Bitcoin has recently gained popularity among gamblers (especially in the US) and gambling sites.
To be more specific, we think Bitcoin is the most convenient banking choice for American gamblers. However, international players shouldn’t write off Bitcoin just yet.
For those who are unfamiliar with currency, here is a primer. This page explains how its unique mechanics compare to those of conventional currencies.
It is also intended for those who are familiar with the currency and its functioning.
We take a look at the top Bitcoin-accepting websites and discuss the benefits and drawbacks of using Bitcoin as a payment method for the benefit of our readers.
Any of the links below will take you to a review of the services provided by the corresponding website. Each site on this page has been checked for legitimacy and fairness, so you can start playing immediately by clicking through.
How to Get Started Using Bitcoin for Gambling Deposits and Withdrawals
In most cases, going back to the beginning is the most effective strategy.
The most common question we get from Bitcoin newcomers is “What is Bitcoin?”
What is Bitcoin, and how does it work?
Bitcoin is best understood as a decentralized currency with no central issuing body. This currency is traded directly between users, hence the name. The fact that it exists solely online eliminates the need to physically handle currency. A “cryptocurrency” is a currency that uses encryption to protect its transactions.
In the digital realm, it facilitates the transfer of funds from one user to another. It’s a recent phenomenon; Bitcoin first appeared on the web in 2009.
Bitcoin is “mined” in the same way that gold, silver, and other precious metals are.
However, in their method of mining, none of the usual tools—such as picks, shovels, axes, and wheelbarrows—are used.
A public ledger records all Bitcoin transactions and credits the recipients with newly issued Bitcoins. Bitcoins are purchased with the transaction fees accrued from using this digital ledger, and the entire procedure is what is known as “mining” because it creates new Bitcoins.
Every 10 minutes, a new Bitcoin block is generated. When Bitcoin first launched, each block contained 25 coins, but that number has since been halved to 12.5 coins. Up until a total of 21 million Bitcoins have been mined, the number of Bitcoins in a block will continue to be periodically halved. By 2040, this should all be over with.
Each Bitcoin’s worth is established by market forces of supply and demand, just like any other currency. Bitcoin’s current worth is as follows:
What do you mean by volatile?
By this, we refer to the fact that its worth can experience sudden and seemingly arbitrary increases and decreases.
Is it dangerous?
Keep this in mind. The value of a Bitcoin dropped by half in a single day in 2009.
The thrill of watching the value of your Bitcoins rise and fall as you play at an online betting can be amplified by the convenience of using Bitcoins for deposits and withdrawals.
It’s a gamble in and of itself to choose the right time to exchange Bitcoins for fiat currency.
How (and Where) to Buy and Sell Bitcoins
Bitcoins are traded on markets just like any other investment currency. (Basically, an exchange is just a place where various investment vehicles can be bought and sold.) A directory of Bitcoin exchanges is available on Bitcoin.com.
You will be familiar with this procedure if you have ever used an online stockbroker such as E*TRADE. Creating an account and selecting a payment method is essentially all that is required. Then, Bitcoins can be traded like stocks on an exchange.
However, that’s not the only Bitcoin exchange out there.
Keep in mind that it is money just like a dollar bill. A soft drink can be purchased with a single dollar. Also, you can swap a dollar for four quarters if you prefer.
Because Bitcoins are a digital currency, both you and the person you are buying or selling from will need access to an online wallet (similar to PayPal, but tailored to Bitcoin) in order to transact with one another. Though not required, many Bitcoin markets also provide wallet services.
That is, in fact, how online betting sites payouts are processed. Your winnings will be transferred to your Bitcoin wallet. When you make a Bitcoin deposit, you’re essentially doing the same thing, except the Bitcoins are moving from your digital wallet to the betting sites.
The risk of chargebacks complicates Bitcoin transactions between private parties. A chargeback occurs when a customer disputes an item’s purchase price or quality with their credit card company. In many cases, the credit card company will cancel the purchase.
The recipient of PayPal funds sent in exchange for Bitcoins may therefore dispute the transaction through PayPal. You should only do this if you know and trust the other person you are exchanging money with.
On Bitcoin.org, you can find a comprehensive guide to wallet services, complete with pros and cons. The names of many of these wallets are also quite catchy, such as:
Most gambling and betting sites that accept this currency as a deposit or withdrawal option also provide details on the various wallet services that deal with it. For instance, Bovada suggests a few different places to play on their site.
