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What is a Bitcoin Wallet?
A Bitcoin Wallet is very similar to an e-wallet, only it stores cryptocurrency instead of fiat currency. Just like Paypal can store your Dollars, Euros, and Pounds, a Bitcoin Wallet can store your Bitcoin, Ethereum, Litecoin, Dogecoin, and/or any of the thousands of cryptocurrencies on the market (including fiat currencies too).
Bitcoin Wallets are a bit more complicated to use than e-wallets because of the many features they offer such as cryptocurrency storage, trading, exchanging currencies, automatic buying and selling along with other more advanced options.
Bitcoin Wallets are absolutely mandatory if you want to start playing at Bitcoin Casinos and there are a lot of benefits to using a bitcoin wallet for casino games (we will talk about these later in the guide).
How to Create a Bitcoin Wallet?
Creating a Bitcoin Wallet is a bit more advanced than creating a regular online account. The only real difference is that you must go through a KYC check-up process, which can be tedious. Follow these steps to make your first Bitcoin wallet:
- Find a Bitcoin wallet that suits your needs and download the Bitcoin wallet app from the App Store (iOS) or Google Play store (Android).
- Click the registration button and begin filling in your details. Set a strong password.
- When you receive your private key, WRITE IT DOWN on an actual piece of paper and STORE IT SOMEWHERE SAFE. DO NOT SHOW THIS TO ANYONE.
- Go through the KYC check-up. Upload documents that prove your identity and address. This can take anywhere from a few minutes to about one day.
- Confirm your wallet via email, SMS, etc.
OPTIONAL: Set up strong security features such as two-factor authentication or face recognition if available.
How Does a Bitcoin Wallet Work?
When you create a new Bitcoin Wallet for yourself, you are essentially claiming a tiny little speck of space on the blockchain. This space on the blockchain becomes your own block where you can store all your cryptocurrencies. In order to prove that you own the wallet, you are given a unique private key which you should keep safe from everyone (more on this later).
Each Wallet has its own wallet address/public key. When someone else with a wallet wishes to send you cryptocurrencies, they select how much they are willing to send and enter your wallet address. This sends a message to the blockchain to transfer funds from one wallet to another.
The same method applies to buying things: you simply enter someone’s wallet address, select how much you wish to send, and proceed.
Even though the main idea of a Bitcoin Wallet is to simply store your Bitcoin and other cryptocurrencies, many wallets out there also act as exchange websites. Back in the day users had no choice but to buy Bitcoin from one place and transfer it to another. Nowadays, you can create a single account on websites like Coinbase, Binance, or Metamask and already have a wallet and an exchange website.
Getting into Bitcoin for the first time usually requires that you buy them with actual fiat currencies and this can be done through the wallets we just mentioned.
Types of Crypto Wallets
There are a few types of Bitcoin wallets to consider. Most people prefer to keep their Bitcoin using a software bitcoin wallet using a mobile app. Others manage their cryptocurrencies through a desktop application/browser extension while those who want the most secure way of keeping their cryptocurrencies use a cold storage wallet. Below we are going to explain the main benefits of each.
Software Bitcoin Wallets
Also known as a hot wallet, a software wallet is a program that keeps track of your Bitcoin wallet. Out of the two, this is the more popular way of keeping your cryptocurrency. The main reason for this is that software wallets are free. While in the early days of Bitcoin people had no choice but to use a desktop app, nowadays, most people use a mobile application for their wallet of choice.
Mobile Bitcoin Wallets
A mobile bitcoin wallet is the default way of keeping cryptocurrency in today’s day and age. Creating a mobile bitcoin wallet is as simple as going to your Appstore/PlayStore and downloading the wallet app. From there, you can create a new wallet and instantly start buying and trading your cryptocurrency.
Another thing that makes mobile wallets so attractive is how they come in with a QR code scanner. Because smartphones have a camera that can read QR codes, the process of sending and receiving funds is much easier by scanning crypto wallet QR codes. Otherwise, users have to copy/paste long strings of numbers or even enter them manually.
