Cryptocurrency Gambling Guide
March 11, 2020
INTRODUCTION TO CRYPTOCURRENCY
Cryptocurrency is not as much an unknown term as it was say 5 years ago. The rise and then subsequent fall of Bitcoin made sure that the concept was branded into the minds of many economy conscious members of society.
While the general public have slowly been educated about the pros of alternative e-currency, it is still a relatively young technology (just over a decade old) which is often times misunderstood. It is however creeping into many different industries, evolving the way in which payments and other transactions are being made on a daily basis. The online casino industry has been a great testing ground for the various crypto currencies, which have performed remarkably well over the past half a decade.
Bitcoin gambling is now finding common place at both Bitcoin-First (where it reigns as the only wagering method) and at regular casinos where both fiat currency and Bitcoin are accepted for betting (Hybrid Casinos). Bitcoin often finds favour over Dollars, Euros, and Pounds because of how fast and easy it is to transact with.
Cryptocurrency is real currency that holds a real value and can be used to trade at supporting retailers, casinos, and more. What differentiates it from standard fiat currency, is the fact that it is not a physical currency which can be translated into physical notes and coins. It is also not tethered to the global economy or a reserve in the same way that fiat currencies are, hence it is decentralised and run over various servers instead of one hub.
Cryptocurrency gains its value based entirely on its own virtues and its popularity in the marketplace. The currency is mined through specialised computerised machinery on the internet, where complex algorithms are monitored and used to uncover valuable 34 key hashes. This mining process is complicated and extremely expensive, hence proving a ‘proof of work’ upon which to justify a monetary value for the codes being sourced.
So, in short – Bitcoin and other cryptocurrencies are valuable codes that have an intrinsic worth. They are worth so much in some instances, that people will exchange their hard earned fiat currency for it for the sake of investment.
CRYPTO IN CASINOS
Cryptocurrency and casino operations have proven in more than one example, to be a match made in gambler’s heaven. The nature of the e-currency translates well for quick and effortless funds transfers. As such, the adoption to the casino world has gone off without much hitch, with some top names in the business offering the quickest withdrawal times in the industry thanks to this technological breakthrough. It may have been a gamble initially, but one that has paid off well for those bold enough to have taken the chance.
Cryptocurrency was founded in 2008, by Bitcoin’s creator, Satoshi Nakamoto (A Pseudonym for a secret founder or group of founders). Nakamoto’s aim was to present an alternative form of economy to hedge against fiat currency. It was released at the cusp of the last global economic recession, where the world was looking for some way around the political manipulation that had dumped the entire world into a mess. Bitcoin, the mother of cryptocurrency, was that key.
The first casino to brave the ‘go’ for e-currency was Bitcasino in 2014, followed by the stiff competition of Bitstarz a few months later and then VegasCasino.io a year on. Each one of these brands are still operating in the industry with great success as leaders in their respective market.
Decentralisation is Key
Bitcoin casinos have been able to reach far further than regulated, centralised fiat currency casinos have, purely because of the strict legislation surrounding fiat money and the way it is used to restrict players.
Many governments use the banking system to restrict online casino gambling by clamping down on transfers made to and from gambling establishments. In the United States, the ‘Federal Wire Act’ makes it illegal for fiat funds to be transferred to and from betting sites, unless the transaction takes place within a state legalising online casino play. Because cryptocurrency is not linked in any way to the regular banking system, the transfer of these funds to and from casinos sidesteps the legislation, legally. As a result, far more people are able to enjoy internet gambling.
ADVANTAGES OF CRYPTOCURRENCY GAMBLING
Of course, in order for casinos and players to go through all of the hassle of buying and depositing cryptocurrency at casinos, there must be definite benefits to this way of trading, otherwise why would people bother? The fact is, the benefits are massive for the average online better. They include:
Because cryptocurrency is decentralised, it does not rely on trusted third parties to act as middle men in the transaction process; it is purely peer to peer based. This cuts out a lot of wasted time when processing payments. Once released, payments occur almost immediately, without hiccups, as long as the Blockchain verifies the data and approves the transaction.
