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Bitcoin Currency Explained

A Guide to Bitcoin Gambling For Beginners 

Bitcoin has rapidly grown to become one of the most dominating cryptocurrencies in the present world. A currency that was launched less than 10 years ago has become a genuine phenomenon. Now there is widespread interest in bitcoin and this has resulted in a growth in bitcoin gambling.

In the beginning, bitcoins were almost worthless, in the first believed real-world bitcoin transaction, 10,000 units of the currency were used to buy two pizzas. Today, those units are worth millions of dollars. People who invested in bitcoin is earlier have made life-changing sums of money as the value of this cryptocurrency has increased exponentially.

Although this critical in the still has a long way to go to become a mainstream currency, we already are seeing several practical uses for bitcoins. One of these uses is for gambling. Today you can use bitcoin is to make deposits and withdrawals with most of the online gambling sites. Bitcoin sports betting has also become popular.

The problem is that most of the online gamblers do not really understand bitcoin and often ask queries about online bitcoin gambling and how to work with this digital currency.

This has prompted OddsMax to put together this comprehensive guide on bitcoin gambling. We have tried to cover all the basics of bitcoin gambling, how it works and a little bit information about the technology behind it.

Let’s take a look at how to gamble with bitcoins.

Bitcoin Currency Explained

If you want to learn about bitcoin gambling then you need to have an idea of how this currency works. A lot many people do not get further than wanting to learn about bitcoin because despite having an interest they find the concept of digital currency somewhat overwhelming. When they come across unfamiliar words like blockchain and cryptocurrency, they decide it is not for them.

We understand that cryptocurrency can be intimidating for those who are used to traditional currencies. Bitcoin is very different as the technology and processes involved in its working are far more complicated. That being said, the basics of bitcoin are straightforward and once you understand the basics, the more complex aspects start to make a lot more sense.

First, you need to know that cryptocurrency, virtual currency or digital currency, all are often used interchangeably but cryptocurrency is the most accurate term.

What is cryptocurrency?

Any cryptocurrency is characterised by three defining features:

  1. It is entirely digital, you do not need coins or notes in physical form. Cryptocurrency is effectively a virtual asset that is transferred electronically between two parties.
  2. Cryptocurrency uses cryptography to create new units and to store and verify the transactions. We are not going to go into detail but in simple terms, cryptography is a form of encryption that makes it difficult to cheat the system.
  3. The third feature and most probably the most appealing one is that cryptocurrency is not controlled by any central bank, government or any central authority. It is limited in supply and its value is entirely decided by market forces. Absence of any central control makes all transactions entirely anonymous.

Bitcoin was the first cryptocurrency that gained mass recognition and it remains the most prominent. However, there are several other cryptocurrencies in circulation at the moment. While most fail, some of these alternative currencies have established themselves as viable bitcoin opponents.

Simply put, most cryptocurrencies were pretty much in the same way. They are electronically created as a reward to users for completing certain tasks. For example, bitcoin is created as a reward for solving complex mathematical functions and the transactions are recorded in a public ledger. This process is known as “mining”.

For spending or receiving bitcoins, users must have a bitcoin wallet. Most of the bitcoin buying and selling takes place on public exchanges, however, private transactions can also be made on a peer-to-peer basis.

Just don’t try to make sense of it all right now, as we have tried to give you a general idea of how cryptocurrencies work. You will better understand these basics from the following graph:

Bitcoin Currency Explained
Bitcoin Currency Explained

Bitcoin & Bitcoin Gambling

Our focus in this guide is how to use cryptocurrency for bitcoin gambling. We will include a list of websites where you can gamble with bitcoin but first let’s discuss how bitcoin gambling works.

In recent years, the use of bitcoin for online gambling has increased dramatically as more and more betting websites are accepting digital currency. Even a growing number of gamblers now prefer bitcoin sports betting. This prompted gambling websites to either accept bitcoin or risk losing customers.

For gamblers, bitcoin gambling sites offer several advantages that entice them to gamble with cryptocurrency. Without a doubt, there are some disadvantages as well but the pros seriously outweigh the cons.

For gamblers, especially in America bitcoin gambling has opened new doors. There is a reason why the United States bitcoin gambling sites are most profited. In the US, the Unlawful Internet Gaming Enforcement Act (UIGEA) Legislature that was passed back in 2006, actually did not make online gambling illegal but what it did is to make it illegal for banks and financial institutions to process online gambling transactions.

As a result, a lot of leading gambling websites pulled out of the US and also stopped accepting American customers. This left American gamblers with a few sports betting websites as most of the best-known gambling sites were facing challenges in processing deposits and withdrawals. Most US friendly gambling sites still face those challenges but they have found ways to overcome the problem to some extent, however, the difficulty to process transactions make them slower and less effective.

