Bitcoin Gambling Guide
Online Gambling Tips For Beginners
The world of Bitcoin casinos may seem like a complex place but scratch the surface just a bit and you’ll find that things are rather straightforward. Join us in our Bitcoin gambling guide as we explain the ins and outs of cryptocurrency casinos.
Table of Contents
- Online Gambling Guide: Staying Safe with Cryptocurrencies
- How to Use Bitcoin for Online Gambling
- How to Deposit and Withdraw at Bitcoin Casino
- What Is Cryptocurrency And How Does It Work
- What to Consider Before Choosing to Play at a Bitcoin Casino
- The Most Popular Coins to Use at Crypto Casinos
- The Benefits of Crypto Gambling | Key Takeaways
Online Gambling Guide: Staying Safe with Cryptocurrencies
Bitcoin and other cryptocurrencies have a life of their own, especially in online casinos. Every day, new Bitcoin gambling sites are being launched. But the question remains: Why are online casinos taking the crypto route so passionately? What do they have that fiat currencies and other payment methods don’t?
In this Bitcoin Gambling Guide, we’ve compiled all the key reasons why cryptocurrencies have the upper hand and why an increasing number of new casinos online are implementing them in their payment system.
How to Use Bitcoin for Online Gambling
To better understand casinos, start playing in one! Just follow these 5 simple steps to buy your first Bitcoin and start using it on Bitcoin gambling sites:
- Create a crypto exchange account and buy Bitcoin (or other cryptocurrencies) using your fiat currency.
- Create a crypto wallet so you can store your cryptocurrency. If you picked one of our recommended crypto-exchange accounts, you’ll already have a wallet so you can skip this step.
- Pick a Bitcoin casino site that accepts the cryptocurrency you just bought and create a casino account. On some Bitcoin Casino sites, you can even link your wallet directly and skip the registration process.
- Navigate to your profile page and deposit your new crypto funds to your casino account.
- Enjoy your casino games!
How to Deposit and Withdraw at Bitcoin Casino
Above we described the basic process of how it all works. Here we are going to explain how deposits and withdrawals work in greater detail.
The process of withdrawing funds is a little simpler:
What Is Cryptocurrency And How Does It Work
Let’s start with the buzzword you’ve probably heard of: the Blockchain. What is blockchain technology? To better grasp its meaning and effect on gambling, we need to understand ledgers first.
A ledger is a list of activities (transactions) that all banks and companies keep. For example, The USA national bank keeps its ledgers in its main headquarters in Minneapolis, Minnesota.
A blockchain works on a similar principle, only it guarantees the fidelity and security of a record of data and generates trust without the need for a third party. Visually, instead of keeping a to-do list, a blockchain creates blocks. Think of it as a cube, made of smaller blocks, which are made of even smaller blocks.
Each block is a transaction that gets added to the giant block with limited storage capacities. Once filled, the block is closed and linked to the previously filled block, forming a sequence or chain of data.
Another difference between a ledger and a blockchain is that the latter doesn’t reside in a single headquarters. In fact, it has nodes all over the world that are constantly communicating with each other and keeping track of all blockchain transactions. This explains the decentralized nature of cryptocurrencies. Put another way, there’s no need for headquarters in Minneapolis, Minnesota.
So what is the point of having a decentralized system? No single entity is able to tamper with it. With enough computing power, you could walk into the main National Bank Headquarters and mess up EVERYONE’S bank accounts (potentially draining them). With blockchain, this is highly unlikely.
In order to get the same result, you would have to tamper with 51% of the nodes, all at the same time. That last bit makes is what makes the feat impossible. And even if you were to tamper with just one node, the rest of the nodes would work together to remedy the mistake.
Where to Buy and Sell Bitcoin
Bitcoin can be bought and sold at crypto exchange sites that offer various rewards and cashbacks when converting or paying with cryptocurrencies. Coinbase, Crypto.com, Binance, Bitfinex, Gemini, and other crypto exchange sites allow users to buy, sell, exchange, and hold cryptocurrencies all in one place.
Creating a wallet account on these websites is as easy as creating an online account on any other website. The only exception is the KYC (know-your-customer). Any new user needs to go through the KYC which is a tedious yet necessary prerequisite given the unpredictable nature of cryptocurrencies.
Once you buy cryptocurrency, where do you keep it? This is where crypto wallets come into play. Essentially, there are two types of crypto wallets:
Use one of the above-mentioned websites to buy Bitcoin, and you’ll have already created your hot wallet. A hot wallet is a software program or online service that keeps your cryptocurrency safe on the blockchain. Most crypto users own a wallet like this which is accessed and managed via smartphones.
Thanks to the crypto exchange sites, having a separate wallet and a separate crypto-exchange account in order to buy and store cryptocurrencies is yesterday’s news.
If you really want to keep your crypto wallet incognito (in a safe physical space too), maybe it’s best to opt for a cold storage wallet. A cold storage wallet is actually an electronic device, similar to a USB stick that you can carry around with you.
