Cryptocurrency is a virtual currency that allows you to pay for goods and services just as you would with standard currency. With the birth of something so novel, it didn’t take long before competing cryptocurrencies appeared, creating even more interest in the market. While Bitcoin was the first cryptocurrency and remains the most popular, alternatives are called Altcoins.
Originally operating as a digital currency, some physical venues are now accepting Bitcoin and other cryptocurrencies as payment. Bitcoin and other cryptocurrencies operate through a series of independent, interlinking nodes. These power the “blockchain,” which has since been adopted by a multitude of new startup applications in various fields.
The blockchain is a shared, self-updating database. It isn’t stored in any one location, making it completely decentralized. Cryptocurrency is secure against hackers because the data is hosted on millions of computers at the same time. Since a single entity can not control the data, it doesn’t have a single point of failure.
A group of cryptocurrency transactions are referred to as a “block,” and every node (or every computer on the network) works as an administrator of the blockchain.
So, how can you use cryptocurrency for online betting? Let’s find out.
Bitcoin may have been the first cryptocurrency on the market, but it didn’t take long for others to pop up. While Bitcoin remains the most valuable and the most popular cryptocurrency, it has a mass of competition at its heels.
Every day, more sites are supporting alternative cryptocurrencies such as Ethereum, Litecoin, Bitcoin Cash, Dash, and others. These are known as Altcoins – because they’re an alternative to the original, Bitcoin, but still make use of blockchain technology.
With all these options, how can you tell which cryptocurrency is right for you? You’ll need to consider several factors, the most important being the exchange rates. As with standard fiat currencies, cryptocurrencies trade at different prices. Be aware that because cryptocurrencies are completely decentralized, they’re highly volatile. That’s why cryptocurrencies are especially vulnerable to bad press.
Some Altcoins are focused on blockchain generation speed, allowing for faster transactions than Bitcoin. Research suggests that Bitcoin’s has an average transaction of 10 minutes. On the other hand, Litecoin (a type of Altcoin) has an average transaction time of 2.5 minutes.
Some cryptocurrencies have a supply limit, a cap on the number of coins in the blockchain. For example, the Bitcoin network cannot exceed 21 million coins. However, Litecoin has a cap of 84 million coins and Ethereum doesn’t have a cap. That means the potential value of these Altcoins could exceed Bitcoin.
Does that mean Altcoins are better than Bitcoin? Not exactly. Crypto coins are far more divisible than standard fiat currency. The minimum quantity of Bitcoin, for example, is one hundred millionth of a Bitcoin, or 0.00000001 Bitcoins. That means an Altcoin could surpass Bitcoin by increasing its value and supply.
How can you find online sportsbooks that accept cryptocurrency? As it happens we’ve reviewed a number of popular online sportsbooks and analyzed their deposit options.
Before placing a deposit, you’ll need to buy coins through an online exchange. Your purchased coins will be transferred to the exchange’s online wallet. We do not suggest leaving your coins in this wallet. You don’t own that wallet, it belongs to the exchange. If the exchange gets hacked or shuts down, you lose your coins.
Also, while the exchange is centralized, cryptocurrency is not. Because cryptocurrencies aren’t regulated, the exchange can’t help if your wallet gets stolen. Thankfully there are alternatives. You can protect your money with desktop wallets, external wallets, and paper wallets.
A desktop wallet or a mobile app wallet are considered “hot storage.” This means the wallet remains connected to the blockchain. While more accessible, hot storage is susceptible to hackers and technical issues.
“Cold storage” is the safer option as it allows you to put your money on an external hard drive or even paper and take your coins offline. This provides an additional layer of security because your coins are only online during a transfer. After the purchase, they can be disconnected and carried around with you. Of course, if you lose a physical wallet, you also lose your coins.
Depositing funds from your wallet is simple. Just access the cashier page of the online sportsbook and select your cryptocurrency. You’ll see a wallet address for the platform’s cryptocurrency wallet. This address must be pasted into the “Send Funds” page of your cryptocurrency wallet. Simply input the amount and send.
One of cryptocurrencies biggest appeal is a lack of deposit fees. Many sportsbooks have no additional charge for using coins. While this isn’t always the case, most sportsbooks will honor free deposits and withdrawals when using cryptocurrency.
Always read the terms and conditions before making a deposit. That way, you’ll be aware of any potential fees before you sign up.
Security is a big perk. Because you’re not exchanging any personal information with the online sportsbook, you remain anonymous. The only information you need to make a deposit is the sportsbook’s cryptocurrency wallet address.
Cryptocurrency transactions are completed in 10 minutes or less. This is a big advantage over other payment methods, which can take a few days to complete. Unlike traditional e-wallets, cryptocurrency transactions are typically free of charge.
On the other hand, Bitcoin isn’t widely accepted yet and finding a sportsbook that takes Altcoins is even harder. This is the biggest downside of using cryptocurrency. Also remember that cryptocurrencies are extremely volatile. Coin value, especially for Bitcoin, can fluctuate by a hundred dollars per week.
If I Deposit with One Cryptocurrency, Can I Withdraw Through Another?
No. If you deposit with Bitcoin, you wouldn’t be able to withdraw through Ethereum, for example. You need to withdraw with the same cryptocurrency you deposited with, unless you exchange the two.
Can Cryptocurrency Users Receive Rewards at Online Sportsbooks?
Yes! In fact, some websites, particularly Bitcoin betting sites, have special promotions for players using cryptocurrency. If your sportsbook accepts cryptocurrency, you won’t be missing out on any welcome bonuses.
Are There Deposit and Withdrawal Limits for Cryptocurrencies?
While the exact numbers vary between sportsbooks, cryptocurrencies have a higher limit than traditional payment options. If you’re a fan of big bets, cryptocurrency might be the way to go.
Free deposits, fast transactions, heightened security, and a plethora of alternative options make it easy to see why cryptocurrencies are so popular.
Cryptocurrency isn’t without its pitfalls, but the same can be said of any payment method. Just remember that the market is constantly growing. The more it grows, the more outlets will accept cryptocurrencies. In a few years, cryptocurrency could become a dominant force in online gambling.