This is why sports gambling in nations like the United Kingdom where gambling is fully legalised and regulated, making instant deposits and fast withdrawals is easier. As the gamblers in the United States were not so lucky, bitcoin solved the problem. As this cryptocurrency is neither regulated nor controlled, it is much easier for sports betting sites to process transactions. The deposits are usually more or less instant and the processing is also faster and more reliable than other banking options. Gamblers receive withdrawls within hours which is a major improvement.

While there is a lot to learn about bitcoin gambling in terms of good and bad, but we picked the most important advantages and disadvantages here.

Advantages of Bitcoin Gambling

There are many reasons why bitcoin is considered a natural match for online gambling. By the very nature, cryptocurrency has many advantages that work both in favour of the players and the operators.

Here are the major benefits of bitcoin gamble.

Privacy: You remain anonymous and do not have to go through KYC procedures or any other identification required to make a deposit or withdraw. There are plenty of bitcoin operators who won’t ask you anything, especially if you are from a country where bitcoin gambling is illegal.

Speed: Bitcoin transactions are much faster than traditional payment methods like wire transfers and credit and debit cards. You do not have to wait for a couple of days to get your money, most transactions happen within hours.

Lower Transaction Fee: The fees on bitcoin gambling transactions are almost non-existent and are usually covered by the operators themselves. As bitcoin sports betting platforms have a much lower cost when it comes to developing a cashier section, they usually offer better odds and lower margins.

Promotions: Some of the biggest bitcoin sports betting sites, casinos and sportsbooks bonuses are offered exclusively for gamblers using bitcoins. This amount of extra cash that you get as part of promotions is much bigger as compared to fiat currencies.

Security: As long as you properly protect your bitcoin wallet, there is no risk of your account being hacked or your personal information being leaked as you do not share any details, unlike traditional gambling websites.

Tax-Free: At the moment, bitcoin is a tax-free cryptocurrency. You do not require to declare anything or pay anything to the state.

Disadvantages of Bitcoin Gambling

Just like any other payment method, there are some cons associated with bitcoin gambling.

Volatility: Bitcoin is a volatile cryptocurrency and its price keeps going up and down all the time. Sometimes this fluctuation can work in your favour but other times they possess a certain uncertainty.

Not User-Friendly: There is a certain learning curve involved to get used to working with bitcoin. This is why not everyone prefers bitcoin gambling. However, the good news is most casinos and wallets have easy to learn user interface that people manage to learn quickly.

Security: We know it is strange to include the same point as both advantage and disadvantage but there is a valid reason. While no one can steal your money from your wallet, in the past there have been problems with bitcoin exchanges and some of them were hacked.

Uncertainty: There are efforts been made to somehow regulate bitcoin, as a result, we cannot be sure about the future of the cryptocurrency.

Learn More: Why Cryptocurrencies are so Popular for Esports Betting?

Recommended Bitcoin Gambling Sites

An obvious question we get from a lot of gamblers is “where can I gamble with bitcoin?” As we said, more and more bitcoin sports betting sites are becoming common, still, if you need recommendations, we have a few to give.

There are plenty of sites offering bitcoin gambling. Almost every major sports betting site, online casino, sportsbook, and betting exchange is accepting deposits in bitcoin. Even some of them also allowed withdrawing in cryptocurrency.

The following are our top picks for bitcoin gambling as these sites are genuinely high quality and offer maximum security and anonymity to the gamblers.

Bitcoin Gambling Site

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We consider these sites is the best bitcoin gambling sites for several reasons.

The listed bitcoin gambling sites are the most trusted brands and have a reputed operation so you don’t have to worry about getting ripped off in any way. Unfortunately, the same cannot be said about all gambling sites.

Another factor that makes the sites great is that there is a range of gambling activities, bonuses and rewards on offer to make your bitcoin gambling experience awesome.

Now, we would like to point out that there are different types of bitcoin gambling sites that you must know about. They are:

  • Hybrid bitcoin gambling sites
  • Bitcoin only gambling sites

These are not official terms, we just picked them up because they describe the two different types accurately. Hybrid gambling sites as the name suggest are the one that accepts bitcoin along with traditional banking options. Whereas, bitcoin-only sites are the ones that only accept bitcoin, although some of them also accept other cryptocurrencies.

We recommend you to prefer hybrid bitcoin gambling sites. First of all, these sites tend to be more established as compared to bitcoin-only sites. As most of the bitcoin-only gambling sites are relatively new it is hard to be sure about their trustworthiness. The second reason being the convenience factor. While cryptocurrency definitely offers advantages for depositing and withdrawing, it is more convenient to have other options available in case there is some problem with bitcoin transactions.

However, it does not mean that you cannot trust bitcoin-only gambling sites. Such gambling sites also have clear benefits. Usually, bitcoin gambling sites are more anonymous and do not ask for your details.

Conclusion 

Bitcoin gambling is touted by many as the future. As cryptocurrency shares many characteristics that are favoured by the gambling industry, it is obvious that bitcoin gambling sites are becoming so popular.

OddsMax has tried to provide you with a complete beginner’s guide on bitcoin gambling, if we missed some crucial piece of information, let us know in the comments below.

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