Profile of Ethereum
Technically, Ethereum is a platform for the distribution of cryptocurrency. The coin itself is the Ether and was initially intended as a commodity but is commonly used as a currency in peer-to-peer transactions. The price is highly volatile, but at the time of writing, the cost of one ETH was €2,297, with the highest level for the past month being €3,622.
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- Symbol: ETH
- Initial release: 30 July 2015
- Circulating supply: Over 116 million in May 2021
- Author: Vitaly Dmitriyevich “Vitalik” Buterin
What is Ethereum?
Ethereum is the #2 crypto asset behind Bitcoin, but it has some significant differences. Vitalik Buterin first proposed the Ethereum concept in 2013, crowdfunding the project in 2014 and going live with 72 million Ether coins in 2015.
The difference between Bitcoin and Ethereum is that the latter is an open-source platform that anyone can use to develop decentralised apps, including additional cryptocurrencies. Ethereum works on the principle of using thousands of decentralised computers (nodes) instead of a centralised server, effectively creating a world computer.
Bitcoin and Ethereum use blockchains and decentralised nodes to transfer information. Still, the Ethereum platform is more user-friendly for programmers. Anybody that uses Ethereum to develop their digital currency can also use the Ethereum nodes to run their network instead of building a blockchain from scratch.
What Makes Ethereum Different from Other Cryptocurrencies?
Bitcoin, Ethereum and all other cryptocurrencies all operate on a ledger and blockchain system. Whereas Bitcoin was created as a monetary system, Ethereum was built to code other decentralised apps with the Ether coin as a currency. Other altcoins were also designed with a specific purpose in mind. Let’s use Bitcoin as the standard and compare the differences.
- Ethereum was created to allow outside programmers to build decentralised applications.
- Ethereum supports smart contracts through its currency, whereas Bitcoin was created only as an alternative currency.
- Ethereum uses the ethash algorithm, and Bitcoin uses a secure hash (SHA 256).
- Bitcoin uses a stack-based programming language (notations only), and Ethereum uses Turning Complete (contains executables), allowing developers to use Ethereum blockchains to create apps and tokens.
- Ethereum blocks are processed in seconds compared to Bitcoin’s minutes.
How to Bet With Ethereum?
You’ll want to take these easy steps before you can use Ethereum for crypto sports betting or gambling. Once you’ve set up your Ethereum wallet, you can browse the crypto betting sites to find one that suits your purposes.
- Set up your crypto wallet: You can choose a hot wallet, soft wallet or paper wallet for your cryptocurrency. Each different type has advantages and disadvantages, but the paper wallet is the most secure.
- Establish an exchange account: Choose a cryptocurrency exchange and sign up. The process is easy, but you’ll still need to supply some personal details to get started.
- Purchase Ethereum: You’ll need to verify your ID and deposit money to the exchange before you can purchase cryptocurrency. Once the verification is complete, select Ethereum and the amount to buy and transfer to your wallet.
- Select your crypto gambling site: Once you’ve set everything up and have Ethereum in your wallet. Sign up for your favourite crypto betting site and start gambling.
Ethereum Betting vs Regular Betting
There are quite a few differences between regular and Ethereum betting. We’ve broken down the major differences in the table below.
| Ethereum Betting | Regular betting |
|---|
| Ethereum betting allows you to remain anonymous. Even though the exchange knows your identity, nobody knows how you’ve used your Ethereum coins. | The online betting site needs to verify your identity and address. Your bank also has records that you’re spending money on online gambling. |
| The casino is able to process your withdrawal immediately and the Ethereum you withdraw is in your wallet quickly. | Withdrawals can take days before the bank makes the funds available in your account. The banks also take fees from any transactions. |
| You need to keep your head about you to track stakes, wins and losses. A bet of 0.1 ETH is the equivalent of €230. | Easy to track your funds in Euros. |
| A wrongly placed decimal can be a costly mistake. The difference between 0,1 ETH and 0,01 ETH is €207. | You have less chance of mistakenly entering the wrong amount for a bet. |
| Currently, only 15% of online casinos offer cryptocurrency betting, limiting your options. | You have a wide range of choices compared to crypto gambling. |
| The cryptocurrency prices fluctuate greatly and a dip in the market price may wipe out the value of your winnings. Equally, the value of your winnings may increase with the market. | The euro is very stable, so the value of your stakes, wins and losses remain the same.
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Where Can I Bet With Ethereum?
Finding reliable crypto gambling sites is easy enough if you follow this guide. You can choose between dedicated crypto betting sites or hybrids that accept cryptocurrency and fiat currency deposit methods. Whichever one you choose, it’s always best to investigate the provider first.
- Reputation: Before making any deposits or even signing up for a crypto sports betting or gambling site, first determine its reputation. Read reviews or ask people who’ve used the site before so you can be sure they won’t close shop and take your money with them.
- Supported Cryptocurrencies: Not all crypto betting sites accept all cryptocurrencies. Make sure that the one you want to use supports Ethereum or the digital currency of your choice.
- Variety of markets: If you’re going to use the site for crypto sports betting, check that they have a good variety of sports and wagering options. You don’t want to find out that the website has limited betting options after you’ve signed up and made a deposit.
- Games and software providers: You’ll find many new games associated only with crypto casinos, but you can also find slots and live gambling from well-known, licenced software providers. The quality and quantity of games from reputable providers should also show the quality of the crypto gambling site.
- Customer support: It’s always a good idea to test customer support at any online casino. The same goes for crypto betting sites. If the website only has email support and takes a long time to respond to queries, look for a different one. You’ll want a casino with 24/7 customer support or live chat.
Other Cryptocurrencies for Betting
As the concept of digital currencies gains popularity, the number of coins and tokens on the market also increases. We’ve analysed a few of these that crypto betting sites most often support. If you decide to use one of these cryptocurrencies instead of Ethereum, the process for buying and transferring them remains much the same.
Bitcoin (BTC)
Bitcoin was the first cryptocurrency on the market and has steadily grown since it was introduced in 2009. It’s the most traded cryptocurrency and the most valuable, with one BTC fetching over €30,000. BTC is only intended as a digital currency and uses its own blockchain to facilitate transactions.
Binance Coin (BNB)
Binance coin was launched on the Ethereum blockchain in July 2017 but has since started using its own Binance chain. It’s now the third-largest crypto coin, and you can use it for many different transactions. From April 2021, the Binance exchange is the busiest cryptocurrency exchange globally, hosting 1.4 million transactions per second. At the time of writing, one BNB was worth around €280.
Ripple (XRP)
Ripple was conceived in 2012 as a cryptocurrency and method of digital payment for financial transactions. Instead of using mining to confirm transactions, Ripple uses a network of bank-owned servers and mutual consensus. It works on a similar principle to the SWIFT system used by banks. It only takes seconds for a transaction’s confirmation, and Ripple is amongst the top five cryptocurrencies. The XRP currently trades at around €0.77 per XRP.
Dogecoin (DOGE)
Dogecoin was started in 2013 by Jackson Palmer and Billy Markus as a joke but soon gained a following. Despite its beginnings, the Dogecoin blockchain is viable. It stands out from other cryptocurrencies for its low price and unlimited supply. You can buy Dogecoin for around €0,25 per coin.
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