What is crypto sports trading?

Unlike traditional sports betting, where you simply wager on outcomes, sports trading lets you buy and sell positions on those outcomes. This makes it more like trading on the stock market, but instead of buying or selling shares in a company, you’re trading in the probability of a sports event happening. 

The core idea is to buy low and sell high, the same as with financial markets. You can place both a back bet (betting on something to happen) and a lay bet (betting against it). 

Imagine betting on the Denver Nuggets to beat the LA Clippers, only to bet against that outcome later. 

Why would you do this? In essence, you’re aiming to capitalize on shifts in the odds rather than the final result and profit from how the odds change during the event, not necessarily how the game ends.

For example, you back the Nuggets early on, hoping that their odds will drop. If they do, the market now sees them as more likely to win. Once the odds go down, you place another bet, this time against the Nuggets winning. That way, no matter which side wins, you lock in a profit. 

Sports trading is mainly available on betting exchanges since lay bets are not available in typical sportsbooks. However, Crypto.com puts a unique spin on the whole thing. Their sports event trading feature isn’t crypto sports betting in the traditional sense, but a form of derivatives trading. Effectively, instead of trading odds, you’re trading actual predictions.

The role of Crypto.com in sports predictions

Crypto.com is best known as a crypto exchange and trading platform. Before the launch of its sports trading feature, it hadn’t ventured into the world of sports predictions at all. 

That changed with the launch of the Crypto.com sports betting product, a unique take on derivatives trading built around predicting outcomes of sports events. Thanks to its strong reputation in the crypto world and large US user base, Crypto.com is well-positioned to tap into this emerging market.

Instead of traditional betting, you’re trading contracts based on sports predictions. You’ll find markets for games in the NBA, NFL, and major European soccer leagues, though the available events can vary, as some competitions are still pending. Your goal is to predict the outcomes of specific matches or entire tournaments. 

It’s always a Yes/No prediction, such as “Who will win the NFC Championship in 2025,” and then a Yes or No choice for various teams. Each prediction has an associated probability, like 75% for the Philadelphia Eagles, which is converted into a price — $75.24 in this case. 

This is the cost of the contract, and when you want to open a position, i.e., trade on this outcome, you’ll get to choose the number of contracts to buy. 

If you guess correctly, you will receive $100 per contract every time; if you don’t, you will lose the amount invested. Simple as that.

The system is relatively straightforward, so you won’t have to be a seasoned trader to participate. However, it helps to understand the basics and, of course, to be an actual sports fan so that you can make more accurate predictions.

How to get started on Crypto.com’s prediction market

You don’t need to know how to bet with cryptocurrency to use Crypto.com’s sports prediction feature because this isn’t betting in the traditional sense. Here’s a detailed guide on how to start.

Step 1: Create a Crypto.com account

Head to the Crypto.com website or download the app. If you decide to use the website, you’ll need to click the Sign Up button on the main page. 

The first step is to provide and verify your email address. The system will ask for your phone number, too. Once you enter it, you will receive an automatic SMS with a code. Input the code on the site. 

Next, set a 6-digit passcode for logging in and verifying transactions. Finally, submit your personal info for identity verification. Once approved, you will receive an email confirming that your account is ready.

Step 2: Deposit funds 

To trade, you’ll need to fund your account. Crypto.com accepts both USD and crypto. For USD, you can use ACH or wire transfer. For crypto deposits, you can send assets from almost any external wallet or exchange. 

If you don’t own crypto yet, you can also deposit in USD and then purchase BTC, ETH, USDT, or any other available currency from the exchange, or buy the coins directly on the platform using a credit/debit card, Apple Pay, or Google Pay. 

Step 3: Choose a sports event and place predictions

Go to the Sports section and pick an event. 

Say you choose: “Will the Kansas City Chiefs win Super Bowl LX?” and select “Yes.” Like all predictions on Crypto.com, this one has a fixed price per contract. In this case, let’s say it’s $24. You choose to buy 10 contracts.  

The cost is calculated according to this formula:

• (Contract price + exchange fee + technology fee) x number of contracts.

In your case, this amounts to:

• ($24 + $1 + $0.99) x 10 = $259.90

What you’re given is typically an estimated total, so when you place that trade, the system will account for minor price fluctuations (slippage) and hold that new total while the trade is in place. Slippage varies, so I’ll focus on this number to keep things simpler.

Step 4: Collect winnings 

Once the Super Bowl ends, the trade resolves. If the Chiefs lose, you lose your $259.90. If they win, you earn $100 per contract, minus the $1 exchange fee and $0.99 technology fee, resulting in a total of $98.01 per contract, or $980.01 for all ten contracts. 

Since you invested $259.90, your actual profit is $980.01 – $259.90 = $720.11.

You can also close your position early and still earn a profit, as long as the price per contract is higher at the time you close. For example, if the cost per contract is now $30 instead of $24, the difference between the two will be your profit. 

To calculate the amount you receive, the system uses this formula:

• ($30 – $1 – $0.99) x 10 = $280.10

Since you started with a total of $259.90, your profit will be $280.10 – $259.90 = $20.20.

Benefits and risks of betting with crypto

Crypto sports trading has some compelling upsides, but it also presents risks that you need to consider before jumping in. 

✅Key advantages of crypto in sports trading

Using crypto in sports trading comes with benefits that cryptocurrencies normally bring. Most notably, transactions are faster and cheaper. If you decide to use this feature on Crypto.com, you’ll withdraw your profits very quickly, especially if you want to transfer your assets to an external wallet. 

Accessibility is another big plus. Unlike traditional sportsbooks that face state-by-state restrictions, crypto sports trading is readily available nationwide. In fact, Crypto.com offers its sports trading feature in all 50 US states. 

Lastly, it’s worth noting that you can earn extra rewards by staking certain cryptocurrencies. On Crypto.com, coins like ETH, DOT, ADA, AVAX, and CRO can generate annual returns of up to 10%, adding a passive income layer to your trading.

❌Potential risks of using crypto for sports event trading

The biggest risk here is volatility. Unless you’re sticking with stablecoins, crypto prices fluctuate every minute, and massive drops in price within a single day are not uncommon, especially in bear markets. 

However, it’s worth noting that this cuts both ways. During bull markets, your holdings could increase in value, earning you extra profits just from the price hike.

Regulation is another concern. While Crypto.com is currently compliant in the US, it is not immune to problems. In early 2025, the Commodity Futures Trading Commission (CFTC) ordered Crypto.com to pause its sports trading feature, illustrating the unpredictability of this space. 

Best strategies for sports trading with crypto

If you’re looking to level up your crypto sports trading game, here are a few key strategies to keep in mind.

Pros and cons of using Crypto.com for sports betting

Like any platform, the Crypto.com sports betting feature has its upsides and downsides. Here’s a quick breakdown based on my experience:

Pros

• Available in all 50 states
• You don’t have to be a pro trader
• Trade with fiat and crypto
• Sell your positions early for a profit
• $100 return on every contract

Cons

• Limited number of sports and events
• Relatively large cost per trade
• Regulatory problems

FAQs

Sources

• https://help.crypto.com/en/articles/10208780-sports-event-trading 
• https://crypto.com/sports
• https://crypto.com/en/product-news/sports
• https://www.investopedia.com/terms/c/cryptocurrency.asp
• https://www.chainalysis.com/blog/stablecoins-most-popular-asset/
• https://www.onesafe.io/blog/crypto-com-vs-cftc-usa-regulations

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