Unless you’ve been living on Mars, you’ve probably heard that cryptocurrencies are hot right now. Many industries are beginning to accept Bitcoin, Ethereum, Ripple, Dogecoin and Binance Coin for payment, and the sports betting industry is no different.

When cryptocurrencies are used for funding sports betting, its generally referred to as ‘cryptocurrency betting’, or perhaps more simply you’ll see it referred to as, ‘crypto gambling’ or ‘crypto sports betting’.

Crypto betting sites are all the rage elsewhere around the world and we will advise you of all the pros and cons. Once crypto betting sites are available in Australia, you’ll enjoy a wide range of benefits in punting with cryptocurrencies like fee-free transactions, safety and security of payments and of course, keeping your personal details discreet.

In our modern world, where you’ve become used to using the services of technology-based disruptors for a range of services including Uber, Uber Eats, Deliveroo, Menulog, Airtasker, AirBnB, Afterpay and Zip, it is only natural that crypto betting is becoming so popular. However, it is not just ‘a different way of doing things’ that is the attraction of crypto betting sites, there are a solid range of real time benefits involved like;

  • Ease of use (simple web-wallet)
  • Real Time Payments.
  • First-class Safety & Security built on impregnable Blockchain Technology
  • Anonymous Use
  • Fee-Free
  • Lifts Geolocation Restrictions
  • Special Promotions for Crypto Users (where permitted within Australian law)
  • Discretion
  • Elimination of bank fees

Of course, as with any other online sports betting site payment methods like credit cards and online banking, there are down sides to crypto gambling, such as;

  • Not all betting sites accept cryptocurrency betting.
  • Cryptocurrency values can fluctuate wildly and increase or decrease dramatically over a short period of time (which of course can also be a positive too)
  • Tracking down your records in case of a payment dispute can be tricky.

The advantages for bettors clearly outweigh any potential setbacks.

What are the advantages for the operators?

However, it’s not only the bettors who enjoy a clear advantage with giving preference to crypto sports betting, it’s the online betting site operators themselves too.

Funds are cleared instantly meaning the operator can get on the more important job of serving clients faster, not to mention the increased bottom line given no ‘middle man’ is required (like a credit card vendor for example) to skim the ‘cream off the top’.

With more control over their own finances, crypto betting sites are more profitable, and as such, are in a position to provide better service and add valuable jobs to technology-aware and self-educated workers.

How Does Crypto Betting work?

The advent of cryptocurrencies and their explosion worldwide has set the online sports betting world into a spin as many people look to crypto betting as an alternative to traditional payment methods.

The major difference between using a crypto currency to fund your sports betting and a traditional online payment method like Credit Card, Paysafecard, POLi, EFT or BPAY (other than the instant fee-free payment and discreet nature of the transaction) is the extra security involved.

Most traditional online payment methods are protected by 128-bit (or better) Secure Socket Layer (SSL) technology, which is good, but cryptos offer security at another level.

Crypto betting sites are protected by a specialized encryption system called blockchain. ‘Blocks’, are personalized data groups linked together in a permanent ‘chain’, thereby encrypting each transaction individually by where it fits into the chain as a whole.

Long story short, it is the most secure way to make a transaction in the world today.

How to Bet with Cryptocurrency?

Follow these easy steps to begin your crypto sports betting experience (for the sake of this example, we will use Bitcoin as your preferred cryptocurrency and assume you have already set up a Bitcoin wallet. All cryptocurrencies will require setting up a crypto wallet);

  • Join your favourite online sports betting site and log-in.
  • Select Bitcoin as your preferred deposit option.
  • Enter the amount you wish to deposit in Bitcoin or an Australian Dollar (AUD$) amount
  • A transaction ID will be generated along with a QR code. Scan the QR code using your phone.
  • Authenticate the transaction following the steps that your Bitcoin wallet will guide you through.
  • Once authenticated, the money will be transferred into your online sports betting account instantly.

At this point in time, there is no Australian Government legislation concerning the use of cryptocurrencies to fund your sports betting account.

The Interactive Gambling Act of 2001 nether states it is legal or illegal, meaning cryptocurrency betting is legal in Australia until legislated differently.

Crypto betting vs Regular betting

We have compiled an easy-to-follow reference table below for your convenience to illustrate the major differences of using cryptocurrencies as an online sports betting payment method compared to regular, more traditional payment methods.

Crypto Betting Regular Betting
Faster Deposits & Withdrawals Slower Deposits & Withdrawals (for some payment methods)
Fee-free payments Fees may apply (although some payment types are free)
Anonymous betting Some payment types require sharing your personal details with the betting site.
Top-notch, ‘best practice’ security Solid security
No Geolocation issues Some payment methods will be subject to use only with an Australian IP address.
Some online betting sites need to exchange crypto currencies into Australian Dollars (AUD$) All transactions will be processed directly by the sports betting site in Australian Dollars (AUD$) only.
Irreversible transactions should you change your mind or make an error. Many payment types such as credit cards allow you to reverse your transaction given a valid reason.

Crypto Betting FAQ's

  • Is cryptocurrency betting safe?

    Yes. With the introduction of blockchain technology and each transaction being marked by its own personal ‘address’ in the chain, using cryptocurrencies to fund your online sports betting account is the most secure form of payment available today.

  • Is cryptocurrency betting legal?

