Bitcoin (BTC) is only a few years old. At the time, the majority of the people who knew about cryptocurrency were geeks and tech gurus. They were among the first to embrace a technology that could change the world.
Dramatic as that may sound, the impact bitcoin has had, and will continue to have, cannot be underestimated.
Today, more and more people are paying attention to bitcoin. It might not come as much of a surprise when the price of a bitcoin hit almost $20,000 at the end of 2017. More importantly, it is now possible to buy goods and services online using Bitcoin.
And the online gambling industry has embraced bitcoin too. For many reasons, Bitcoin is a natural fit for online casinos, poker rooms, gaming websites, and other gaming platforms.
If you are interested in learning how to gamble with Bitcoin, this guide will provide you with all the information you may need.
The basics of Bitcoin
Bitcoin is a global cryptocurrency or digital currency system. That means bitcoin has no physical form, such as notes or coins. It is stored in so-called “wallets” online and traded on Bitcoin exchanges.
Having a Bitcoin wallet is like having a bank account. You can buy things with the money in your wallet or transfer cash to someone else’s wallet. The only difference is that you can’t withdraw physical Bitcoins, but you can exchange them for legal tenders like dollars or euros.
One of the main features of Bitcoin is its decentralization. That means there is no government or other agency that issues bitcoin or somehow supervises the process. Instead, every user has access to the blockchain, a system that keeps track of all bitcoin transactions.
A decentralized blockchain system makes bitcoin both transparent and anonymous.
The combination of transparency and anonymity is one of the main reasons behind bitcoin’s success. You’ll see later in this article that this is also why bitcoin online betting is so popular.
The advantages of Bitcoin gambling
Bitcoin is considered a natural partner for online gambling for many reasons. The cryptocurrency has many advantages that benefit both the players and the operators.
Keep in mind that some benefits can only be enjoyed if you join a cryptocurrency-only site.
Privacy
You can remain anonymous, and there’s no tedious personal identification process, nor any other requirements you have to meet. Many bitcoin operators won’t ask you any questions. This is particularly useful for players from countries that ban illegal online gambling. The United States is a prime example. Bitcoin will allow you to gamble and have fun.
Speed
Bitcoin transactions, especially withdrawals, are much faster than traditional payment methods like credit/debit cards and wire transfers. You no longer have to wait days to get your money.
Low transaction fees
Fees are negligible, and often the carrier will cover the cost. Besides, the cost for operators to develop cashier functions is also lower. As a result, they can offer better odds and lower pumping rates.
Special offers
Some of the biggest rewards on online casinos, poker, and gambling sites are for bitcoin users only. The amount of extra cash available to users is also much higher than using legal tender.
Security
If you keep your Bitcoin wallet safe, your account will not be at any risk of being hacked, because you do not need to provide personal information to anyone. This differs from traditional gambling sites.
Duty-free
Some governments have tried to change that, but bitcoin remains tax-free for now. You don’t have to declare or pay any fees to the state.
Rising Popularity
With internet technology getting better every day, the market for cryptocurrency as an alternative to payment has been hugely popular since the launch of Bitcoin.
Do you have “virtual cryptocurrency”? Bitcoin, the most widely known, is considered an investment tool because it has a ceiling on supply and its price can fluctuate wildly depending on factors such as demand, but for many people, virtual cryptocurrency doesn’t seem to be practical in life at all.
But In June 2020, Coca-Cola Amatil, the largest non-alcoholic ready-drink bottler and distributor in the Asia-Pacific region, has signed a deal with Centrapay, a digital asset management company, giving you the chance to buy a coke from a vending machine using virtual cryptocurrency.
There are already QR codes for mobile payment vending machines, which allow customers to pay using Apple Pay, Google Pay, WeChat, etc, but these payments are made using “legal tender” rather than “cryptocurrency”. Amatil is the first in Australia and New Zealand to open more than 2,000 vending machines with QR code tags. Consumers can pay by scanning the QR code on the vending machine using Sylo Smart Wallet, a Digital Wallet that supports multiple cryptocurrencies. Unfortunately, the virtual cryptocurrency only supports bitcoin payments for now.
