Bitcoin is digital cash for a digital age
The keen uptake of Bitcoin by the online gambling community comes as no surprise. The invention of Bitcoin was to make online payments easier, which is music to the gambling community’s ears.
The adoption of Bitcoin by online gamblers has helped validate the currency too. Before, people refused to consider Bitcoin ‘real money’. But now gamblers use Bitcoin more widely, and its benefits have become clear.
What is Bitcoin?
Bitcoin is a digital currency that enables peer-to-peer payments over the internet. It’s the most popular ‘cryptocurrency’ on the market, and many businesses around the world now accept it as a form of payment. The currency operates independently of a central bank and works through the use of encryption techniques. Encryption verifies the transfer of funds and regulates the release of new units of currency onto the market.
Bitcoins do not exist as a physical entity, like coins or notes in traditional currencies. Instead, you store bitcoins in digital wallets, which are the Bitcoin equivalent of a regular bank or credit card account.back to menu ↑
Benefits of gambling with Bitcoin
Unlike other forms of transaction, which involve banks and credit card companies, people use Bitcoin specifically for online payments. As a result, the currency is optimised for digital transfers in a way other currencies aren’t. Here are some of the top benefits of Bitcoin for online gamblers and casinos alike:
Transparency – The system is perfectly transparent because it’s possible to see where payments are coming from. Despite this, there will be no disclosure of personal data.
Privacy – The anonymity or lack of paper trail that Bitcoin provides serves to protect the casual gambler. Often, players looking to have fun worry about the negative judgements people make about gambling. Therefore, being a step ahead helps individuals feel more secure.
Security – If stored correctly, bitcoins are one of the most stable, safe and secure digital currencies on the market. Most gamblers use digital wallets such as Neteller and PayPal to deposit their bitcoins and guarantee their funds. What’s more, as there’s no need to fill out your personal information and card details, there’s no risk of hackers stealing this information.
Speed – With the majority of transactions getting confirmation within minutes, Bitcoin payments are fast. In fact, the platform was made to handle a large volume of small value transactions at speed. For casino players, this makes it possible to deposit funds and withdraw from gambling accounts almost instantaneously.
Cost-effectiveness – Bitcoin transaction fees are much less than bank and credit card service fees, which is good for players and casinos. By reducing their overheads, casinos could conceivably lower the house edge on a game. A lower house edge would translate to better player bankrolls and higher winnings.
Accessibility – You can purchase Bitcoin with cash, it opens up online casinos to those who don’t have credit cards.back to menu ↑
Getting started with Bitcoin
To get set up to gamble with bitcoins, you must first choose a type of wallet and store your coins. Set up doesn’t take long and once done, you’ll be playing at a trusted casino in no time.
The first thing you need to do is choose your Bitcoin wallet. There are three types of wallet available: online wallets, software wallets, and hardware wallets. Your choice will depend on how experienced you are as a Bitcoin user, the amount of currency you want to store and how you choose to back up your wallet.
Online wallets – recommended for new users or those with limited technical knowledge.
Creating and backing up your wallet is very simple in these web-based products. A third-party back up your wallet for you on a cloud-based server (a secure database that hosts encrypted data).
The downside of the online wallet is that if the database holding your wallet is compromised, you risk the entire contents of your wallet.
Software wallets – recommended for intermediate to advanced users. This type of digital wallet is stored on your own computer or mobile device. For this reason, they are more secure than online wallets, but they do require you to back up your wallet manually. Also, failure to do this could result in you losing its entire contents.
This type of digital wallet is on your computer or mobile device. For this reason, a software wallet could be considered more secure than an online wallet. The big difference is that you must manually back up a software wallet yourself. Fail to back up your wallet, and you might lose out if you lose your device or if anyone hacks it.
Hardware wallets – the most secure solution recommended for advanced users spending and storing large amounts of Bitcoins. This manually backed up wallet works by using a harddrive that plugs into your computer. Only the person with the device can access the wallet.
For more information on the wallets currently available for Bitcoin users, visit the official website here.
There are a variety of options available for purchasing Bitcoins including wire transfers, credit and debit cards and cash. To avoid any scams or fraud, you should always purchase from reputable sites, such as VirWoX – Virtual World Exchange, Coinmama, Local Bitcoins and Coinhouse.back to menu ↑
What you need to know about gambling with Bitcoin
Online gambling with Bitcoin is available for all casino games. As long as the casino accepts Bitcoin, you’ll be able to make payments with live dealers, dice games, poker, slots, and sportsbooks.
When choosing where to spend your coins, consider all the usual criteria: the variety of games, deposit bonuses, prizes, 24/7 customer support, the house edge and evidence of provably fair (PF) gaming software.
Deposits and withdrawals
Gambling with digital currency isn’t so different from using the traditional money. Bitcoins behave like cash, and you can use them to both deposit and withdraw from casinos. The admission of Bitcoin by online casinos has made life simpler for gamblers. The switch from credit card to Bitcoin makes deposits and withdrawals faster and transactions more secure. Also, the processing fees are small.
Go to your casino account to start using Bitcoin. Once there, visit the deposit section and deposit your digital wallet to the casino’s Bitcoin address. The transaction shouldn’t take longer than 10 minutes to go through, and then you can start gambling. To make withdrawals is just as simple – copy your wallet address into the withdrawal section and state the amount you want to withdraw.
A word of advice:
There are some countries where the use of either Bitcoins or online gambling is illegal. So, you need to stay up to date on the laws around online gambling and using bitcoins.
For your own protection, you should only ever play at reputable and licensed casinos. With evidence of provably fair (PF) gaming software. See our article on the regulation of online gambling in the UK here.