Utilizing cryptocurrencies in online gambling

A cryptocurrency is a form of payment that has made online transactions more secure and reliable to consumers. It is a virtual currency that exists outside of government control. This type of currency began in 2009 when someone using the pseudonym Satoshi Nakamoto created Bitcoin, which still is the leading cryptocurrency in the world. 

Digital currency can be used in the online gambling industry for deposits and withdrawals. These transactions occur primarily via the blockchain which is a specific database that ss data in blocks to act as a ledger for transactions. No single person or group has control over the blockchain; instead, it is a form of digitized human trust using the community of users to control the data transfers from block to block. 

How to buy cryptocurrency 

There are two factors to consider when buying your first cryptocurrency — you will need to access a crypto exchange and have a crypto wallet. These two are very important when handling your crypto investments.

What is a crypto exchange?

Consumers can buy different cryptocurrencies on a cryptocurrency exchange. This is a place in which buyers and sellers meet to trade cryptocurrencies. Crypto exchanges can be used to convert your “fiat” funds (for example, U.S. Dollars) to different cryptocurrencies. Investors can also convert their existing crypto funds to other versions (for instance, Bitcoin to Litecoin). 

The exchange is usually in the form of a website or an app. Without this, you would need to find a person who is willing to sell you their coins. 

Depending on the state where consumers live, the regulations for the exchange can differ, which may restrict them from buying and selling cryptocurrencies. For example, exchanges need to obtain a BitLicense before operating in New York and offer only a selected variety of approved coins. It would be wise to be aware of the rules that particular states have instituted. 

What is a crypto wallet?

Like your standard bank account, a crypto wallet is a software program you can use to store and manage your coins. They consist of private keys that allow people to transfer coins to and from the wallet securely. Consumers must be careful not to share these keys, as it would enable people to access their wallets. 

Crypto wallets are essential to trading coins, and they come in two forms — hot storage and cold storage. 

• Hot storage wallets are connected to the internet via a provider or an app. These are free wallets that can be used on mobiles or desktops. Although they are free, they run a security risk as they are connected to the internet. 
• Cold storage wallets are physical portable devices that allow consumers to carry their coins with them. These are a more secure form of storage, as they are a physical hard drive that your coins are downloaded onto, making it nearly impossible for hackers to access. 

Choosing your preferred cryptocurrency

Since the invention of Bitcoin, there have been many similar coins that have wanted to recreate that success. Now, there are thousands of cryptocurrencies you can choose to buy or gamble with. They range from $0.30 per coin to $47,000 per coin. Let’s have a look at some of the most popular currencies available right now. 

Bitcoin (BTC)

Bitcoin is, of course, the most popular cryptocurrency on the market, currently trading at about $47,000 per 1 BTC. It has become the leading coin in the industry and has attracted many investors due to its fluctuating nature. Bitcoin is supported on most exchanges and is offered on every online crypto casino/sportsbook.

Ethereum (ETH)

Ethereum, created in 2014 by Vitalik Buterin, is best known for its programmable nature. It is not, in its essence, a cryptocurrency; instead, it is a decentralized platform allowing its users to use any code they want. This coin allows smart contacts and decentralized applications to be made without interference from a third party. It is currently at a value of $3,000 per 1 ETH. 

Litecoin (LTC)

This currency was launched in 2011 and was one of the first to contend with Bitcoin. It offers a faster transaction confirmation time, meaning your withdrawals and deposits on online casinos and sportsbooks would be quicker than other coins. Like Bitcoin, it is not controlled by any central authority, and it is an open-source global payment network. It is currently valued at $170 per 1 LTC.

Tether (USDT)

Tether is one of the first stablecoins that was launched. Unlike Bitcoin and its fluctuations, stablecoins aim to provide stability to the price offered. As shown in their worth at the moment, $1 per 1 USDT, Tether is one of the most affordable coins for the average person and is a perfect starting cryptocurrency for inexperienced investors. 

Dogecoin (DOGE)

Dogecoin started as a joke in 2013; it is very similar to Bitcoin and has gotten its success through the internet fluctuating between its prices constantly. The popularity of this coin has recently died down and is currently $0.30 per 1 DOGE.

Gambling with cryptocurrency

When playing online with crypto, one must keep in mind the differences the currency entails as opposed to the fiat currencies, such as U.S. Dollars. The difference between the two is entirely within the end of the payment. Rather than withdrawing your money back to your bank account and waiting the standard two to five working days, you have an instant transaction to your wallet through the blockchain with cryptocurrency. 

There are various opinions out there regarding cryptocurrencies in general, and like everything in the world, it has advantages and disadvantages. 

