What is a Betting Exchange? A Comprehensive Guide to Exchange Betting
Introduction
Welcome to SX Bet's comprehensive guide on betting exchanges. If you've ever wondered what a betting exchange is and how it differs from traditional betting platforms, you've come to the right place. Betting exchanges have become increasingly popular in recent years and with good reason.
In this article, we will delve into the concept of betting exchanges, their advantages over bookmakers, and why SX Bet stands out as an exceptional choice in the world of crypto-based betting.
Understanding Betting Exchanges
What is a Betting Exchange?
A sports betting exchange is a platform that enables bettors to trade bets with one another rather than placing bets with a traditional bookmaker. Unlike traditional bookmakers, where bettors place bets against the bookmaker itself, a betting exchange allows bettors to bet against each other rather than against the house.
This unique peer-to-peer model creates a dynamic marketplace where users can act as either bettors or bookmakers.
How Does a Betting Exchange Work?
In a betting exchange, there are two types of wagers available for bettors: those who place "back" bets and those who place "lay" bets.
A back bet is similar to a bet placed with a traditional bookmaker, where you bet on a specific outcome to happen. On the flip side, a lay bet is a bet placed against an outcome, essentially acting as the bookmaker.
The exchange acts as a facilitator, and matches these opposing bets, enabling users to set their own odds and determine their stake.
Some exchanges may use different terminology, such as referring to "back" bets as "market" and "lay" bets as a "limit" order, but the underlying principle remains the same.
When placing a "back" or "market" bet on a betting exchange, it is similar to placing a bet with a traditional bookmaker. You are betting on a specific outcome to occur. In the example below we are betting 100 USDC on the Cincinnati Reds to win the game.
On the other hand, when placing a "lay" or "limit" bet, you are effectively assuming the role of a bookmaker. Instead of betting on an outcome to happen, you are betting against it. In other words, you are offering odds to other users on the exchange, giving them the opportunity to back the bet you are laying. In the example below, we are offering 1.59 odds to another user, wagering that the Cincinnati Reds lose the game.
Advantages of Betting Exchanges Over Bookmakers
Compared to traditional betting platforms, online betting exchanges generally offer greater control, better odds, and increased flexibility. While traditional bookmakers set the odds and profit from them, betting exchanges allow users to take charge of their bets, create their own odds, and potentially achieve higher returns.
The transparency and fairness of the exchange are maintained through real-time odds which levels the playing field for users. Beyond the ability to act as the bookmaker, let's explore a couple more of the advantages a betting exchange offers compared to a traditional sportsbook.
Odds and fees
One of the major advantages of a betting exchange is the ability to get better odds and prices compared to traditional bookmakers. In a betting exchange, odds are determined by the market forces of supply and demand, driven by fellow bettors.
Bettors can often find enhanced odds and improved value on betting exchanges, maximizing their potential returns.
The cost of betting or the "vig" is also generally lower on betting exchanges, again benefiting the user's earning potential.
Winners are Welcome
Unlike bookmakers who may restrict or limit successful bettors, betting exchanges welcome winners. Betting exchanges do not impose arbitrary betting limits based on a bettor's success.
Whether you are a recreational bettor or a professional, you can freely bet on the exchange without worrying about limitations. This inclusivity and fairness make betting exchanges an attractive option for all types of bettors.
Intro to SX Bet - The Next Level of Betting Exchanges
SX Bet is the world's largest web3 betting exchange platform and takes the concept of a betting exchange to the next level.
Built on the principles of transparency, fairness, and user control, SX Bet offers a cutting-edge betting experience, unparalleled technology, and some of the best odds in the game. SX Bet is home to thousands of users who bet on popular sports, politics, and more.
At the heart of SX Bet's platform lies blockchain.
What is Blockchain Betting?
A blockchain is a distributed and decentralized digital ledger that records all transactions and data. Related to betting, it records all bets and betting activities. It operates on a network of computers (nodes) that collectively maintain the database, ensuring that it is transparent and secure.
Blockchains operate independently, utilizing their own unique set of protocols and consensus mechanisms. SX Bet's platform is built on SX Network blockchain, a blockchain specifically designed for betting.
Why is Blockchain Best for Betting
Using blockchain, which is a decentralized and immutable ledger, ensures transparency and security like never before. Utilizing blockchain also enhances security by not being controlled by a single centralized entity.
Blockchain harnesses the power of cryptocurrencies, allowing users to bet with popular digital assets such as USDC, Ethereum, and more.
Transparency and Fairness
Every transaction and bet made on the platform is recorded on the blockchain, allowing users to trace and verify the authenticity of each action, providing a level of trust and accountability that traditional betting platforms struggle to match.
Exchange betting offers a higher level of transparency in general; SX Bet has elevated this concept by providing further insights into volume through analytics on the platform.
How is SX Bet Different from Other Crypto Betting Platforms and Betting Exchanges?
SX Bet stands out from other betting exchanges and crypto betting platforms due to its blockchain technology, non-custodial approach, and focus on transparency; however, there are additional key features that make SX Bet a top betting exchange globally.
The Power of Community Ownership
One of the standout features of SX Bet is its community-owned model. Unlike traditional platforms that operate under centralized control, SX Bet gives power back to the users.
