Crypto Betting

Technology has always played a major role in the evolution of betting and gambling platforms. Since the dawn of the Information Age, betting sites have always been early embracers of technology which now allows millions of users around the world to bet in sports and gamble in casinos sitting in the comfort of their homes and offices.

Cryptocurrencies are seen as the next big inflection point in the world of sports betting. Bitcoin and other cryptocurrencies has been the biggest headline maker in the financial markets for the last few years and they are expected to dominate the headlines in the betting market in the years to come.

If you are interesting in knowing the fundamentals of Crypto betting, why it is getting popular and how you can bet with cryptocurrencies, we at BettingTop10 have prepared this detailed guide that would answer all your questions, and also help you build the right perspective on crypto betting.

The demand and popularity of cryptocurrencies has led to dozens of currencies mushrooming around the world. At BettingTop10, we have been constantly tracking the popularity of different cryptocurrencies and here’s our list of the best cryptocurrencies for betting –

Bitcoin (BTC)

bitcoin betting sitesBitcoin Betting – The name requires no introduction and it is by far the most popular cryptocurrency in the world. It is often used as a synonym for cryptocurrencies such is its popularity. The first cryptocurrency to reach a market cap of more than one trillion dollars more than the GDP of 200 nations on World Bank’s list! Almost all betting sites that support cryptocurrencies let you bet using Bitcoin.

Ethereum (ETH)

ethereum betting sitesThe biggest competitor to Bitcoin, Ethereum is the second most popular cryptocurrency in the betting world. Founded in 2015 there is no interference with this currency from third-party authorities and hence users have complete control over their coins. This also has a wide acceptance on crypto betting sites.

Binance Coin (BNB)

binance betting sitesIt is an Ethereum-based token and one of the fastest growing cryptocurrencies in the world. It offers huge savings of fees for people who take long term membership of its own exchange Binance Exchange and is also widely accepted as a payment and withdrawal method on betting exchanges.

Ripple (XRP)

ripple betting sitesRipple is considered the third largest cryptocurrency in the world and one that is approved by many traditional financial institutions. Payments are instant and the costs of transactions are extremely low with Ripple. It is considered one of the safest cryptocurrencies in the world from regulations point of view.

Dogecoin (DOGE)

dogecoin betting sitesDogecoin has the backing of none other than Elon Musk and its prices have hit the roof in the recent time. It comes with backing of several billionaires and is widely anticipated to be one of the most promising coins for the future and betting sites are also widely accepting this at the moment.

Betting sites aren’t ones to miss out on the latest trends in the financial world. With cryptocurrencies rising in popularity as well as valuations, betting exchanges have been quick to foresee the potential. Like they had incorporated wallets during the last decade, most betting exchanges and casinos are allowing their clients to deposit and withdraw using cryptocurrencies. There are several inherent benefits that have added to the popularity of cryptocurrencies and they include –

  • Fast Deposits and Withdrawals – Deposits and withdrawals using cryptocurrencies are much faster when compared to the traditional instruments such as Bank Transfers and Credit cards. Deposits are processed in real-time and withdrawals using cryptocurrencies are faster than the 2-5 day period that is the norm with traditional currencies.
  • User Safety – Bettors always have genuine concerns about data privacy and safety when it comes to betting and gambling platforms as there have been many instances of financial frauds. Cryptocurrencies preserve your anonymity and privacy as they don’t leave behind a trail as is common with other financial methods. Hence, you won’t need to worry about your banking or Credit Card information falling prey to any data breach leaving you vulnerable.
  • No Geo-Location Restrictions – There are local regulations that restrict betting and gambling in many parts of the world. Virtual currencies allow you to bypass these restrictions and wager on betting sites from across the world.
  • Bonuses for Crypto Users – Casinos are offering attractive bonuses to users who deposit using cryptocurrencies. Since crypto users can bypass local regulations they are bringing in more bettors to these platforms and hence casinos and gambling sites are offering higher welcome bonuses and other rewards to bettors using cryptocurrencies.
  • Discretion – Cryptocurrencies allow bettors to gamble anonymously. They don’t force users to disclose their identity or location which is the norm with traditional payment platforms. This is a welcome change in the betting market for many users.
  • Low or Zero Transaction Fee – Banks and Credit Card companies levy transaction fees and this can be quite high for people in certain parts of the world. This hurts small bettors who have to bear fixed and minimum transaction fees for every single transaction. There low or zero processing fees with cryptocurrencies and this is a huge incentive for bettors.

 

Downsides of Betting Using Cryptocurrencies

For all the incentives that cryptocurrencies offer to the bettors there are certain downsides that you need to be aware.

