Have you heard of bitcoin and would like to start using it to gamble online? Are you confused and frustrated by how complicated it is to get started?
We created this quick start guide to gambling with bitcoin just for you.
In this guide you will learn what bitcoin is, how to get some, which bitcoin casinos have your favourite games, and a bonus tip (see #7).
Seven things to know before you get started:
1. What is bitcoin?
If you are an avid online gambler, or you’ve just been paying attention to the news at any point during the last 6 years, you’ve most likely heard of the concept of bitcoin. To quickly recap, bitcoin is the first major, fool-proof cryptocurrency (digital currency) to be used globally with much commercial success. It exists only online in digital form and is much more liquid and easily transferrable than traditional currencies, which are frequently subject to staggering financial regulations that make it prohibitively costly to move small sums of money.
For instance, even Paypal will tack on a charge of 2.9% + $0.30 to your money transfer if you want to send just £1 halfway around the world, however to send £1 worth of bitcoin around the world will cost you about 7 pence. This is because bitcoin is decentralized and not subject to federal or international regulations, meaning you do not have to pay a third-party service like a bank or Paypal to conduct the transaction on your behalf. This has made it immensely popular among certain online niches; perhaps most notably is the world of online gambling.
2. What are the advantages of gambling with bitcoin?
Gambling online with bitcoin provides several advantages to gambling online with fiat (government issued) money, in that you’ll never have to provide a website with your bank account information, you can create user accounts rather anonymously, and for the most part, transaction fees are much smaller on bitcoin-based sites than they are for their fiat-based counterparts. With bitcoin gambling sites, you usually have the ability to place tiny bets (less than £1) which might not have otherwise been an option using traditional currencies and betting websites.
Bitcoin payouts also tend to be a lot faster, meaning you don’t have to sit around and wait for your winnings to roll in or be cashable. Another thing about gambling with bitcoin: every bet is with “real money.” You don’t have to wonder if you are playing for worthless, in-game credits or money that may be difficult or impossible to withdraw, because every bet win is payable in bitcoin, which has real-world value. How much real-world value exactly? In February 2017, the total market capitalization of bitcoin surpassed £13 billion, meaning the total dollar value of all bitcoin in circulation exceeded £13 billion.
3. How does one go about buying bitcoin?
Unless you personally know somebody who is willing to sell it to you directly for cash, this is probably the most difficult part, because it involves hooking up a bank account or credit card to a bitcoin exchange website. Fortunately, this task is the least complicated its ever been, thanks in large part to the long-standing success of exchanges such as Coinbase, Kraken and Bitstamp, which allow for the buying and selling of bitcoin with relative ease.
4. How do I secure my bitcoin?
Once you’ve purchased your bitcoin, you’ll probably want to move it into your own “bitcoin wallet” and off the exchange from where it was purchased. While online gambling is legal, exchanges like Coinbase have been known to cancel or suspend user accounts if they determine you have been using bitcoin purchased through them to send to addresses associated with gambling websites. Although bitcoin transactions are largely anonymous, it is possible to trace the expenditure of your bitcoin back to the name on your exchange account.
Of course, it is recommended that you take some time to fully understand what you are dealing with, so you will feel comfortable using bitcoin and not too intimidated to conduct transfers from wallet to wallet. There are a number of tutorials out there on how to move and secure your bitcoin, as well as on how to understand the technology behind it. Bitcoin really is fool-proof in that its system has never been tampered with or hacked, largely thanks to the genius behind its design. Just make sure that you properly store your various passwords, keys and wallets, because much like the wallet in your pocket, if you lose it, its gone for good.
5. How do I gamble online with bitcoin?
Now that you’ve got ahold of some bitcoin and created your own wallet, you’ll want to find a gambling site that does what you want it to do.
We recommend mBit Casino since it offers more than 900 casino games including slots, live table games such as blackjack and roulette, dice, and lotto. Click here to get started at mBit Casino.
Pretty much every single game that you can think of in a traditional online casino is also available in a bitcoin casino. From blackjack to slot machines to roulette, the principles are the same as they would be in a normal online casino: use money from your site account to place a wager, and if you win, watch the winnings flow back into your account.
Withdrawing Bitcoin From an Online Casino
Say you have a giant win and out want to cash out: it’s a relative snap. Just withdraw the bitcoin from your site account back to your personal wallet, and if you want to exchange the bitcoin for cash, transfer the bitcoin in your personal wallet to your exchange account. From the exchange you can trade your bitcoin into fiat currency which is then deposited back into your bank account. Bear in mind that if you used a credit card to purchase bitcoin, you’ll have to link either a bank account or PayPal account to your bitcoin exchange account to receive cash.
6. How do I know when to trust a website with my bitcoin?
On a cautionary note, remember that not all bitcoin casinos are reputable businesses. Only bet at the online casinos we recommend on this page. The anonymous nature of bitcoin makes it easy for “fly-by-night” casinos to more easily abscond with everybody’s bitcoin than if they were registered and regulated like most online fiat-based casinos.
As such, it is not recommended that you leave huge sums of bitcoin in casino accounts, nor is it recommended that you use casinos that engage in questionable business practices or have negative reputations. If something about a site doesn’t feel right to you, withdraw immediately and don’t go back.
7. BONUS: How do I know I am getting fair odds?
While its frequently impossible to know for sure what kind of odds you are getting at traditional online casinos, bitcoin casinos have a huge advantage.
“Provably fair” mathematics at bitcoin casinos guarantee you will have certain odds when placing a bet using bitcoin. Since this technique is not easily employable in fiat currency bets, its safe to say that bitcoin casinos have the potential to be more trustworthy than traditional online casinos. It is recommended to only bet at bitcoin casinos that have “provably fair” on their website.
Being the fan of internet technology and convenience that you are, you most likely will not want to return to gambling online with fiat currency after you have test driven bitcoin for yourself. The expediency, precision and trustworthiness of bitcoin are finally helping to bring money to the internet age, along with everything else. Here’s wishing you good luck with your new adventures in this digital revelation.