It’s no surprise that online sportsbooks have started taking advantage of digital currency by offering crypto gambling to their customers. Although crypto gambling has been around since 2011, online bookies only started offering cryptocurrency betting in significant numbers in 2016. Crypto betting sites have expanded their market share rapidly in 2021 as it gains popularity for online payments.
Recommended Cryptocurrencies for Betting
Since the first cryptocurrency was launched in 2009, the concept has gained popularity. You can now choose between several available currencies. We’ll give you a short rundown of the most popular ones used for crypto gambling.
- Bitcoin (BTC): Bitcoin is the first cryptocurrency that was developed and also the most widespread. Using BTC will give you a more comprehensive range of gambling choices.
- Ethereum (ETH): Etherium is the world’s first programmable blockchain, so you can use it for any digital currency and even as an online marketplace.
- Binance Coin (BNB): Binancecoin is a more affordable alternative launched in 2017 using the Ethereum blockchain.
- Ripple (XRP): Ripple was founded by Opencoin in 2012 and acted in much the same way as Bitcoin. The exchange on Ripple is roughly equivalent to one USD but is volatile.
- Dogecoin (DOGE): Billy Markus and Jackson Palmer, two IBM software engineers, created the Dogecoin in 2013 to make fun of the cryptocurrency speculation at the time. However, it quickly developed its own community and is now accepted as a valid digital currency.
Why Crypto Betting Is Becoming So Popular
Cryptocurrency betting is rapidly gaining popularity, and it’s easy to see why. With gamblers becoming more frustrated with slow banking practices and tracking of financial transactions, crypto gambling offers an easier way to bet quickly.
- Anonymity: When using cryptocurrencies like Bitcoin, Etherium, or Ripple, no bank or government agency can track the transaction. Blockchain technology means that the only details the receiver can access are your wallet ID.
- Security: One of the most prominent concerns players have with any online transaction is the possibility of hackers accessing their personal details. The blockchain associated with cryptocurrencies guarantees your online safety. Even if a hacker obtains your transaction details, they still can’t access your wallet.
- Fast transactions: Regular transaction methods take days before any withdrawals show on your bank account. Betting sites can make crypto withdrawals available immediately.
- Avoid country restrictions: You can make cryptocurrency transactions anywhere except in China. Many countries don’t consider cryptocurrency as cash, so you can gamble with digital currencies without breaking the law.
- No bank fees: You don’t have to contend with banks or banking fees. You can use the cryptocurrency immediately for other online transactions without incurring any banking costs.
No system is perfect, so you should also consider the downsides to using crypto betting sites.
- Unregulated: Crypto betting sites don’t fall under any regulating authorities, so choosing a reliable bookie is crucial. Choose the wrong provider, and they could disappear overnight, along with your funds.
- Calculating wins, losses and stakes: Essentially, you’re working with a foreign currency. You have to constantly figure your stake in euros and your wins and losses.
- Unstable exchange rates: Cryptocurrencies have volatile exchange rates, so withdrawing at the wrong time can have a significant impact on your winnings. If you convert your currencies at the right time, you can turn a profit.
What Are the Advantages for the Operators?
Running a cryptocurrency betting site also has several advantages for operators, especially if they’re only getting started.
- Less paperwork: Gambling sites specialising in digital currencies can register with a regulating authority, but it’s not mandatory. The streamlined process allows them to open in two weeks instead of two months.
- Protected from player fraud: The blockchain principle protects operators from player fraud and possible chargebacks from credit card transactions.
- No currency conversion fees: Both the customer and the operator needn’t pay conversion fees charged by financial institutions.
- Less competition: The crypto gambling market currently has a 15% share of the online betting market. Crypto sports betting occupies a smaller niche, meaning less competition for operators entering the market.
- Website design: Several digital currency software providers assist startup crypto betting sites with website design.
How Crypto Betting works
If you’ve not used cryptocurrencies before, you’ll want to know how the process works before making any transactions. Crypto transactions work similarly to online banking, except that digital coins are decentralised – not controlled by banks or governments.
Blockchain software records transactions on a public ledger, but senders and receivers remain anonymous, and the transactions themselves are encrypted. You’ll need software called a wallet to access cryptocurrencies. You can either try a full node wallet or use third-party software to manage your transactions.
The methods of obtaining cryptocurrency remain similar to getting fiat currency. You can buy coins at online cryptocurrency exchanges or through a broker, or you can trade online goods or services in exchange for tokens.