  • Volatility – The cryptocurrency market is highly volatile and their values with respect to traditional currencies can swing up and down wildly. Hence, it is not for the fainthearted.
  • Regulations – Local regulations may make it difficult for you to convert these into traditional currencies. Your wins may remain locked within the ecosystem and prevent you from enjoying the rewards depending on your location.
  • Tractability – Though anonymity is a an advantage for gamblers it can also hurt them as cryptocurrencies are untraceable and even an accidental hard disk crash can lead to complete loss of your money without any trace.

What are the Advantages of Crypto Betting for the Operators?

Most betting platforms are encouraging users to wager using cryptocurrencies and for good reasons. Trends suggest that cryptocurrencies would grab a lion’s share of the transactions on betting exchanges in the near future. Here are some reasons behind this trend –

  • No Third-Party Involvement – Cryptocurrency transactions allow betting exchanges to retain complete control over the transactions unlike bank transfers, credit card or even wallets which have third-party intermediaries involved in the chain.
  • Faster Transactions – The absence of intermediaries speeds up the transactions for the betting exchanges. This results is smoother cash flows for their business offering them more liquidity and higher profits
  • No Regulations – Bitcoin and other crypto currencies aren’t governed by borders and traditional regulations. They are global currencies and offer more flexibility to the operators.

How Crypto Betting Works?

Cryptocurrencies use what is known as blockchain technology. This is a decentralised technology where the data is spread across the globe in numerous computers that are used for recording and managing transactions. A P2P or peer-to-peer system is used here instead of a centralized system as in the case of traditional currencies and all transactions are encrypted end-to-end.

You need to start by finding a betting website that accepts cryptocurrencies. This is the prerequisite to betting with crypto. Next you will need to get accustomed with the very basics of deposits and withdrawals in these betting sites. If you have been a regular at casinos and gambling sites you would easily find your way through the process.

How to Bet With Cryptocurrency?

We have already covered how Cryptocurrency betting works and now we shall look at the basic steps involved in Crypto betting –

  • Sign up with a Crypto Betting Site – You need to start by signing up with your favorite betting site. Here you must ensure that the site accepts cryptocurrencies. Though the list of sites that support cryptocurrencies is growing, there are still bookmakers that do not allow crypto betting.
  • Set up a Crypto Wallet – As a perquisite you need to set up a Crypto Wallet. It is similar to a bank account where all your crypto coins would be deposited for you to deposit on betting exchanges and for processing withdrawals.
  • Create Exchange Account – Cryptocurrencies can be bought from crypto exchanges. If you don’t have an Exchange Account yet, you need to create one and map your Crypto Wallet to it to enable transactions.
  • Send Coins to Your Wallet – Once you have created your Exchange Account you can buy crypto coins such as BTC, ETH etc. using Credit Cards or Bank Transfers and the coins would be deposited into your wallet.
  • Deposit Coins Into Your Betting Account – To bet using cryptocurrencies you will need to deposit these coins to your betting account. Go to the Deposit page on your betting site and choose Bitcoins or other Cryptocurrencies from their list of Deposit options. Choose the minimum deposit amount or an amount you need to deposit and your transaction would be processed in real-time.

It is important that you are aware of the local regulations and restrictions with respect to betting or betting using cryptocurrencies in your region. Cryptocurrencies don’t enjoy the status of a legal tender across the globe and it is important for you to be aware of these local regulations.

Crypto Betting vs Regular Betting

So far we have already covered how to bet with crypto currencies and also discussed their advantages and disadvantages and now we turn our attention to Crypto Betting vs Regular Betting.

KYC Compliance

Online gambling is a heavily regulated industry and most of the traditional betting sites require bettors to reveal their identity in a process known as KYC (Know Your Customer). This is done to uphold anti-money laundering laws. In most cases you are required to submit a copy of your passport or driver’s license as Proof of Identity and Proof of Address.

In case of crypto betting sites there is no need for bettors to divulge personal details while betting when all their deposits and withdrawals are done using cryptocurrencies. An email account is all that users need to register on these platforms.

Betting Methods, Deposits and Odds

Crypto betting doesn’t fundamentally differ from traditional betting. You see the same odds and deposit money the same way where you start by depositing crypto coins instead of the traditional currency from your crypto wallet. As far as withdrawals are concerned you need to choose your crypto wallet instead of Credit Cards, Wallets and Bank Transfers.

Bookmakers supporting cryptocurrencies work the same way as traditional bookmakers and you’d enjoy free bets, free spins, bonuses, enhanced odds etc. that you are used to with traditional bookmakers.

Quantifying Stakes, Winnings and Losses

All said and done betting using a cryptocurrencies can be a challenge when compared to traditional currencies. Tracking your winnings and losses isn’t the same as with Rupees, USD or EURO. You have to constantly keep track of their valuations in the crypto exchanges to count your wins and losses.

Their astronomically high valuations vis-à-vis traditional currencies means that you need to get the decimal figure right every single time you are betting using crypto. For example entering 0.1 BTC instead of 0.01 BTC can lead to a loss of few thousand dollars if your bet doesn’t result in a win.

