Cryptocurrencies, such as bitcoin are becoming more and more common. This is particularly true in the online gambling industry. For those who don’t know, because of online gambling’s landscape, embracing new technologies is extremely vital.
However, just like any other thing in the world, cryptocurrencies also have their own pros and cons. Today, we are going to talk about the benefits and disadvantages of using bitcoin as a payment method in online casinos (full list).
Advantages of Cryptocurrencies in Online Slots
A couple of countries limit banks and other financial establishments from doing transactions related to casinos. No matter what jurisdiction they are located in, bitcoin enables gamblers to make withdrawals and deposits. Gamblers who otherwise will not be able to make deposits are able to if the site accepts bitcoin. This enables operators to provide their services to a bigger variety of gamblers.
Another benefit is that bitcoin transactions can be much quicker compared to old-school payment and withdrawal methods. Withdrawals and deposits made with bitcoin are sometimes done almost right away. On the other hand, transactions using traditional currency can take a couple of hours, even days. Bitcoin transactions may take minutes or hours. The faster gamblers can make a deposit, the faster they can begin playing. This is a clear advantage for operators.
Because of its decentralized nature, bitcoin security has a benefit over old-school flat currency transactions. Every bitcoin has a series of decentralized and public ledgers. On the other hand, old-school financial institutions are in control of one ledger that includes the details for all the transactions of their customers. Any effort to meddle with the transaction history will be rejected. This makes every transaction extremely protected. Operators will find that gamblers respect the protection provided by bitcoin transactions. This is particularly true when compared to a couple of security breaches that have hit big financial organizations.
- Privacy and Anonymity
Much less personal details are involved in bitcoin transactions. On the other hand, old-school financial organizations need a lot of personal information to do a single transaction. During a bitcoin transaction, only the private and public keys and the bitcoin wallet address is required. Bitcoin networks operate on a person-to-person basis. It’s also decentralized.
Using bitcoin to make payments will have a better appeal to players since gamblers place more and more value on anonymity and privacy.
- Transaction Fees
There isn’t any authority that seeks profits by collecting fees since bitcoin runs on a peer-to-peer network. The transaction fees for bitcoin are often as low as $0.05. Usually, they are given to miners of Bitcoin and guarantee the process is legitimate. This is a lot lower unlike the fees charged by banks and other financial organizations. Operators will immediately notice that this is a huge financial benefit for gamblers who do not want to lose on each transaction.
The Disadvantages of Cryptocurrency Transactions
- New Technology
It is not possible to predict what events or changes can happen since bitcoin and every single transaction and network that operate with it are quite new. Operators may encounter the drawbacks of issues that no one can have predicted.
A couple of high-profile bitcoin breaches of security have happened at cryptocurrency exchanges. Usually, there are a couple of hackers who steals thousands of dollars’ worth of bitcoin. They also can steal a lot of personal information. It is vital to keep in mind that security problems happen in cases that resemble old-school financial organizations. Though bitcoin is more anonymous, safer, and faster compared to flat currencies, it’s still not ideal. Operators may have to deal with unrealistic expectations if there are any issues.
One huge drawback is that Bitcoin is a commonly volatile currency. Players can end up with a huge disparity between the amount of flat currency they first converted to bitcoin and the amount they withdraw eventually. Operators might find that players favor currencies that are more stable.
Another drawback is that most casinos that accept bitcoin don’t require to hold a license issued by a particular jurisdiction. It’s a popular fact that licenses are linked with many application fees. Thus, online casinos can save a lot of money if they choose bitcoin as their main mode of payment. Be sure that the casino you’re going to choose is a reliable one.
Article tip: Online casino games and its benefits.
Using Bitcoin for Making Online Deposits
Setting up the wallet and then confirm your account is the first thing you’ve got to do. You can make a wallet within the provider’s system if you are planning to deposit smaller amounts. But, you’re advised to download an encrypted wallet to your mobile or computer device if you’re going to wager bigger amounts.
After that, you’ve got to fund the wallet. You could do this process through a wired bank. You can also ask your friend to send bitcoins from their wallet to your wallet. You’ve got to remember that a unique key is produced to be used in each transaction.
After that, you’ve got to ensure that the casino you’re planning to play at will accept bitcoin as a mode of payment. You should not underestimate the significance of examining whether or not your casino of choice is a reliable one.
A string will be produced whenever you pick bitcoin as a deposit option. You’ve got to paste or copy it and figure out the number of bitcoins you want to transfer into your account. The transfer is immediate. You will be allowed to start playing right away if you’ve deposited a small amount. On the other hand, it may take a couple of minutes if you’re making a huge amount of deposit. The reason for this is that the amount has to be handled via the blockchain a couple of times.
At the time you make a deposit, the bitcoins will be converted into another currency. When it comes to withdrawals, there are a couple of casinos that don’t process withdrawals through bitcoin. Whenever this happens, almost every player chooses a paper check as a withdrawal method.