If you’re new to the genre of betting with cryptocurrency you’ve landed yourself in the right place. Gone are the days of being tied down to certain casinos based on your location or local currency. With the advent of cryptocurrency, and then the addition of crypto to online casino payment options, anyone anywhere can sink their teeth into the best of the best gambling entertainment.
Before we launch into this thorough guide on everything you need to know, we’ll first do a deep dive into what cryptocurrencies are and why they’re a lot more user friendly than you might think. If you’re new to the scene, sit back and relax because we’ll have you up to speed in no time at all.
What Are Cryptocurrencies?
A great place to start before we dive into betting with crypto is to cover the foundations. So let’s get into it. Cryptocurrencies are digital currencies that use cryptographic encryption to ensure that the networks remain safe and that what’s yours remains yours.
The first part “crypto” represents the cryptography used to secure the network while the “currency” part represents the fact that these are a form of value.
Cryptocurrencies first came about in 2008 when an anonymous entity going by the name of Satoshi Nakamoto released the Bitcoin whitepaper. This whitepaper outlined the digital currency’s use case potential and outlined how it would function.
Then, in January of 2009, the first block was mined on the Bitcoin blockchain and BTC went live. The first cryptocurrency was based on blockchain technology and was created in a response to the global financial crisis that caused widespread financial devastation.
The idea behind Bitcoin was simple: it was to become an electronic payment system that was free from the control of governments, banks, and other financial institutions. The new cryptocurrency world would offer users the chance to transact value on a peer to peer level, not needing to go through any middleman or legislative hoops.
The cryptocurrency also allowed users on other ends of the world to send money to each other in a fraction of the time – for a fraction of the cost – than regular fiat (normal) currencies. Whether you’re sitting next to each other or on different continents, the price and timeframe of sending Bitcoin remained the same.
It took a few years for Bitcoin to enter the mainstream circles, but while it slowly integrated into various tech and finance markets, other projects were popping up. This started the rise of what has become known as altcoins – any cryptocurrency that is not Bitcoin.
With new waves of altcoins, new innovative cryptocurrencies entered the market. While some also offered a store of value functionality, many took to making a “better” version of Bitcoin, generally offering a faster and cheaper means of transaction.
Today, the market has over 11,000 cryptocurrencies with many offering unique solutions to the blockchain and outside worlds. While you don’t need to know anything about these cryptocurrencies, it’s valuable to know how big the industry has become, and how it continues to seep into the mainstream markets.
Bet With Cryptocurrency
Enter online gambling and the world of live betting. As the internet became more accessible online casinos started popping up all over the place. Suddenly people didn’t need to travel far and wide to engage in their favourite gambling games, they could play from the comfort of their own homes.
The online gambling industry quickly grew as demand rose. And over the years the innovation has exploded, with live casinos being incorporated into sites and chat rooms giving players the same “real world” experience and social element. Some live casino games even allow players to engage with the dealers via webcam, making the whole experience as realistic as being at the table in the land casino.
As Bitcoin started spreading its highly functional word, it soon coincided with the online casino industry. At the crossroads of cryptocurrency adoption and online casinos is the wildly popular and equally exciting world of betting with cryptocurrencies. Some casinos might function only with cryptocurrencies, while others offer both options with various crypto and fiat payment options to choose from.
This has opened the world and eradicated previous “border” issues. People in Portugal can easily deposit and withdraw cryptocurrencies from a casino in Russia, or someone sitting in Cuba can just as easily engage in a European online gambling platform as someone sitting in France. Cryptocurrencies provide efficient and easy means to play on a platform from anywhere in the world.
Advantages of Playing With Cryptocurrencies
While we might have touched on some highlights above, below is a good overall look at all the wonderful benefits of engaging in crypto play.
- Cryptocurrencies are much faster to send than fiat currencies, allowing players to engage in play sooner.
- While fiat currencies require a third party to facilitate the means of moving the funds from your account to the casino’s (or visa versa), cryptocurrencies are sent directly from your wallet to theirs.
- Cryptocurrencies don’t require lengthy signup processes.
- Crypto winnings can be kept secret, as they will not be reflected in your bank statements or taxable accounts.
- Cryptocurrencies tend to be more volatile, meaning that your 1 BTC win could be worth far more in a certain period of time.
- Crypto casinos typically require fewer KYC processes than regular fiat casinos. This will change from platform to platform and we strongly encourage you to ensure that you’re playing at a reliable online casino that follows the regulations required within the industry.
Of course with the upsides do come some downsides to cryptocurrency betting. Below is a look at a few disadvantages it’s worth knowing regarding betting with cryptocurrencies.
- Crypto gambling is illegal in some jurisdictions. It is up to you to ensure that it is legal in your country.
- Ensure that you are sending the funds to the correct wallet address as once a transaction has been executed it cannot be stopped or reversed.
