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Bitcoin was the first and still is the most popular digital currency. Its initial release was in 2009, and it stood as the only cryptocurrency in the world for two years before the launch of Litecoin, playing a massive role in popularising alternative ways of online payments.
Conveniently enough, the rise of Bitcoin coincided with the rise of online casinos and sportsbooks. While it took some time for online players to familiarise themselves with Bitcoin and its mechanisms, the coin slowly but surely earned their trust. Now we can see it as an accepted payment solution on many gambling sites.
It is estimated that there are around 300 million cryptocurrency users around the globe today, with over 100 million of them owning Bitcoin wallets with value. The main attributes of Bitcoin in relation to online gambling are its high-level security and anonymity paired with unprecedented speed of transactions.
Speed and Safety of Bitcoin
Bitcoin is highly secure, even more so than some traditional payment systems, thanks to its blockchain technology, which is a peer-to-peer network not controlled by any bank or official financial authority.
This means that Bitcoin is public, decentralised, and permissionless. What makes it safe is the use of high-level cryptography, making transactions almost impossible to intercept and reverse. However, to use Bitcoin for online payments, you’ll have to use digital wallets, most of which use traditional username and password systems, so they’re not immune to theft.
Another reason why so many online gamblers love Bitcoin is the speed of payments. Most deposits are completed instantly, and the same goes for withdrawals, although online casinos and sportsbooks still may make you wait for a day or two due to the standard withdrawal request policy.
To put it as simply as possible, Bitcoin is a currency consisting of small digital files called coins (or bitcoins in this particular case). Each coin’s value can be expressed through fiat money. For example, 1 BTC is approximately worth 45,000 USD, although the value of Bitcoin is prone to high fluctuations.
Bitcoins are purchased through cryptocurrency exchange sites and can be bought with fiat money or other cryptocurrencies.
To buy coins, you’ll need to create a personal digital wallet used to store and further distribute coins. Your wallet and the wallets of other Bitcoin users will contain a unique address used to move the coins between them.
While it may seem complicated at first, using Bitcoin is actually quite simple. Wallets and exchange sites are very intuitive these days, and many tutorial videos can help you in case you get stuck.
Starting to use Bitcoin on a gambling site requires a little extra work compared to using some traditional payment methods, but it’s smooth sailing once you get everything set. Here are all the steps you need to take to start playing with Bitcoin:
- Create an account on one of many digital wallets to have a place for storing your coins.
- Go to one of the cryptocurrency exchange sites to purchase Bitcoin using fiat money. For this, you’ll need some other payment method, like a credit card or e-wallet.
- Choose a casino site that accepts Bitcoin payments.
- Create an online casino account, go to the deposit page, and select Bitcoin from the list of options.
- You’ll get a unique address from the casino operator. Copy the address and log in to your Bitcoin wallet.
- Copy the casino’s address in the designated field and input the amount of bitcoin that you want to transfer to your online casino account.
- If you do everything correctly, you’ll see the amount appear on your online casino account instantly or in a few minutes.
The withdrawals work the same, only the other way around. To cash out, you’ll need to copy the address of your digital wallet and paste it into the designated field on the casino site. Once your withdrawal request is approved, the money will arrive shortly.
As mentioned, Bitcoin presents one of the safest options for doing online transactions. But how exactly is Bitcoin secured? To understand this, you’ll have to understand blockchain.
A blockchain is a digital ledger that uses special functions to give every transaction a unique unbreakable fingerprint. It verifies and records that transaction and adds it to other transactions that form a so-called block. Together, these blocks form an unmodifiable chain, which is why the system is called a blockchain.
Blockchain uses 256-bit SHA functions, the same security level used by other organisations that prioritise high-level safety, like banks or the military.
However, while Bitcoin transactions are incredibly secure, the coins themselves are not always. Namely, to use Bitcoin, you have to buy the coins through a Bitcoin exchange and store them on a digital wallet. Most wallets use traditional password systems and are prone to hacking, so be careful and use strong passwords or opt for some more secure wallets.
While Bitcoin does not guarantee complete anonymity, using this digital currency also does not require you to share any of your personal or financial information with either the wallet you’re using or the casino site you’re playing on, which is why many casino players love it.
Bitcoin and other cryptocurrencies have pierced through almost all pores of global finance and are now a widely accepted payment method. Online casinos have joined the party in the last few years, and more and more gambling operators now allow their customers to deposit and withdraw using bitcoins.
With high-level security and anonymity, as well as lightning transaction speed, Bitcoin is a perfect option for funding and cashing out winnings from your online casino account.