If you haven’t spent the last ten years under a rock somewhere, you’ve probably heard of Bitcoin. But what is Bitcoin, how does it work, how do you get some and most importantly for our purposes here at LCB…
…how do you gamble with it? And how do you collect your winnings once you’re done?
There’s a lot of misinformation and general confusion around Bitcoin because of its techy nature and newness.
If all the questions above seem insurmountable, don’t worry. With our explainer guide, you’ll be an expert in no time and you’ll be playing your favorite slots and casino table games with Bitcoin like a crypto pro.
What is Bitcoin?
Here’s the basics on this totally new approach to currency called Bitcoin:
- It’s a cryptocurrency, which means it’s a kind of currency (money) where computer encryption techniques are used to generate the units and verify their transfer.
- It’s decentralized, meaning there is no governing body like a Central Bank that rules over it.
- It’s anonymous which makes it like cash; just like you won’t find your name on a dollar bill, your personal data is not associated with the Bitcoin you own.
We mentioned coins being “generated”, so what exactly is that? The process of creating Bitcoins is called “mining” but it doesn’t involve digging holes in the ground or splitting rocks.
Instead, computers are used to verify transactions. Interested parties who are called “miners” essentially compete to finish the verification first. Whoever wins, gets a certain amount of coin.
Advantages of Bitcoin
As you can see…
…Bitcoin actually combines the advantages of cash transactions (anonymity, speed) with the advantages of paying online (paying from your home to anyone in the world).
These are all reasons why this currency is spreading fast to online casinos as it allows players to have transactions with the casino which are quick, easy, and if you choose the right casino – even anonymous.
This has massive benefits for those who live in territories where the legality of online gambling is problematic, as casinos won’t be able to verify what country the payments come from.
But even if you live in a totally regulated market…
…Bitcoin still has many advantages:
- Faster transactions, as there are no middlemen.
- Little to no fees.
- No exposure of personal data like credit card or bank account numbers.
So what this means is that because your money goes directly to the casino and then directly from the casino to you…
…it’s like using cash at a land-based venue.
The fees are either non-existent or small, and the transactions are fast because they don’t go through a bank.
How to Get Bitcoin
Now that you read about all the advantages, you’re probably champing at the bit to get some of your own and take your favorite casino game such as craps or blackjack out for a spin with your fancy new Bitcoin wallet.
Let’s see how it all works
The first thing you need is the aforementioned Bitcoin wallet. A wallet is a piece of software that stores your Bitcoin balance. Some wallets are physical (think USB drives), some are offline apps, and some are cloud-based. The choice is yours, based on your needs and desired level of security.
After securing a wallet…
…it’s time to buy, buy, buy!
There are two options when it comes to exchanging traditional currency (pro tip to sound like a dab hand at this crypto stuff: the non-crypto currency is called “fiat money”) for coins:
- Buying with a credit card.
- Or using your bank account.
Exchanges like CoinBase support both but be advised that buying with a credit card is faster.
How to Gamble with Bitcoin
At long last, you’ve got your wallet and it’s full of coin. Now what?
You’ll need to find some online casinos that accept Bitcoin. And wouldn’t you know it…
…here at LCB we’ve made a handy little list of Bitcoin Friendly casinos!
Once you choose a casino all you need to do is make a deposit. This process basically boils down to following instructions at your casino of choice and then sending a payment from your wallet to the casino.
For extra details on that side of the process see our guide on how to deposit Bitcoins.
Once you’ve won something…
…you’ll, of course, want to withdraw it.
This is why it’s important to make sure that your chosen casino actually lets you withdraw in Bitcoin. There are some casinos where cryptocurrencies are only a deposit option.
When you’re playing at a casino that lets you withdraw in Bitcoin, simply go the “Cashier” area, select the amount you wish to withdraw and then choose “Bitcoin” as the withdrawal method. Provide the casino with your public wallet number…
…and you’re done!
The really cool thing is that at most Bitcoin-friendly casinos you will get your winnings within 24 hours which is significantly faster than if you used a bank account or a credit card.
Whether you want to change your winnings back to fiat currency is up to you. Many retailers today support Bitcoin and other cryptocurrencies.
But if you choose to convert it, that will mean a trip back to the one of the coin exchanges we mentioned above.
Bitcoin is an excellent way to bet and gamble online. It’s simple, it’s fast and it’s even more secure because you’re not exposing your personal data to a bunch of middlemen.
There’s a reason why more and more punters are opting for Bitcoin for their casino transactions, and now that you know how it all works maybe you will join their ranks too.