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What is Cryptocurrency and How Does One Gamble With it?

What is Cryptocurrency and How Does One Gamble With it?

2019/02/11

The online gaming world is evolving and that means developers and operators are always embracing new innovations. Perhaps the most interesting developments in recent years are cryptocurrency casinos and betting sites. Reaching new levels of popularity since the Bitcoin (BTC) boom of 2017, these sites are giving gamers new ways to pay and play.

What are Cryptocurrencies?

Without delving too far into the specifics, cryptocurrencies are digital tokens not minted or controlled by a central power. For example, the Canadian Dollar (a fiat currency) is produced, distributed and controlled by the Canadian government. In contrast, Bitcoin is created through a mathematical process known as mining.

In order to mine digital tokens, a network of computers work to solve complex equations. This process means there’s no single point of authority which, in turn, makes it possible for anyone to use Bitcoin wherever they are in the world. Put simply, cryptocurrencies are digital tokens that only exist online and can be used by anyone, anywhere.

How to Gamble with Cryptocurrency Online

With cryptos more accessible than ever, online casino operators have incorporated new payment options into their products. The most common method used by site owners is to add crypto payment options alongside the likes of Visa and Skrill. With this method, users can send funds from their crypto wallet to the casino’s. Once the funds have been deposited, they’re converted to the site’s native currency (CAD etc) and play resumes as normal.

The other way in which cryptocurrencies are used in the gambling industry is via crypto-only betting sites. Like traditional platforms, players have to send digital tokens from their crypto wallet to the operator’s.

However, this time, the funds remain in crypto form. This means that everything from a site’s betting chips to its bonuses are non-fiat. As a general rule, the most popular crypto used by online betting operators is Bitcoin. However, Litecoin (LTC), Ethereum (ETH) and other altcoins can also be used as betting chips.

Is Cryptocurrency Betting Safe?

The simple answer is yes. In fact, there are some areas in which cryptocurrencies are safer than fiats. Firstly, cryptocurrencies are anonymous. In order to buy Bitcoin et al, you don’t need to include any personal information.

This is possible because the system is designed to be autonomous and payments are authorised by complex cryptographic processes. In order for banks to process transactions, they need to know the identity of the sender/receiver, their financial details and more. With cryptos, everything is self-governing, which means there’s no need to tell anyone your name, address etc.

Additionally, cryptocurrency betting sites are secure because they don’t have a central point of authority. When hackers target a network, they always direct their attacks at a single point. Once they bypass that point, the network is compromised and everything on it is under threat.

With cryptocurrencies, the underlying network (a blockchain) doesn’t have a single point to attack. Therefore, it’s virtually impossible for the system to be compromised.

The Best Reasons to Bet with Bitcoin (BTC) and More

Gambling with cryptocurrency may be the future. Indeed, if Bitcoin et al replaces fiat currencies, we’ll pay for everything using cryptos. However, if you want to get ahead of the curve and start using digital tokens now, there are plenty of good reasons to do so:

It’s safe

As we’ve said, the nature of cryptos means that your deposits and withdrawals are protected in multiple ways.

It’s efficient

Because crypto transactions are self-governing, deposits and withdrawals don’t have to go through the same security checks. Because of this, you won’t have to wait days or even hours to receive your money. In general, crypto cashouts are processed instantly.

It’s universal

Perhaps the biggest benefit of cryptocurrency betting is that its universal. Instead of worrying about currency conversion fees, these sites allow everyone to ante up with the same chips. This reduces your costs and allows more people to play.

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Lena Sciberras

Lena Sciberras

Product Manager

Lena's Story

Lena Sciberras is our Casino Content Manager. Lena has been covering online casino and gambling related topics in multiple online publications. She believes in delivering fresh, useful, in-depth and unbiased information, tips, reviews and guides to the casino players around the world. Her main priority is to educate the readers about the best online slots, their mechanics and payouts.

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