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Cryptocurrency has been around for over a decade now and continues to gain popularity. As crypto appears more in the news, more people become interested in it, driving adoption and use-cases.
For example, in early 2021, the price of Bitcoin rocketed to an all-time high of over $60,000. Anytime the value of such an asset records significant increases, the media are all over it. The increased media coverage brought exposure to the whole cryptocurrency market, which means crypto as a whole has become more popular as a result.
Another industry that has also been on the rise for much longer is online gambling. Cryptocurrency and online gambling go hand-in-hand, and several crypto casinos have popped up online in recent years.
These crypto casinos have steadily grown their user bases, but it seems like now is the time when they could be ready for a real surge in growth as the technology advances and adoption increases.
This article will lift the lid on Bitcoin and Ethereum casinos by sharing some fascinating facts you may not know about crypto gambling.
What is a Crypto Casino Exactly?
It can be confusing for newcomers to tell what is and isn’t a true crypto casino. After all, many traditional online gambling providers have started to accept deposits in popular cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Dogecoin.
However, simply accepting crypto as a deposit currency does not make a site a crypto casino. In many cases, crypto deposits are merely converted into a fiat currency equivalent used as usual to play the casino’s games. If you’re playing a casino that just uses crypto as a payment method, you might not even be able to withdraw your winnings in crypto.
An actual crypto casino uses blockchain technology to build its games, which are then played directly with crypto. The casino will also deliver all of your winnings to you in your chosen cryptocurrency.
Here are some of the best-regarded and most trustworthy crypto casinos online:
- BitStarz
- 7Bit
- Cloudbet
- Fortune Jack
- Mbit Casino
5 Secrets About Crypto Casinos
Not All Crypto is Equal
Cryptocurrencies have numerous advantages for online transactions over traditional fiat currency payment methods.
Some of the most impressive advantages for crypto are faster and cheaper transactions. When using traditional payment methods, a third party like a bank or e-wallet is always involved. Third parties take fees and often have processes in place that can slow down or even restrict transactions.
When using crypto, your funds come directly from your crypto wallet, so they are much faster, and the fees are minimal since no third party needs to be relied upon.
However, it needs to be noted that not all cryptos are the same regarding speed and fees. For example, Bitcoin is known to become a lot slower and more expensive than other cryptos like Ethereum when the Bitcoin network is very busy.
It pays to do some research to determine which currencies provide the fastest transaction times and least fees. Of course, not all cryptocurrencies will be accepted by the casinos, so you might have to compromise at times, but you’ll still be better off than using traditional payments methods.
The most commonly accepted cryptos on gambling sites are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Dogecoin (DOGE)
- Ripple (XRP)
Bitcoin Might Not Be Completely Anonymous
Another considerable benefit crypto casinos have player anonymity.
When you deposit crypto in a casino, all you need are your wallet keys. Since crypto doesn’t need to be attached to anything other than these keys, there is no need to enter any personal information to send or receive funds.
Registration-free gambling is excellent news for anybody worried about their data being hacked or sold to third parties for marketing purposes, but some cryptocurrencies could still be traceable.
For example, Bitcoin transactions could theoretically still be traced back to a specific computer. Such tracking has been used in the past to find the origin of illegal activities.
In most cases, online gamblers will have no reason to worry about their gambling transactions being tracked. However, there still may be some people who want to remain totally anonymous. There are cryptocurrencies out there known as “privacy coins” like Cardano or Monero that offer enhanced levels of anonymity.
Crypto Opens up a Whole World of Gambling
Some territories across the globe have several rules and regulations surrounding online gambling. Some of these rules can make it difficult for players to play on sites based in specific areas and can even create grey areas in the law.
For example, it could be technically illegal for citizens in some Canadian territories to partake in online gambling on a casino that is not government-owned. Although nobody has been convicted for doing so, some players might wish to use crypto for peace of mind to keep their location private when gambling online.
In some cases, it is the banks that restrict people’s spending. For example, a bank can simply decide to stop you from spending your money in a specific country or for gambling purposes altogether.
Fortunately, cryptocurrencies are decentralized, and no third party can have control over your funds. Using crypto means gamblers can deposit funds in any online casino that will accept them, no matter where they are in the world.
Crypto Means Fewer Regulations for Operators
When a casino uses fiat currency for operations, it is required by law to adhere to a set of stringent regulations designed to protect the customer’s funds. Such restrictions can make it more difficult and expensive to run an online casino.
On the other hand, crypto-only casinos are not viewed the same way by regulators. When a casino only uses crypto, it is as if they are not using “real” money, so they do not have to meet the same regulations.
The benefit of operating in such a way means there are fewer overhead costs, so crypto casinos can be made cheaper for the gamblers as a result.
Playing on a site that is not as heavily regulated will worry many potential customers, but this doesn’t need to be the case. If a casino is using the blockchain, all of its transactions will be visible to the public, and the games will be provably fair.
The Value of Crypto Can Change
At the beginning of the article, I mentioned how the price of Bitcoin increased to an all-time high of over $60,000 during the first months of 2021. In September 2020, the price had been hovering around the $11,000 mark. If you had some gambling winnings in your account during that period, they increased in value 6-fold.
Of course, the example above was fantastic news and a massive result for many people. Unfortunately, the price of Bitcoin and other cryptos remains volatile, so the opposite can and does happen.
Price volatility is a great risk for gamblers hoping to cash out and convert their crypto back to fiat currency. On the other hand, it doesn’t matter for players who only want to use crypto because 1 Bitcoin will still be 1 Bitcoin, no matter what.
Many experts expect the dollar value of crypto, such as Bitcoin, to grow over the long term so you could see your crypto gambling as a kind of investment.
Either way, you should realize that using crypto for gambling can carry additional risks due to the volatility of its price action.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.