Cryptocurrencies are becoming more and more popular globally, and they have made a fantastic impact in the world of online gambling. However, crypto and gaming isn’t a new merge – it’s been around for almost 10 years now. Gambling establishments are starting to offer more options than ever before.
These days, many casinos are using cryptocurrencies as an accepted payment method. Cryptocurrencies offer anonymity and high levels of security, which is why we now have top crypto and Bitcoin casinos, that are becoming increasingly popular among players around the world. This article provides greater insight into how these cryptocurrency-powered businesses operate and how they offer better experiences for players.
Before we get into it, this is the list of all the topics you can find in this article:
1. Crypto and gaming – what is cryptocurrency?
1.1. How does crypto operate?
1.2. How can you store cryptocurrency?
1.3. How do online casinos use cryptocurrency?
2. What are the main advantages of using of using crypto in gambling?
2.1. High level of security
2.2. Low costs
2.3. Anonimity
2.4. The decentralization
2.5. Transparency and fairness
2.6. Great speed
2.7. Gambling is a global activity
3. Implications of responsible gambling
- Crypto and gaming – what is cryptocurrency?
Cryptocurrency is a type of digital payment that doesn’t require financial institutions to verify transactions. It runs on a decentralized network of computers that anyone can use to send and receive payments. Because it’s not physical money, cryptocurrency exists as entries in an online database that records all transaction details. These funds are transferred and recorded in a public ledger. The digital assets are then stored in electronic wallets.
Cryptocurrency got its name because it uses encryption to confirm transactions. This means that there is complex coding involved in transferring and storing cryptocurrency data between wallets and public ledgers. The goal of encryption is to provide security and protection. The first, and most well-known, cryptocurrency is Bitcoin. It was established in 2009 and people mostly use cryptocurrencies as a way to make money by trade speculation. When demand is high, prices increase rapidly. Confused? Don’t worry, because we plan on explaining all of it!
1.1. How does crypto operate?
As previously stated, cryptocurrencies function on a decentralized ledger called blockchain, which documents all exchanges and is managed by the currency’s users. You can acquire cryptocurrency through mining, which entails using computer processing power to solve complex math problems that reward you with units of the coin. Cryptocurrency owners don’t possess anything physical. Rather, they own a digital key that allows them to transfer ownership of a unit from one person to another without the need for an intermediary.
Even though Bitcoin was created in 2009, cryptocurrencies and applications of blockchain technology are constantly emerging. In the future, transactions including bonds, stocks, and other financial assets could be traded using this type of technology. Before talking a bit more about certain transactions and different ways of navigating crypto and gaming, let’s have a look at how you can keep safe this type of currency.
1.2. How can you store cryptocurrency?
Usually, cryptocurrency is stored in crypto wallets, which are physical devices or online software used to store the private keys to your cryptocurrencies securely. Some exchanges provide wallet services, making it easy for you to store directly through the platform. However, not all exchanges or brokers automatically provide wallet services for you. This means that once you have purchased cryptocurrency, you need to find a safe way to store it and protect it from hacks or other types of cyber-attacks.
When considering a wallet provider, you will come across the terms “hot wallet” and “cold wallet.”
-
- “Hot wallets” are online software-based vaults, that protect the private keys to your assets.
-
- “Cold wallet” storage is a way to keep your private keys offline and secure. Hardware wallets are one type of cold wallet, that use an electronic device. Hot wallets don’t typically charge fees, while cold wallets do.
1.3. How do online casinos use cryptocurrency?
As we mentioned, the use of blockchain technology has been on the rise in the online gambling sector in recent years. The first cryptocurrency to be accepted by casinos was Bitcoin, back in May 2012. This paved the way for wider adoption of blockchain technology within the industry.
Not long after Bitcoin’s debut, other popular digital currencies, including Ethereum and XRP Ripple, appeared. In addition to cryptocurrency, non-fungible tokens (NFTs) are a innovative new concept created as a result of the blockchain movement. WAGMI Casino is the perfect example, merging both NFTs and crypto into its current structure, while implementing creative ways for players to use, after acquiring these digital assets.
- What are the main advantages of using crypto in gambling?
-
- Withdrawals and deposits happen immediately, so you don’t have to wait for your money.
-
- Because transactions are non-reversible, there are no frauds or chargebacks.
-
- Casinos that use bitcoin don’t have to worry about many overhead fees, which allows them to offer a very low house edge.
-
- There is no need for players or operators to manage and protect funds and accounts because players do not need an account.
Blockchain-based games are open to verification, providing gamblers with the assurance that games are in fact fair. With blockchain technology, there is no possibility for gambling operators to engage in deceitful practices such as tampering with outcome or payments. This system of fairness is often marketed by cryptocurrency casinos under the term “provably fair.”
Even though blockchain makes it difficult for online gambling sites to be censored or seized, cryptocurrency may still be problematic from a regulatory perspective. This is because there are no banking institutions involved in transactions, making it hard to enforce rules and regulations. Transactions facilitated by blockchain are linked to wallets instead of individuals, providing a level of anonymity while still maintaining transparency and fairness.
However, the codes that act as unique identifiers for cryptocurrency wallets can help prevent money laundering and match fixing. In addition, reputable wallets require identification from potential customers in order to comply with anti-money-laundering and know-your-customer regulations. People who use and gamble with cryptocurrency offer a new customer base. Anyone with an internet connection can try gaming with cryptocurrency, and there is no need for access to traditional banking services (as is the case in less developed nations).
But let’s explore these benefits further so you can get a better understanding.
