The AndroidSlots Guide To Gambling Using Cryptocurrency

16th January4 min read

It's been pretty hard to miss the rise of cryptocurrencies in the last few years. While Bitcoin and Ethereum arguably remain the strongest performing and best known of this rising financial phenomenon, many more are springing up all the time.

While there's still a lot of debate about the true value of cryptocurrency and its potential applications, casinos have been quick to ensure that punters can access as many of their services as possible using cryptocurrencies. Some casinos and online gambling sites have even created their own.

Given the generally volatile nature of these currencies though, is gambling using cryptocurrencies really viable? What difference does it really make if you're a punter, and is it worth it? Let's take a more in depth look below.

What are Cryptocurrencies?

While Bitcoin has been all over the news in recent years, you still might be wondering exactly what a cryptocurrency is. Before we look at gambling applications and how they work, it'll be helpful to have a clear understanding of what cryptocurrencies actually are.

Essentially, a cryptocurrency is simply a digital form of cash. While Bitcoin is the most well known, and basically the grandfather of all today's cryptocurrencies, it wasn't originally intended to be an actual currency in itself. When it was invented in 2008 by the enigmatic Satoshi Nakamoto, it was originally designed to be a peer-to-peer electronic cash system. Because of the way Bitcoin used peer-to-peer transactions and networking however, it quickly grew into a decentralised and highly secure form of digital currency.

As each transaction is known by the whole peer-to-peer network at any time, and then added to a blockchain once confirmed, it's also extremely difficult to forge. Once a transaction is added to the blockchain its basically unalterable. It's this security and de-centralisation that makes it very appealing.

Using Cryptocurrencies in Gambling

It's important to point out that there are actually two kinds of gambling involving cryptocurrency. You can use a cryptocurrency as a stake for example, and this is actually increasingly common, but you can also bet on cryptocurrencies themselves.

Using a cryptocurrency for traditional or digital gambling has a few advantages. Firstly, transactions are extremely fast, which means easier deposits and withdrawals. Secondly, because of the way cryptocurrencies work, you can use them anonymously, which can be handy if you don't want to use your bank details and other personal information.

This not only protects you in the admittedly unlikely event that a casino should get hacked (most online and land-based casinos have online security protection equivalent to banks), but it can help you keep track of your gambling funds by being completely separate to your everyday transactions.

Blockchain Casinos

As cryptocurrencies have grown in popularity and availability, a number of cryptocurrency exclusive casinos have sprung up that only accept these currencies for betting. There are some quite interesting advantages for punters here too, the most notable of which is the fact that not only is every transaction completely transparent due to the blockchain, there is also no house edge. Coupled with the fact you can use your preferred currency and have instant access to your winnings, this makes blockchain casinos arguably the fairest and most efficient form of online gambling available.

Many casinos have gone one step further here too, and offer their own cryptocurrencies for their own services. Unikrn, one of the biggest esports betting platforms around, is a good example of this.

Legal Implications

The fact that all cryptocurrencies are decentralised also creates some interesting legal implications. If you're based in the USA for example, online gambling is illegal in some states. In some areas, it might be the case that sports betting using a cryptocurrency is perfectly legal, because they are not officially recognised as currency.

It's always worth looking into this further if it's something you're considering of course, but these loopholes have allowed thousands of US punters access to otherwise inaccessible betting markets.

Is Gambling using Cryptocurrency for You?

As you might already have noticed, there are a few reasons why you might benefit from using a cryptocurrency for gambling:

  • It's extremely secure, so if you're worried about safety, having a separate cryptocurrency account for your gambling is ideal.
  • Transactions are essentially instantaneous, which means no waiting on your winnings.
  • Blockchain casinos are transparent and have no house edge.
  • Cryptocurrencies are very common in e-sports betting.
  • Some casinos and bookmakers have their own currencies which can give you exclusives offers and prizes.

How to Start Using Cryptocurrencies

The main thing you'll need if you plan to start using a cryptocurrency is an e-wallet. This is where all your transactions and amount of currency you have is stored. It's also highly secure.

Setting one up is fairly straightforward, and there are a number of places you can look online for more information. In a nutshell though, there are three kinds of wallets. An online or web wallet is provided by a third party and hosted online. You can also get a mobile wallet which is installed on your mobile device, or finally a hardware wallet, which is also the most secure as it has to physically be connected to a computer to work.

The Future for Gambling?

Whether you decide to use a cryptocurrency for gambling or not, one thing is certain – we're likely to see cryptocurrencies become even more prevalent in the gambling world, especially where online gaming is concerned. The fact that there are advantages for both operators and punters is one reason, but there's also the fact that it can allow both punters and bookies to access markets they might be locked out of.

This could all change as the world adjusts to the growing impact of cryptocurrencies of course. That said, in terms of benefits as a punter, it's hard to argue with increased security, faster withdrawals, and fairer gaming.

© 2016-2019 GDC Trading Limited. All Rights Reserved.
Problem Gamble Support
18+
BeGambleAware.org
T&C's Apply.