    Yes. Australia’s Federal Interactive Gambling Act of 2001 does not state that using cryptocurrencies is illegal.

  • Do Australian online sports betting sites accept cryptocurrencies as a form of payment?

    To date, very few Aussie online bookmakers accept cryptocurrencies, however, if overseas trends continue here, that trend should see many more Australian betting sites offering cryptocurrencies very soon.

  • Cryptocurrencies fluctuate. Should I be worried that my money can depreciate?

    Because crypto currencies fluctuate based on market forces, there is little you can do to affect their value (Just like Australian Dollars or any other currency). What you can do is turn your cryptos into cash through a sports betting site, and withdraw them by an alternate method, while enjoying the safest form of punting available in the world today.

  • Are crypto currencies actually gambling themselves?

    Cryptocurrency trading (or any stock market activity for that matter) and gambling both involve a certain level of chance, which can lead to either success or failure. Another factor that makes cryptocurrencies similar to gambling is the fact that both of them require a certain amount of luck to succeed, just like any sporting team or player.

  • How do I buy and store my cryptocurrency safely?

    Signing up for a cryptocurrency exchange will permit you to buy, sell, and store cryptocurrency. It is generally best practice to use an exchange that will allow its users to also withdrawal their crypto to their own personal online wallet for safe keeping. The digital wallet can be hardware-based or web-based. The wallet can also exist on a mobile device, or on a computer desktop, or kept safe by printing the private keys and addresses used for access on paper.

  • How do I withdraw my winnings using cryptocurrencies?

    Using the most common crypto currency, Bitcoin, for the safe of this example; • Enter the “withdrawal” section of your online bookie. • Select “Bitcoin.” • Enter the amount, converted to AUD$, you would like to cash out. • You will be redirected to a page featuring a unique transaction ID number, the amount (converted to AUD$) you are seeking to withdraw, the Bitcoin exchange rate, and a blank box for your Bitcoin address. • Enter your Bitcoin wallet client, and copy/paste the Bitcoin address that your online bookie should send the funds to. Bitcoin transactions are irreversible once underway, so double check, confirming that your address is correct. • Click on “confirm.” • Your online bookmaker will automatically redirect you to a new page, informing that your Bitcoin withdrawal is underway. • Occasionally, the price of Bitcoin will have changed between the time you withdraw and the time taken to process your funds. If the price decreases, you may take a minor hit in the received amount you receive. However, if it increases, you will receive more Bitcoin. • Many online betting sites charge a flat withdrawal fee, regardless of the payment method you select. If you are charged a withdrawal fee, it will not have anything to do with the cryptocurrency itself; it is a business expense of the online sports betting site. • Once your Bitcoin withdrawal is processed (from 1 to 48 hours), your online bookie will notify you via email that your withdrawal has been successful.

Bitcoin (BTC) – The most well-known cryptocurrency that started the crypto revolution, Bitcoin is the most valuable and most accepted with online sports betting sites and sports bettors alike.

Ethereum (ETH) – Going live in July 2015, Ethereum is arguably the number two cryptocurrency in the world today in terms of acceptance and value. The original version, now less-used is called Ethereum Classic (ETC).

Binance Coin (BNB) – With its roots in Chinese and other Asian sports betting sites, Binance Coin is beginning to enjoy more popularity and worldwide acceptance by online betting sites. They also offer a brokerage service to buy and sell other cryptocurrencies including Bitcoin.

Ripple (XRP) – The ‘most-controlled’ of cryptocurrencies, Ripple is backed by traditional banks that release more or less Ripple into the marketplace to influence the exchange rates. If you’re looking for a cryptocurrency that has more traditional roots, Ripple is it.

Dogecoin (DOGE) – Started as joke back in 2013, Dogecoin is based on another cryptocurrency, Litecoin. Dogecoin script allows for its blockchain to process transactions faster. If speed of transactions is what you’re after, Dogecoin is for you.

How to choose the Crypto Betting Site that best suits you

There are a number of factors to consider when choosing a quality cryptocurrency betting site, but the good news is that most of those factors are the same as choosing any online sports betting site;

  • Experience and reputation in crypto betting – An online sports betting that has a number of years in offering quality crypto sports betting outcomes and a selection of good reviews is preferable.
  • Wide variety of sports to bet on.
  • Wide range of different sports betting markets.
  • Ease of depositing/withdrawing.
  • Great Customer Support – Given that cryptocurrency betting is new to many, choosing an online sports betting site with excellent customer support to service any enquiries you might have is critical.

Cryptocurrency Glossary of Terms

Altcoins – As Bitcoin was the original cryptocurrency, any other cryptocurrency that was created afterwards is considered an “alternative” or “Altcoin”.

Blockchain – Data is stored as individual blocks in a ‘chain’, each with its own place.
Cryptocurrency wallet – The place to store, send and receive digital assets.

Mining – The process that creates new pieces of cryptocurrency where blocks are added to the blockchain.

Fork – A split, accidental or deliberate, in the blockchain.

Private Key – A string of letters or numbers (like a password) allowing owners to send their cryptocurrency.

Wallet – The digital place to store your cryptocurrency.

Exchange – Cryptocurrency exchanges (often referred to as digital currency exchanges) are businesses allowing customers trade crypto currencies for cash money or other cryptocurrencies.