Want to learn exactly how crypto gambling works? In this guide, you will discover everything you need to know, even if you’re a complete beginner.
The new age of iGaming is developing fast. According to numerous surveys, more and more players are turning to crypto casinos.
Why?
The answer is simple – online casinos that accept Bitcoin, easily win the battle in terms of security and diversity. Plus, they offer some lucrative welcome bonuses and other promotions to boost your bankroll.
In this guide, you will find everything you need to know about gambling using crypto, including:
Without further ado, let’s get started.
A cryptocurrency is a form of digital or virtual money.
Crypto uses cryptography to secure transactions, which makes them nearly impossible to be intercepted or even double-spend (the risk that the same coin will be used twice or more).
Some popular coin examples include:
- Bitcoin
- Ethereum
- Dogecoin.
Their biggest advantage is that they are not regulated by any governmental authority. Cryptocurrencies use a decentralised system to record transactions called “blockchain”. Every user can enjoy full transparency and safety with low costs per transaction. More on that later.
Let’s put it this way
Digital currencies are an alternative form of payment based on encryption algorithms. This gives them the advantage to behave as a currency and a virtual accounting system. However, to be able to trade cryptocurrencies, or use them for crypto betting, you need a cryptocurrency wallet.
How does cryptocurrency work
First of all, almost every crypto runs on blockchain technology, making it easy to monitor.
Online casinos receive money from their players directly, without the approval of any third party. This means that financial institutions like banks can’t interfere or manipulate the transaction or levy fees.
Second of all, Bitcoin gambling is a source of massive income and substantial profits. The coin’s value reached an all-time high in November 2021, exceeding 65,000 USD.
The 4 Main Types of Cryptocurrency
Nowadays, most investors purchase cryptos like Litecoin, Ethereum, Ripple, and Cardano.
However, there are four major types of crypto:
- Cryptocurrency
- DeFi tokens
- NFTs
- Asset-backed tokens (special assets that are issued by the gambling platform in exchange for crypto).
Fun Fact
Although it may sound ridiculous, there are more than 20,000 cryptocurrencies in circulation today. They exist on numerous blockchain platforms, the base technology that most cryptocurrencies are built upon.
Players are always on the lookout for the best cryptocurrency casino. To help them pick their favorites, gaming sites often incorporate only the best digital tokens for depositing, bonuses, rewards, and withdrawal.
However, some operators offer altcoins (a.k.a alternatives for Bitcoin), and that’s what helps them stand out from the competition.
Therefore, before you make a choice, here is a quick rundown of the most used currencies in iGaming:
Bitcoin (BTC)
The most widely used and recognized cryptocurrency in gambling. Popular around the world as the currency of the future, Bitcoin is today among the top 5 popular digital assets. What makes it so favorable is its continuous value growth, but also availability, security, and safety.
Ethereum (ETH)
If you’re an advanced player, this gamble cryptocurrency is the right choice. Apart from using it at an online casino, you can exploit its benefits in blockchain and NFT games. Ethereum is a safe investment and a valuable asset, often considered second to Bitcoin. Having it on your list is ideal, especially if you’re into making smaller deposits.
Litecoin (LTC)
Another widely used altcoin as casino cryptocurrency, often found in the form of a payment method on iGaming sites. Designed to have a faster response for transfer, Litecoin transactions take less time and make betting quite easy. Many crypto casino games support this digital asset to keep things interesting and fun for their users.
Tether (USDT)
Launched in 2014, Tether has made a name in the casino industry thanks to its fluid and easy conversions. It is denoted as USDT and many transactions on the blockchain rely on this coin for conversion. Many players are choosing it thanks to its compatibility.
Ripple (XRP)
Recognized as the leading provider of crypto solutions for businesses, Ripple is now redefining the online gaming scene. Despite its impact on the power of crypto, XRP lacks popularity. Another thing that makes it great is security and effortless payment.
Bitcoin Cash (BCH)
Created as a fork of Bitcoin and its spin-off in 2017, BCH is also continually growing. The main difference is that it has 8 MB of storage capacity. Players love it for other reasons as well, such as stability in online transfers. Moreover, with the increasing transfer cost for Bitcoin, this one is still free of excessive charges.
Important
There are many other cryptocurrencies available at online casinos, including Dash, Binance Coin, Monero, Dogecoin, and so on. Although not so popular in the industry, a lot of operators allow you to deposit and withdraw using these tokens.
There are many advantages of cryptocurrency gambling and we will go through some of them here.
Fun fact
The traffic of Bitcoin gambling sites has drastically increased year over year. The second best was Ethereum casinos.
Here is a smart list of advantages when it comes to cryptocurrency gambling:
- Crypto is decentralized. Third parties like banks can’t access your Bitcoins or freeze your funds. There is no central regulatory authority meaning that only you own and control your transactions.