Bitcoin Pros and Cons
Bitcoin’s Pros and Cons Just like any other banking option you can use to fund your online gambling account, Bitcoin comes with its own set of benefits and drawbacks. Below, we try to give you a balanced view of the good, the bad, and the ugly.
Pros
Advantages include the following:
- Bitcoin may be the most U.S.-friendly option currently in circulation. The Unlawful Internet Gambling Enforcement Act (UIGEA) makes it illegal to remit money for the purpose of online gambling. Bitcoin’s high degree of anonymity makes it a convenient tool for evading taxes and other regulations. (It’s important to emphasise that we’re not suggesting this as a legitimate option.)
- Bitcoin is the quickest and most secure way to deposit and withdraw from an online gambling site. Bitcoin transaction times are measured in hours or even minutes, while those of most other options are measured in days.
- Bitcoin’s transaction fees are much lower than those of other payment methods.
- Bitcoin’s lower minimum deposit and higher maximum deposit limits are more malleable than those of any other currency. The minimum amount to deposit at the majority of sites is merely 0.01 BTC. No site typically places a limit on the amount of Bitcoins a user can withdraw.
- The betting limits for Bitcoin users can be lower or higher than those for regular users.
Bets placed by Bitcoin users need not be restricted to specialised gambling websites. The vast majority of Bitcoin-friendly online betting also take a variety of alternative currencies and payment methods. (You can, however, seek out websites that deal solely in Bitcoin.) - Bitcoin is secure. Bitcoin’s block chain allows users to view past transactions. There is little chance of being scammed because of the system’s openness, despite the fact that it is anonymous.
However, not everything is rainbows and rainbows. Bitcoin has a number of drawbacks that you should be aware of before choosing it as your deposit method.
Cons
- One of the major drawbacks is the currency’s high degree of volatility. If you spend $1,000 on a Bitcoin at the peak of the market and the price drops to $500, you will have lost $500. Gambling with Bitcoin is like gambling with real money. (If the price rises, however, your profits will increase.)
- The Bitcoin platform has a steep learning curve. There is a learning curve, though it isn’t particularly steep because you can probably learn everything you need to know by reading this page and the two or three pages we’ve linked to from here.
- Some online betting sites, particularly those that accept only Bitcoin, operate illegally. If you use only the sites we suggest, you won’t run into this issue. (The anonymity of Bitcoin is exploited by criminals and con artists, but not every Bitcoin-accepting website is fraudulent.)
- Unfortunately, Bitcoin is not accepted by every online betting sites. However, you will still need to seek out gambling establishments, poker rooms, and sportsbooks that accept the currency. All the links on this page support Bitcoin payments.
Bitcoin Sports Betting
Sportsbooks can be divided into two categories: those that accept only bitcoin and those that accept bitcoin as a payment option. You can either sign up with a book that only deals in BTC and mBTC, or you can use cryptocurrency to fund an account on a site like Bodog and then exchange it for a cash value or credits that are the same for all players.
The Increase of Betting Limits
Unfortunately for high rollers, there is often a limit on the amount they can bet at once. There are a lot of Bitcoin bookies that will take a much larger bet. Bets can be placed with as little as 0.1 mBTC and as much as 100 BTC at sportsbet.io, which accepts wagers on both pre-game and in-play events.
As of this writing, one millibitcoin was worth 45 cents and one hundred bitcoins were worth more than $455,000 USD.
Improved Payouts
More and more sportsbooks are rewarding customers who fund their accounts with Bitcoin. Bovada not only offers a larger betting bonus, but it also doubles the value of sports.
Instead of a flat $250, the Bitcoin Welcome Bonus can reach a maximum of $500.
Conclusion
Bitcoin is a completely digital currency that is causing a revolution. The thrill of gambling is amplified by its volatility. And because of its secrecy, it’s perfect for American gamblers looking to avoid UIGEA’s restrictions.
Bitcoin is accepted as a deposit method at some online betting sites. On the other hand, there are some businesses online that accept Bitcoin exclusively. We favour the former for several reasons, but the latter has its advantages as well.
Remember this above all else about this article:
Be careful to only deal with reputable Bitcoin gambling sites when making a deposit or withdrawal.
If you’re looking for reputable businesses that accept Bitcoin, use the links on this page as a starting point.
