Online casinos want to offer their customers flexibility and safety when it comes to managing their funds. This means that they will offer several different payment methods. One which has become increasingly prevalent over the past year or so is the use of cryptocurrencies like Bitcoin, Ethereum, IOTA, Zabercoin etc. In fact, cryptocurrencies in online casinos are something which you can find at just about every site nowadays, mostly because all the big payment processors will deal with Bitcoin at the minimum.
There are several distinct advantages to using cryptocurrency in online casinos. This includes:
- It’s an easy way to spend your cryptocurrency. After all, it can be difficult to spend your money online, and gambling is a great way to get rid of any spare cryptocurrency you may have.
- There is a degree of anonymity associated with using cryptocurrency online.
- It is decentralized. You will not find people taking your cryptocurrency away or anything like that.
- Bitcoin deposits are virtually instantaneous.
- If you live in a country which taxes gambling winnings, you will be pleased to know that (at the time of writing) cryptocurrency is not taxed.
- There are no fees associated with the deposit. Or, at least there shouldn’t be. It will be dependent on the online casino you are using.
How Do Cryptocurrencies Work?
We do not want to get too technical about what a cryptocurrency is here. This is, mostly, because you probably already have a reasonable idea since you are planning to gamble with a cryptocurrency.
At their heart, cryptocurrencies are digital currencies. They do not exist physically. They are nothing more than a group of numbers pulled from a computer algorithm. Bitcoin, probably the most popular cryptocurrency, generates new currency by asking computers to solve complex equations. Other cryptocurrencies may do things differently. All the cryptocurrency made is stored in a record known as a ‘blockchain’. This includes details of all transactions and the like.
Any cryptocurrency that is not Bitcoin is known as an ‘altcoin’. Tokens are a representation of the cryptocurrency that you can trade without any issues. Not all cryptocurrency will be a token, and in some cases, you will need to do a bit of work to make a cryptocurrency token.
"We’ve all heard concerns about Bitcoin for example being a bubble, but at www.fineonlinecasinos.com we believe in the sustained growth of the blockchain technology and we’re always on the lookout for innovative trends that stand out. Our attention was drawn to an innovative product called Zabercoin, which is an Ethereum token. Unlike other cryptocurrencies, this token is asset-backed. It is tied to property, in fact. This means that it is only one of a few tokens which could be reasonably predicted to consistently gain value, short of a housing crash. Zabercoin’s analyst June Engelbrecht has said that the idea behind the product was to create a “decentralized open source bookings eco-system for renting hotel rooms, private properties, and accommodations similar to Airbnb."
"What makes Zabercoin unique in the crypto market is its intrinsic value as there will always be physical assets that back the cryptocurrency. For now, the assets are mainly properties in emerging market countries where potential for growth is high, but company representatives are not excluding the possibility of investing in other business as well where the returns will justify the investment. The ICO had a hard cap of 10 million Ethereum tokens which is the equivalent of $50 million."
These are the most popular cryptocurrencies that you will find online casinos accept. However, do bear in mind that a single online casino will not accept all of them:
How to Make Deposits and Withdrawals at Crypto Casinos
There are several ways in which you can get hold of cryptocurrency. Most people will start by getting paid for something they have done in a cryptocurrency. However, there are also several exchanges where you can purchase the cryptocurrency.
You will need to have a digital wallet to store your cryptocurrency, and many of the exchanges which sell the currency in the first place will be able to offer this.
Once you have everything in place, you simply need to find an online casino which accepts the cryptocurrency that you have. They will automate the process for depositing to their site, so you do not need to worry too much about that. As long as you have a wallet, you should be fine.
Why Use Cryptocurrencies at Online Casinos
As we mentioned at the start, there are several distinct benefits to using crypto currency at online casinos.
Perhaps the biggest benefit is that the transactions are tax-free. Not every country will charge tax on gambling transactions e.g. the United Kingdom does not, but some do. Cryptocurrency is not a taxable currency, which means that you do not need to pay any tax on it. This could change in the future, but for now, you can carry out your transactions safe in the knowledge that they are tax free.
The transactions should be instantaneous too. With most other deposit methods available in online casinos, you are going to need to wait a short while for the money to actually land in your account. If you are depositing using a bank transfer, then it may take a couple of days. Cryptocurrency is going to be available for you to gamble with instantly.
In most cases, you will have complete anonymity when you deposit using cryptocurrency. Now, it is worth noting that this is going to be dependent on where you live. In some countries, in order to run an online casino, you need to follow strict laws, and this means preventing money laundering. This means checks need to be carried out on everybody that deposits and withdraws. The United Kingdom, for instance. However, that is the extent to which tracing you will go. There will be no record on the blockchain that you have carried out a gambling transaction.
There is no middleman either. There is nobody that is going to take a small chunk of cash due to the deposit method that you used. Other deposit methods, and withdrawal methods for that matter, may take a small percentage to cover the transaction fees. If you are at an online casino which accepts cryptocurrency as the norm, then you will not need to worry about this.
Finally; sites really want you to deposit using cryptocurrency. This means that they are willing to offer bigger bonuses than the norm to get you depositing cryptocurrency into your account. So, if you love your casino bonuses, this is the route to go down.
If you live in countries like the USA (which has the Unlawful Internet Gambling Enforcement Act of 2006), you will be pleased to know that Bitcoin, Zabercoin or any other cryptocurrency is a great way to deposit, because it is not subject to the regulations that other payment systems are, which means that you will have more online casinos to play at.