- Your payment information is secure. Crypto transactions do not require personal data, making identity theft impossible. Likewise, there are no chargebacks with virtual coins. All transactions are final and cannot be reversed.
- Privacy is among the top three reasons why players are switching to crypto. Transactions, on the other hand, are transparent, meaning that information on all wallet addresses is made publicly available via a technology called the ledger.
- Crypto transactions are super-fast. It does not matter where or what you purchase, cryptocurrency transfers take no more than a few seconds or minutes.
- Low transaction fees. Thanks to the decentralized network, the low fees are one of the main reasons why casino players are switching to Bitcoin. Even conversion of your favorite gambling cryptocurrency into fiat money is still a lot cheaper than at traditional banks.
- There is no inflation. Crypto is not part of the economy and cannot be misused for the macro economy either. For instance, the Bitcoin volume growth is predictable, but it’s important to remember that its price is highly volatile.
- While some states are considering tax regulation for digital assets, other countries have a more moderate view. If you are planning to gamble using crypto, make sure to learn all about local tax laws regarding winnings in online casinos. Luckily, peer-to-peer money is still largely unregulated in many regions of the world. El Salvador became the first country in the world to use Bitcoin as a legal tender.
The most common way to purchase crypto for gambling is via online Bitcoin exchanges. These sites allow you to trade decentralized digital currencies for cash.
Other ways of buying crypto are through local Bitcoin exchanges, Bitcoin Brokers, and Bitcoin ATMs.
However, the only way to deposit at a crypto casino is by using a crypto wallet.
What is a crypto wallet and how does it work?
A crypto wallet gives you infinite access to a crypto exchange, where you can manage your balance, trade, sell, and most importantly, keep your cryptocurrencies secure.
There are many different types of crypto wallets on the market, but the most popular ones right now are:
- CoinBase
- Ledger
- Electrum
- MetaMask
By using a crypto exchange, you can trade fiat money (USD, EUR, CAD, etc.) for cryptocurrency. You can also transfer the cryptos to a bank account (by exchanging it back to fiat) or buy other crypto coins.
One of the best places for buying or selling crypto is Coinbase.
It provides support for more than 70 cryptocurrencies, has a user-friendly interface, high liquidity, and very low minimum fund account, and your crypto is always insured. It can be downloaded to a smartphone or tablet on Google Play or App Store.
Remember
There is no limit on the amount of crypto you can sell for cash on an exchange, as long as the platform doesn’t consider your transaction history suspicious (money laundering schemes, pump and dumps, etc.) and you comply with the T&Cs
Invented as software programs that allow you to store virtual coins or perform transactions, crypto wallets act as a trading center for Bitcoin and other available altcoins.
This way, you can access your funds and send or receive crypto to and from their balance.
They keep every transaction safe thanks to private and public keys for coins that are stored on blockchain networks.
Important
To perform a transaction, you must verify your wallet address via a private key that comes in a set of codes generated by the platform. Make sure you save that information when setting up your wallet!
Making payments in crypto at online casinos is quite fun and fast. Really fast!
In most cases, the only thing you need to do is navigate to the deposits page of the casino and hit the Bitcoin option when logged in.
The interface will then guide you through the entire procedure that usually involves 2-3 steps. Also, many operators have specific instructions on-spot, helping you understand how to deposit with your favorite crypto.
So, here’s a general tutorial when you’re using Bitcoin or altcoins at gambling sites:
Step 1 - Create a wallet
To start making deposits and withdrawals at online casinos, you’ll need a Bitcoin wallet. It represents your online hub for buying and selling Bitcoins.
In general, a good crypto wallet works exactly like an e-wallet, only here you can trade as well. Once your money has been transferred into the wallet, you will be able to convert it into Bitcoins or any altcoins available.
To open a wallet for cryptocurrencies, simply sign up and follow the instructions to complete your profile. A good example would be Coinbase, MetaMask, TrustWallet, and so forth.
Step 2 - Buy your preferred crypto
When your account is all set up, the next step would be to buy crypto. Online casinos prefer Bitcoin, but most of them also accept payments in Litecoin, Ethereum, Ripple, BCH, Dogecoin, and more.
If you transfer some money from a bank account to your crypto wallet, you will be able to purchase Bitcoin and store it there for later use.
Nonetheless, the rate of cryptocurrencies fluctuates, so make sure to check current high/low trends before purchasing.
Step 3 - Find a crypto casino
Once you have enough virtual assets in your Bitcoin wallet to make a deposit and claim a bonus, finding best online casinos that accept crypto should be your top priority.
Luckily, our directory is home to an ever-increasing number of modern iGaming platforms, which can significantly narrow your search.
Take a look around, there are many Bitcoin gambling sites to suit your taste!
Step 4 - Create an account
If there is a crypto online casino on our site you like in particular, opening an account shouldn’t take you more than 2 minutes.