If you are concerned about the safety of your hot wallet, upgrading to a cold storage wallet may give you that sense of relief. The only downside is that, unlike hot wallets, these things cost money – and should you lose the device, you can say bye-bye to your cryptos.
Private and Public Keys
Private and public keys are directly linked to safety. Each new hot wallet comes with a set of both. One is for sharing, while the other is for keeping your wallet contents safe from prying eyes.
When receiving money from someone, you have to give them your public key to enable the transaction of crypto funds to your wallet. Simple as that. As the name suggests, you can even post your public key online for everyone to see.
The private key, however, is a completely different story. It’s a string of random words and numbers that you use to set up your wallet. Giving someone your private key is the same as giving someone your wallet.
The private key cannot be changed which is why you need to keep it safe from everyone. Also, if you ever uninstall or remove your wallet from your smart device, you can recover it using your key. So keep your private key close! Cold storage wallets are made with this in mind.
What to Consider Before Choosing to Play at a Bitcoin Casino
The benefits of cryptocurrencies and crypto wallets are many, so how does this translate to Bitcoin casino sites and their operations? When choosing a Bitcoin gambling site, there are a few things you should always keep in mind:
Is it a provably fair Bitcoin casino?
Taking an interest in Bitcoin and cryptocurrencies will likely open doors to Bitcoin casino games as well. Just as Bitcoin transactions use the blockchain to keep track of all the transactions, casino games also have their own blockchain where they keep track of every single spin/roll ever made. This is called the Provably Fair algorithm.
To make sure each game roll/spin is indeed fair, provably fair games keep records of all of them. Every time you make a wager using a provably fair game, you create a unique code (a block on the blockchain) that you can access and view anytime. You can even share it and brag about your spin if you want.
This is a great way to keep track of all your spins and determine how legitimate the RTP (return-to-player) percentage is.
What cryptocurrency payment options are available?
If you are only interested in using Bitcoin, this won’t be a huge issue. However, if you plan on investing in other cryptocurrencies, it’s always wise to check whether a casino accepts them. Most crypto-gambling sites accept Bitcoin, Ethereum, BitcoinCash, Litecoin, and Dogecoin but there are other sites that accept more obscure cryptocurrencies.
Fortunately, exchanging one cryptocurrency for another is relatively easy but there are exchange fees to consider – that is exactly why you should know which cryptocurrencies are accepted, to begin with.
Is the Bitcoin casino licensed?
If security is your top concern, the crucial thing is to check if the online gambling site is licensed. An unlicensed Bitcoin online casino doesn’t follow strict rules and regulations, which means transactions and fees tend to depart from the norm. In the worst case, such sites can use their own exchange rate or freeze your Bitcoin deposits without even letting you play your games.
Do they have a wide selection of casino games from the best providers?
While not a deciding factor, it may be worth checking out the casino games section and seeing what they have on offer. Finding Bitcoin gambling sites that keep their libraries fresh with the latest games is always a good sign.
It’s also a good idea to check out all the available game providers. A larger number usually means more variety and variety is always welcome when testing Bitcoin casino games.
How is their customer service?
Never underestimate the power of good customer service. Always insist that the casino you are playing at has 24/7 live chat support that’s helpful and responsive. Settling for anything less can have unexpected repercussions.
If there is a glitch in the system or if your funds go missing for some reason, it’s reassuring to know you have the professional casino staff to fall back on. Getting your issue resolved ASAP can save you a world of trouble.
How is their online reputation?
Arguably even more important than the license is the online reputation. Casino review websites and user reviews can go a long way when it comes to picking a casino.
A casino can be licensed and regulated but still choose to ignore some of the rules and regulations. This is why it’s always a good idea to do a quick google search about user reviews or to check out a proper Bitcoin gambling site review.
What are the Terms and Conditions?
It’s understandable to think the terms and conditions exist to drive the players away from ever reading them. However, reading them is essential because they often obscure some custom rules and regulations that may prevent you from getting your withdrawal.
If you’d rather avoid dealing with the terms and conditions of each online casino site you visit, the comforting thought is that you can rely on casino review websites to do the job for you.
The Most Popular Coins to Use at Crypto Casinos
Not every crypto comes with a generous casino bonus. With this in mind, here are 5 most popular cryptocurrencies we recommend using in an online casino:
Bitcoin was invented in 2009 as open-source software by an anonymous group of people calling themselves Satoshi Nakamoto. Since then, it has grown from being worth less than pennies to being the most popular cryptocurrency in the world.
All online casinos that deal in cryptocurrency accept Bitcoin so you really can’t go wrong with this one.
Ethereum is currently the second most popular cryptocurrency in the world. Unlike the Bitcoin network which is only used for transactions, the Ethereum Network can be used for lots of other things (such as trading NFTs for example).
Almost every crypto casino that accepts Bitcoin accepts Ethereum as well. It’s one of the best cryptocurrencies to get started with should you find Bitcoin too expensive.
