The story of Bitcoin casinos begins in 2014 when the first online casino accepting the virtual currency was established. To understand how Bitcoin casinos work, the first thing you should know is that they accept the digital asset or cryptocurrency. Bitcoin cannot be kept in real wallets or pockets, as this currency exists only as a string of information. They are stored in special digital wallets and you can get them through so-called mining or currency exchange. One of the biggest advantages of playing at a Bitcoin casino is the anonymity of transactions it grants.
This cryptocurrency gets more and more popular and more and more retailers and service providers start to accept it as a means of payment. Players can clear their winnings scored at Bitcoin casinos in the cryptocurrency and transfer them to their wallets. If you are curious about this revolutionary currency offering new opportunities on the Internet, stay with us to learn more about its history and how you can use it for deposits and withdrawals. We will also inform you about the advantages and disadvantages of gambling online with Bitcoins.
Bitcoin has been present for almost 10 years. To be precise, it was November 2008, when a paper titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted by entity Satoshi Nakamoto. The paper was posted to the cryptography mailing group and it elaborated the methods of using the network to create “a system for electronic transactions without relying on trust”. Only a few months later, in January 2009, the Bitcoin network was established and the first open-source Bitcoin client was released. Satoshi Nakamoto mined the first block of Bitcoins ever thus obtaining 50 Bitcoins.
During the next few years, there were ups and downs, including the only major vulnerability which was revealed in August 2010. Due to a failure of the system to verify transactions, users were able to create the indefinite amount of Bitcoins. The bug was fixed promptly and all transactions made during this period were erased.
When it comes to online gambling, the first Bitcoin casino which accepted only this currency was BitCasino.io. It was established in 2014. Today, players can choose from dozens of reliable Bitcoin casinos.
How to get Bitcoins
Besides the fact that this payment method does not exist in physical form, you should also know that it is a decentralized currency which is not controlled by any bank or body. It is not taxed or linked to gold like other currencies either. There is an exact amount of Bitcoins which can exist at any moment. At the moment of writing, the value of Bitcoin is over $3,550. Several smaller denominations are in circulation too. Satoshi is the smallest one, worth one hundred-millionths of a Bitcoin.
To get Bitcoin or any of its denominations, you can mine or earn them for yourself or convert other traditional currencies into it. If you opt for mining, your job will be to add transaction records to the blockchain. The blockchain is a ledger of past transactions which confirms them as they happen. As this may be a tedious activity, you can buy Bitcoins on exchanges, from trusted individual sellers, and on ATMs. Once you have bought Bitcoins, they will appear on the Bitcoin wallet you have previously registered with for free.
How to make deposits and withdrawals with Bitcoins
To start playing at a Bitcoin casino, you need to set up a Bitcoin wallet and get the virtual currency. You can choose from a variety of wallets which are equipped with the latest encryption technology to keep your information and money safe. To transfer your Bitcoins or smaller denominations to the Bitcoin casino of your choice, you have to register with it. Opt for Bitcoin as a preferred payment method. Provide your Bitcoin wallet address and the amount you want to deposit to the Bitcoin casino.
If you were lucky enough to increase your bankroll and you want to clear your winnings, enter the amount you want to withdraw via Bitcoin and provide your wallet address again.
Fees & Timeframes
Transactions at Bitcoin casinos are processed immediately, so you don’t have to wait for your money to be transferred like with other banking methods. In terms of fees, as long as you make transactions with the digital currency, all your transactions will be free of any additional costs.
However, you should keep in mind that converting Bitcoin to traditional currencies and vice versa is subject to exchange fees. They vary between 0.1% and 5%, depending on the exchange you use.
Advantages & disadvantages of Bitcoin gambling
Keeping your financial and personal information private, no fees on transactions and the fast withdrawals are the biggest advantages of Bitcoin gambling.
If you come from a country where online gambling is not regulated or the government tries to block your funds, Bitcoin casinos will free you of any worries.
At Bitcoin casinos, your transactions are not carried out via traditional means of payment. So you don’t need a credit card or bank account to send your funds to the casino or receive them. When you request a withdraw, it will be processed almost instantly so you can use your winnings to pay other services or goods on the Internet.
Bitcoin casino customers can enjoy the best of online or mobile gaming and make use of generous bonus offers. Gambling with bitcoins is virtually the same as gambling with any traditional currency.
However, playing at Bitcoin casinos also has a few downsides.
You cannot be sure of the Bitcoin price as it has ups and downs on a daily basis. That’s why it is always better to save a number of Bitcoins and to convert the rest into a traditional currency that suits you best.
Another disadvantage is an exchange fee one has to pay. By choosing wisely a trading platform, expenses don’t have to be more than 0.1%.
Since this cryptocurrency is still in a somewhat experimental phase, you won’t find many Bitcoin casinos out there. Choose only those fully regulated and licensed and you can find them listed on this page.
Is Bitcoin Gambling safe?
If you are one of the lucky ones who bought Bitcoin before its value boom, then congratulations! There’s a good chance you are a much wealthier person than you were just a short time ago.
The cryptocurrency has barely been out of the news lately, with its value rising to levels that have never been seen before. It is affecting every element of modern life, including gambling, with many online casinos now accepting Bitcoin as a form of payment.
However, there is one question on everyone’s lips when it comes to this; “Is Bitcoin gambling safe?”
In short, yes. Here’s why…
For those of you who don’t know how Bitcoin works, here is a quick synopsis – it is an online currency that runs on blockchain technology, which allows for complete transparency with all transactions.
Your Bitcoins are kept in things called ‘wallets’. There are cold wallets – offline apps that keep your Bitcoin savings and hot wallets – cloud-based systems that allow you to trade using Bitcoin.
Once you find an online casino that accepts Bitcoin, you can link your hot wallet to it and make a deposit. Through this process, you should be protected by both the casino and your wallet’s safety features – two layers of protection.
Thus, choose a reputable casino and you should be safe.
Even though it is generally safe, you still have to be careful when choosing a Bitcoin online casino. Here are a few tips for making that choice:
Pick reputable websites that are transparent about their protection features.
Read up on reviews and forums regarding the best Bitcoin casino sites.
Talk to your peers who already gamble using Bitcoin.
Choose a casino with top quality customer support and a good selection of games.
Pick a casino that uses software providers you know and trust.
Overall, if you use Bitcoin to gamble, you are probably safe. However, that doesn’t mean you should leave your wits behind you!