House edge, volatility and RTP
It is no secret that the casino retains an advantage over the player in the long run. Otherwise, your favorite games would not exist. The principles described here apply to all games on the LTC Casino website, including crypto slots and table games such as blackjack and roulette.
The house edge derives from the rules of a particular game, including the payouts for winning bets. When those rules are applied over a long distance measured in thousands or even millions of rounds, the casino gains advantage over the player. Therefore, it can be reasonably expected that the sum wagered by the players will exceed the total payouts.
Although the house always wins in the long run, it is not rare for players to beat the casino in separate sessions. How is it possible? When you play at a crypto casino, you do not place millions of bets. An average player makes several dozens or hundreds of bets in one go.
The casino can't obtain a decisive statistical advantage over the player at such a short distance. Consecutively, the results of a single session are mostly influenced by chance rather than by the house edge. That's why lucky players occasionally pocket substantial sums at crypto casinos.
Volatility and RTP
Everyone wants to increase their odds when playing at a crypto casino. Therefore, it is crucial to consider two main aspects of casino games: return to player (RTP) and volatility.
Crypto Casino Games and Return to Player (RTP)
The return to player (RTP) shows how much you can expect to win compared to your total bets. The RTP is the opposite of the house edge. In other words, if the house edge is 3%, then the RTP will be 100% – 3% = 97%.
Crypto Roulette RTP
In European roulette, the odds of winning for a bet on red are 18 (the number of red segments) divided by 37 (total number of segments, including zero). The payout for a winning bet on red is 2x.
Thus, the RTP of this game will be 2 * 18 / 37 = 0.973 = 97.3%. The house edge in this case is 100% – 97.3% = 2.7%. However, these calculations are only valid for European roulette. American roulette adds one more segment, namely double zero, which leads to a significantly lower RTP and a higher house edge.
Crypto Blackjack RTP
The RTP in blackjack may also vary depending on the rules. Following the right strategy, a player in classic blackjack can achieve an RTP of approximately 99.5%.
However, unlike roulette, the RTP in blackjack can change depending on the cards that remain in the shoe. This value typically lies somewhere between 95% and 102%. In the past, players could gain an advantage over casinos by knowing which cards remain in the game. Modern-day versions of crypto blackjack employ multiple decks that are regularly shuffled, making card counting pointless.
Crypto Slots RTP
Most crypto slots have an RTP of 92-99%. The RTP in slots depends on the symbols on the virtual reels, payouts, and other rules that may apply in a particular game.
Volatility in Crypto Casino Games
Volatility shows how rapidly your balance will change.
- In low volatility slots, you can expect to get small but frequent wins. In this case, your balance will be changing moderately over time;
- In high volatility slots, be prepared to lose most of your bets, but the payouts can be substantial.
Volatility can also be seen as a statistical distribution of winnings. For instance, in roulette, the bet on color has low volatility and pays 2x. The bet on a number has significantly higher volatility and pays 36x.
Volatility in slots is more difficult to calculate. It depends on all kinds of winning combinations and payouts. Normally, you will have to rely on game providers who indicate whether their slots have low, medium, or high volatility.
Why Is It Better to Play Crypto Games with High Volatility
Let's assume that the game has no volatility at all, and its RTP is 98%. In other words, for every bet of $1 you will receive $0.98. The result of each round is predetermined, and it is impossible to win. Naturally, no one would ever play this game. However, this example also shows that there are other factors to consider when choosing a crypto game apart from RTP.
Games with high volatility are the most popular among crypto players for several reasons:
- The higher the volatility, the easier it is to get a satisfying payout in a single game round;
- In high volatility games, you either win a lot or lose quickly. As a result, you wager less money, thus reducing the impact of the house edge. One should realize that the RTP is calculated for a single game round. Eventually, the RTP decreases due to the reuse of money won in previous rounds;
- You can make smaller bets expecting to win the same amount as in low volatility games at higher stakes. This is another way to reduce the total wagering amount and the house edge. Statistically, you lose on every bet, so reducing the bets allows you to reduce the expected house edge.
This suggests that the ideal strategy is to go all-in until you win the desired amount. Interestingly, this is true, but most players strive not only to win but also to enjoy the game. On the other hand, by betting small in a low volatility game, you will play longer with virtually no hope to win big.
Thus, a compromise is needed. If you want to enjoy the game longer while still having a chance to hit a massive payout, consider high volatility games and try them at moderate stakes.
However, this is just one of the possible approaches to crypto gambling. If you prefer other ways to enjoy your favorite games, feel free to follow them. After all, casino games are all about having fun, and LTC Casino is the place where no one can stop you from playing the way you like it!