Bitcoin has emerged as the currency of choice for online gambling due to several factors.
Things such as privacy and anonymity are not available with other payment methods as alternative payments that are made by credit cards and eWallets can be easily traced back to the person.
Bitcoins, on the other hand, are extremely difficult to trace and as such provide an opportunity to gamblers who reside in countries where online casinos are illegal.
In this article, we will guide you step by step on how to use Bitcoin with online casinos. But before proceeding further, let’s first brush up our basics about Bitcoin as many of our new readers may not be aware of what is Bitcoin.
A Brief Introduction to Bitcoin
Bitcoin (also referred to using the symbol BTC) is the world’s most popular cryptocurrency which was launched in 2008.
As a cryptocurrency, Bitcoin only exists electronically and is not regulated by any central bank or monetary authority which makes this currency totally free from whims of politicians and central bank governors.
Bitcoin has gained wide acceptance over the years and now millions of online businesses accept bitcoin as a medium of payment.
It currently trades at around 1BTC=$3300, which is an astronomical rise from the levels of $2 in 2011 and there are a good number of Bitcoin millionaires around who invested in the currency during its early days.
Bitcoin is one of the few cryptocurrencies around which a whole ecosystem and economy has developed as there are Bitcoin start-ups, Bitcoin hedge funds, Bitcoin exchanges, bitcoin eCommerce stores etc.
Although, several other cryptocurrencies have been launched after Bitcoin, few have been able to match the success of Bitcoin and in most cases bitcoin has a monopoly in cryptocurrency world and enjoys the status of a reserve currency in the cryptocurrency ecosystem.
Due to the technology on which Bitcoin is based, it becomes difficult for a government to track the payments made via Bitcoin as unlike other fiat currencies Bitcoin, it’s completely free from government control and provides an avenue for those who want to keep their financial life private.
Many countries have strict laws which regulate online casinos and some jurisdictions also have a ban on any sort of online gambling.
In many of these countries gambling online can be a criminal offence with severe punishments.
Residents of such countries can’t bet using a credit/debit card or other medium as it will be easily traced back to them and can be a source of serious legal trouble.
Bitcoin provides an easy way out of this dilemma as due to the unique structure of the currency, it’s highly unlikely that someone will be able to track you down for betting at an online casino using Bitcoin.
How to Use Bitcoins (As A Currency) for Gambling
Using bitcoins for gambling at Online casinos can be a tricky process and this is especially true for those who have never used Bitcoin as unlike other currencies; Bitcoin works differently.
So, follow these steps for gambling at online casinos using Bitcoin:
Sign up For a Wallet / Exchange:
Before sending or receiving any payment using Bitcoin, you’ll need to sign up for a bitcoin wallet which essentially is an electronic wallet for storing your bitcoins.
Unlike other currencies (such as dollars, pounds and euros), Bitcoin exists only in the digital world in electronic form.
You can choose from many Bitcoin wallets such as Coinbase, BitPanda and Blockchain.info, which are cloud based.
You can also choose from several smartphone app and desktop based bitcoin wallets such as Mycelium, Bitcoin Core, Electrum, MultiBit.
These are all Bitcoin wallets although some such as Bitcoin Core will need to be downloaded to your desktop while others can only be accessed via the Android or iOS app.
A bitcoin wallet will give you a public address which is required for receiving payments in bitcoin and private keys which are essential for authorizing a payment to someone else.
Once you’ve set up the wallet, you’ll need to fund it with bitcoins.
After setting up the bitcoin wallet, you’ll need to fund it, as an empty wallet is going to be of no good use to you. There are several ways for funding a new bitcoin wallet account, but in this section, we’ll only discuss the 2 most popular ones.
First way is to get bitcoin from a friend or some other person who is willing to sell or give his bitcoin holdings to you. In this case you’ll need to give him the public address of your bitcoin wallet so that he can send bitcoins to you at that address.
The other method of funding your bitcoin wallet is purchasing them directly from a bitcoin exchange which sell bitcoins in exchange for fiat currencies.
You can buy your desired number of bitcoins from one of the several bitcoin exchanges such as Coinbase, Bitstamp, BTC-e and Bitfinex.
These exchanges sell bitcoins according to current market rates and you can also sell your own bitcoin holdings at these bitcoin exchanges.
Deposit the Bitcoins On Your Online Casino Wallet:
Once you sign up for an account at an online casino which accepts bitcoins for making deposits, you’ll be given a public address of your eWallet at this online casino which is like the bitcoin address of your bitcoin wallet.
Although, in this case the bitcoin wallet provided by the online casino is temporary.
By following the above outlined simple steps you can use bitcoin with any online casino that accepts bitcoin as a currency for making deposits and withdrawals.
You can also withdraw your winnings from an online casino using bitcoins, but in this case the above explained process will be reversed.
Very few people may want to withdraw bitcoins from their casino wallets as the process is quite complex and you may need these funds for wagering later.
You can place bets in future using the funds held in your online casino wallets and as such it makes sense to keep some bitcoins in your online casino wallet.
However, if you have decided to withdraw the funds from your casino wallet take note of the fact if your online casino allows you to convert bitcoins into other currencies before withdrawing as sometimes it’s much easier to convert bitcoins into fiat currencies and then withdraw these funds in the currency of your choice.
Firstly you must withdraw the funds held in your online casino wallet to your bitcoin wallet. You’ll need the public address of your bitcoin wallet and private keys for imitating the transfer.
At most online casinos, your password will be sufficient for authorizing the transfer. Funds transferred will appear in your bitcoin wallet within few minutes.
Once the funds are transferred to your bitcoin wallet, you’ll need to sell them at a bitcoin exchange for dollars, pounds or any other currency of your choice.
Most bitcoin exchanges support several payment methods and you can withdraw the currency to your bank account, credit or debit card.
All bitcoin transactions include a small miner’s fee which is generally negligible.
You must also take necessary precautions as being a cryptocurrency bitcoin and businesses using bitcoin are especially vulnerable to hacks and other forms of cybercrime.
Also keep in mind to never withdraw or deposit funds directly from a bitcoin exchange to an online casino as this can get you banned from the bitcoin exchange in question.
You can learn more about bitcoin and other cryptocurrencies on BiteMyCoin.com