Unlocking the world of crypto casinos: your complete guide

Alex
September 21, 2023
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Crypto

If you have even a passing interest in digital casino gaming, you will no doubt be aware of cryptocurrency casinos. Whether you have heard about them from a friend or seen them advertised, they stir up a lot of conversation and intrigue at all levels of the industry. Base-level gamblers are checking out what Bitcoin casinos can offer, and game designers are looking at ways they can use cryptocurrency and blockchain technology to improve the quality of their service for bettors globally.

Today, we will look at the benefits of these innovative new casino companies, explore some of the negatives, and check what the future could look like if regulation allows these companies to explore the possibilities of utilizing these services to their full potential.

What is a crypto casino?

Instead of using dollars to play blackjack or poker, you connect your cryptocurrency wallet, deposit your Bitcoin, Ethereum, XRP or Tron, and play the same games as you would at a traditional casino. There can understandably be some skepticism among gamblers who haven’t used a casino where you gamble with your digital assets. Even those gamblers who perhaps trade cryptocurrency or at least have some base knowledge still approach cryptocurrency casinos with some degree of trepidation — but there’s no need to be concerned. In fact, many aspects of cryptocurrency casinos are much more beneficial than traditional digital casinos.

We’ll explore this in more detail in today’s piece. Still, the main thing to remember about a cryptocurrency casino is that you can play slot games, poker, blackjack or roulette with dozens of different cryptocurrencies, without any differences in the games or the rules. When cryptocurrency casinos started to become popular around half a decade ago, the most prominent asset used was Bitcoin, the most well-known and most significant of the cryptocurrencies. However, as the benefits became more evident and additional cryptocurrency casinos entered the race, their main aim was to provide more variety for bettors who strongly preferred playing casino games with their crypto.

As these casinos continue to gather momentum and popularity, altcoins are quickly becoming the primary way people interact with cryptocurrency casinos. An altcoin is any coin that is an alternative to Bitcoin, such as Ethereum, XRP, Litecoin or Tron. So even though the altcoins in question have many different use cases and are a lot different from Bitcoin, Tron betting sites use the same blueprint model and allow investors and traders to directly connect their wallets, instantly deposit their assets and begin playing within a few seconds.

The two main positives

Convenience

It doesn’t matter how beneficial a service is to a gambling customer; the quality of a top-level service depends primarily on convenience. This is one of the two main factors that thousands of bettors have cited in their reasons for switching from traditional digital casinos to crypto operators. Convenience might sound rather vague and a little like a buzzword, however, cryptocurrency is designed to speed up any issues you might have when sending money. It doesn’t matter where in the world you are sending your cryptocurrency from — as long as you have the correct wallet address, you can connect your wallet and send your funds.

The cryptography that is embedded in the blockchain means that all transactions are logged and verified on the ledger. Anybody can view the payment but it cannot be altered, so security is guaranteed and the payment is processed within a matter of seconds. Although central banking often passes transactions with few to no issues, we all know how frustrating it can be when a bank decides to hold your casino deposit or calls you to ask more questions about how you are choosing to spend your own money.

We can’t sit here and downplay it completely: security is crucial and banks are looking out for you, but in terms of convenience, cryptocurrency bypasses any problem regarding payment delays, and the security is certified within the incredible, innovative blockchain design.

Security

If you speak to somebody who uses cryptocurrency casinos instead of traditional sites, they might highlight other benefits, too. While convenience and security are the two most important and are the most common features, there are other factors that bettors will bring up, such as privacy, decentralization and flexibility with your digital assets, which can occasionally not be subject to tax. However, this depends on where you live, and you must seek advice or information before jumping to conclusions.

As discussed in our last section, security stems from the secure blockchain, where all the information is logged and viewable. However, by design, crypto wallets have security as a paramount feature. The best illustration is if a cryptocurrency casino is subject to a hack, as Stake Casino was recently, where over $40m was drained from their Ethereum wallet. The hackers stole directly from Stake’s wallet but failed to obtain any personal financial details.

These types of attacks on conventional casinos are more likely to obtain your data, but cryptocurrency casinos don’t hold any of your personal information on their servers. All they need is your cryptocurrency wallet address, so even if a provider is the victim of a breach, none of your information, such as social security or credit card numbers, is available to cybercriminals, as would be the case with a traditional provider.

Crypto sports betting

The benefits of security and convenience also stretch to sports betting. The idea of using your crypto wallet is something that has been toyed with in the industry and is now being realized. The data shows that more gamblers are moving toward this way of playing. Sports betting companies use the successful foundation that casinos have developed to bring their services to a broader range of bettors who would instead use Bitcoin, XRP, Ethereum or Tron to play poker, blackjack or roulette.

Do certain techniques work at crypto casinos more than traditional sites?

While you might see the clear benefits of convenience and security, nothing about a cryptocurrency casino means a specific gambling strategy will work. Although some bettors might try and employ techniques like the Martingale or Fibonacci, poker is the only casino game where you can use skill to try and swing the odds in your favor.

There is a reason that professional poker players exist, and although they often use technique and strategy to gain an advantage, they also need to have an element of luck with their hand. However, games such as roulette, slots and blackjack all have a house edge and it really doesn’t matter if you’re playing at a Bitcoin casino or using your dollars; there is nothing you can do to sway the odds in your favor.

Perceived negatives

Some negatives people highlight about crypto casinos mainly stem from the assets themselves. For instance, the price of Bitcoin and other altcoins can fluctuate considerably in a short space of time. You could have 0.5 BTC on a casino site, but if the price of Bitcoin drops 25% and you haven’t placed a bet, the potential value of your bet in dollars drops in real value without you even making your wager.

Losing money without even placing a bet isn’t ideal. However, this can also be a positive if the volatility goes the other way and Bitcoin increases dramatically in price, which has happened several times this year. It has risen by about 20% since the beginning of 2023, so this positive could also be a negative. Another more appropriate concern is that crypto casinos are still on the fringes of the industry, so regulation isn’t as precise, and there can be a grey area even for countries that allow gambling and crypto trading, so you must peruse the legislation in your country before you decide to play at a crypto casino.

Responsible gambling

This segues us nicely into responsible gambling. If you’re looking at any casino game as a way to fund a lifestyle or as a viable source of income, these are worrying signs. Gambling, be it sports betting or casino gaming, must only ever be something you do as a source of fun. You should only use money you have already earmarked and that you can afford to lose.

By setting up deposit limits and managing how much time you spend on these sites, you will be able to gamble responsibly. But suppose you feel your venture is spiraling out of control — in that case, the internet is an excellent resource to get help from professional support groups or seek out information from your doctor about how to curb your gambling.

Conclusion

It is an exciting period for crypto casino providers; with the industry still in its early stages, many are intrigued to see how far they can go. If casino gamers continue to move over from traditional platforms and explore the heightened convenience and security evident with these providers, they could spearhead a new area of growth and continue the momentum that has surprised analysts for the last 20 years.

Author Alex