In crypto gambling, you face two types of risk: Game Risk (losing the bet) and Currency Risk (the coin losing value).
Many players win at the tables but lose money in real terms because the value of their Bitcoin or Ethereum creates a “hole” in their bankroll. This calculator analyzes your portfolio exposure to show you the potential fluctuation of your total net worth in Fiat (USD).
How to Use the Volatility Calculator
This tool helps you decide how much of your bankroll should be kept in volatile assets vs. stablecoins.
- Fiat/USDT ($): Enter the amount held in Stablecoins (USDT, USDC) or Fiat currency. This part is safe from volatility.
- Crypto Holdings: Enter the amount of volatile crypto (e.g., 0.5 BTC) and its current price.
- Expected Volatility (%): Enter a realistic swing percentage for the coming week/month (e.g., 10%).
- Analyze: The tool calculates the “Best Case” and “Worst Case” scenarios for your total bankroll value.
Example: The “Double Gambling” Trap
You have a $2,000 bankroll split 50/50:
- $1,000 in USDT.
- $1,000 in Bitcoin.
You play poker and break even (win $0, lose $0). However, Bitcoin drops by 10% overnight.
- Your USDT remains $1,000.
- Your BTC is now worth $900.
- Total Wealth: $1,900.
You lost $100 without losing a single hand. This calculator helps you visualize that risk so you can adjust your Stablecoin ratio accordingly.
Frequently Asked Questions (FAQ)
Should I keep my bankroll in Stablecoins?
If you treat gambling as a business, yes. Keeping funds in USDT/USDC eliminates currency risk, allowing you to focus solely on your edge in the game. Keep only a small “investment portion” in volatile coins.
What is a typical volatility percentage?
Crypto markets are volatile. A weekly swing of +/- 5% to 10% is standard for Bitcoin. Altcoins can easily swing +/- 20% or more in a single week.