Expert Tips for Using Bitcoin to Gamble Online
The decision to start gambling online is a big one, as is the decision to invest in Bitcoin. It may seem like a daunting prospect to some, and it shouldn’t be taken lightly.
Having at least a basic level of knowledge about online gambling and Bitcoin is necessary for anyone thinking about putting them together.
It may seem like more work than it’s worth for some, but taking some time before you begin to educate and prepare yourself will pay off.
Whether you are a current user of Bitcoin wanting to expand its usability, a current online gambler that wants to take advantage of Bitcoin and the blockchain, or someone who has never worked with either, we have some tips that will work with all levels of experience.
Understand Bitcoin and How It Works
Unlike online gambling with traditional currencies, the first step you have to take when gambling with Bitcoin is doing some research. It’s important to have a foundation of knowledge about what Bitcoin is, how it began, and how it works.
Bitcoin is unlike any traditional currency you may have encountered, and it comes with its own learning curve. It’s a decentralized, unregulated digital currency, meaning it isn’t governed or maintained by any country and isn’t overseen by any banking authority.
The digital currency aspect means that it is not tangible or even visible. It operates and relies completely on algorithms and cryptography, so you have to believe in the math in order to really get on board with using it regularly.
Bitcoin uses something called the blockchain to keep its transactions and information secure, and once a block has been added, it is impenetrable.
If a block is being tampered with, the entire chain of blocks collapses as a security measure. The blockchain is revolutionary and is now being used in other industries like hospitals to keep records safe.
There is a lot more for you to learn about Bitcoin, blockchain, and the cryptocurrency market, so don’t stop here. Take a look at the following page for more comprehensive information on the basics of this currency.
Know the Risks Involved
Both online gambling and owning Bitcoin come with some major risks on their own.
Most of the major concerns with online gambling have to do with the safety of your personal information and security of your financial accounts that are connected to the online casino. Luckily, if you use Bitcoin as your primary payment method, that risk is minimized.
However, Bitcoin is an extremely volatile currency. This means its value changes multiple times a day. Sometimes it stays within a range, and sometimes it spikes or plummets.
The concern that most people have is that it will plummet below what its value was when they bought it, and they will lose the money they put into the investment.
Bitcoin transactions are also irreversible and uninsured because of the blockchain and the unregulated nature of the currency itself. If you make an accidental transaction or someone gets into your wallet and transfers all of your Bitcoin to their wallet, you will probably never see it again.
Blocks can’t be tampered with once they’ve been added to the chain, so there’s simply no option for a transaction reversal.
There are a lot of pros and cons to consider with Bitcoin, so you should take your time to understand them. The following page will help with this.
Learn How to Buy and Sell Bitcoin
Whether you are a current owner of Bitcoin that is looking to expand their use or a current online gambler that wants to try a different method of payment, it’s important for you to know how to buy and sell Bitcoin.
If you don’t already own Bitcoin, you’ll need to learn how to buy it in order to start gambling with it. And having at least a working knowledge of the methods of purchase and what to look for in a reputable Bitcoin exchange or broker is important for anyone entering the world of buying and selling Bitcoin.
These are online sites that allow each user to engage in P2P (peer-to-peer) transactions. They are often pretty easy to use and can help you get exactly what you need in a relatively short amount of time.
You start by depositing a certain amount of your legal tender, sometimes referred to as fiat currency, into your exchange account. From there, you can buy whatever amount of Bitcoin your deposit can get you. If your exchange has a wallet attached to it, your purchases will show up there.
It’s important for you to know how to use an exchange at the very least. As you are engaging in the use of Bitcoin, you should have a grasp on how it is regularly bought, sold, and traded.
Having a working level of knowledge that you could tap into if you needed it in the future is important, and it’s important that you gain that foundation-level knowledge before you get involved with the Bitcoin world.
If you needed to sell your Bitcoin in a pinch, you’d want to know how to do it beforehand instead of learning as you go. Check out the following page for a more in-depth explanation of the process.
Choose a Suitable Bitcoin Wallet
Having a safe, secure, and accessible wallet is important in any situation where you are buying or using Bitcoin.
Depending on how frequently you use online gambling sites or plan to online gamble using Bitcoin, your wallet needs will differ. Bitcoin wallet types range from ultra-accessible to ultra-secure, and your habits and priorities will have an effect on your wallet compatibility.
The easier the wallet is to access, the more open you leave yourself to hacks and theft. But you can utilize a wallet structure, keeping an offline hardware wallet as well as an online wallet for easier access to your Bitcoin for the purposes of betting and collecting payouts.
There are only a few different types of wallets you can choose from, but there are a large number of platforms that host those wallet types.
