The number of online gambling sites accepting Bitcoin as a method of deposit appears to be growing every day.
Some may let players gamble with Bitcoin directly, or allow Bitcoin purchases of its own proprietary cryptocurrency that players can wager with. However, the majority simply allow players to turn Bitcoin into cash or credits they can use to play casino games or poker on the sites.
When it comes time to make a withdrawal, many of these sites will then sell the Bitcoin back to the player at current market value. However, the volatility of the price of Bitcoin can make this a relatively sketchy endeavor.
You don’t need to be a cryptocurrency or Bitcoin expert to use it as a method of deposit on an online gambling website that accepts Bitcoin. However, arming yourself with all the knowledge you can about how these transactions work is always a good idea.
What is Bitcoin?
Cryptocurrency is the term used to refer to encrypted decentralized digital currencies. Ultimately, cryptocurrencies are digital assets that can be used to pay for goods and services, or traded like stocks or other more traditional currencies.
Bitcoin was launched in 2009 as the world’s first cryptocurrency.
The limited supply and high demand for Bitcoin have seen the price rise exponentially since it was first launched. The number of goods and services people can purchase with Bitcoin is constantly on the rise.
However, most people see Bitcoin as a non-traditional investment product more than a traditional currency or method of payment.
The supply of Bitcoin is limited to 21 million. There are currently 16.7 million bitcoins in circulation, and the rest are still to be mined. The demand appears to be limited to people speculating on Bitcoin (digital gold), using it as a method of payment, or both.
Bitcoin trading operates outside the centralized banking system. All Bitcoin trades are recorded in an electronic ledger known as the blockchain. However, it is traded and held using numbered and secured Bitcoin accounts known as wallets and addresses.
As a result, Bitcoin trading and spending remains a relatively anonymous process, even on an online gambling site.
How do I make a deposit at a Bitcoin gambling site?
Obviously, you need Bitcoin in order to use it as a deposit method on an online casino, online poker or other online gambling site. If you don’t own Bitcoin already, this process starts with creating a Bitcoin wallet.
There are hundreds of websites where you can obtain a wallet for storing Bitcoin. A few of our favorites include blockchain.info (website and app), breadapp (app available on iOS and Android), and Trezor Hardware Wallet. What you’ll end up with is an individually numbered Bitcoin wallet unique to you.
Once you have a wallet, you can buy Bitcoin. You can do that on a variety of websites known as Bitcoin exchanges including gdax or kraken.
You’ve got a Bitcoin wallet, filled it with Bitcoin you bought at a legitimate exchange, and found an online gambling site that accepts Bitcoin as a method of payment. The rest is easy.
Simply go to the cashier, select Bitcoin as a deposit option and take note of the site’s Bitcoin address. You will then send the Bitcoin you would like to deposit via your Bitcoin wallet to the gambling site’s Bitcoin address.
Why should you use Bitcoin casinos?
Bitcoin transactions aren’t rerouted through any central banking system. In fact, they are logged in the blockchain almost instantaneously. As a result, it is probably one of the fastest ways to make a deposit on an online gambling site.
Plus, your Bitcoin wallet is identified by a unique number. It doesn’t include your name or any personal details. As a result, making a deposit using Bitcoin is a safe, secure, and anonymous option.
To sum it all up, Bitcoin deposits are lightning fast and anonymous.
Plus, most online gambling sites don’t charge anything for Bitcoin transactions. The same cannot be said for other payment processors and traditional deposit and withdrawal methods.
Why should you avoid using Bitcoin to make a deposit?
Bitcoin transactions are final so if you make a mistake, you will not be able to recover your funds.
The potential for volatility in the price of Bitcoin is also very real. Imagine depositing one Bitcoin worth $8,000 and trying to withdraw it a day later, only to find the value of a single Bitcoin has gone up to $10,000.
This kind of cryptocurrency swing happens often and should be considered before using it at an online gambling site that accepts Bitcoin.
The number of poker sites accepting Bitcoin is constantly on the rise. However, the kind of anonymity promised by Bitcoin poker sites could open those sites up to increased collusion and corruption.
Finally, the anonymity Bitcoin promises may not be complete. Bitcoin can actually be tracked through the blockchain back to the original point of purchase, which would ultimately lead to the owner’s personal bank account information.
It’s a difficult process and one not likely practiced too often. However, it’s important to understand Bitcoin transactions are anonymous, just not completely.