2.1. High level of security
Since online gambling has become popular, many gamblers worry about cyber thieves stealing their financial information. Fortunately, blockchain technology is very secure and can be used to protect cryptocurrencies. Each transaction with a particular currency is recorded in a distributed ledger, which makes it difficult for anyone to tamper with the data. The ledger is decentralized, meaning that every system participating in the currency’s blockchain needs to confirm and record all transactions. This helps reduce the chances of fraudulent transactions occurring.
Blockchain technology provides industry-wide security benefits to the casino sector that are unparalleled. When gamblers don’t need to register on a gambling website or authenticate their identity, it protects them from putting their personal information in danger. Funds are also more secure when blockchain is utilized by casinos and online gamblers. With this approach, users deposit bitcoin and get it confirmed instantly. Then, they can begin playing without the online casino knowing anything else about them other than their wallet address. This protects against illegal digital asset trading and decreases the risk of phishing and duplicate payments.
2.2. Low costs
Paying with a credit or debit card is the most expensive option – you’ll end up spending more money that way. In some scenarios, banks will even charge you extra fees. When conducting transactions between different countries, these additional costs can add up quickly. Using crypto is way cheaper.
There are no additional fees when you use digital currency, which makes it a more appealing option than traditional methods. Whether you’re trading money or something else, there will be no hidden costs that eat into your profits.
Because cryptocurrencies are decentralized, there is no one central authority who can verify transactions. Instead, when you use traditional currency exchanges, such as banks, you’re always charged additional fees. For example, if you use your credit card to make a bet, the bank will charge you a cash advance fee.
2.3. Anonimity
The beauty of playing casino games with cryptocurrency is that you can remain anonymous. As you probably know, e-wallets don’t require mountains of personal information to use them. In fact, having no personal information tied to a bitcoin wallet gives gamers an extra sense of security. Plus, since other players cannot see their progress, they can just focus on enjoying their games.
Moreover, playing online games won’t ruin gamers’ credit scores or their likelihood of getting a loan. No record of your cryptocurrency transactions will appear on your bank statement. Banks might analyze these statements to understand your spending patterns better when you request a loan. They would be considerably more likely to deny this loan if they found any gambling activity.
2.4. The decentralization
One of the benefits of playing at a cryptocurrency casino is that the process is decentralized. With regular gambling, your money goes through a bank or government institution before reaching the casino. Using cryptocurrency for gambling transactions skips the middleman, so your funds go directly from one person to another–it’s much faster and more effective than other methods.
The lack of a central authority and the decentralized nature of each transaction suggests that deposits and withdrawals to and from a BTC casino can be relatively less expensive. Even though a fee is still charged for a Bitcoin transaction, it is much lower than the fees associated with other more traditional methods of payment.
2.5. Transparency and fairness
The benefits of a cryptocurrency casino come from the blockchain, which provides more fairness than conventional casinos. The latter often uses gimmicks, such as large payouts and flashy visuals, to bring in customers without actually being fair. Unfortunately, not all casinos are as transparent as WAGMI Casino, with their customers. Some blatantly withhold critical information while raking in a hefty portion of winnings.
With crypto casinos, you won’t have anything to worry about being cheated. They’re open and honest businesses. If anything out of the ordinary occurs, players will be alerted right away due to how simple gambling platforms are. When playing the game, players will not have to worry about encountering fraudulent activities or frauds. This is because the odds are clear and straightforward.
Other rewards & bonuses
In 2023, online casinos will have many new features that’ll be interesting to users, like bigger cashback bonuses, cashpots, rakeback bonuses and many others.
Gamblers who use cryptocurrencies will get larger bonuses from casinos, since there are no intermediaries needed for these transactions. Users may deposit money into their casino accounts right away without any delays or worrying about the transaction being held up. Some casinos might also give out specific promotions only to crypto users or NFT holders, such as extra spins at certain slot games, for just one deposit.
2.6. Great speed
Perhaps the most frustrating part of traditional online gambling, using fiat money, is the plethora of hoops players must jump through before being able to cash out their winnings – particularly if they’re receiving payouts from foreign corporations. In fact, many gamblers opt to bet at brick-and-mortar casinos instead due to the significant time frame it takes to receive casino earnings when playing online.
Gamers playing for cryptocurrency don’t have to wait long to receive their winnings since the rewards are sent immediately to their digital wallets.
2.7. Gambling is a global activity
A unique perk to gambling with cryptocurrencies is the ability to do so from anywhere in the world, without restrictions. Cryptocurrencies know no boundaries economically or politically – as long you have an internet connection, you’re free to play with almost anyone on the planet.
For people who want to gamble but don’t live near a casino or don’t want the physical experience, this is a more convenient option.
- Implications of responsible gambling
Although crypto offers anonymous use and doesn’t require a player account, current responsible gambling strategies can still be put into place. When gambling with these currencies, players may spend more money than they had originally planned to. This is because crypto only exists virtually and gamblers might not think of it as actual money.
Another problem that arises with cryptocurrency is that people who don’t gamble may be gambling indirectly through currency speculation. In fact, there’s a whole market where speculators buy and sell cryptocurrencies to take advantage of positive changes in exchange rates. The rise of blockchain technology has transformed the online casino industry. Many casinos now accept cryptocurrencies, which can offer players higher RTP rates.
Eager to read more about crypto and gaming? Visit WAGMI Casino’s website, play baccarat live casino, live blackjack, bitcoin live roulette, win crypto and stay tuned for the next articles!