Online Exchange Wallets
This one is the most basic wallet type and the least secure. These are not offered by every exchange site out there, but you’ll find them on most major Bitcoin exchanges. Some major exchanges even require that you open a wallet with them before you can use the exchange.
These are super convenient for frequent exchange users but are a very risky primary wallet choice.
Online Third-Party Wallets
These offer most of the convenience of exchange wallets, but they are hosted on a third-party site, meaning that if your exchange is hacked, it won’t have any effect on your wallet.
It also means that your passwords and keys are stored on that site, which makes them vulnerable if an attack on that wallet site does occur.
This is a better choice in terms of safety, but there are definitely some other major concerns associated with using an online wallet as your primary wallet.
These are by far the safest wallet option, but they are nowhere near as convenient to use and access. Hardware wallets connect to your computer via USB drive, and you can only use your Bitcoin when it is attached and connected.
For those that would like total control not only over their Bitcoin but also over when and where they’d like to online gamble, this might be your holy grail wallet. Otherwise, you may want to think about using more than one wallet type.
If you’d like to learn about more Bitcoin wallet types, what they are, and how they work, check out the following page.
Check Your Local Laws
Bitcoin is an anonymous and unregulated currency, meaning that there are not many laws that restrict or allow its use. Providing you are not breaking any other laws like money laundering or buying and selling drugs, you are pretty much free to do what you’d like with it.
You should still be sure to check your local laws, though, as some countries have begun to regulate the use of and even outright ban Bitcoin and other cryptocurrencies.
A quick refresher every once in a while won’t hurt, and it will keep you protected in the event that the laws and regulations in your country have changed.
Unlike Bitcoin, there are some legal standards put in place for online gambling. Most countries have legalized and regulated online gambling completely, while some have not. If a country has deemed it illegal or restricted, the punishment is usually given to the company or group that has broken the law, and not necessarily to the individual playing.
The individual act of gambling online is not likely going to lead to you being arrested, fined, or penalized in any way. But you should still take a few minutes every once in a while to review your country’s federal and local laws regarding online gambling.Gambling Laws and Regulation
Remember: we aren’t lawyers, so we don’t know the inner workings of the legal systems of every country in the world, and we are basing our opinions on what we do know about online gambling with Bitcoin.
Read Our Guide to Bitcoin Gambling
If you’ve ever gambled online with traditional currency, you already know basically what to expect. Online gambling with Bitcoin is very similar to what you’ve encountered, but there are a few differences that come with the nature of Bitcoin.
Deposits and Withdrawals
As the name suggests, online gambling with Bitcoin revolves around Bitcoin.
There are a few different types of online gambling with Bitcoin that you can partake in. The first is Bitcoin-only online gambling, which means that all deposits and withdrawals have to be made in Bitcoin using your wallet address.
The second is a trusted online gambling site that has added Bitcoin as a payment and withdrawal option. In this case, you can deposit money using your credit card or checking information but collect your winnings in Bitcoin and vice versa.
Each has its own set of pros and cons, and some people will find that they prefer one over the other because of the way they use the sites and their personal priorities and needs.
Types of Gambling Available
Online gambling with Bitcoin opens a unique door, and that is the door to provably fair games. It uses the blockchain to its advantage and allows both the user and the site access to information that proves the game was fair on both sides.
It solves one of the biggest problems in the world of online gambling, and at this time, it’s only available for Bitcoin users.
Value of Bitcoin and Bets
Bitcoin is volatile. Its value goes up and down often, sometimes falling dramatically without warning. It’s important to check the value of Bitcoin before you begin gambling so that you have an idea of how much you are betting and winning.
This isn’t a step that most people are used to incorporating into their online gambling routine, but it’s a very important one for people using Bitcoin.
For further details on all the above and more, please visit the following page.
Use Reputable Bitcoin Gambling Sites
When you feel that you have a handle on what Bitcoin is, how it works, and what you need in order to begin gambling online with Bitcoin, you can begin to look for a specific online gambling site to use.
This is by no means a decision that should be taken lightly, as you will be putting your hard-earned money in the form of Bitcoin into the hands of that site. Not all Bitcoin gambling sites are created equally, and there is a real concern about the number of potential scam sites or untrustworthy sites that are in operation.
Bitcoin is seen as somewhat of an easy target for scammers because it is unregulated and anonymous, so the likelihood of the thief being caught or reprimanded is minuscule.
We want you to have a fun, safe Bitcoin gambling experience without having to worry if your wallet and personal information are safe.
We compile our Bitcoin gambling site recommendations based on their reputation, length of time they’ve been operating, their history, and a number of other small pieces of the puzzle to put together a comprehensive list of the most trustworthy and reputable Bitcoin gambling sites out there.
You can check that list out here.
