Explained: PoolTogether, the crypto lottery where you never lose

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Crypto lotteries have gained a lot of popularity in the last few years. Since they are blockchain-based, they are more transparent. They also operate on a global level with large pay-outs that are easy to access.

These benefits have made them an attractive option for the traditional lottery aspirant.However, one particular lottery house — PoolTogether — is sweetening the pot even further. The Ethereum-based, MakerDao-backed platform promises a lottery where you never lose your money, even if you never win the lottery. Sounds interesting? Tag along as we tell you how it works.What is PoolTogether?PoolTogether is a crypto-powered lottery platform that gives users a chance to win a significant weekly prize.

It allows users to buy lottery tickets in exchange for depositing their crypto into a prize pool. However, it differs from the traditional lottery because your lottery tickets do not expire.The lottery pool awards prizes to up to five winners every week. However, even if you do not win, your tickets will not expire.

Instead, they will be rolled over to the next draw, and the process will continue until you either win or withdraw your crypto. In this way, while the chances of winning the lottery remain the same — very slim — you do not lose any money either.Also Read: What are Stablecoins, how they work, how to buy them, and other questions answeredThen how are the prizes funded? PoolTogether uses the interest they earn on the lottery pool to finance the awards. PoolTogether describes it as a prize-savings approach where you get rewarded for holding your cryptos rather than spending them.How do no-loss lotteries on PoolTogether work?PoolTogether combines the traditional lottery system and crypto staking.