Cryptocurrencies are influencing many online industries and are becoming ever more mainstream. The online gambling crowd quickly picked up that one could easily make bets online and avoid certain privacy issues by using cryptocurrencies in place of established banking solutions.
This has led to the rise of cryptocurrencies in iGaming and online sports betting scenes. Of course, not all markets have been as accepting of this new development. Gaming regulators in Australia oppose to adding cryptocurrencies to gambling websites, for instance. Nowadays, the industry features plenty of different websites that are more than happy to take your Bitcoin and altcoins.
While this new innovative technology might be attracting new users, those who are inexperienced with cryptocurrencies might find the transition difficult, even more so if they do not understand the core principles of blockchain technology. Below, we outline everything you need to know about getting started with crypto gambling in today’s market.
Getting Started with Cryptocurrencies
Those interested in betting with cryptocurrencies have a lot to take into account. Crypto betting in itself is not too different from traditional gambling. It has more to do with the financial side of things than anything else.
The first thing you should know about cryptocurrencies is that the vast majority of them are not tied to the global banking system in any way. Currently, they are viewed more as commodities like gold and silver than currencies like the Euro or the US dollar.
In order to get started with cryptos, first, you will have to decide which one you should use. There are thousands of them floating on the Internet and on exchange platforms, but realistically only a handful are supported by the online gambling scene. These include Bitcoin, Bitcoin Cash, Ethereum, Litecoin, XRP, and others. Bitcoin is by far the most popular of the bunch but you will find plenty of casinos and sports betting websites that will accept the rest too.
Having settled on a cryptocurrency, it is now time to purchase some of it. This is done on an exchange platform. Nowadays, there are hundreds of options to choose from and it is up to you to decide which is the right one for you. We recommend that you go for a reputable and licensed platform to save yourself potential trouble down the line.
When you have exchanged your fiat currency for crypto, you will have to withdraw it to your crypto wallet. Each cryptocurrency has a different wallet and you will have to manage them individually. Certain services group up various popular crypto wallets for easier access and you may want to look into that if you are not familiar with how it works.
Making Payments with Cryptocurrencies
The process of making a deposit with Bitcoin or any of the altcoins is simple and convenient. In fact, it resembles a bank transaction in many ways. You first need to have the betting website’s wallet public address. It is usually displayed in the ‘Banking’ section. When you have this information, you can enter it and proceed to deposit as much as you want, with respect to minimum and maximum limits.
Choosing a web-based casino provider that accepts cryptos has never been easier. Certain online betting platforms will instead attempt to streamline the process with a third-party service, such as CoinsPaid. It really is more of the same with some convenience features and possibly fees.
One thing to note is that cryptocurrency transactions always come with a fee and are never free. However, the fee is not set and you will even have some control over it. You can set it to the absolute minimum, which can be less than a cent, or you can go as high as you wish.
The reason behind this has to deal with how cryptocurrency payments are processed. They are handled by individuals known as ‘miners’ who specialize in this. They get paid in these fees and the size you pay will determine how fast your transaction will go through. Crypto payments go through in bunches, also called ‘blocks’, that contain a certain number of transactions. The size of each block is different for each blockchain, with Ethereum featuring more of them than Bitcoin, for example.
Since only a limited number of transactions can be carried out per second, the users who pay the most get put through faster than those who pay less. Depending on the demand, your transaction can take seconds or hours. Usually, all crypto payments are processed within 5-10 minutes.
Value of Cryptocurrencies
Something highly important that you need to consider is the fluctuating value of cryptos. Cryptocurrencies are notoriously volatile and the price of a single coin can crash and rise again in a matter of hours. Only a few other currencies have a set value, such as Tether or USD Coin.
You need to be ready for the possibility that one day your money may be worth half of what it was the previous one. Moreover, if your betting website does not offer true crypto gambling and instead, exchanges your cryptos for fiat currency at the current rate, this will certainly come in effect.
If you are going to gamble with cryptocurrencies then we recommend that you do it at a website that offers genuine crypto betting. Where you wager the cryptocurrency itself. These platforms are rare but they do exist and even offer special bonuses for crypto enthusiasts.
Note: This article is for an informational purpose only. Coinpedia is not responsible for the accuracy of the content provided in the article. Thereby, readers are advised to consider the company’s policy & T&C before making any investment.