of online poker sites that accept different cryptocurrencies for transactions. Both trading and the poker industry are taking advantage of the digital currency’s increased security features, through the use of e-wallets, to make trading and gaming more secure. Apart from reinforcing each other’s growth, both markets are part of the evolution of money and how we trade and spend it.
Playing the Odds
Winning a round of poker entails understanding the probability of the cards and hands to appear – and then playing against those odds. As this guide to calculating poker odds highlights, the goal of poker is to win over the long term. The key to this is to learn to consistently make the correct mathematical decision that ensures that you avoid making calls when you aren’t getting the right price. Similarly, effective crypto trading entails predicting the odds for rises and falls in price and activity – and then using those odds to formulate trading strategies. Weighing up probabilities and stacking the odds in your favor can go a long way towards securing victories and gains. This is true for both crypto traders and poker players who want to predict movements within unpredictable playing fields. Furthermore, this underscores how risk is an inherent element in both, which brings us to our next point.
Just as crypto traders can back out of risky deals, so can poker players fold to regroup and minimize losses when faced with too much risk. Leveraging the rules for risk management is an inherent part of any activity that involves some form of monetary exchange. Managing risk in crypto trading mostly involves not putting “all your eggs in one basket” no matter how tempting and promising an opportunity is. This can also be said for high-stakes poker tables occupied by highly experienced and unpredictable players. Whether it’s finding the right time to double your bet or double-down on a promising crypto investment, knowing how to manage risk can keep you in the game longer.
In order to keep the odds in your favor and manage risk, you need to be highly observant. Poker is a game that involves incomplete information, so the best chance of you keeping those odds is also by paying close attention to how your opponent’s bet and act. This means knowing your opponent’s tells in order to predict their moves. Meanwhile, in crypto trading, this means staying abreast of all the volatile changes influencing relevant market movements. In both playing fields, the right strategy leans on keenly observing anything that can influence the odds and risks.
Staying in the Present Moment
Last but not the least, both poker and crypto trading have little use for the past. Mathematically speaking, having a winning or losing streak at the tables doesn’t influence how you’ll do in the future. Likewise, because of how cryptocurrency is a relatively new market, its past movements are very rarely indicative of how prices will evolve. In short, past performance doesn’t determine future results for either field. In poker as in crypto trading, staying in the present can also aid in being observant, managing risk, playing the odds, and formulating a winning strategy.