Bitcoin casinos usually have special sign-up procedures for crypto players, so just provide a valid email address and password and you’re good to go.
Step 5 - Deposit
When logged in to your casino account, all you need to do is navigate to the Deposit or Cashier. By selecting the Bitcoin option or some other cryptocurrency, the operator will give you specific instructions on how to initiate a deposit.
That’s it!
It shouldn’t take more than a few minutes to complete a transaction, provided you have enough money in your crypto wallet.
Step 6 - Enjoy your gambling experience
Once your account is ready, start playing and prepare to withdraw some winnings!
There are hundreds of games with crypto support, powered by many advanced software providers like NetEnt, Play’n GO, or Betsoft.
They work on the same principle as regular slots, only they use crypto like miliBits as bets per spin.
Good luck and don’t forget to transfer your winnings back to your crypto wallet via the withdrawal option!
Be aware
Some operators will only accept crypto for deposits. Thus, you will only be able to withdraw your winnings in fiat money, using the traditional payment methods (card, e-wallet, bank transfer, etc.). Make sure you check this before signing up!
Believe it or not, certain strategies could help you win at crypto gambling.
It may sound too good to be true, but if you focus on the house edge, smaller jackpots, or solid bonus deals, you could be in for a surprise.
Here is a list of top 5 tips on how to win big in online crypto gambling:
- Keep Penny Slots Close: Crypto casinos want to keep you as a player. That’s why they allow anyone with Bitcoin to play penny slots with very small bets. These games are known for dishing out frequent rewards, and if you enter a lucky streak with a progressive jackpot, chances are you could significantly increase your crypto balance.
- Look for Slots with Mini Jackpots: Regular slot machines are always a good option for crypto, but those with mini jackpots are an even better idea. Investing a little more might pay off in the long run (if you’re lucky, of course).
- Always Check House Edge: Crypto casinos are gaining a very good reputation among the players since their games supposedly offer better odds than the conventional online casinos. Always be aware of the house edge when playing in crypto. Choose a platform with a house edge below 1% to avoid losing your money.
- Find a Good Cryptocurrency Bonus: A fair match bonus could also be helpful when playing crypto slots. Many operators offer great deals to Bitcoin players, and if wagering requirements or other terms are not too difficult to reach, there is a huge chance to make some profit.
- Get More Advantages with VIP perks: Joining a loyalty program can be a great choice for crypto players. They offer rewards for high-rollers, special perks, and other benefits to those gambling with Bitcoin. Also, some crypto casinos offer rakeback programs and reward VIP players with a huge percentage of their winnings (some reaching up to 22% cashback). Exclusive jackpots are also available sometimes, so remember to take advantage of them!
According to research by European Gaming, the crypto turnover has significantly grown in the iGaming sector over the past 2 years. Since it is a relatively new form of gambling, these platforms offer a lot of freedom, especially considering that they are not regulated by any government.
On a similar note, the games in crypto casinos are decentralized, meaning that the house does not have control over the game and the odds.
With its rapidly developing tempo, cryptocurrency gambling is full of interesting facts and stats.
Here are some of the most impressive ones you should know:
- First crypto casino launched in 2010. The first bet was placed on K-League soccer in South Korea. It amounted to less than 0.2 Bitcoins or approximately $24 at the time.
- There are also anonymous crypto casinos, offering you complete discretion when it comes to playing and winning. They also have no registration policy, meaning that you don’t have to provide any personal data or go through KYC.
- Crypto payouts have lower fees than fiat money transactions. Depending on the virtual coin, you can withdraw large amounts of money at a very small cost.
- The number of crypto slots is on the rise. Many software providers are switching their entire production to Bitcoin-only.
- Customer support for crypto players is mostly available 24/7 via several communication channels. Again, not something you can easily find at regular online casinos with traditional payment methods.
- Crypto players now have better promotions. While typical iGaming platforms usually give a standard welcome bonus or so, Bitcoin casinos include event tickets for tournaments, cashback, free spins, no deposit bonuses, loyalty perks, referral bonuses, and more by default!
- Diversity in terms of payouts. Nowadays the most popular cryptocurrencies are Bitcoin, Ethereum, Litecoin, Monero, and Dogecoin. However, you can also look forward to other altcoins and cash out in lesser-known digital assets.
Final Thoughts
If we take a look at the big picture, the future of iGaming is quite an exciting one, so stay up-to-date by reading our Chipy Online Gambling Guides. There is no doubt that blockchain and crypto gambling will quickly take over the lead in the years ahead, as they offer a lot more than standard casinos.
Fast payments, anonymity, and simplicity are just some of the important aspects to consider.
Paper money is going away, and in the fast world we live in today, crypto wins the race in user experience.
One question remains unanswered though – will regulating the blockchain and decentralized money ever be possible? With more than 20,000 cryptocurrencies in circulation, it seems like a real Sisyphean effort.