How to Bet With Cryptocurrency?
You’ll need to know how to go about using cryptocurrency for sports betting before you try it. All the different providers have a standard process, so follow these easy steps to start your cryptocurrency betting journey.
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Select Your Site
A little due diligence is needed to ensure that your money is safe when considering an online transaction. Check as you would for any other online gambling website to be sure that you select the most suitable one for your needs.
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Open Your Account
If you’re using a dedicated crypto gambling site, you’ll only need to supply a username, password, and email address. The email is in case you forget your password.
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Make a Deposit
You’ll need the wallet address for the coin account you want to deposit. Open your private wallet and transfer the amount. Once the site has confirmation of the transaction, your funds will be available.
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Make Your Bets and Make a Withdrawal
Bet on your favourite teams and leagues. If you win, you’ll need to enter your wallet address to make a withdrawal manually. Typically, the site processes your request immediately, so you should see the funds in your wallet within 20 minutes.
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Legality
The Irish government hasn’t set down any legislation regarding virtual currencies but does encourage new technologies, including blockchain. We may see new laws coming into effect to bring the financial sector in line with EU standards. Still, as it stands, crypto gambling is legal in Ireland.
Crypto Betting vs. Regular Betting
Let’s take a look at some of the differences between cryptocurrency betting and regular betting.
| Crypto betting | Regular betting |
|---|
| Cryptocurrency betting guarantees customer anonymity. | Regular betting sites need to go through a Know Your Customer (KYC) process. |
| No banks involved in deposit and withdrawal, eliminating processing fees and waiting times. | All transactions go through a financial institution that charges fees. The bookie needs to prove that it’s licenced before the banks will process transactions. |
| It’s not easy to track stakes, wins and losses through cryptocurrency as you need to constantly convert back to euros. Also, the market is volatile, so a fluctuation in the price can easily wipe out a win or a loss. | You’re working with a currency that you’re familiar with, and it’s easy to track your stakes. |
| You’ll need to take care when placing a bet using cryptocurrency, as you can easily blow through your balance by placing the decimal in the wrong place. | You’re working with familiar numbers with little chance of making a mistake. |
| Crypto betting sites still make up a small portion of the market, so finding one is tricky. | You have a wide range of choices when selecting an online sportsbook with regular betting. |
How do I cash out?
You cash out in the same way as you would from a regular online bookie. Choose the amount to withdraw and manually enter your wallet details. The cryptocurrency should be in your wallet within 20 minutes.
How do I store the cryptocurrencies?
- You can store cryptocurrencies in three ways.
Hot wallet: A digital wallet on a device that’s connected to the internet. It’s convenient but vulnerable to hackers.
- Cold wallet: Storing your crypto wallet details on a device not connected to the internet is known as a cold or hardware wallet. Nobody can hack your cryptocurrency wallet.
- Paper wallet: Your details aren’t stored anywhere except on a piece of paper that you print your public and personal keys on. You can only access your wallet with the codes on this paper.
How to Choose the Crypto Betting Site That Suits You
Choosing a crypto gambling site is the same as using any other online sportsbook, so you’ll want to be doing some research before committing to a deposit.
- Reputation: Check reviews and judge the site’s reputation before making a deposit. If the provider closes down, you may not be able to reclaim anything.
- Cryptocurrency support: Most sites support the most significant currencies like Bitcoin and Ethereum. If you want to bet with other cryptocurrencies, then ensure that the cryptocurrency betting site supports them.
- Variety of betting markets: Be sure that the site has a variety of betting markets. You’ll want to have the same betting options as with a regular sportsbook.
- Customer support: Choose a crypto gambling site with good customer support available 24/7. Sites that only offer support via email raise red flags.
Cryptocurrency Terminology
You may come across a few unfamiliar terms when dealing with crypto coins, so we’ve included a few definitions to help you understand the terminology.
- Altcoins: Bitcoin was the first digital currency, and we refer to any others that came after as altcoins.
- Blockchain: Blockchain is an information storage database that stores blocks of information and chains them together. Essentially, it’s the public ledger of cryptocurrency transactions.
- Cryptocurrency wallet: A cryptocurrency wallet is a storage method for your cryptocurrency.
- Coin: We call cryptocurrencies built on their own blockchains coins.
- Token: A cryptocurrency that relies on another currency’s blockchain is called a token rather than a coin.
- Full node: The blockchain networks consist of many computers linked to the system, and each computer is known as a node. A full node downloads the blockchain’s entire history.