Centrapay chief Executive Jerome Faury said the company would go global in the future and target the U.S. market first. Dorian Johannink, the co-founder of Sylo Smart Wallet, also points out that while bitcoin is the only currency available at the moment, other cryptocurrencies will be added in the future, giving consumers more options!
The disadvantages of Bitcoin betting
Of course, there are some downsides to Bitcoin. You should be aware of these factors before betting with the cryptocurrency. Here are some of the most serious:
Volatility
The price of Bitcoin is changing all the time. Sometimes it can be good for you, but it’s hard to predict what will happen in the future. This adds a certain amount of uncertainty when you’re betting with Bitcoin.
It’s not user-friendly
If you’re not a tech whiz, it might take you a while to get used to the way Bitcoin works. The good news is that the user interface for most wallets and casinos is getting simpler. Most people should be able to master it quickly.
Security
It may seem odd to mention this in both the advantages and disadvantages sections, but the reason is simple. While online gambling operators won’t be able to steal money from your wallet, bitcoin exchanges could run into problems. Some exchanges have been hacked. It doesn’t happen very often, but it’s not impossible.
Uncertainty
Many countries are trying to regulate bitcoin. As a result, we don’t know for sure where the cryptocurrency is headed.
Guide to Bitcoin betting
If you’re already committed to using Bitcoin for betting, there are a few steps you need to take.
Buy Bitcoin
Obviously, if you want to use bitcoin to gamble, you have to buy some bitcoin first.
The first thing you need to do in this step is to have your own wallet. Just find a reputable online service and register your own account. You can learn more about the full process on our Bitcoin Wallet page.
Once you have your wallet ready, you can go and buy bitcoin. Most online platforms allow customers to buy bitcoin using credit/debit cards or bank accounts. Be sure to check the current exchange rate on the largest bitcoin exchange first.
Pick a bitcoin gambling operator
The next step is to pick reliable gambling operators that accept bitcoin. As we mentioned earlier, there are two types of gambling operators that accept Bitcoin. You can choose sites that only accept cryptocurrency or traditional gambling sites that also accept Bitcoin.
No matter which one you choose, there are some factors you must consider. The first is the reputation and license of the website. This is crucial. You don’t want to give a fraudulent website the chance to swindle your money.
The next thing you need to think about is the kinds of games the site can offer. Some bitcoin platforms cover a variety of different products, such as slot machines, sports betting, poker, and casinos. If you want to try each, then this type of site is a better choice. Of course, you can also choose sites that specialize in your favorite games.
Lastly, the overall quality of the site is also important. The reliability of customer service, user interface, mobile version, types of game, and other factors should be included in your evaluation process.
If you don’t have time to do your own research, I recommend you our beloved bitcoin casino – Anonymous Casino.
Use Bitcoin to recharge and withdraw money
After you sign up for a gambling site that accepts Bitcoin, you’ll need to make your first deposit. The process is usually very simple. Gambling sites/casinos/poker rooms will give you the address of a Bitcoin wallet. Open your own wallet and send the amount you want to deposit. The corresponding amount will appear in your account soon.
The withdrawal process is similar. If you want to withdraw cash, turn on the checkout function of a gambling website. You need to provide the bitcoin wallet address of your own and enter the amount you want to withdraw.
Many betting platforms will send you the money immediately, and you will receive it very fast. However, some sites have a waiting period before actually processing the transaction. There is no need to worry if the waiting period is within 1-2 days.
Is Bitcoin gambling legal?
According to a JuniperResearch report, the online gambling industry is booming, with global gambling dollars expected to soar from $55 billion in 2016 to nearly $95 billion in 2021.
An important factor in the rise of the industry is the growing number of online gambling sites that allow customers to gamble with cryptocurrencies such as Bitcoin.
