Cryptocurrencies have no doubt transformed the world in many ways, and the online gambling sector is no different. It is most likely one of the sectors that have seen a dramatic change because of cryptocurrency, and the trend is only going to continue.
Casinos like Amazon Slots Online are at the forefront of technological advancement in the gambling sector, offering new and improved digital payment options and evolving game technology. If we look closer at the payment factor in the online casino world, there are two main cryptocurrencies that seem to stand out, Ethereum and Bitcoin. It comes as no surprise as they are also the two most traded cryptocurrencies on the crypto market as can be seen by the volume on exchanges.
Before we dive into why casinos and their clients might prefer to use cryptocurrencies over traditional fiat currencies, it’s a good idea to list some attributes that define cryptocurrencies.
How is Cryptocurrency Transforming the Gaming Industry?
The payment system of cryptocurrencies runs on what is called a blockchain, it’s basically just a digital ledger keeping track of who owns what, like a ledger at a bank. But in this case, the ledger is maintained by participants (sometimes referred to as “miners”) across the world that run special computers to keep the ledger up to date, they are incentivized to do so by earning transaction fees.
The result of all these millions of people competing for transaction fees is that you get a very secure and well-maintained ledger and payment system without the need for a centralized governing body. A payment system for the people by the people. It cannot be shut down or manipulated by any government or single entity and is one of the big reasons it has gained popularity, besides the fact that any transaction made on a blockchain is immutable and cannot be altered or changed.
Furthermore, any individual can make or receive transactions on the blockchain without needing to divulge any personal information to anyone.
Casinos & Crypto
Taking the above attributes of the blockchain into consideration you might already see where this is going. Since payments can happen across borders instantly and without the need for high bank fees and slow transactions, not to mention the fact that you don’t need an ID card, social security number, or bank account to make payments to an online casino, you can see why this is a very attractive payment option for both the casino and the client.
People are reluctant to use their credit cards online when having to make payments, and rightly so, there is a bunch of sensitive personnel information that can be subject to theft, which can lead to financial losses as well as identity theft. By using cryptocurrencies as a payment method, the clients not only have the peace of mind that their personal information is safe, but also the process is much faster.
So How Does It All Work?
Clients will have to acquire cryptocurrencies first before they can make use of the payment option, this is done through a crypto exchange. This is where the user will need to have a registered account with a given crypto exchange to buy their desired cryptocurrency after making a deposit at the exchange using fiat currency from their bank account.
Most crypto exchanges do require some form of identity however in most cases far less than is required to open a bank account. Once the user has received the cryptocurrency from the exchange and deposited it with an online casino the withdrawals from the casino can be made via the same method, and again a bank account is not needed between the casino and the client.
Is It Safe?
If done correctly, cryptocurrency payments can be much safer and more secure than traditional banking systems, not to mention incredibly fast and cheap compared to cross-border bank payments. In most cases when you hear about stolen crypto funds it is often an oversight of the user other than the payment system itself being at fault.
People should always familiarise themselves with certain pitfalls when making use of crypto wallets, especially when using them on mobile devices, so-called “hot wallets” that are used on mobile phones can often be subject to security vulnerabilities. It is always advised to make use of hardware crypto wallets where ever possible.
Opening New Doors
Cryptocurrencies offer new and exciting ways for developers and users to interact with casino gaming platforms and new crypto-only games are fast rising. Since crypto payments are anonymous and borderless it has also opened the world of online gambling to a whole new user base. Designed for people that would otherwise not have access to online gambling either because of regulatory laws in certain countries or due to users not having access to traditional banking systems.
Many casinos will also offer attractive bonuses for clients that make use of crypto as a payment option, and they will gain access not only to the regular games on offer but to the crypto-only games as well.
It will not only be the clients that have an improved user experience but the casinos themselves also prefer this payment method. This is because a third-party financial partner is not needed and does away with many headaches associated with being involved with banks, including first and foremost bank fees and transaction times.
The Final Word
In closing, the future of cryptocurrencies especially Bitcoin as a payment system is shining bright and we can only expect online casinos and betting sites to continue making use of this new technology. The ease of use as well as the user interfaces will only be improved upon as this fast-paced industry is ever-growing and evolving. We see a future where making payments to online gambling sites and casinos becomes the norm as people are fast adopting it for its obvious benefits.
Cryptocurrencies are clearly here to stay and getting up to speed with the payments systems, different wallets, and how to use them as well as the security practices when using crypto payments will only be beneficial to online gamblers new and old.