Comprehensive Guide to Secure Depositing with BitCoin
Depositing with BitCoin Casinos: The true pros and cons of this digital alternative to centralized banks and credit cards.
Choosing the right deposit method for your real money online casino adventures can be tricky. There are so many options available, it’s not so easy to pick one these days. Credit cards, debit cards, prepaid gift cards, bank transfers and eChecks, and more web wallets than you can shake a craps stick at.
These are the same options that have existed since the turn of the century. But there’s one other alternative you’ve probably heard of in the last few years. I’m talking about depositing with BitCoin.
What are BitCoins and Blockchains?
BitCoin is a digital currency, (a.k.a. crypto-currency) that operates on a secure blockchain system. A blockchain is a digital ledger that maintains a chronological record of all transactions made it BitCoin and other digital currencies. The blockchain is imperative, since there’s no physical cash or collateral to back them up.
The payment network is open source, and operates without any central authority (i.e. no government regulation), which means no one controls it. Everyone all over the world can buy and sell BitCoin. It’s most often used to make payments over the internet. However, more and more land-based businesses, such as large chain hotels, are accepting it, securing its lasting position in the global marketplace.
Security of Depositing with BitCoin Casinos
The biggest difference between BitCoin and all the other aforementioned payment methods is the anonymity of your personal and financial information. How important is your anonymity? Well, that really depends on what type of player you are.
When utilizing BitCoin casino deposits, you’ll only supply that sensitive information one time – when setting up your BitCoin eWallet. This is critical for the overall security of a player who bounces around from one online casino to the next.
If you’re the loyal type who plays at one casino, and one casino only, it won’t matter. So long as that casino is a highly reputable one, sharing your financial information one time, with the casino, is equally safe.
If you happen to be playing from a jurisdiction where online gambling is illegal, such as the US, BitCoins anonymity can give you access to online casinos that you otherwise could not join. For high rollers, avoiding gambling taxes is another common reason for depositing with BitCoin.
With that said, we’re going to talk more about using BitCoin at online casinos, and how it’s contributing to the overall security of the online gambling industry. We’ll go over the advantages, and the disadvantages, because no payment processor would be complete without a few of those.
Advantages of BitCoin Casino Deposits
The largest advantage is the level of anonymity that BitCoin deposits supply. As said above, you’ll never share any banking details with the casinos you deposit at. However, it’s not as anonymous as some websites claim. You will supply financial information to set up a BitCoin wallet and address. Plus, the blockchain ledger is public. If your BitCoin address is known to others, your purchases can be easily tracked. Bitcoin actually recommends using each address only once for maximum security. Fortunately, there’s no limit to the number of addresses a user can open.
Another benefit is that BitCoin deposits and withdrawals are guaranteed. Once issued, they cannot be reversed, and they don’t require any bank’s approval. This protects the casinos from fraudulent chargebacks, and allows users to withdrawal funds anytime, even on weekends and holidays.
Finally, at exclusive BitCoin casinos, bets can often be placed in BitCoin. A single BitCoin can be broken down into 100 Satoshi, or 1,000,000 Bits. The advantage here is micro-sized wagers lower than any fiat currency can provide; as little as $0.002. As such, a recreational gambler can get maximum entertainment out of the experience, sustaining a small bankroll for much longer than they would betting with traditional money.
Disadvantages of BitCoin Wallets
The BitCoin website supplies some very enlightening information that you should definitely read if you’re considering opening a BitCoin Wallet. They call it, ‘Some Things You Need to Know‘, and it will explain all of the common pitfalls of novice Bitcoin adopters. I’ll detail the most important ones below.
The security of a BitCoin Wallet is dependent on the user. You are responsible for its security. You can choose to utilize two-factor authentication (highly recommended!), the network that stores your BitCoin wallet (be selective!), and whether to use a new Bitcoin address for each purchase. Read the link above for more info, and you’ll be able to make smart decisions in these areas.
You also may have noticed that the value of BitCoin is highly volatile. This is because it’s still a relatively new payment network. Its novel nature is subject to high fluctuation; similar to investing in a startup business. It may soar, plummet, or remain stagnant for long periods of time.
Consider this – in 2010, 1 BTC was worth US-$0.07. Three years later, its value rose above $100. In 2017, it reached $1,000, skyrocketing from there to over $19,000 in December. As wonderful as that sounds, it bombed in January, dropping to just over $10k, then declining further to $7k in February, and back up to $8.6k today.
Early adopters may have profited well, but BitCoin comes great uncertainty. From an investment standpoint, it is very high risk. Unless that’s your goal, do not purchase large amounts of Bits and store them in a wallet for any long period of time. To protect its value, you should buy only what you’re going to use at Bitcoin casinos, make your deposit, and be done with it.
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