It is easy to see why these cryptocurrencies are so good for online gambling.
First, the medium of exchange has the ability to trade anonymously when used.
Second, cryptocurrencies are relatively easy to use and user-friendly when transacting, faster, and more simple compared to existing traditional methods.
From a regulatory perspective, online gambling with Bitcoin is a gray area of legal jurisdiction. Online gambling itself has different rules around the world: some countries have no restrictions, some choose to ban it altogether, and others have specific requirements for casino operators.
Today, almost every casino game can be played online, from the popular roulette, online poker, or blackjack to a variety of slot machine games, such as a monopoly or game of Thrones.
The UK Gambling Commission (UKGC) is the first body in the world to ask whether bitcoin gambling sites need specific rulings.
In August, the UKGC gave the green light to UK-licensed online casinos to accept Bitcoin as a method of deposit and cash payments but went on to say that it had reservations about further regulation, noting that the platforms could be used for money laundering.
The UKGC said: “Casino operators with a friendly attitude towards Bitcoin must ensure themselves and the commission in regulating money laundering, which is their obligation and social responsibility.”
Earlier this year, the Isle of Man government said it was working to change its legal framework to ease restrictions on bitcoin gambling. Government officials have already made regulatory changes, “allowing the use of virtual money as if it were cash.
Currently, legal bitcoin casinos are licensed in Gibraltar, Costa Rica, and Curacao, which have several well-known online casinos, including the popular Anonymous Casino.
The legality of bitcoin casinos in the United States has always been a gray area. To be sure, bitcoin and other cryptocurrencies are not considered legitimate currencies. But there is also no law prohibiting U.S. citizens from gambling in Bitcoin casinos.
The Illegal Internet Gambling Enforcement Act (UIGEA), passed in 2006, explicitly states that “gambling companies are prohibited from knowingly accepting bets or related payments from other people engaged in internet-based gambling activities, and are under no circumstances recognized under federal or state law.” This makes all financial transactions, from Banks to online gambling sites, illegal. It also prohibits credit card providers from offering any transactions with online gambling sites.
Both Russia and China ban online gambling for all citizens. China also bans its citizens from using bitcoin to gamble. Despite the law, Russia and China are said to have large numbers of online poker players.
The situation is not the same in Malaysia, which has also banned online gambling operators from offering services to Malaysians. Companies that ignore the ruling will be sued; Banks are also not allowed to make any transactions related to online gambling.
Turkey has also directly banned the operation of bitcoin gambling sites and domestic betting for all its citizens.
In India, with the exception of Maharashtra, there are no rules on whether bitcoin can be gambled. That means it is legal to operate and bet on bitcoin in casinos outside Maharashtra.
We are looking forward to seeing if Bitcoin will be allowed as a legal currency for gambling in more countries in the future.
Bitcoin gambling tips
Many of the recommendations for traditional online betting also apply to bitcoin betting. First, you should stick to a reliable operator with the right license and who can guarantee fair play. Deals are also important because you want to get as much extra value as possible.
However, some suggestions apply only to bitcoin betting. For example, you should carefully identify games that have zero bookmaker advantage (casinos), zero profit pumping (sports betting), or zero kickbacks (poker). Many bitcoin operators offer such products, which are almost impossible to find on traditional gambling sites.
If you can, you should always stick to the verifiably fair games. Since the fairness of such games is impeccable, verifiable fairness is at the heart of bitcoin betting. No gaming commission or gaming regulator can match it.
Conclusion
The bitcoin gambling industry is growing fast and has a bright future. If you decide to give it a try, you will find many interesting opportunities.
However, make sure you fully understand the industry you are entering. The information on this page and the other pages we link to will give you most of what you need to know, but there is no harm in further expanding your knowledge.
Our Bitcoin article contains several other web pages that are worth reading because they provide a wealth of information on a variety of topics related to bitcoin, cryptocurrency, and gambling.