Using Cryptocurrency for Online Casinos the Pros and Cons
Online casinos that are serious about their trade typically offer a wide range of payment options to accommodate gamblers’ different needs and preferences. The use of cryptocurrency is one of the options, and it is increasingly becoming popular in the gambling industry.
As more and more internet casinos are moving towards accepting Bitcoin and other cryptocurrencies as a payment option, it is recommended that casino players do some research and understand if cryptos fit their gambling needs.
If you’re considering using cryptocurrencies to deposit or withdraw money from your casino account, we’ve prepared this post to help you make an informed decision.
Here are the pros and cons of using cryptocurrency to play at an online casino.
Pros of cryptocurrency in online gambling
High level of anonymity
For those who want to protect their personal data and keep identity hidden from third parties, cryptos might be the best option. Bitcoin’s decentralized nature and other cryptocurrencies mean your details and transactions are mostly not subject to tracing by the government or bank.
Since transactions get recorded on blockchains, you’ll need to share your cryptocurrency wallet address to transfer money to and from your playing account. Sensitive details, such as your bank information, contact information, and email address, will not be needed to make a transaction.
Top-notch security for casino players
Besides helping online gamblers keep their data private, cryptocurrency is highly lauded for its excellent security. In fact, the main reason cryptos were created was to address the issue of security. Online hackers or fraudsters cannot counterfeit crypto coins; however, hackers have been known to hack wallets if they can get your wallet information.
While online casinos have Secure Sockets Layer (SSL) encryption technologies in place to protect players from cyber-attacks, sometimes the casinos can get hacked. The blockchain technology can save you from this trouble.
As we said earlier, your personal data will not be required. You transact with the casino using special online codes. Accessing the transactions also requires a unique set of keys that are known only to you. Without those keys, you cannot make any transactions.
Please keep in mind the transaction amounts are made public, but your personal details are encrypted (pseudo-anonymous).
Not everyone has the patience to wait for days to receive their big winnings. Perhaps, you need the money for some financial emergencies. Some payment methods like wire transfer, cheque, and credit/debit card may take up to 3 working days. That would be annoying.
Fortunately, with Bitcoin, the amount you wish to transfer from your playing account will be processed instantly, typically within a few minutes. However, sometimes transactions can take a few hours, especially when a casino takes time to authorize your withdrawal request.
If you can withdraw your winnings after every gaming session, it means you simply avoid keeping large bankrolls in your playing accounts. Otherwise, you might get tempted to keep playing more than you should. This may happen to even the most disciplined gamblers. Unfortunately, things don’t always turn out well, as many casino players often end up losing a large portion of their winnings.
Another benefit of using cryptocurrency to play at online casinos is that you’ll pay low fees. As a decentralized unit, Bitcoin cuts out the middlemen who must get a share of their commissions from your transactions.
Simply put, using cryptocurrency means there are no handling fees, conversion fees, and other fees that you usually experience when transacting through bank accounts or credit cards. What’s more, you’ll not have to worry about chargeback issues, which is common when you’re using the standard credit cards.
Government authorities worldwide are trying to introduce regulations on Bitcoin and other cryptocurrencies, allowing for taxation. They do not treat Bitcoin as a currency because a central bank does not issue it. While most of them have made proposals to consider it as an asset, Bitcoin is tax-free at the moment. Casino players won’t be required to declare or pay anything to the federal or state government. This means you will save more money.
Cryptocurrency is not location-restricted
You might be interested in playing at an online casino but live in a country or state that bans online gambling. While online casinos accept players from countries where gambling is forbidden, it’s hard for the gamblers to process funds via banking institutions.
The banks will most probably refuse to process gambling-related transactions because acting contrary to regulations may result in dire consequences, such as revoking of operating licenses.
With the digital currencies, you have the freedom to play regardless of where you are in the world. A cryptocurrency like Bitcoin is not processed through a bank, which requires you to link credit or debit card to process your transactions.
Players enjoy great bonuses and promotions
Offering incentives is one of the common ways casinos attract and keep players. While bonuses and promotions vary greatly, playing using cryptocurrencies makes you eligible for huge bonuses that come in the form of free spins, cashback, and more.
Cons of cryptocurrency in online gambling
The value of Bitcoin is subject to fluctuation daily, and it’s hard to predict what will happen. It is because there’s a limited amount of Bitcoin in supply, and it faces an ever-increasing demand. If the value of the cryptocurrency drops, you could lose your money. However, remember it might be the other way around in some days.
With many casinos and traders accepting Bitcoin as a means of payment, the volatility is expected to diminish over the next years.
Transactions are immutable
You cannot get funds back once they leave your wallet. While this helps eliminate the risk of fraudulent chargebacks, it can be a disadvantage if you end up making a wrong transaction.
Unfavorable minimum withdrawal requirements
If you have played at an online casino before, you know casinos impose some wagering requirements on casino bonuses. You must meet the requirements to withdraw your winnings.
Since cryptocurrency casinos offer huge bonuses, you can expect the minimum rollover amount to be as high as 40 times. It can be even more. Considering the market value of Bitcoin, that would be a significant amount.
Before claiming the bonuses, it is a good idea if you could carefully go through the bonus terms and conditions. Be sure to accept bonuses with favorable and reasonable wagering requirements.
How to buy cryptocurrency
If you’re thrilled by gambling with cryptocurrency, you will need to purchase coins. But first, a casino player must create a crypto wallet where they will store the coins. If a player wants to buy Bitcoin, for example, they will have to open a store for storing Bitcoin.
For transactions involving smaller amounts, you might want to create an online wallet. If you will be dealing with a significant amount of money, it’s smart to use a software wallet, which you download to your laptop or mobile device.
And when it comes to buying cryptocurrency, you have two options. You can choose to purchase at the exchange websites or broker exchanges.
Buying cryptos at exchange platforms
If you’re a newbie, we would recommend using the cryptocurrency exchange platforms to buy coins. They are easy and straightforward to use, as they work similarly to stock-trading platforms.
Exchange websites will require your personal details, including your name, phone number, and email address. You may also need to verify your identity using a driving license or passport.
Most platforms allow you to use bank transfer or credit/debit card to fund your wallet. Some have started accepting e-Wallets, such as PayPal.
Buying cryptos at broker exchanges
With broker exchanges, they work just like currency exchange shops available at international airports. But casino players don’t exchange local currencies with each other, such as converting USD to pound. Instead, the gambler exchanges their local currency for the digital currencies.
The most reputable cryptocurrency broker exchanges include Coinbase, Bitstamp, Coinmama, and CEX.io. Most of these broker exchanges usually accept credit/debit cards, bank transfer, and PayPal.
Well, there are several key factors you should keep in mind when you’re buying cryptocurrencies. They include:
Transaction fees: Fees charged at exchanges will vary. If saving money is a top of mind priority, shop around for lower costs.
Payment methods accepted: Check if you can pay using your preferred method of payment.
Expected account activation period: Some accounts might take several hours or even days to get activated.
Types of cryptocurrencies offered: Bitcoin is by far the most popular digital currency and, chances are, all if not many exchanges will have it. There are other options like Litecoin and Ethereum. So before registering an account, just be sure the exchange you choose offers what you are interested in buying.
Read user reviews: It is one of the best ways to know what to expect from the exchange platform.
If all you want is privacy, security, instant transactions, and low transaction fees, then cryptocurrency is worth trying out. And if you can find a trusted online casino that accepts cryptocurrency, we believe your gambling experience will be a unique and rewarding one.