House Edge and Why Some Lose it all?

Risk involved in crypto gambling.
House edge is present in all gambling games that you ever going to play on. The house does not beat the player because they are extremely lucky but because the odds are already in their favor.

In most crypto gambling sites the house edge is only 1% which means that for every dollar you place a bet on any game the house keeps 1¢ and returns the other 99¢ as winnings on average. So if you are going to gamble a dollar once you are not exactly going to get back 99¢ - you are going to win either more or lose it all.

Lets look at the big picture what really the house edge is for. Suppose on a particular day, all players collectively gamble $100K worth of crypto on the site the gambling site expects to keep $1,000 as profit and pay back $99K to the players back.

Why the sites does not need to cheat?

The site does not need to destroy you with terrible odds staked against you. They provide a fair game and will just make only the few percent of the house edge on each and every bet on average as profit.

Cheating is pointless as they have already a built-in mathematical advantage on every game.

They just have to keep you gambling long enough to make their share of profit. They know that they will definitely win in the long run.

Why is that most lose all even with this very low house edge?

There is a simple answer to this. The longer your play progresses the closer you will approach the house edge. We all pretty know very well the house always wins at the long run

Here is a simple google sheet that you can use to check out how the house edge plays out : https://docs.google.com/spreadsheets/d/1AQtxNL2gbf8fk7nQ06q1X0xNMJJMZNKnrWJwbZMp0hw/edit?usp=sharing

In short sessions anything can happen but as longer your session gets the house will always take their share of profit for sure.

The house edge applies to the amount you bet and not the amount you take to the site to gamble with. Lets say you deposit 100$ worth of crypto and you play roulette. You bet on average $200/hr, even you brought only $100 with you.

How is this possible that you bet more than what you brought in?

This is because you win on some rounds and you are betting from your winnings. Win and loss happens alternately so you will always end up wagering way more than what you have brought in.

So after 50 Hour of continuous betting you have bet $10,000 and the 1% of that is $100 which is the full amount that you have brought in.

How do you maximize your winnings and minimize the losses?

The house edge is not the only factor influencing the outcome. The other factors like how fast you make your bets, how long you play and how much you bet is equally important too.

Your average loss = Bet Amount x House Edge x No. of bets per hour x No. of hours played. 

So the house edge is just one part of the equation.

Putting it all together below are some of the thing you can do to minimize your losses:

1) Place only a few number of bets:

Placing only a few number of bets ensures that you are less exposed to the house edge. The more bets you place, the more exposed you are to the house edge.

2) Quit while you are ahead:

The odds are against you from the start. The longer you expose yourself to the house edge the more likely you are going to lose it. Quitting while you are ahead is the only way to ensure that you walk away as a winner.

Why play when the odds are not in your favor?

Its definitely possible that you can win if you play only for a short session. In short session anything can happen..

For example flipping a coin you can land on head two times in a row and almost double your money. But if you flip the coin for too long there is no solution you will definitely be in red.

This is the main reason why majority of the players are in red because the house will take their percentage of the house edge for every wagering you do.

Contrary to most players belief that that house is cheating.  The house definitely does not need to cheat they have already their mathematical advantage in every game you play on.

* Do not fall prey for the daily earning mind trap.

Its not possible to win daily on gambling you loss on some days and you win on some days. You just need to make sure that you are winning at the end of the week or at the end of the month.

Greed is another main reason for loss too. Check out: How to control your greed?
“Quit while you’re ahead. All the best gamblers do.”
Baltasar Gracián y Morales
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House Edge and Why Some Lose it all? House Edge and Why Some Lose it all? Reviewed by Amar Singh on September 03, 2018 Rating: 5

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