Within the past year or so, 19 percent of Americans have bet on sports to some degree. It can be a fun and exciting way to make a little extra money.

One of the most popular betting methods is moneyline. All you have to do is correctly guess the outcome of the game. In certain instances, there's a third "draw" option where there is no clear winner or loser.

Before you place moneyline bets, you'll need to understand what favorites and underdogs are. You should also know the definition of pick 'ems and 3-way moneylines.

Check out this quick sports betting guide to learn what all these words mean and more.

What Is Moneyline Betting?

As stated above, moneyline betting is a wagering method that involves guessing a game outcome. The lines are placed based on which side the bookmaker believes has the best odds of winning.

Moneyline betting is popular with newbies because of its simplicity. The only two betting methods that are as common as moneylines are point spread and over/under.

Benefits of Moneyline Betting

There are many reasons why you may want to choose moneyline betting over other wagering methods.

As stated above, it's a simple introduction to the world of sports betting. It's also easy to find value.

Simplicity

Again, with moneyline wagers, you're only betting on the outcome of the game. From there, you'll do some minor calculations to find out if your prediction is worth the risk.

If you decide that the pros outweigh the cons, make the bet. If your team wins, you'll take home a payout.

Easier to Find Value

Due to the simplicity of moneyline betting, it's easier to find value. You don't have to sift through layers of complexity.

The only thing you have to do to learn if your predictions have any value is to perform some basic math.

It's Great for Beginners

If you're new to sports betting, moneylines are a safe bet for you. You'll still need to do some research before you get started betting, but you won't have to do quite as much.

If you're trying to introduce a friend to sports betting, you'll be able to without worrying about losing them to complicated concepts and jargon.

Favorites

All basic moneyline wagers involve favorites and underdogs. Favorites are the team that has the highest odds of winning. They are represented by a minus sign in the sportsbooks.

The number beside the minus sign represents how much money you would have to wager to win $100. For example, if you want to bet on a -300 favorite, you would have to pay $300. If the team pulls through, you'll take home $400.

Underdogs

Underdogs are the team that's favored to lose the big game. They are represented by a plus sign in the sportsbooks.

Since underdogs have a lower win probability, the payout if they happen to win is a bit higher. If you were to bet $100 on a +200 underdog, and they win, you'll take home $300.

Pick 'ems

Sometimes bookies rule that both teams are evenly matched. In this case, there are no favorites or underdogs.

This is a pick 'em. Both teams offer the same payout if you choose the right one.

3-Way Moneylines

There are some sports bookies that offer betters a third option. A 3-way money line gives you the opportunity to choose a draw.

Soccer is the most common sport for 3-way moneylines because of how often games end in a draw.

Sports That Use Moneyline Betting

Moneyline betting is used a lot in baseball and hockey. You may also see it if you vote on one-on-one games like boxing or golf.

This being said, there are college football picks too. The NBA and NFL use moneyline betting from time to time as well.

Parlays

Parlays are a betting method that involves stringing together several moneylines. The more lines you add to your bet, the higher the payout will be if you win.

There is a catch. All the lines have to hit or none of them do. For example, if you bet on 4 lines, and 3 of them win, you still lose. Since parlays are so risky, they're not recommended for beginners.

Moneyline Betting Tips

Despite the simplicity of moneyline betting, it never hurts to have a strategy.

When it comes to choosing lines, it's okay to be picky. Even though underdogs offer a higher payout, you shouldn't avoid favorites, and it's a good idea to invest in some type of tracking software.

It's Okay to Be Picky

Moneyline betting is all about selection. If you want to maximize your payout, it's a no-brainer to choose a game where the underdogs have a high chance of pulling through.

When choosing lines, keep in mind that they do tend to fluctuate due to public action.

Don't Stay Away From Favorites

Even though underdogs offer a higher payout, that doesn't mean you should stay away from favorites. You only need to be smart about it.

Don't bet on favorites that are in the -300 range. Even the -200s is a bit risky.

Track Your Wins and Loses

When you first start out, you're likely to lose more bets than you win. That's why it's important to invest in tracking software.

By staying on top of games that you lose, you can learn what you're doing wrong and adapt over time.

Everything You Need to Know About Moneyline Bets

Sports betting is a fun way to earn a little extra cash. Moneyline bets are the easiest way to get into it.

All you're doing is betting on who you think will win the game. If you can get the hang of it, and consistently make winning predictions, you can take home serious bank.

Are you ready to maximize your earnings? Visit the Sports section of our blog to stay on top of all the latest betting news.