Advantages of betting with cryptocurrencies

The player’s data is protected due to the anonymity that comes with transactions on the blockchain. Transactions made on the blockchain are not traceable, and the player’s details, such as email address and bank account information, are not requested per transaction. Therefore, it is easy for customers to enjoy their time without worrying about giving out too much personal information. 

When using regular banks on online gambling sites, transactions made to and from the account usually take two to five business days to complete. However, when it comes to betting with cryptocurrency, deposits and withdrawals are near-instant. This means that the speed of transactions significantly decreases when gambling with crypto, leaving customers more satisfied.

Also, the nature of the blockchain makes it almost impossible for anyone to hack into it. This brings a sense of security for the players that their transactions are safe and their wallets will retain their personal information. 

Disadvantages of betting with cryptocurrencies

The price of coins fluctuates often, and therefore it is not a stable currency. Due to the nature of crypto, it can be a risk to invest as the price can fall at any moment. Because of this, the regular bettor may not feel comfortable investing their money in crypto, let alone bet with their coins, only to find out that even though they might have won, they will not receive the value they thought in the end. 

Also, although crypto has been around for a number of years, it is still an ever-changing industry. There are many changes occurring all the time, even though it has evolved so much already. There is never a dull moment in the industry, which can be hectic for the average player. 

Finally, the anonymity of blockchain transactions can be seen to many as an advantage. Although it is a safe method of transferring money, it is often looked at as a means to get away with fraud. However, it is often associated with criminal activity to the outside world. 

Online crypto casinos and sportsbooks

There are a number of online crypto casinos and sportsbooks that are available. Here are some of them:

Las Atlantis

This is an online casino that accepts Bitcoin and Ethereum, along with other payment methods, at a minimum deposit of $20. As with all transactions, the withdrawals and deposits made to and from a bank account will be instant. This online casino offers slots, poker, table games, blackjack, and more games to explore. It also offers a few lucrative promotions for new players to take part in. 

Wild Casino

This casino supports various cryptocurrencies such as USD Coin, Litecoin, Bitcoin Cash, and more. They pride themselves on their quick deposits and offer support to any new players having trouble with their first deposit. It offers slots, blackjack, video poker, and a selection of live casino games. Their promotions are also plentiful, even offering a massive welcome offer.

BetOnline

This is both an online casino and an online sportsbook. It supports Bitcoin and standard payment methods. It offers many games in the casino and a wide variety of markets on the sportsbook. 

MyBookie

This is also both an online casino and an online sportsbook. It accepts traditional payment methods along with Bitcoin, Litecoin, Bitcoin Cash and Ethereum. MyBookie is mainly a sportsbook; however, it also offers various games such as blackjack, table games, slots and much . 

FAQs

Why use cryptocurrency to gamble?

When it comes to transactions via the blockchain, there is anonymity available, meaning none of a player’s personal information will display, unlike easily traceable bank transfers. Along with gambling, cryptocurrency is an investment that is made when purchasing it. This means that while you play, the value of your money may be increasing or decreasing depending on the coin’s market. This may be favorable to the player in the long run. 

Who runs the different cryptocurrencies?

All cryptocurrencies are decentralized and are controlled via the blocks on the blockchain. Although it first started in 2009, it now all stands on its own, unlike the various bank systems. This form of currency was made to go against that system when the people’s trust in banks was dwindling.

Can I play casino games from the USA? 

Yes, there are a variety of crypto casinos that welcome players from the USA. This may come with additional requirements, such as verifying your account. However, there are plenty of casinos to choose from. 

How can you convert your cryptocurrency back to fiat money?

This is done through the crypto exchange, where you can convert any currency you would like to and from fiat money such as U.S. Dollars. On the exchange, consumers are selling their coins to other people in exchange for fiat currencies. 

Are cryptocurrencies legal?

Cryptocurrencies in most countries are legal. However, there are certain countries in which they have been banned, such as India, China, and Ecuador. The regulations around crypto vary, so it would be wise for first-time investors to read up on their country’s laws first.

What is an Unconfirmed Transaction?

When a transaction is being sent on the blockchain, it passes through every block being checked by individuals. It is digitized human trust, and once the transaction has received enough transactions from these blocks, it will be successful. A transaction is unconfirmed when it has yet to be passed through a partnership successfully, meaning no one has confirmed it. This would create a problem if left unconfirmed for too long.

How to gamble with your cryptocurrency

Step 1: Register with a crypto wallet to store your coins safely. 

Step 2: Buy some coins from your wallet or the crypto exchange you have signed up with.

Step 3: Select a site you trust with good reviews to play on.

Step 4: Deposit your first coins securely via the blockchain.

Step 5: Place your first bet!

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