As a community-owned platform, SX Bet allows users to actively participate in the decision-making process through governance proposals. With staked SX tokens, users can vote and shape the platform's direction, ensuring their voices are heard and their interests are represented.
Non-Custodial - Keeping Your Funds Secure
At SX Bet, user funds are treated with the utmost importance. One of the key differences is the platform operates on a non-custodial model, which means that users maintain control over their funds at all times. Unlike other sportsbooks and online betting sites that require users to deposit their funds onto their platform, SX Bet users keep their funds in their wallets, providing a decentralized experience.
By being non-custodial, SX Bet eliminates the risk of funds being mishandled or subject to potential hacks. Users have full control over their funds and can securely engage in betting activities without the need to trust a central authority.
This decentralized approach aligns with the core principles of Web3 and empowers users to be in control of their own financial transactions.
Peer-to-Peer Parlays
SX Bet is the first betting exchange in the world to launch peer-to-peer parlays. Parlays add excitement and potential big payouts to the betting experience. While traditional sportsbooks set their own parlays; SX Bet allows users to create and participate in peer-to-peer parlays with other bettors on the platform.
Users requesting the parlay have 60 seconds to place their bet before the order book is closed. Users can create parlays with up to 10 legs.
SX is also unique in that you can actually bet on a Parlay bet to Win (i.e. all selections must win) or bet on a Parlay bet to Lose (i.e. one of the selections must lose).
Bet Mining
Bet Mining is a feature offered by SX Bet that allows users to earn rewards by participating in the betting exchange ecosystem. Each time a user wins, they earn SX Tokens. SX Bet gives out 150,000 SX weekly, with the amount relative to the total winnings that week. Tokens are then staked for additional rewards.
Staking
Staking is an exciting feature offered by SX Bet that allows users to earn passive income. By locking up their tokens and contributing to the network's security and stability, users receive daily rewards in return.
Staking also provides a mechanism for token holders to actively participate in the platform's governance.
Free API Access
While many betting exchanges charge exorbitant fees for API access, SX Bet gives everyone access to their API for free, offering a new realm of opportunities for bettors and contributors.
By providing free API access, SX Bet has empowered both professionals and hobbyists to create betting bots; which are automated trading systems that enhance the overall betting experience for market making and betting.
In line with the ethos of Web3, the free and accessible API policy promotes collaboration, creativity, and the development of a robust ecosystem around SX Bet.
How to Get Started with SX Bet
Creating Your SX Bet Account
To get started with SX Bet, simply visit sx.bet and create an account. The process is quick, easy, and secure. Connect with your MetaMask wallet or create an email wallet.
How to buy crypto and bridge
To participate in SX Bet's platform, users need to get their funds onto the SX Network blockchain. Though SX Bet is non-custodial and users retain full control of their funds, they still must ensure that their funds are on the correct blockchain.
Use the fast bridge to transfer USDC or ETH from Polygon or Ethereum to SX Network.
Canadians can buy USDC directly to SX Network with e-transfer, using PayTrie.
Users can also use MoonPay, which supports all major debit/credit cards and new mobile payment methods like Apple Pay from +40 countries.
Once users have funded their wallets on SX Network, they can start betting.
Taking Bets and Offering Odds
While some exchanges use the terms back and lay betting; SX Bet uses the terms market and limit orders. Both sets of terminology mean users are either taking a bet or offering odds.
Whether you want to take a bet or offer, SX Bet provides a seamless betting experience. Simply select the desired odds and enter your stake to place your bet. The exchange will match your bet with opposing bets from other users.
Users can also check the order book to look at liquidity and odds.
Navigating the User-Friendly Interface
SX Bet's intuitive interface ensures a user-friendly experience. Explore the platform, familiarize yourself with the available features, and effortlessly navigate through the diverse range of markets.
Users can change their odds style to American, Decimal, or Percent; Or change the default setting from "Market" to "Limit" order all under the gear settings icon.
Exploring the Wide Range of Betting Markets
SX Bet offers a wide range of betting markets, including sports, politics, and more. Discover your favorite markets and explore in-play betting.
Frequently Asked Questions (FAQs)
What Is the Fee Structure on SX Bet?
SX Bet boasts significantly lower fees than other popular sportsbooks. The fees are transparently listed; 2% on winnings and 5% on parlays.
Typical bookmakers' fees or the "vig" are often in the 4%-10% range, and upward of 20% on parlays, resulting in lower payouts and profits than most betting exchange models.
Depositing and Withdrawing Funds on SX Bet
As a non-custodial betting exchange, SX Bet does not require you to deposit funds directly on the platform. Instead, you can securely connect your personal wallet to place bets using your USDC, ETH, or SX.
Is SX Bet Available in My Country?
Though SX Bet operates in many countries, there are some exclusions, such as the United States. Please check the terms and conditions for the most up-to-date information on availability in your country.
Conclusion
In conclusion, betting exchanges offer a revolutionary approach to online betting, enabling users to bet against each other and often access better odds compared to traditional bookmakers.
SX Bet takes the concept of a betting exchange to the next level by providing a non-custodial, crypto-based platform that prioritizes transparency, fairness, and user control over funds. With SX Bet, you can enjoy an enhanced betting exchange experience while maintaining the utmost security and transparency.
Why settle for beating the house when you can own the house?