The Pros and Cons of Gambling with Cryptocurrencies

Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies have become viable alternatives to fiat payments for online gambling. The increased popularity of these digital currencies in the casino and betting industries is thanks to the benefits they offer users. For instance, at the best Bitcoin gambling sites, you enjoy better security and complete anonymity.

However, using these assets for online casino gaming and sports betting also has a few downsides. As you read further, you’ll learn more about the pros and cons of wagering online with cryptocurrencies.

Pros of Using Cryptocurrencies for Gambling at Casinos and Sportsbooks

The following are the upsides of crypto gambling :

Increased Security

At cryptocurrency casinos and sportsbooks, you enjoy better security. The best of these sites are licensed, meaning that regulatory authorities monitor their activities to ensure player safety. These site operators further enhance their safety by using security technologies like SSL encryption.

Plus, using Bitcoin for transactions on these platforms is safer than using fiat currencies. For Bitcoin deposits, you simply need the operator’s wallet address. Likewise, the online site will only request a wallet address for withdrawals.

This removes the need to provide sensitive financial details, such as when using a credit or debit card. Since no financial information is necessary, there’s no chance of malicious parties getting your details and using them for fraud.

Decentralization

There’s no central body governing Bitcoin transactions, so users fully control their funds. In other words, no higher authority can freeze your accounts or prevent you from paying to online gambling  sites.

Its lack of centralization makes it possible for players to make higher deposits and withdrawals. Knowing this, Bitcoin casinos and sportsbooks often set wider transaction limits than sites that support only fiat payments. This makes Bitcoin gambling  a suitable option for low and high rollers alike.

Speed of Transactions

Bitcoin bettors generally enjoy faster transactions. In the case of deposits, your assets are swiftly transferred to the gambling  site without being hampered by a third party. You might have to wait a few hours for the casino to approve your payment for withdrawals. After approval, your funds reach you within a few minutes, at most, some hours.

The speed of these payments is thanks to the fact that a third party doesn’t have to authorize them. This is unlike when using payment methods like e-wallets and bank transfers. Plus, some Bitcoin sites don’t request KYC verification, which usually delays the withdrawal process.

Privacy

A crypto wallet address doesn't come with any information about the player. Furthermore, you don’t have to reveal your details when making payments. Unless the site requests identity verification, you don’t have to disclose any personal information on the platform. Simply put, you can bet anonymously.

Little or No Fees

Cryptocurrency transactions attract mining fees. However, these fees are quite little compared to what some fiat payment providers charge. To make your experience better, top Bitcoin gambling  sites would not charge you for deposits or withdrawals. So, besides the customary mining fees, you can enjoy placing wagers without worrying about extra charges.

Provably Fair Games

Provably fair games have become a staple at Bitcoin casinos. You can verify their integrity when playing these titles to know if they’re truly fair. This is possible because of the algorithm the games use. With this, it’s impossible for an online casino or any other party to alter the outcome of a particular round.

Cons of Using Cryptocurrencies for gambling  at Casinos and Sportsbooks

After discussing the benefits of using cryptocurrencies for online gambling , let's delve into its drawbacks.

Unstable Value

One of the significant downsides of using cryptocurrency is the fluctuation in value. A digital asset could be worth thousands of dollars one minute; the next minute, its value could sink to half that amount. These fluctuations are sometimes due to factors, like investor sentiments and media hype.

As such, you might lose money by gambling  online with these currencies. Even if you’re on a winning streak and the asset’s price falls below its value before you cash out, you’re earning less. You only enjoy the volatility of cryptocurrencies when you win big on the gambling  site and the asset’s price skyrockets.  

Untraceable and Irreversible Transactions

Due to the anonymous nature of crypto payments, tracing transactions takes a lot of work. Plus, if you realize a little too late that a gambling  site is a sham, you can’t reverse your deposit. This gives fraudsters more leverage, as they can get away with theft.

We recommend using only trustworthy exchanges and wallets to store your cryptocurrency. You should also register and place bets only at reputable casinos and sportsbooks. Such sites have tight security measures to prevent theft.

Fees for Currency Conversion

Some Bitcoin gambling  sites let you make payments with virtual assets and place bets using the currency. However, there are platforms where you can only deposit and withdraw crypto but not place bets with the asset.

In the latter case, the gambling  site will convert your digital money into a currency it supports for placing bets. Some platforms charge a fee for this conversion. Thankfully, the charges are usually minimal.

Lack of a Central Governing Body

We mentioned that lacking a central governing body is an advantage because your transactions are not monitored. This same factor is a major disadvantage. If you face problems with your payments on a gambling  site, there’s no authority to report them to.

We recommend that you wager only on licensed Bitcoin-gambling  platforms to avoid this. Note that on some of these licensed sites, you’ll have to undergo verification before withdrawing your winnings. Regardless, you still enjoy faster transactions than when you use fiat money.

Conclusion

Now you know the perks of using virtual assets to play casino games for real money or bet on sports. You are also now conversant with the downsides of using these currencies for online gambling . So, before diving into Bitcoin gambling, weigh the pros and cons and decide if wagering with crypto is the best option for you.