All about Bitcoin gambling

Cryptocurrency is all the rage at the moment and Bitcoin is the King of Cryptocurrency. It’s no surprise that we are seeing more and more online casinos accepting Bitcoin (BTC) as a legit currency and banking method. We are even seeing online casinos that are dedicated to Bitcoin and do all their transactions via this technological financial movement.

But what exactly are the pros and cons of gambling in Bitcoin? Why choose crypto when you can just as easily gamble using your own currency? And how do you go about getting Bitcoin and using at your chosen online gambling partner?

What is Bitcoin?

Bitcoin is a cryptocurrency, a digital or virtual form of currency that you can buy, sell, or exchange for goods and services. Unlike ‘real’ money, the physical coins and notes we are all used to, cryptocurrency only exists digitally as part of the blockchain system.

While it would take an entirely new and incredibly long article to go into blockchain, fiat currency, what backs currency worldwide and why crypto is gaining so much attention, let’s just cut to the chase and say that cryptocurrency in general, and Bitcoin in particular, are truly upsetting the traditional financial markets.

A lot of ‘experts’ dismissed Bitcoin in the beginning but it is fast becoming apparent that the digital revolution has found its own currency and it’s a currency that is proving very popular and very valuable to the markets.

 

all about bitcoin gambling

Bitcoin was invented by a person or group known as Satoshi Nakamoto back in 2008 and was soon embraced by users who needed a secure and anonymous method of transferring currency. While most gamblers know that they could win or lose on the throw of the dice, and that some jackpots are riskier and more rewarding than others, the first people to actually buy and take up Bitcoin must be the luckiest gamblers in the world. By May 2010, one Bitcoin was worth less than 1 US cent. A guy in Florida paid 10,000 BTC for two pizzas. The current rate for one Bitcoin is sitting around R782,345 (which translates to 2 pizzas costing over R1.5 MILLION!).

There are a lot of incredibly happy and incredibly wealthy early Bitcoin investors out there.

How do you afford Bitcoin?

Bitcoin can be sold as shares in a single Bitcoin, so buyers don’t have to find almost R800,000 to buy one. You can choose how much you want to spend on Bitcoin (say R1,000 for example) and buy R1000 worth of a Bitcoin through a Bitcoin vendor.

Remember, just like gambling at an online casino, you need to research, check reviews, and look for comments and complaints on different Bitcoin vendors before you commit to buying. As with everything in the digital world: here be dragons! Do not get caught by scammers and crooks.

How does gambling with Bitcoin work?

Gambling with Bitcoin is just like gambling with any other currency:

  • You deposit funds into your online casino account
  • You use the funds to play
  • You cash out your winnings

The only difference is that your initial deposit is done using a Bitcoin account. Once your deposit hits your online casino account it is converted into the currency of your choice (usually ZAR for us South African online players).

The casinos that offer Bitcoin gambling will give you a Bitcoin wallet address that you use to transfer Bitcoin from your wallet to theirs and from there into your casino account.

Step-by-step guide to depositing using your Bitcoin wallet

First you need to buy your Bitcoin

  • Research the best Bitcoin sites before you pay anyone any money
  • Sign up and register at a Bitcoin vendor (Coinbase.com is a good one apparently)
  • You will need to give your bank details because you are about to make a financial transaction
  • Click ’Buy Bitcoin’
  • You can choose how much you want to spend on Bitcoin and you will be shown how much Bitcoin you will receive for your money

Or

  • You can choose the amount of Bitcoin you want to buy and you will be shown how much it will cost you

Be aware that you will be charged a commission on your purchase

  • Click buy and you will be told how long it will take for your Bitcoin to appear in your account
bitcoin wallet

Here is where things can get complicated. Your account is not your bank account, it is the account you have with the Bitcoin vendor. To actually use your Bitcoin at the online casino you need to get it from your vendor to your casino account. This is dome with a Bitcoin wallet.

The best and most secure way of doing this is using a blockchain (Blockchain.com is recommended).

  • Research the best blockchain and Bitcoin wallet sites before you pay anyone any money
  • Sign up at your chosen blockchain site
  • Create a wallet (during this process you will need to create some very specific passwords and also something called a ‘Backup Phrase” – it is incredibly important that you keep these secure and not on your digital devices!)
  • Click ‘Request’ and you will be given a Bitcoin address
  • Use this Bitcoin address to transfer Bitcoin from your Bitcoin vendor to your blockchain Bitcoin wallet
  • Click ‘Send’ in your Bitcoin wallet
  • Use the Bitcoin address you get from your online casino to transfer Bitcoin from your wallet to your casino account

Please be aware that all transactions between vendors, wallets and service providers (e.g. the casino) may incur transaction charges or commissions so check what you are being charged before completing your transactions.

This process may seem complicated but once you are registered and set up it really is quite simple and quick.

Step-by-step guide to withdrawing using your Bitcoin wallet

First, check that you can withdraw using Bitcoin. Some online casinos are happy to accept Bitcoin as a deposit method but prefer paying out using more conventional methods like Instant EFT.

  • In your blockchain account, click ‘Request’
  • Give the blockchain address to the Cashier at your online casino
  • This amount is now sitting in your Bitcoin wallet and can be left there for playing or purchasing at other service providers
  • To cash out into old-school money, go to your Bitcoin vendor account
  • Click ‘Receive’
  • Enter the address you are provided into your blockchain account
  • Click ‘Sell’ in your Bitcoin account
  • Choose how much Bitcoin you want to sell
  • The funds will appear in your bank account linked to your Bitcoin account
Bitcoin gambling

Why gamble in Bitcoin?

The process may seem laborious and complicated but, like any new process, once you are up and running all it takes is practice and you’ll be doing it in your sleep.

But why do people gamble in Bitcoin? What are the pros and cons? Security is the major pro. Bitcoin was developed from blockchain technology and blockchain was developed as a super-secure peer-to-peer technology, so transactions are, in some cases, even safer than using a bank.

There are other reasons to choose Bitcoin gambling – and some reasons to not.

Pros:

  • Security – blockchain is a system designed to offer the ultimate in security and is one of the main reasons for the popularity and growth of cryptocurrency
  • Anonymity – for gamblers who don’t want to give financial details to online casino, Bitcoin ensures your anonymity (although this can also be a con as explained below)
  • Avoiding geo-location restrictions – by avoiding having to give financial details players can avoid any restrictions based on global location
  • Privacy – like the anonymity above, privacy can be important to gamblers and Bitcoin casinos often allow gambling without having to provide any personal details to the online casino
  • Bonuses – some online casinos offer juicy bonuses to attract a Bitcoin crowd

Cons:

  • Volatility – the price of Bitcoin can go up and down quite dramatically in short periods of time
  • Recourse – privacy and anonymity can have drawbacks if something goes wrong and you can’t prove your transaction like you would with a bank statement
  • Complexity – as we have shown, setting up a Bitcoin wallet and a blockchain account can be tricky and time consuming for newbies
  • Charges – all those transaction fees and conversion costs can add up

Where can a South African player get some Bitcoin gambling action?

A lot of our premier online casinos are giving Saffers the opportunity to transact in Bitcoin.

As usual, do research before you commit to either Bitcoin gambling or a specific online casino.

And always remember, play for fun not riches, play responsibly and walk away if you’re having a bad day.