Desktop Bitcoin Wallets
In the early days of bitcoin, desktop bitcoin wallets were the only method of how people would manage their cryptocurrencies. People would install a desktop application and, from there, trade send,s and receive funds. Nowadays, desktop bitcoin wallets still exist but they are usually attached to a browser (such as Google Chrome) for ease of use. These extensions can be a great method for quickly buying and selling online.
Hardware Wallets
This is the closest you can ever get to actually bringing Bitcoin and other cryptocurrencies into the real world is by having a hardware wallet. A hardware wallet generally works just like all other crypto wallets, except it works on a device that is neither your PC nor a mobile phone.
A hardware wallet (a.k.a cold storage wallet) often looks like a USB stick with a little display. Using this, players can send, and receive funds, check their status, and, most importantly, have an extra layer of security. Even though cold wallets are still part of the blockchain, the fact that they can only be accessed through a separate device gives them a lot more security than an average software wallet. A hardware wallet is the best bitcoin wallet for users who value security above everything else.
Crypto Wallet Keys
When you first create a brand new crypto wallet, you receive two sets of keys. The public key and the private key. Down below, we are going to explain what each key does.
Public Keys
A public key looks like a long string of random numbers and letters. This is also your wallet address. More importantly, this is the code that you give out to others who need to send you cryptocurrency. Most public keys also come in QR code formats so they are much easier to scan than copy/paste.
What’s interesting about public keys is that they are available, for lack of a better term, to the public. Literally, anyone can see your public key and check how many Bitcoins you have in your crypto wallet account.
Fortunately, they still aren’t able to tell who the owner of the public key is, which is what gives public keys such a unique way of anonymity. Public keys are safe to share around and if you plan on purchasing or selling things using cryptocurrencies, you will be seeing a lot of them.
Private Keys
Private keys need to be kept safe from ANYONE. When you first create your first Bitcoin wallet, you receive your private key. The key looks like a bunch of random words (without any meaning or reason). Simply write down these words (and write down their correct order) on a physical piece of paper and store the paper in a safe place where nobody can find it.
Unless you change your phone/uninstall your wallet app/reinstall your desktop app, you probably won’t need to use your private key again, and yet, you won’t have a way of recovering it without the private key.
Never share your private keys with anyone. This is rule #1 of cryptocurrency. If you should ever give anyone your private key, that person will forever have access to your wallet (unless it’s a cold wallet). If you ever accidentally share your private key with someone, the safest thing to do is to create a brand new wallet and quickly transfer your funds to it.
Advantages of Crypto Wallets for Online Gambling
Bitcoin and cryptocurrencies haven’t reached such a wide appeal yet. They can mostly be used for shopping online and at very few physical stores. However, online casinos have opened their doors wide to all crypto users. Because of their nature, ease of use, speed, and how they don’t involve banks, it’s no wonder that online casinos have such an interest in cryptocurrency.
Here are the main benefits of Bitcoin wallets and why they are great for online gambling:
Online gambling without banks
If there is one thing that often turns away potential gamblers from online gambling is how most payment methods involve your bank. Many players don’t like to leave a paper trail from their bank to the online casino and thus they choose alternative methods of payment.
When using bitcoin for online gambling, you aren’t leaving a trail from you to the online casino, you are simply leaving a trail from one crypto wallet to another.
Fast transactions
Payment methods like credit cards and especially bank transfers take quite a bit of time before they transfer funds from one place to another, especially when withdrawing money from a casino. Fortunately, all Bitcoin and cryptocurrency transactions take a lot less time.
Bitcoin is one of the slowest cryptocurrencies when it comes to transaction speeds and yet transactions take about 10-15 minutes to complete. Almost all other cryptocurrencies are even faster with Tether being one of the fastest and cheapest.
