Digital Currency Types
There are three digital currency types – Bitcoin, Altcoin, and Tokens, respectively.
Bitcoin is reportedly the most popular cryptocurrency on a global scale.
The Altcoin is said to be the most widespread digital currency type across the online casinos. There is a large number of Altcoin types, but when it only a few of them make the cut. If you stumble upon a casino processing payments via Dash, Monero, Litecoin, or Ethereum, you should know that these are Altcoin cryptocoins.
Tokens are digital assets used for describing a unit of value with Bitcoin and Ether-based ones being the most common.
What is Cryptocoin?
The easiest way to wrap your head around the crypto coins is to think of them as standard currency such as the USD. Similar to the USD banknotes, the cryptocoins are used for purchasing goods and services, but they do not have a physical equivalent. And here comes the most relevant question you may ask, namely “Why should I prefer crypto coins over Visa or Skrill deposit?
The main reason is that you neither have to reveal your identity nor worry about your privacy. The anonymity is a two-bladed knife, though. On one hand, banks in countries where online gambling is restricted do not process transactions to gambling websites and crypto casinos enable players from these jurisdictions to fuel their gambling passion. On the other hand, players who do not check casino’s legitimacy prior to depositing may easily fall victim to fraudsters.
Most Popular Cryptocoins
Bitcoin – requires no introduction
Litecoin – rivalling bitcoin in terms of popularity. Litecoin is said to have the fastest transaction times
Dash – popular mainly in Latin America and Venezuela, in particular
Ethereum – famous for the fast block times and the low fees
Ripple – free, instant transactions worldwide
How to Deposit at Crypto Casinos?
If you consider Skrill/ Trustly deposits a no-brainer, chances are you should have no issues with cryptocurrency deposits.
Choose Your Cryptocurrency
The first thing you should take into account is the compatibility of your chosen currency and the casino you would like to play at. Second, you should not underestimate the volatility aspect. Regardless of the cryptocurrency you choose, you should not forget that the cryptocurrencies are decentralised. In other words, there is no institution to control the fluctuations and their value can rapidly increase/ decrease in a matter of hours. You should be prepared for such drastic ups and downs.
To make a purchase, you need to pick an exchange. There are hundreds of exchange options, but your choice should be determined by the fees and the accepted payment methods.
Coinbase is one of the most popular options that work with bitcoin and Litecoin. To be able to use it, you need to open an account and verify your identity.
Pick a Crypto Wallet
Just like with physical money, you need a wallet to store your digital cash, so you need to get a cryptocurrency wallet. To access your wallet, you need a private key. To receive funds, you need a public address.
It is essential to know the difference between the hot and cold crypto wallets.
The cold wallets are considered more secure and therefore more suitable for storing large amounts of money. The cold wallets are not connected to the Internet.
In comparison, hot wallets are connected to the Internet through an exchange platform.
Once you set up your crypto wallet, you can go ahead and make an online casino deposit. There are online casinos that accept strictly cryptocurrencies. There are also casinos that accept both cryptocurrencies as well as the more traditional credit/ debit cards, and e-wallets.
To make a deposit, go to the cashier page of your online casino, copy the crypto-reference code and paste it into the respective field at your wallet’s withdrawal page. It will take between a few minutes and a few hours to have your casino account funded. The speed depends on the traffic of the blockchain network, as well as the cryptocurrency you picked.
To transfer your casino winnings into your crypto wallet, you need to copy the crypto reference code and paste it into the withdrawal section of the online casino. Once the funds arrive, you can either convert them into real cash and withdraw them from an ATM, or stick to the digital currency. If you chose the latter, you will have limited options for how you can spend your money, as the percentage of businesses accepting crypto payments is still too small.
Things to Consider Before You Make a Deposit
More often than not, crypto casinos are run by scammers that take unfair advantage of the anonymity that goes hand in hand with the crypto deposits. So, here are the guidelines you have to follow to make sure you play at a reliable crypto casino.
- “Provably Fair” certificate
- Valid SSL certificate
- Casino license
- Diverse game library
- Alternative payment methods
- Mobile compatibility
European gambling authorities prohibit players from using cryptocurrencies. Market analysts are confident that it is a matter of time for the cryptocurrencies to become a widespread payment method as they offer reduced processing times, low transaction fees and most of all, privacy. Namely, these are the reasons why governments refuse to recognise cryptocurrencies as a legitimate form of payment. Cryptocurrencies legalisation would make the middleman i.e the banks, useless, and they will not have anyone to charge transaction and currency conversion fees. At the same time, the economy and individual customers will be much more vulnerable to financial scams. For now, the crypto casinos are a grey area, and it will probably take a long time before cryptocurrencies become as common as Visa, MasterCard, Skrill, or Trustly.
Looking for different payment method to deposit or withdraw at online casino? Check out our table for the best online casino payment methods.