We got you covered: here is everything you need to know about sports betting exchange platforms in simple terms.
 
If you are new to betting, the words “betting exchange” might sound daunting to you. What is it? How does it work? Which sports betting exchange platform is the best to place your bets on? We promise, it’s not as difficult as it seems to be at first sight, and you probably know more about this topic than you think you do.
 
A human brain is programmed to guess. Ever since ancient times, humans relied on the guessing game. Over the centuries they would bet for leisure and as a way to enrich themselves. That’s how, approximately 300 years ago, a form of business called bookmaking was born. Sure, everybody knows how it works: a bookie determines the odds, accepts bets (not without a bettor having to pay a bookie’s margin), and, if their customers win a bet, pays out money on behalf of other people — good old process, well-known even to those who never participated in betting.

Over the years this process has evolved, and betting exchange platforms came out of the shadows, disrupting the industry and making bookies nervous. Now you can place bets online, and with platforms like dexsport.io it's possible to do so with no limitations, no fees and no taxes just by using crypro.
So what is a betting exchange platform? To put it in plain words, it is a marketplace that allows customers to bet on various events and involves three parties: users on either side of a bet, and the platform itself. Just as simple as that!

So is betting on a sports betting exchange platform similar to bookmaking?

Yes and no. Making bets on a betting exchange platform is very similar to wagering on a traditional bookmaker, and just as simple, but at the same time there are several key differences that make betting exchange a better choice for users. Despite having a similar ground with classic bookmaking, sports betting exchange platforms have quite a few unique features that make them much more superior. First of all, let’s note that betting exchange platforms match two bettors on both sides of the bet, rather than one bettor against a bookie, thus betting exchange delivers more options to users. When placing a bet with a bookmaker, bettors only have the option to bet on a positive outcome (back bet). Betting exchange platforms allow users to place both back and lay bets, putting a bet against the outcome and acting as bookmakers themselves. Thanks to that, betting exchange platforms overall suggest more competitive odds. Want better odds? Set them yourself! Instead of being limited to the odds set by an oddsmaker you can create your own better ones, and get matched with a user who would be willing to take them.

What is liquidity in betting exchange platforms?

In theory, the maximum amount of money you can bet on a sports betting exchange platform is not limited. Betting exchange is an order-driven market, which means that all the money available comes from the platform users. The main condition that affects the liquidity is the turnover of funds coming from the public – the more money players are ready to bet, the bigger bet you can place. This means that if you want to place a really big bet, all you need is to wait for an opponent who will be willing to risk a similar amount of money. Take note that the total available liquidity of the lay odds change all the time. At any point in time a back bettor may decide to join or leave the group, causing the liquidity change.

But the strength of betting exchange platforms can also be their weakness: as we mentioned before, liquidity come from players. Let's say there is a Manchester City vs Real Madrid game and 10 people want to bet $10,000 each on a victory of Manchester. For the bet to be made those users will have to be matched either with 10 people, each one of which would want to bet $10,000 against this outcome, or 100 people, who'd bet $1,000 each. Sometimes it takes hours to find such a match. However decentralized betting platforms like dexsport.io become a great solution to this problem, taking betting to the whole new level; users gamble against the liquidity pool, getting fixed coefficients, which makes it incredibly easy even for new players to use the platform..

“What about margin?”

Here is the best part, and one of the most obvious benefits of sports betting exchange platforms: the commission is much lower in comparison to traditional bookmaking. Traditional bookmakers’ bets always include margin to ensure their profit, which in many cases might be as high as 20%, making sweet victory not as profitable for the betters as it seems to be at first. Opposed to that, an average sports betting exchange platform is going to take a very modest commission, and often will even provide you a discount depending on the amount of risk you are taking with your bet. Additionally, the commission is being deducted only from the bettors who won the bet, but not from the ones who lost, so unlike traditional bookmakers, betting exchange platforms are actually interested in you winning – your victory ensures their profit. And if you want even lower fees, you can choose desentralized betting exchange, such as dexsport.io -- there is no comission on depositing and withdrawing your funds on this platform.

Is it reliable and safe to use?

The betting exchange platforms reflect the odds and value of a particular bet much more accurately than an oddsmaker, thus it is impossible to scam anyone on the exchange. There are no cheats, hacks, or secret winning strategies other than your own cleverness. You can’t scam a bookie and can not be scammed laying a bet. Platforms like dexsport.io are transperent and trustable, they ensure fair bets and smooth payouts to their customers.

I want to try it! What sports betting exchange platform should I choose?

Now, when you see that bettng exchange is a fairly simple way to make money, you can start placing your bets! You can do it with no fees, no restrictions and no taxes, simply by following the link and creating your account. Bet on various sports, including virtual, by simply connecting your Web3 wallet to your account.