- Crypto can be volatile (yes, this one is both an advantage and disadvantage). Be sure to withdraw your funds in a reasonable amount of time unless you’re willing to potentially sit out a few months if the price drops waiting for it correct.
How To Use Crypto On Betting Sites
Playing with crypto, or cryptocurrency betting, is as simple as can be. In order to understand how the process works, we’ll briefly give you an explanation of what’s happening behind the scenes of the crypto transaction.
How Do Cryptocurrency Transactions Work?
Looking at Bitcoin as an example, when you want to send the funds to a friend you will need to first have their wallet address. Wallet addresses are unique 26 character alphanumeric codes that are assigned to users forever. This wallet address represents your digital wallet and represents your ownership of the Bitcoin. Each wallet will come with a public and private key.
The public key is the wallet address, or a bank account number, which you can share with anyone needing to send you funds. On the other hand, the private key acts as your PIN code and should not be shared with anyone. Should someone get hold of your private key they will have access to all your funds. In the crypto world, there is a saying, “not your keys, not your coins” which sums up the private key situation very well. Keep it safe.
Right, back to the transactions. So, in order to send the Bitcoin to your friend you will need to open your Bitcoin wallet and execute the transaction by entering your friend’s wallet address and how much you would like to send. You will then be notified of the network fees you will need to pay in order to execute the transaction (these vary depending on how busy the network is at that time).
Confirm the transaction and send. The funds will then enter the network and once verified will be deposited into your friend’s wallet and be added to a new block on the blockchain.
Most wallets require a certain number of confirmations before the funds can be cleared and players can engage in online betting, and these confirmations are represented by blocks on the blockchain. For each new block (a chunk of transactions) verified, a new confirmation will have been successfully completed. As Bitcoin transactions typically take 10 minutes, a wallet requiring 3 confirmations might take 30 minutes before the funds are accessible and online betting can commense.
How Do Crypto Transactions On Gambling Sites Work?
The same process stands when depositing cryptocurrency in your chosen gambling sites account. You will be provided with the necessary wallet address and will need to execute the transaction from your wallet. Gambling sites might have a different number of confirmations required before your funds are available to play with so be sure to check this before making the transaction.
An important piece of information to note, however, is that cryptocurrencies need to be sent to the same wallets. For instance, you cannot send Bitcoin to an Ethereum wallet or Ripple to a Litecoin wallet. So when you are initiating the deposit on various gambling sites, ensure that you get the correct details for the correct cryptocurrency you are looking to use.
Only send Bitcoin to Bitcoin wallets and Ethereum to Ethereum wallets, etc.
In order to use cryptocurrencies on online casinos, you will need to locate the deposit option in your account and select the cryptocurrency that you are looking to play with.
Using Crypto For Sports Betting Sites
Sports betting has also moved into the online space and is a wildly popular option these days. Much like the online casinos have started adopting cryptocurrencies, so too have sports betting platforms.
The process remains the same, you will still be required to deposit funds using your crypto wallet, and it will be reflected in your account on the sports betting platform. From there, or based on how the specific sports betting platform works, the funds will then be accessible for you to use when engaging in your favourite bets.
What Is Bitcoin Betting And Bitcoin Games?
Bitcoin betting is much like cryptocurrency betting only it indicates which cryptocurrency is being used. Bitcoin games are similarly online casino games that are specifically designed to operate with Bitcoin betting (i.e. using Bitcoin as the betting currency). Each betting site will differ in what cryptocurrencies are on offer, however, they will indicate if the games are specific to certain cryptocurrencies.
What Other Cryptocurrencies Can I Play With?
Bitcoin betting isn’t the only cryptocurrency to play with. Across all betting sites and sports betting sites platforms offer a wide range of digital currencies to play with and use as payment methods. Crypto betting is a serious sport these days, so best get informed about the best crypto gambling currencies and how to play with them.
The first cryptocurrency and the biggest one. Bitcoin is the highest valued cryptocurrency and dominates the crypto industry by holding almost half of its entire value. Bitcoin betting has become wildly popular and is usually a payment option on crypto betting and cryptocurrency sport betting platforms alike.
Ethereum is the second biggest cryptocurrency and becoming a popular option when it comes to crypto gambling. The crypto is as easy to use and provides a great alternative to fiat transactions in the betting industry.
Litecoin was designed as a faster and cheaper alternative to Bitcoin and has also become a hit in the betting industry. Whether you’re looking to engage in cryptocurrency sports betting sites, esports betting or live betting, Litecoin is a great payment methods option.
Known as a cult favourite, Dogecoin offers another great payment methods option. It also is a great option when engaging in live betting as its transactions are lightning fast. When using Dogecoin for crypto gambling the transaction fees are minimal and the excitement is rife.
Can I Still Get A Welcome Bonus When Playing With Crypto?
Abolsutely! Crypto casinos operate in the same way that fiat casinos do and you will still be able to tap into the greatness of welcome bonues, deposit bonuses and all the bells and whistles out there!