Gambling with Cryptocurrencies

Gambling with Cryptocurrencies

by Alex J. Coyne © 2018 Great Bridge Links

Cryptocurrencies like bitcoin, litecoin and ethereum have changed the way the world thinks about money. You might’ve heard of it, you might’ve invested in it or you might’ve even mined some of it yourself. Here’s what Bitcoin Gambling could mean for the world of gambling, and how you can get into it if you have some cryptocurrency to wager.

What is cryptocurrency?

Cryptocurrencies are virtual, decentralized currencies – yes, they have a real-world exchange rate, and yes, many retailers and websites accept cryptocurrencies like Bitcoin and Ethereum as a payment method. (In fact, KFC in Canada is offering a limited edition Bitcoin Bucket to Canadian patrons!)

They can be traded – bought and sold – or mined – through bitcoin mining hardware and the right software. They can also be earned and there are some sites that will pay you in bitcoin or satoshi (the smallest unit of bitcoin, named after the creator of bitcoin Satoshi Nakamoto).

Now, they can also be used to gamble. Pretty much all of your favorite casino games like blackjack, poker, slots and roulette can be played with cryptocurrency stakes, and Bitcoin Gambling shows no signs of slowing down!

How to get Started?

Like all forms of gambling you need some currency to start, which requires setting up a cryptocurrency wallet. This is a very easy process and requires simply looking for a trusted crypto provider. Once all set up you need to purchase some Bitcoin (or another cryptocurrency, like Ethereum, Dogecoin or Litecoin) to make sure you have enough funds to play. There are lots of trusted places to buy your Bitcoin online, choosing a trusted exchange is easy.

Setting up a cryptocurrency wallet is a critical step for securely managing and transacting in cryptocurrencies. Here’s a straightforward guide on how to do it, along with resources for deeper exploration:

  1. Choose Your Wallet Type: First, decide on the type of wallet you need. The main types are:
    • Software Wallets: These are apps that you can download to your computer or phone. They offer convenience and are generally easy to use. Examples include Exodus, Electrum, and MyEtherWallet.
    • Hardware Wallets: These are physical devices that store your cryptocurrency offline, offering increased security. Popular options include Ledger Nano S and Trezor.
    • Paper Wallets: Essentially a physical document that contains your cryptocurrency addresses and private keys. They are considered highly secure since they are completely offline but require careful storage.
  2. Setting Up a Software Wallet:
    • Download the Wallet: Choose a reputable wallet and download it from the official website to avoid scams.
    • Create Your Wallet: Follow the setup instructions. This usually involves creating a new wallet and setting a strong, unique password.
    • Backup Your Wallet: Most wallets will generate a recovery phrase. Write it down and store it in a safe place. This is crucial for accessing your funds if you lose access to your device.
    • Receive Cryptocurrency: Your wallet will provide you with a cryptocurrency address. Use this address to receive funds.
  3. Setting Up a Hardware Wallet:
    • Purchase from Official Sources: To avoid tampered devices, buy directly from the manufacturer or authorized retailers.
    • Initialize Your Device: Connect the device to your computer and follow the instructions to set it up, including writing down the recovery phrase.
    • Install Companion Apps: Some wallets require you to install apps on your computer or mobile device to manage different cryptocurrencies.
  4. Best Practices:
    • Security: Always keep your private keys and recovery phrases secure and private. Consider using a secure password manager.
    • Software Updates: Regularly update your wallet software to ensure you have the latest security features.
  5. Resources:
    • Official Wallet Guides: Visit the official websites of popular wallets like Ledger, Trezor, and Exodus for detailed tutorials and support.
    • Cryptocurrency Forums: Communities like Reddit’s r/cryptocurrency and BitcoinTalk offer advice, tips, and personal experiences from users.

Now you’re all set up, we can start having fun with crypto gambling, all you have to do is look through one of the recommended crypto gambling sites here, and applying the filters, look for the best one that meets your needs, and then get playing!

Tips for crypto-gamblers

  • Check the laws regarding online gambling, cryptocurrency and taxes in your country.For the most updated regulations on bitcoin, head to your nearest search engine and type in “bitcoin law in (country)”.
  • Keep your bitcoin addresses safe. Don’t write things down in a place where their security could be compromised, don’t lose flash-drives containing bitcoin addresses in a river: You’d be surprised what could happen.
  • Research your chosen gambling website, too. Check online testimonials from other gamblers – and not just ones on their sites – double-check registration information and make sure you’re getting the best gambling experience and an easy user-interface along with it.
  • Secure your devices if you gamble online. Make sure your PC and phone are password protected, never leave your devices lying around and don’t leave your accounts permanently logged in when you can help it. Also download the latest antivirus and antispyware software to your devices and make sure they stay up to date.

Why you should consider it

So, what advantages could gambling with cryptocurrency possibly have?

  • In 2014, the D Casino in Las Vegas received the first bitcoin ATM to be housed inside a casino. That means that cryptocurrency – and using it – is now more acceptable than it was five years ago.
  • Cryptocurrencies are secure. Many times more secure than lugging cash and chips around on the casino floor, or having to use your personal banking account to sign up to a gambling website.
  • Enhanced Privacy and Anonymity: Cryptocurrencies enable players to fund their accounts without needing to provide sensitive personal information, protecting their identity and financial details. This level of anonymity is particularly appealing for those who wish to keep their gambling activities private.
  • Lower Transaction Fees: Traditional online gambling platforms often incur significant processing fees for deposits and withdrawals due to the involvement of banks and other financial intermediaries. Cryptocurrency transactions, by contrast, typically have much lower fees because they occur on decentralized networks, making it more cost-effective for both players and casinos.
  • Faster Transactions: Withdrawals in traditional online casinos can take several days to process, depending on the payment method. Cryptocurrency transactions, however, are processed on the blockchain, leading to faster deposits and withdrawals. Players can have quicker access to their winnings and can manage their funds more dynamically.
  • Global Accessibility: Cryptocurrencies are not tied to a specific country or banking system, making them universally accessible.
  • Provably Fair Gaming: Many cryptocurrency gambling platforms utilize blockchain technology to offer provably fair games. This system allows players to verify the fairness of each game outcome using cryptographic methods, ensuring transparency and fostering trust between the player and the casino.

Editors Note: This article was mostly written in 2018. For an update on what to expect in 2024  read Crypto And Casino Trends Coming In 2024