Betting sites have been quick to realize this problem that bettors face and they offer real-time currency conversion in USD and other currencies for the stakes, wins, and losses based on the exchange rate.

Crypto Betting FAQ

  • Is it safe to bet with cryptocurrency?

    Cryptocurrencies are as safe as any other form of digital transactions. They are perhaps safer as they leave behind no trail and hence reduce your vulnerability towards a financial fraud.

  • Is it legal to place a bet using cryptocurrency?

    Yes and No. Though there are no restrictions that govern the use of cryptocurrencies in betting but they aren’t legal tender in many parts of the world. Local governments have their regulations regarding cryptocurrency or certain cryptocurrencies that may be restricted in your country. We suggest you to be aware of these local regulations.

  • How do I buy cryptocurrency to crypto gambling site?

    There are hundreds of cryptocurrency exchanges around the world and you can buy crypto coins from these exchanges. You need to have a wallet and meet the KYC obligations of the respective exchanges.

  • Should I be afraid of the changes in the currency?

    Cryptocurrencies are extremely volatile. You need to weigh in all the pros and cons of these coins before using them for betting.

  • Is crypto currency gambling itself?

    Yes, to a certain extent. They are volatile and in the event of a massive fall in the currencies you will have to bear the loss.

  • How do I cash out?

    You can transfer your winning proceeds to your wallet and use the cryptocurrency exchanges to convert them into your native currency.

  • How do I store the cryptocurrencies?

    You can store your cryptocurrencies in your crypto wallet. You will need to create a wallet if you don’t already have one.

Choosing the Right Crypto Betting Site

We have covered most aspects of cryptocurrency betting including their advantages and downsides. We have also looked at the best cryptocurrencies and how the how they work. Next we turn our attention to choosing the best Crypto Betting Site. Not all betting platforms are built the same way or offer the same incentives to the users. Here are some of the things you should consider while choosing the right Crypto betting sites –

  • Reputation – The platform you choose to bet or gamble must enjoy strong reputation among its users. Look for the comments and reviews that users have posted on different forums to ensure you don’t err in your choice.
  • Supported Cryptocurrencies – Not all betting exchanges support all the cryptocurrencies. You should choose one that supports the currencies you trade in or you are comfortable with. However, if the platform has a strong reputation it would be worth betting using a different currency.
  • Variety of Markets – A good gambling platform should offer you a wide choice of sports betting and casino betting options. Browse through their casino and sports betting market before you sign up to the platform.
  • Customer Support – Good and reliable custom support is non-negotiable and you should look at the type of customer support they offer in terms of email, chat and phone support. You should also look at the languages in which they offer support in case you aren’t comfortable with English.

Cryptocurrency Terminology

If you are a first timer in the world of cryptocurrency or crypto betting here are some of the terminology you need to be familiar with
Address – Every cryptocurrency user needs to register a unique address that is identifiable on the blockchain. All crypto transactions are updated on this unique address for the user to review.

  • Altcoins – All digital currencies other than Bitcoin are known as Altcoins. Given Bitcoin’s popularity alternative cryptocurrencies are termed Altcoins.
  • Blockchain – Cryptocurrency transactions happen in phases known as ‘blocks’. The system of recording this transactional information is known as blockchain. They are digital ledger of all cryptocurrency transactions.
  • Cryptocurrency Wallet – This is the place where your cryptocurrency coins are stored. Your wallet would include a wallet address, keys and seeds to store all your coins safely and ensure protected access. There are two kinds of wallets – hardware and software. Software wallets such as mobile apps are easier to use but more vulnerable. Hardware wallets such as a HDD or a Flash drive are slightly complicate to operate but they offer more safety.
  • Mining – This is the process of generating cryptocurrencies performing certain tasks that can include solving cryptographic equations. This process is highly resource intensive and requires miners to invest in powerful computing rigs.
  • Seeds – They are the foundation of every crypto wallet. They are 12 or 16 word sequences that can be used to restore a wallet in case of data breach or device crash.
  • KYC – It translates to ‘Know Your Customer’ and compliance obligations that crypto users need to meet during the onboarding process.
  • Gas – Blockchain transactions often charge small fee for transactions and it is termed as Gas or Gas Price.

Crypto Betting - Final Verdict

To sum up, Crypto betting offers several advantages to the users along with some of the downsides that it has. While crypto betting hasn’t scaled up to rival traditional betting platforms, the number of crypto betting sites has been constantly growing with more than two dozen such betting sites as of 2021.

This number is expected to grow exponentially in the coming years and traditional betting sites would also allow bettors to bet using digital currencies. They are offering perks that traditional gambling sites cannot match at the moment. However, if we are to pinpoint on the greatest USP of crypto betting it would definitely be the fact that one can gamble anonymously.

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