Cryptocurrency withdrawals are also not subject to KYC verification, as they do not relate to fiat currency. This point in itself can save you up to 3 days in delays on your first deposit at a casino.
Irrefutable Blockchain Register:
All cryptocurrency transactions are undertaken on a digital platform called a blockchain. A blockchain is a detailed ledger which is spread over many of servers on the internet. This is how the e-currencies avoid being centralised and under the power of any one organisation.
Each server holds the full details of the blockchain in its entirety. Once a transaction is made, all nodes must verify, okay, and record the payment made, altering the register as it goes, to reflect a detailed history. Because of this thorough work, no transaction can be manipulated or changed in any way, as you cannot hack one server without hacking them all simultaneously before the next block is added to the chain. You can therefore spend and receive crypto without fear of later reversals or funds ‘bouncing’.
Safer and Cheaper Transactions:
The security protocols invested into the Blockchain are the very best in the world. The sheer impossibility of hacking the blockchain remains a strong drawcard to investors and spenders. Your funds will remain safe as long as your codes and passwords remain a secret. So secure in fact, that if you lose your own passwords, you will not ever be able to access your funds either.
When it comes to the price of transactions, we need to understand that cryptocurrency is not bound by regional or national borders. Its boundaries are set by the reach of the internet. Transfers around the world are treated as if you are making a digital payment to the house next door. This means no multiple handling fees or forex charges. The only fee that may be levied is a tiny miner’s fee.
When trading over the blockchain, the registry only identifies your hash/codes and not your personal identity. You as a holder are identified separately from crypto-funds, therefore the only way you can claim ownership is if you have the relevant codes in your possession.
So, when you want to spend cryptocurrency, the retailers are not interested in your identity either, but rather that your codes hold the relevant funds for them. While legislation may be overturned on this control in the future, at present you can play at a crypto-casino without revealing your true identity, allowing you to gamble with a fair deal of anonymity. The only time you will have to reveal your identity, is when you want to exchange your crypto-funds for fiat funds.
Provably Fair Gaming Options:
If you have ever wondered about how fair your gambling experience is, you can stop worrying now. Some crypto gaming studios make games to accommodate cryptocurrency, )like Bgaming), offering you a method of verifying each bet and game round offered by their games. They give you access to their open source algorithm for the random seed generation. You can therefore watch how the game reacts randomly to your inputs. This proves that neither the casino nor any player can predict when wins will be made.
LIMITATIONS ON CRYPTO CASINOS
Of course, like most things in life, very few things are flawless. The various blockchains and their cryptocurrencies do come with some down sides. These include the following:
Lack of Regulation
Unfortunately, because of the nature of the blockchain, it is very difficult to regulate crypto-casinos properly. The Malta Gaming Authority are working hard on producing a workable way of doing this, but at present, there is still a bit of a hole in the system.
It is therefore advised that you only play at Bitcoin casinos that are well reviewed and recommended by professionals in the trade. Just for starters, we could recommend two of the best casinos out there, namely Bitstarz and King Billy Casino. These operators offer better services and faster withdrawals than most reputably licensed European fiat currency casinos do.
Because cryptocurrency holds its value in its popularity, it can be very volatile, known changing in value within a 24 hour period. The Bitcoin crash of 2018 is testament to the nature of this type of currency, where Bitcoin lost over 80% of its value within months.
PROMINENT E-CURRENCIES USED AT CASINOS
There are hundreds of cryptocurrencies in the world today, but only a handful of those are generally accepted at online casinos. Some of the bigger and more popular ones include:
- Bitcoin: The mother of all crypto, is the most popular and most valuable e-currency in the world today. The popularity of this coin over other cryptocurrencies is so great that most cryptocurrency casinos are even referred to in the industry as ‘Bitcoin Casinos’, despite the fact that they may offer wagering in other e-currencies too.
