There has never been a more exciting time to participate in crypto gaming. The ease of access online for crypto casinos and sportsbooks like Stake, paired with the ubiquity of crypto, getting your sports picks in with Bitcoin or even Dogecoin couldn’t be any easier.
While the wise punter can always gain an edge when analysing odds and statistics to look for value – as explained in a previous article on Props Betting – it is as crucially important to understand the psychological factors at play when placing bets.
In this article, we examine the cognitive biases and emotional traps that can influence sportsbetting players. Hopefully, this can help you recognise what they are, identify them in your own pattern of play, and overcome these mental hurdles.
Cognitive biases: the invisible influencer
In psychology, cognitive bias is a sort of mental timesaver that our brains use to process information quickly. These biases help a lot of us in daily decision-making but at the same time, can also lead to irrational choices – which in sportsbetting, can be financially detrimental.
Here are some types of cognitive biases that are common to people and particularly relevant to sportsbetting. Do you recognise any of them?
- Confirmation Bias: Our brains like to seek confirmation for pre-existing beliefs, regardless of whether there is contradicting evidence. For example, a punter might back Rajasthan Royals to win all of their 5 next matches against Kolkata Knight Riders, because RR are on a 5-game win streak – even though RR and KKR have each won 14 of the last 28 matches they’ve played since 2008. The punter believes RR is the better team, and their 5-win streak confirms this, despite evidence showing that KKR and RR are actually quite evenly matched in head-to-head meetings.
- Overconfidence Bias: People can overestimate their betting abilities quite easily, particularly when they’ve been winning a lot. But winning picks aren’t always because of knowledge or ability – they could also simply be a case of getting lucky, or the result of always picking highly likely outcomes. So don’t double or triple down on “sure bets”, just because you’ve been on a roll!
- Bandwagon Effect: This bias involves following the crowd and betting on popular choices, even if they are not the most rational decisions. Especially with social media, it’s easy to tag along and follow the most popular bets – even when it’s low value. Sports betting should rely on your analysis. Don’t get swept up in the hype.
Emotional traps: heart vs. mind
Emotions play a significant role in gambling, perhaps more so when sportsbetting if you pick games or teams you follow. This often leads to impulsive decisions. Watch out for these emotional traps where your emotional heart will fight to overcome your rational mind.
- Fear of Missing Out (FOMO): The fear of missing out on a potential win can drive you to place last-minute bets on games you know little about. This impulsive behaviour can lead to poor decision-making. Why are the odds so good? What don’t you know? Ask yourself before placing a blind bet.
- Chasing losses: After a loss, the desire to quickly recover can lead to placing more bets without proper analysis. This can result in a cycle of losses and increased frustration. New Zealand losing five games on the trot? They’re the best cricketeers in the world, surely they must win the next? If you’re thinking like this, take a break. Start over.
- Thrill of winning: Winning is fun and you should enjoy it as much as possible. But don’t let the excitement of an amazing win cloud your judgment and lead to taking unnecessary risks. Every bet is only as good (or bad) as the last. Stay grounded and stick to your betting strategy, as if your past results don’t influence your future ones (they really don’t!).
Strategies for overcoming bias and emotional traps in sportsbetting
There are so many ways for your brain to lose to your heart in sportsbetting. So to improve your experience and make more rational decisions, consider the following strategies.
- Stay informed: Continuously educate yourself about the teams, players, and sports you are betting on. This will help you make more informed decisions and reduce the impact of cognitive biases. You want to be betting on analysis and logical reasoning, not gut.
- Keep detailed records: Maintain a record of your bets, including the rationale behind each decision and the outcomes. This can help you identify patterns and correct any biased thinking once the dust has settled.
- Set clear boundaries: Set your mind to a predetermined betting strategy and stick to it. This can help prevent impulsive decisions and minimise the impact of emotions on your wagers. Set a limit for a bankroll too. Lock away your crypto savings on a cold wallet that’s inconvenient to access and keep a separate wallet for gambling funds.
By understanding the psychology of sportsbetting and implementing these strategies, you can overcome cognitive biases and emotional traps, ultimately enhancing your betting experience.
Remember, staying rational and keeping yourself informed ultimately enhances your gaming decisions and increases your enjoyment on platforms like Stake.
Disclaimer: This article is for educational purposes only. Always game responsibly and seek professional advice if needed.