Bitcoin Gambling Guide
Bitcoins are increasing in popularity as a banking option with US gamblers and gambling websites. In some cases, Bitcoins are actually the best banking option on the market for US players. Gamblers from other countries should also seriously consider using Bitcoins for their gambling purposes. If you are a newbie to Bitcoins, this guide is for you. Bitcoins operate slightly differently from other currencies and those differences will be explained on this page. Even if you are familiar with how Bitcoins work, you will also find some useful info here.
If you are currently using Bitcoins, we will examine the best sites to use them on and we will also look at the advantages and disadvantages of using this currency. We have a list of sites below and you can click on any link to get a detailed review of the services they offer. All sites on this list have been carefully vetted with fairness and integrity being central in our analysis. So if you want to start playing today, just click on the link and get going.
Using Bitcoins for Gambling Deposits and Withdrawals
We will start from the very beginning. The most popular questions from newbies about Bitcoins are:
What are Bitcoins? How do they work?
When you think of Bitcoins, think of them as a currency that is independent and not linked to a government or country. It is considered a “peer-to-peer” digital currency. This means that there is no physical currency like cash or coins. It is also a “cryptocurrency” which means that it is encoded.
This is used as a payment method between digital users. This payment method is fairly new and first made its appearance on the internet in 2009.
Bitcoins are mined similar to silver, gold and other precious metals.
However, when bitcoins are “mined”, no shovels, axes, picks or wheelbarrows are used.
A public ledger is used to track processed payments and rewards are given with Bitcoins that are newly-created. The fees generated from the transaction using the digital ledger are used to pay for the Bitcoins. This procedure is referred to as “mining” and as a result, extra coins are created.
Every 10 minutes a block of Bitcoins are created. Initially, one block contained 25 Bitcoins, but since last year that has been reduced by 50%, with each block now containing 12.5 Bitcoins. Bitcoin blocks will be periodically cut in half on a continual basis until 21 million Bitcoins are mined, which is expected to happen by 2040. Bitcoin’s value, similar to other currencies, is determined by supply and demand. One Bitcoin is valued at $824 as of the writing of this guide, but in the past, they have reached values over $1,000. When they first came out in 2009, for only $27, you could purchase 5,000 Bitcoins.
If you are using Bitcoins as an investment vehicle, it should be noted that they are volatile. You should only use a small portion of your discretionary investment money to invest in Bitcoins at this time.
When we say volatile, what do we mean? The value of Bitcoins can fluctuate drastically and often without reason.
How volatile can they be? The price of a Bitcoin plummeted 50% overnight in 2009.
Keep in mind that the value of Bitcoins can fluctuate when making deposits or withdrawals at gambling websites. In some cases, that could give you extra funds for gambling. When you decide to convert Bitcoins into a different currency that might also be a gamble on its own.
Best Places To Buy and Sell Bitcoins
Similar to other investments, exchanges are used to buy and sell Bitcoins. (Exchanges are marketplaces set up for investment vehicles). There are a number of Bitcoin exchanges.
The process is similar to the one used by Scottrade, the online stockbroker. You basically set up an account and include a method of payment such as a checking account or a credit card. Once that is set up, you can now buy and sell Bitcoins similarly to how you would for company stock.
However, there are other ways that Bitcoins can be bought and sold.
Keep in mind that Bitcoins are currency, similar to dollars. You can use that physical dollar towards any purchase. You can also exchange that dollar for 4 quarters. Bitcoins can be used the same way. Because they are a digital currency, you have to keep them in an online wallet such as PayPal. The person you are selling to or buying from will also have to set up an online wallet. Most Bitcoin exchanges provide wallets, however not all do.
This is exactly how payments from online casinos are made. They deliver Bitcoins of your winnings directly to your online wallet. When you make a deposit with Bitcoins, you are actually transferring the digital currency from your online wallet directly to the casino’s online wallet.
When choosing an online wallet, go for one that is easy to use and that provides backups. Bitcoins are really complex pieces of code and if you lose that code or don’t back it up properly, you might lose your Bitcoin access permanently. With a wallet that automatically creates a backup of your Bitcoin is a huge advantage and protects you against losing your Bitcoins.
Buying and selling Bitcoins between individuals is problematic due to the chargebacks. A chargeback occurs when an individual sends a claim to a credit card provider stating that they purchased an item but didn’t get what they paid for. Most credit card companies reverse these transactions.
If you get payment from PayPal specifically for Bitcoins, you could potentially get chargebacks from PayPal if the other person files a claim. Only exchange funds in this manner with someone you know and trust. Check out Coinbase.com for their detailed guide of the wallet services on the market. They also provide a list of the advantages and disadvantages for each listing. These wallets have interesting names, such as:
• MultiBit HD
The majority of gambling websites and online casinos use Bitcoins and provide deposit and withdrawal wallet services. For instance, the Bovada website lists a few options.
The Best Gambling Websites For Bitcoins
If you look carefully at the pro and con sections, we have listed some websites that are Bitcoin-exclusive and some that aren’t. Therefore you get the best of Bitcoin gambling websites in two categories.
We recommend going to gambling sites that have Bitcoin among a number of deposit and withdrawal services. That way you eliminate the rogue sites that operate without oversight or licensing.
The following sites fall into this category:
These kinds of sites convert the Bitcoin deposits into a regular currency. Say you deposited one Bitcoin; you would have an equivalent of $824 in standard currency to use. Every transaction is then done in dollars. At cash out time, the dollars are then converted back to Bitcoins at the current market rate.
Bitcoin Gambling Games and Availability
Gambling games availability and activities that use Bitcoins are identical to those for others players who use different payment methods. Websites like Bovada that use Bitcoin will not have limited game options if players choose to play using Bitcoins. This means that if you decide to use Bitcoins as a payment method, you will be able to find gambling sites that accept this payment method. Online gamblers can use Bitcoins to play online casino games such as slots and blackjacks. You can also use Bitcoins to play against other players in games like Stud, Texas holdem and Omaha poker. Bitcoins can also be used to bet on sporting events.
When considering a gambling site, be sure to check out the available activities before signing up. For instance, if you live in the US, but you want to bet on sporting events or play blackjack, Bovada is a great choice; however, Texas holdems games are not available. If you are looking to play blackjack or Texas holdem, a good choice is Ignition Casino, but sports betting is not available on this site.
Bitcoins are a game changer in the currency market and they are totally digital. Because of its volatility, another level of excitement is added to gambling. Since it is anonymous, US players can get around the UIGEA. Many online gambling sites now accept Bitcoins as a deposit option. There are some sites that only deal with Bitcoins. As we mentioned earlier, we recommend websites that have Bitcoins as one of the payment options. If there is one important thing that you should keep in mind, it is this:
Only do business with trusted websites, particularly the gambling ones that accept Bitcoins as a method for deposit and withdrawal. The recommended sites listed by us can be trusted as we have vetted them and they are also safe places to use Bitcoins.