- Bitcoin Cash: Bitcoin Cash is a re-take on Bitcoin, with the owners pushing the fact that BCH is what Bitcoin was intended to be initially. It even points to Bitcoins white paper as its own mission statement. BCH offers cheap and effortless peer-to peer transactions and affords all holders of Bitcoin (after block 478558) ownership stakes in Bitcoin Cash.
- Etherium: Etherium was developed to make cryptocurrency truly workable in all markets. It is based upon the Ether platform, which is well known as being one of the most user-friendly and customisable platforms to operate from. Etherium has been around since 2013 and is the second largest cryptocurrency by market value.
- Litecoin: Litecoin was created as a lighter version of Bitcoin, with the express purpose of creating a more usable everyday currency. Bitcoin is seen more as a long term investment currency.
- Dogecoin: Initially created as a joke, Dogecoin gets its name from a popular internet meme. It however worked out that the coin become quite popular and much like Litecoin, is very usable. Unlike Litecoin and Bitcoin, it has no cap on the number of coins that can be produced.
- Tether: Tether is different from traditional cryptocurrencies in the fact that the e-currency is tied to centralised reserves, despite being operated on a blockchain principle. This stable e-currency offers people a less volatile virtual currency option, delivering seamless transactions over the internet.
There are various ways of laying hold of cryptocurrency, including mining and peer to peer sales, but the most common way of getting your hands on some is by registering on a cryptocurrency exchange. Here you can both buy crypto with normal money or trade one cryptocurrency for another.
The mining route can earn you cryptocurrency, but it is a highly involved job on its own, which will cost you quite a bit to set up. Buying crypto from an exchange will take you minutes to arrange.
It is vital that you use a regulated and verified exchange when doing this though. We recommend that you use one of the three biggest exchanges in the world, namely Coinbase, Kraken, and Binance to undertake your purchases.
On all three of these platforms, you can register painlessly and even store your money on one of the user-friendly wallets that they offer you, allowing you easy access to both trade and transact with your currency in future.
Once you have bought your cryptocurrency, you will need to decide on how you are going to store it. There are several categories of crypto-wallets options available to you. You will need to choose the option most suited to your needs.
Online Wallet: You are offered a virtual online wallet, where your cryptocurrency is stored on a cloud. One of the advantages of this is that you can never lose the funds, should your hard drives or phones be wiped, lost or stolen.
Desktop Wallet: This is a program application that can be downloaded to your desktop PC, offering you an interface to secure and control your cryptocurrency with.
Mobile Wallet: This is the same concept as a Desktop Wallet, but the interface is accessible from your mobile phone or tablet rather. This offers an extremely convenient way to control your funds, as you can transact within seconds from your pocket held device.
Paper Wallet: These are often retrieved from Bitcoin ATMs. It is a literal card/voucher where the public key is captured on a QR code. These wallets are ideal for temporary use of e-funds only.
Hardware Wallet: Also referred to as a cold wallet, your crypto data is saved to a USB storage device. This keeps your data offline where no hackers can access it. Unfortunately, if you lose the device or it gets accidentally wiped, you will lose your funds.
If you are looking for a good wallet outside of the Coinbase, Kraken, and Binance realms, it may be good to do some thorough research first. Other reputable names to look at may include: Luno Wallet, Bitpanda, Mycellium, Trezor, and Blockchain Wallet, to name a few.
GET GOING WITH TOP SPOT CASINOS
Top Spot Casinos is in the business of linking you up with the best Crypto-casinos in the gambling industry. Each of these providers ensures that you have access to some of the most exclusive Bitcoin bonuses out there, so that you have a ‘leg up’ on the site from the word ‘go’.
Be sure to verify all Bit-casinos before venturing to spend your money there. While there are some outstanding operators in that field, there are some ‘landmines’ that need avoiding.