BitcoinCash was invented in 2017 almost out of spite of Bitcoin. Members of the Bitcoin community didn’t agree completely on how Bitcoin was being handled, so they created their own cryptocurrency.
BitcoinCash is worth less, but it is faster and more secure. Most importantly, BitcoinCash is widely accepted by some of the best Bitcoin gambling sites. Because of its lower value, it’s easier to get into Bitcoin Cash than Bitcoin.
Litecoin came out in 2011 and was described as Silver to Bitcoin gold. Litecoin is virtually identical to Bitcoin in almost every single way. It is, however, worth less than Bitcoin and generally easier to trade and get into.
Litecoin is widely accepted in the online gambling world because of its stability and steady value.
Dogecoin (DOGE) was invented in 2013 as a joke. The idea was that anyone can make their own cryptocurrency so the creators made a coin based on the popular meme at the time.
Despite the joke, the community started taking this joke a little too seriously to the point where it’s one of the most popular altcoins in the world.
Reddit and Elon Musk further pushed the popularity of Dogecoins to the point where most crypto sites accept it as a viable cryptocurrency. While its value is pretty low, it’s arguably the easiest cryptocurrency to start with.
The Benefits of Crypto Gambling | Key Takeaways
We’ve covered how Bitcoin and cryptocurrency work and what makes them tick, but what’s it to you? After all, online gambling works just fine with fiat currency, so why bother making the switch? Here are a few takeaways that explain why Bitcoin and crypto is the future of online casinos:
If you’ve ever used credit card withdrawals (or bank transfers) you’ll know how excruciating it can be to wait for your funds to arrive. This isn’t the case with Bitcoin and cryptocurrencies. Thanks to the blockchain, most crypto transactions land within a few minutes. Even Bitcoin, which is one of the slowest cryptocurrencies in the world, only takes about 2-10 minutes to get from one wallet to another.
There is a common misconception that trading in Bitcoin and cryptocurrency give you complete anonymity. While there is some truth to this statement, that isn’t the actual case. All Bitcoin and crypto transactions can be viewed by anyone in the world (as long as they have the transaction hash code).
However, anyone with the code can see how much Bitcoin was sent from one wallet to another – and not who the owners of the wallets are. There are ways to track down wallet owners but it’s not as easy as bank accounts. Basically, if you don’t want to use your bank account or e-wallet to gamble online, Bitcoin gives you the anonymity that you need.
We already talked about how the blockchain works so here’s the gist of it. Basically, Bitcoin transactions are controlled by the blockchain which is made up of numerous nodes all over the world. If anyone should ever try to tamper with any one of the nodes, the other nodes would treat this as a mistake.
In a sense, if someone wanted to do something fraudulent with the entire Bitcoin network, they would have to control more than 51% of it, which is unimaginable. While not 100% bulletproof, blockchains are more secure than your average bank transaction by a mile.
Transaction fees are a permeating issue and dealing with them, especially with Bitcoin gambling games, can be annoying and expensive. Thankfully, Bitcoin and cryptocurrency transaction fees are famously low. Bitcoin arguably has the most expensive transaction fees so you may want to consider other cryptocurrencies if this remains an issue for you.
Is Bitcoin safe to use in online casinos?
Yes, Bitcoin is safe to use in online casinos. As long as the online casino is licensed and your Bitcoin wallet is hosted by a reputable company, you will be safe.
Is gambling at BTC gambling sites legal?
Yes, gambling at BTC gambling sites is legal. Bitcoin and cryptocurrencies aren’t controlled by any legal authority so there are no laws or regulations that limit their use on any sites, gambling or otherwise.
Can I deposit with a different payment method and cash out with cryptocurrency?
It depends. Some Bitcoin Casinos let you cash out your online casino account winnings in different currencies but that may not be the case for every crypto-gambling site.
Where can I buy cryptocurrencies?
You can buy cryptocurrencies at crypto exchange websites. We recommend you use one of the well reputable crypto exchanges that also double as a crypto wallet, such as Binance, CoinBase, Cex.io, or Metamask.
How does Bitcoin compare to other payment methods?
There are a lot of benefits to Bitcoin when compared to other payment methods. They don’t involve banks, the transactions are faster, the fees are lower and they offer some great anonymity. There are drawbacks too, but the pros outweigh the cons.
Can I gamble with Bitcoin online for free?
You can create an account with almost any Bitcoin casino and play games in their demo mode for absolutely free. However, you won’t be able to win any real money (cryptocurrency) unless you wager some Bitcoin or other crypto first.
How do I use Bitcoin for sports betting?
Bitcoin can be used for sports betting the same way it can be used for online casinos. Simply create an account, deposit funds from your crypto wallet, and start placing your bets.
How many cryptocurrencies are active around the world?
There are well over 20,000 cryptocurrencies currency in circulation. Many of these come and go and it is almost impossible to keep track of all of them. Because of this, we only recommend you use and invest in safe cryptocurrencies that we’ve covered in this guide.