Legal Ethereum Gambling In The United States

Ethereum is a public blockchain network, much like Bitcoin. However, there are some differences (explained more in detail below). Within the Ethereum blockchain exists a tradeable currency known as Ether. This currency is independent, meaning it Is not regulated by any bank or third-party institution. Its blockchain hosts various smart contracts that can be used to develop decentralized applications and functions.

Ethereum gambling works just like any other type of online gambling. Bettors create an account and deposit Ether. Once they have an active account balance, they can play various online casino games, poker and place bets on sports at licensed offshore destinations that accept cryptocurrency deposits. When gamblers are ready to make a withdrawal, they can request one through the site’s banking suite.

After acquiring Ethereum, you’ll want to store it in a digital or hardware wallet. Digital wallets are online services where you can store digital currencies. These come with unique private wallet addresses that are entered in when attempting to send or receive Ether. Since each transaction ID is unique, you can rest assured your transactions are safeguarded. Hardware wallets are the most secure option and require you to store your Ethereum on an external hardrive or USB drive. The only risk with this is if you lose your hardware wallet, you lose all your Ethereum.

So, after you have purchased Ethereum and have it stored in a wallet, you can safely make transactions with licensed Ethereum gambling sites. Simply navigate to the Cashier page, select the Ethereum option, enter in how much you wish to deposit or withdraw and then enter the digital wallet address prompt. Once the information has been confirmed, your transaction will process. Most transactions are processed instantly.

You can also see our other altcoin guides that detail how to fund an account with Dash, Bitcoin, or Litecoin.

Bitcoin was developed for one purpose—peer-to-peer digital currency exchange. While this service exists on the Ethereum blockchain, there are a lot more capabilities with Ethereum than Bitcoin. One key difference comes down to scaling. Bitcoin block sizes are limited in size—a problem developers have worked to address—meaning that only so many transactions can be processed at a time. Ethereum does not have this same problem. With the capability to process more transactions, there will be much less of a delay with Ethereum transactions versus Bitcoin.

Perhaps the most significant difference is the use of smart contracts, which are blocks of computer code used to carry out a function. In this case, a smart contract would facilitate the exchange of money between the user and gambling site. Only certain online casinos operate on the Ethereum blockchain. In these cases, smart contracts would be developed between parties. In most Ethereum gambling sites, a digital wallet is used.

There are several advantages in using Ethereum to fund your online gambling. Transactions are processed much faster because there is no additional verification required from regulatory financial agencies. Ethereum users also do not have to lose any of their winnings to transaction fees. Since Ethereum is decentralized, there are no third party groups that can claim a percentage of your transactions. Another advantage is that most online gambling sites offer cryptocurrency-exclusive bonuses for bettors. Bonuses help extend your online gambling bankroll free of charge and are a special feature of offshore sites. These crypto-exclusive promotions show how online gambling sites are beginning to embrace digital currencies more and more.

An advantage to look out for in the future is the smart contract capabilities. Eventually, online gambling sites will exist solely on the Ethereum blockchain. These types of sites could have special features unique to Ethereum users, similar to Bitcoin’s Provably Fair technology. As the digital currency market expands, and Ethereum continues to rise in popularity and applicability, more applications will be developed that could reshape the online gambling landscape.

Yes. Ethereum gambling is safe. Digital wallets utilize unique transaction IDs that change with each use. This prevents hackers from gaining access to your information. Also, online gambling sites employ their own security protocols that safeguard your personal information. Cryptocurrency transactions are different because no financial information is stored with the gambling site. You simply enter in the amount of Ether you wish to deposit/withdraw, the wallet address and you’re done.

You can do this in several ways. The most popular is to buy Ether directly from a digital currency vendor. Coinbase is one of the most well-known alternative currency vendors on the market. Another way is to purchase Ether from a private seller. You could also mine Ether by developing apps on the blockchain, but this a more technical route. Most online gamblers utilize merchant providers.