Digital currency has had some good fortune in the past few years as different coins experienced a surge in value. Bitcoin has been the most successful, with its value reaching record-highs in 2021. The increasing demand for cryptocurrency has made the payment option a viable alternative in various sectors, includes online gambling. Using digital coins at online casinos, sportsbooks and poker sites is slowly becoming accepted practice. Now gamblers have a decent selection of gambling sites where they can pay with different digital currencies, not just Bitcoin.
Gaming and betting with cryptocurrency come with its advantages, like fast processing times and low fees. However, one concern among gamblers, whatever the payment option, is how safe it is. Crypto gambling, although growing dramatically popular, is still relatively novel. So, it’s not surprising that some people are wary about jumping in right away. Knowing what kind of security to expect when betting with digital coins is merely good practice. Therefore, this piece attempts to look at how safe gamblers are when paying with cryptocurrency for iGaming.
The Regulation of Crypto Operators
Any gambling expert and article out there cautions against playing at unlicensed gambling websites. Whether you are betting on sports, casino games or poker, the site you choose should be regulated. When it comes to gambling with digital currency, though, the issue of regulation becomes a little tricky. Cryptocurrency is illegal in some countries. For that reason, gamblers in such regions might not be able to bet with digital coins, even if online gambling is legal. Various governments are still struggling with the regulation of crypto because they don’t consider it legal tender. Therefore, gambling operators that accept Bitcoin and altcoins don’t need to be registered with any licensing body.
However, with more operators now supporting digital currencies, some jurisdictions, namely the UK and Curacao, regulate crypto sites. Although Bitcoin operators don’t need gambling licenses to run, users should still ensure that they only use regulated websites. Regulation means that a gambling platform has to satisfy a set of requirements that include consumer safety. Gamblers can be sure that an independent authority is watching out for their interests, hence they don’t have to simply take an operator at its word. You can look up Bitstarz on casino.guide for an example of a regulated crypto gambling platform.
Decentralised Payments
One advantage used to sell crypto as a gambling payment is the additional safety it provides compared to fiat currency. By design, digital coins are safer online payment methods than conventional ones. Cryptocurrency runs on blockchain technology where transactions are recorded on a public ledger. Each payment is encrypted and has to be verified at separate points. Thus, users are confident about the security of transactions. Blockchain is decentralised, meaning that no third party is involved in processing payments. Governments, central banks, and financial institutions don’t have any input about what happens on the network.
Participants are responsible for verifying data blocks. The absence of a third-party authority means that currency holders can make payments without leaving a trail. Some gamblers like to keep their activities private, and cryptocurrency affords them that. You can play at an online casino without worrying about payments showing up on your credit card bills or your bank account. An important note, though. Digital coins are not as completely anonymous as many users perceive. With the right resources, it is possible to figure out crypto transactions.
Paying at Gaming Sites
Another aspect of safety that cryptocurrency offers to gamblers is apparent during the payment process at a casino or bookmaker. With some fiat currency options, customers are required to provide sensitive information like credit card details. Linking your online bank account to a gambling website also poses security concerns. You don’t have the same problem with digital currency. When depositing or withdrawing, you only need your coin wallet address and the operator’s address. The site generates a unique address for each user. These keys are private and lengthy, which makes them difficult to decode. Paying with digital coins eliminates the risks associated with supplying personal data on websites. Identity theft, phishing scams and ransomware are some of the main threats that online bettors have to worry about.
Provably Fair Gaming
Online gambling safety doesn’t revolve around financial transactions alone. The products have to be safe as well. A trustworthy casino or sportsbook should offer provably fair gaming. What does this mean? With crypto gambling gaining popularity, it became necessary to ensure that games were transparent. Provably fair gambling uses an algorithm that allows players to verify the randomness of results in real-time. Since blockchain networks, anyone can access the code used to build any systems on the blocks.
The provably fair algorithm works by generating an encrypted key that is sent to a player to verify the results of a specific game. These cryptographic hashes are long strings of numbers stored on the blockchain and are considered unhackable. Therefore, players don’t have to fret about manipulation. Provable fairness establishes trust between the operator and gamblers without relying on a third party. For this reason, always check if a website indicates provably fair games.
Looking at how cryptocurrency works, it’s clear that it provides safer payment options than fiat currency. However, that’s not to say that digital currencies are impenetrable. Gamblers should be aware of the risks of wagering with digital coins and take the necessary measures. Just because crypto has a high level of security doesn’t mean that you should neglect standard safety protocols when gambling online. Stick to reputable and regulated platforms, especially the ones that provide two-factor authentication for accounts.