We go way beyond selecting the overall best gambling sites accepting Bitcoin, too. On the page linked above, you’ll also find lists of the best sites in the following more specific categories.
- Bitcoin-Only Gambling Sites
- Anonymous Bitcoin Gambling Sites
- Bitcoin Sports Betting Sites
- Bitcoin Casinos
- Bitcoin Poker Sites
- US Bitcoin Gambling Sites
Track the Value of Bitcoin
If you are going to gamble using Bitcoin, you need to make a commitment to yourself to track its value at least once a day. There are plenty of sites that show you not only the current value but a chart of its movement in a given time period and the amount of Bitcoin in circulation.
We have a value-tracking feature on our Guide to Bitcoin page for easy access, but you can also check out sites like CoinMarketCap that show vital information regarding Bitcoin as well as a number of other cryptocurrencies.
Though you may not be selling and trading Bitcoin like a traditional user, it’s important for you to know how much you are betting and what your current wallet total is at the beginning and end of each day.
Remember that though Bitcoin is intangible and not a physical representation of currency, it is still an asset that you have put your hard-earned money into, and it should be treated as such.
Bitcoin isn’t infallible, and there is a potential for a cryptocurrency coup in the future, where one of the other major currencies or even a brand-new one takes Bitcoin’s place. Always keep one eye on the future of Bitcoin and prepare for a scenario in which you’d have to make the switch to a different currency.
Try Provably Fair Gambling
Provably fair games are totally unique and exclusive to online gamblers that are using Bitcoin or other major cryptocurrencies. They utilize the blockchain to prove to both the user and the site that the game was fair and not skewed one way or another.
For anyone that has ever been worried about whether or not the game they’re playing is rigged, this is a great opportunity to take advantage of the blockchain technology and play your favorite game without having to wonder if you’re getting ripped off.
Provably fair works by publishing every single action that the site has taken in that game using open source algorithms. This shows the user that the outcome was fair and that the odds were as random as they would be if you were playing at a brick-and-mortar casino.
Every game will have its own code and algorithm to dictate its fairness simply because different games require different processes. Blackjack and dice aren’t played the same way, so they won’t have the same provably fair code. If you do plan to play provably fair games, you should know how they work.
There are even games offered in a provably fair setting that aren’t offered in traditional online casinos. If you have been gambling online for some time and are reading this article because you want to shake things up and try something new, provably fair Bitcoin gambling might be your answer.
It’s a great option for anyone thinking of starting their journey with online gambling with Bitcoin.
Be aware that though some sites might claim to have provably fair games, it’s your responsibility to know what that means for the game you’re playing. It’s like showing your work or checking your math on a test. The only way to know how it should work is knowing the algorithms and game types just as well as the site.
Always Gamble Responsibly
Regardless of the games you choose to play, you should always be practicing responsible gambling. This means checking to make sure the site you’re using is safe, checking local laws, tracking Bitcoin’s value, and betting within your means.
Doing some vetting of a potential site could save you the trouble and permanent loss of Bitcoin that comes with being scammed. Blindly giving your Bitcoin and personal information to a site you know nothing about is a huge risk that you don’t want to take.
At the very least, look through some online discussion forums for a thread or discussion on the site in question. Read some of the complaints and praises for the site and try to get an idea of how other players feel about it.
You should take the comments with a grain of salt, but they can hold very important information about your possible experiences with the site if you choose to join. Anything that makes you feel uneasy or sends up a red flag should be strongly considered, and that site should no longer be a contender.
Another important practice in responsible gambling is assessing your financial situation and making a pact with yourself to only bet within your means.
Take stock of your recurring payments like rent and bills, total up what you spend on necessities like gas and groceries, and from there, you can lay down a betting budget that fits within your level of disposable income.
The phrase “disposable income” should be taken at face value in this situation, and it’s important that you stick to playing with an amount of money that would not negatively impact your financial situation if you lost it all.
Don’t ever shrug off your duties at your job, with home maintenance, or spending time with friends and family in favor of using an online casino. If you believe you have a gambling addiction, check out this page for some help and advice.
Online gambling with Bitcoin is ultimately not much different from online gambling with traditional currency. There are certainly some precautions you should take with whichever form of currency you’re using, and the “rules” regarding responsibility DEFINITELY apply in either case.
There are also a few extra things you need to consider when using Bitcoin. Especially relevant is the current value of the currency. If you don’t keep track of this, you’ll have no idea of how much “real money” you’re effectively winning or losing.
If you want the best possible experience when using Bitcoin for the purposes of gambling, it’s important that you take on board all the advice we’ve offered above.
None of it will directly help you to WIN money – as that’s a different subject entirely – but it should ensure that you enjoy yourself and don’t encounter any major issues.