Low fees
Bank Transfer and Credit Card transfer fees are a real thing and they can be very annoying when it comes to online casinos. Fortunately, Bitcoin transactions are more reasonable. Every time you transfer cryptocurrencies from one place to another, all you have to do is pay for gas fees.
These are fees that bitcoin miners take when they manage the blockchain/handle bitcoin transactions. Most transactions have really small fees and casinos don’t usually charge any additional fees with crypto transactions.
Bitcoin Bonuses
In order to incentivize players to use even more cryptocurrencies over fiat currency, casinos often offer exclusive bonuses for Bitcoin users. Players who deposit funds using their hot wallet or cold wallet can get a better match bonus or even better wagering requirements. Not to mention, certain games that utilize Bitcoin also have better odds and better RTP (Return-to-player).
Rakeback rewards
When the crypto craze started a few years ago, a lot of people started creating their own cryptocurrencies, hoping to get rich quickly. Online casinos were no different. Nowadays, a lot of big online casinos have their own cryptocurrency (which is usually only good in their own casino).
While we aren’t going to give you advice on whether or not you should invest in online casino cryptocurrency, we can tell you that casinos will award you for it. By keeping, playing, and spending casino-exclusive cryptocurrency within that same casino, you can potentially earn Rakeback rewards. These rewards may just give you those extra few turns on the slots that you desperately need.
Which Is the Best Bitcoin Wallet?
We’d like to slowly wrap up this guide by introducing you to some of our favorite Bitcoin wallets. Even though there are many other great wallets, the following worked best, especially in online casinos:
Coinbase
If you want a simple, all-in-one solution wallet that is widely accepted, you can’t go wrong with Coinbase. Coinbase acts as both a crypto exchange and a crypto wallet. It’s widely considered the best crypto wallet for beginners and we tend to agree.
When it comes to online casinos, a lot of them flat-out refuse crypto transactions unless they are coming from a confirmed Coinbase wallet. If you are planning to visit a lot of crypto casinos, a Coinbase account is almost essential.
Binance
If you need a crypto wallet/crypto exchange with a ton of advanced options and features, then Binance may be the perfect wallet for you. It can be a bit overwhelming for new crypto users but once you understand how most of the system works, Binance can easily become your go-to wallet.
Lately, Binance has really been pushing its own BinanceCoin crypto tokens. So much so, that many online casinos have actually started accepting them as currency. Binance is also a really great choice for automatic trading and keeping track of everything crypto-related. A lot of Bitcoin casinos have also started accepting Binance Coins, which might be a great reason to choose this wallet over others.
Electrum
Even though Electrum does not have a crypto exchange option, it is still one of the best crypto wallets on the market. The secret to Electrum’s success is that it was built with a humble budget by one man and that it offers a lot of security features that not even advanced wallets have yet.
Lots of crypto users have a Coinbase/Binance account for buying crypto while they use Electrum to actually store Bitcoin and other crypto assets.
Ledger
Apart from being an excellent wallet/exchange website, Ledger is also one of the best-known hardware wallets on the market. Ledger hardware wallets are reasonably priced, easy to use, and have proven to be very reliable among the crypto community.
Some consider the Ledger Nano X the best hardware wallet on the market. If your main concern is keeping your cryptocurrency as safe as possible, you can’t go much better than with Ledger Hardware wallets.
Metamask
Metamask is one of the easiest-to-setup and overall most convenient crypto wallets, especially for PC users. A Metamask wallet can easily be installed on a chrome browser after which it automatically gets integrated with all crypto-related transactions (casino games included).
Metamask is also a pretty good exchange website and is a great all-in-one solution especially if you prefer to play your casino games on a big PC screen.
Top Crypto Wallets Summary
If you are interested in playing at Bitcoin casinos, a crypto wallet is a must. Even though it may sound intimidating, creating a Bitcoin wallet is as easy as creating any other online account. Follow our guidelines, pick a wallet that works for you and enjoy the exciting world of crypto online gambling with your brand-new Bitcoin wallet.