Satoshi invented the first cryptocurrency, bitcoin, in 2009. A decade later now, we have different types of cryptocurrencies and different uses for them. One of the industries that have adopted and reaped the benefits of these digital currencies is online gambling.
What is cryptocurrency?
Many people still do not understand what cryptocurrency is and how it works. In the simplest terms, a cryptocurrency is a digital form of payment you can use to pay for goods and services online anonymously.
The main difference between traditional currency and cryptocurrency is security. Technically, cryptocurrency is a combination of digital numbers. These digital numbers are assigned a value, the same way we assign value to paper currency.
The cryptocurrency network keeps a record of every transaction ever made with the currency. Digital signature systems protect these records. Therefore, cryptocurrency is not only secure but also unforgeable and tamper-proof.
Why cryptocurrency in online gambling?
So, why should you consider online casino and betting with crypto:
Online gambling is illegal in some countries. Using credit cards to make bets in such countries is a considerable risk. That’s why you need cryptocurrency for betting.
Blockchain, the system used to create a cryptocurrency, keeps your identity anonymous. The government can neither trace your money nor track your bets.
Depositing money from your crypto wallet to your betting account is fast. Also, withdrawals from the betting account to your wallet are instant. On the other hand, traditional methods of depositing withdrawing money can take days and come with the risk of theft.
Lower transaction fees
Depending on the site you are using and the method of payment, the transaction fees can be quite huge. Your bank will charge a transaction fee for depositing money into the online gambling site. Similarly, the site will cut an amount from your winnings when you withdraw.
Cryptocurrency networks generally have lower transaction fees. More importantly, you pay no conversion fees.
Types of online gambling sites that use cryptocurrency
Are you ready to use crypto for online gambling? The next step is to find sites that have cryptocurrency as a payment option.
There are two main types of cryptocurrency gambling sites:
Cryptocurrency-only betting sites
As the name suggests, you can only bet with crypto – you cannot use conventional currencies. However, crypto-only betting sites are relatively new in the market. As such, they do not have a proven track record of dependability. The site could be there one day and gone the next.
That said, since these sites only deal with crypto, they tend to process payouts faster. Another advantage of these sites is a wide range of cryptocurrency options.
Established gambling sites with cryptocurrency as an option
That online casino or sportsbooks site you have used for years might have cryptocurrency as a payment and payout option. Such sites are an excellent choice since they have a history of dependability.
However, these sites might not have as many crypto options as crypto-only sites. So, if you have a not-so-popular coin in your wallet, you might need to convert it to more mainstream cryptos such as bitcoin before using it for betting.
How to deposit cryptocurrency to an online gambling site
To bet with traditional currency, first, you deposit it to a bank then transfer it to your betting account. A similar process applies to crypto. To deposit crypto in your betting account, you need to have the stake amount in your crypto wallet.
A crypto wallet is the equivalent of a bank account. It is where you manage all your cryptocurrencies. There are even more crypto wallets than there are cryptocurrencies. These different wallets have different features. When choosing, you need to consider:
- the security of the wallet
- how easy it is to move funds to and from your betting account
Here is a comprehensive guide on crypto wallets.
Cryptocurrency and Provably Fair Gambling
The invention of cryptocurrency made Provably Fair (PF) gambling possible. PF gambling is a revolutionary system that can prove the house did not tamper with the game. Like crypto, it uses algorithms to track data in an impenetrable structure.
PF is available for a variety of online casino games such as dice and slot games. However, PF is not available for online poker. Another downside is that PF gambling is currently only possible using bitcoin.
Cryptocurrency in online gambling is convenient as it provides more security and faster transactions compared to traditional forms of payment. However, remember, you are still gambling with hard-earned money. Therefore, you’ll only reap the benefits if you practice responsible gambling.
Featured image: Bitcasino.io