Frequently Asked Questions Pertaining Bitcoin And Gambling
Bitcoin can be quite confusing to someone who is unfamiliar with crypto-currencies. Our FAQ section below answers some of the most common questions related to using Bitcoin in general. We also answer questions related to the legalities of gambling with Bitcoin in the United States. When all is said and done you should have a general understanding on what Bitcoin is and how to use the crypto currency to gamble online safely.
What Is Bitcoin Gambling?
The first thing to do when gambling with Bitcoin is to understand what Bitcoin is. It is a digital currency form that was created exclusively for the online marketplace. In regards to online gambling, users can send coins from their digital wallets to one of the legal bitcoin casinos we recommend and have instant access to their funds. Bitcoin is the leading cryptocurrency and online gambling sites encourage the use of it on their sites for several reasons. Think of Bitcoin as a sort of digital cash—Bitcoin transactions are very similar to cash transactions.
How Does Bitcoin Work?
Bitcoin operates on a peer-to-peer network. It is decentralized, meaning there is no regulatory oversight provided from a third party bank or financial institution. Bitcoins are generated through computer hardware in a process known as mining. They can be purchased from a digital currency vendor with a debit or credit card and are then stored in your digital wallet. Each digital wallet comes with its own unique address. When issuing a transaction, your Bitcoins will be sent through the blockchain, which is essentially an electronic ledger monitored by Bitcoin miners. Once a minor verifies your digital signature your transaction will be approved and the Bitcoins delivered to their destination. There are only so many Bitcoin transactions that can be processed at one time, so miners are working constantly to keep the flow moving.
How To Get Started Using Bitcoin To Bet Online
You will first need to procure a digital wallet before being able to engage in Bitcoin gambling. This can be done free of charge through several different providers. Coinbase and blockchain wallet are popular examples of a digital wallet. There are also peer-to-peer exchanges and Bitcoin ATMs. If you are purchasing on a peer-to-peer exchange, be sure to do so through a reputable dealer. The next step is to send your Bitcoins to your digital wallet using the unique address given to each wallet. Once the Bitcoins are in your wallet you can navigate to the Cashier section of your online gambling account. Enter in how many Bitcoins you want to send over and then input your digital wallet address and signature so the transaction can be verified.
Is It Legal To Bet With Bitcoin?
Yes. As we mention many times throughout our website, online gambling is perfectly legal in the United States. The UIGEA monitors banks and other financial institutions and how they process online gambling transactions, but it does not make online gambling illegal nor does it or any of the other gambling laws target individual bettors. Since the cryptocurrency is unregulated, there is no central authority governing Bitcoin betting. This independent status is part of what makes the alternative currency form so attractive to bettors and online gambling sites.
Is Bitcoin Safe To Use?
Much like all digital transactions, Bitcoin is encrypted. This encryption protects your information from hacks or breaches. Aside from your digital wallet and signature, no other personal information is required for a transaction. As a Bitcoin user, online gambling sites will not store any of your personal information (aside from what you disclose to make your account) attached with any Bitcoin information. Experts suggest you use a downloadable wallet instead of an online one to prevent risk. Also, a new wallet address will be generated for each new transaction, eliminating the possibility of someone getting a hold of your digital wallet address. Bitcoin betting sites also incorporate their own security protocols, including data encryption and SSL (secure sockets layers) to protect you online.
Bitcoin Deposits & Withdrawals
Most reputable online gambling sites encourage the use of Bitcoin gambling. It is usually the cheapest option since there are no additional fees from banks or other financial institutions. The technology behind the currency helps keep it secure, especially when coupled with the online gambling site’s security measures. It is also the fastest deposit and withdrawal method—have access to your funds and receive your payouts faster than any other method.
As with any other deposit method, there are often limits that users must adhere to. For example, Bitcoin gamblers may have to make a minimum deposit of $20 and maximum of $10,000 per transaction. For withdrawals, it is common for users to only be able to request up to $9,500 per transaction. Processing time depends on how clogged the blockchain is, though users have the option of paying fees to increase their transaction processing time. Most payouts will hit your digital wallet within an hour of requesting the payout. All Bitcoin deposits and withdrawals are handled in the Cashier section of your online gambling account.
Converting Your Bitcoin Payout Into Fiat Currency
We've just touched on some of the basics in using Bitcoin so far, but one question we got from a user was what to do after they've received a payout into their Bitcoin wallet. Basically the user was sitting on some bitcoin, but she wasn't sure how to actually convert the BTC into USD dollars.
There are actually several different options for turning your Bitcoins into cash. One is Coinbase which we touched on earlier. While it acts as a wallet, it also fascilitates transactions to and from your bank account. So whether you want deposit funds and purchase bitcoins, or you want to sell bitcoins and send the proceeds back to your bank account, Coinbase is the medium.
Another option would be to use a Bitcoin ATM card. One of the most reputable options is Bitpay. Once you open an account and receive your debit card, you can then load funds onto the card using Bitcoin. And once the funds are loaded you can proceed to use the card just as you would any other debit card including store transactions, ATM withdrawals ect..
So when it comes to collecting your winnings after a nice score, you can literally have cash in hand the same day by loading your bitcoin winnings onto your debit card, then going to the ATM and taking out cash.
What Are The Benefits Of Using Bitcoin To Bet Online?
Convenience is arguably the best benefit available for Bitcoin online gambling. The cryptocurrency will always be a viable option for both deposits and withdrawals, no matter your location. Bitcoin is also the fastest method available for deposits and payouts. The lack of transaction fees is a bonus for frequent online gamblers, as those fees can rack up fast. Most online gambling sites offer Bitcoin-exclusive bonuses to further incentivize use of the virtual currency form. Anonymity is a benefit cherished by online gamblers. This helps to safeguard your identity online. Lastly, security is a primary benefit of Bitcoin online gambling. The data encryption and unique digital wallet addresses prevent theft. With convenience, speed, anonymity and protection, it is no wonder why Bitcoin has grown so popular in the online gambling community.
Is Bitcoin Betting Fair?
Yes, as long as you are only betting at a legally sanctioned, licensed Bitcoin gambling site. The Bitcoin gambling sites that you see recommended in this guide all possess compliance certifications that verify their fair gaming practices and their RNG technology. Random Number Generators ensure genuine randomness in game results, and are also used in the digital games found at land based casinos. The same type of technology is used at poke sites as well. Sports bets are a completely different type of animal, and don't require RNGs. You can find a list of legal bitcoin sports betting sites here.
What Does Provably Fair Gambling Mean?
Bitcoin gambling destinations are integrating a unique technology known as Provably Fair. This system allows users to verify if their bets were interfered with or not. Provability works using cryptographic hash functions that are assigned to each bet. Bitcoin gambling sites create a seed number for the bet being placed. This seed is hashed out and sent to the player. The player will then add their own seed before the bet processes. After the bet is over, the player will receive the seed used. Players can rest assured their bet was not tampered with if all the seeds match. These seeds will be unique to that specific bet, so it is impossible for any interference to take place without altering the hash value. This function allows players to verify their bets in real time. The technology is relatively new and is still in the process of being introduced, but more and more sites are beginning to incorporate the new feature.