Online gambling has grown to become one of the best use cases for cryptocurrencies. Currently, hundreds or even thousands of crypto-centric casinos offer players with anonymous accounts, instant withdrawals, big winnings, and low transaction costs.
So what is a crypto casino and how exactly does it work? That is what we will be explaining in this article. So, sit back, relax, and read on as we explain everything that you need to know about crypto casinos.
What Is A Crypto Casino?
Crypto casinos are largely similar to traditional gambling sites where players are supposed to create an account, deposit funds, choose their preferred game, and hopefully win big and withdraw their earnings.
Additionally, most crypto-gambling sites even make use of the same games or software that is provided to conventional casinos. These include titles from popular casino solutions providers like Evolution, NetEnt, Betsoft, and Hacksaw Gaming.
However, the differences between the two start to surface when it comes to the way they conduct operations. While regular online casinos require players to go through strict know-your-customer (KYC) verification procedures and transact using legal tender, crypto casinos use cryptocurrencies – which are not considered legal in most countries, to perform transactions such as deposits, placing bets, and withdrawals.
Crypto casinos typically don’t employ a KYC process for onboarding players. This enables these platforms to offer players anonymous gambling accounts where their true identities remain hidden. Another unique aspect of crypto casinos is the speed at which they process payments. Whenever a player wants to withdraw their winnings, they can simply select the option and the casino will complete the transaction within minutes.
This is possible because, unlike conventional gambling sites, crypto casinos don’t depend on payment service providers or banks to facilitate payments. Instead, they deposit supported cryptocurrencies directly into the players’ crypto wallets. Moreover, there are no intermediaries involved in the transactions.
How Does A Crypto Casino Work?
Let us take a closer look at how a crypto casino functions.
Once you have selected your preferred crypto casino, it is time to open an account. Most platforms simply ask for your email address and to set up a username and password. Whereas, on regular online casinos, you are required to legally provide personal information
When depositing funds into accounts on crypto casinos, players can choose from a wide range of tokens. However, this depends on which tokens are supported by the site. Typically, the options include Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether.
Once the player has selected their preferred token, the casino will display a unique deposit address. Players then transfer the funds to that wallet address, which will be credited to their account within minutes.
Crypto casinos offer a wide range of games from reputed casino game providers. These include slots, table games, live dealers, video poker, and sports betting.
- Staking Services
It is difficult to know how much cryptocurrency you are staking in terms of their fiat value. Keeping this in mind, crypto casinos tend to convert players’ stakes into US dollars or other fiat currencies supported by the platform. This way, players can simply type in the fiat value of their stake instead of trying to understand the exact amount in crypto.
The biggest advantage crypto casinos have over their regular counterparts is that they offer automated withdrawal facilities. For this, players will need to provide their crypto wallet address to which the casino will transfer the winnings. The transaction is also hassle-free and takes minutes to be completed.
Pros and Cons of Crypto Casinos
Below we have listed some of the advantages and disadvantages of crypto casinos.
- Offers players anonymity and privacy
- Quick deposit and withdrawal functionality
- Lower transaction cost
- Crypto transactions may seem challenging to beginners
- Crypto casinos can fall into regulatory grey areas due to cryptocurrencies being illegal in most countries
- The crypto market is prone to extreme volatility that can affect the value of players’ token holdings
Types of Crypto Casinos
Here are some common types of crypto casinos in 2024
- Hybrid Casinos
As the name suggests, hybrid crypto casinos accept both fiat and cryptocurrencies as payments. Due to their dealings with legal tender, hybrid casinos usually implement a KYC onboarding process. They tend to be less flexible compared to crypto-centric casinos.
- Crypto-Centric Casinos
Crypto-centric casinos exclusively offer their services in cryptocurrencies. This means they do not accept any form of fiat money deposits. A major advantage they pose is that players need not have to KYC themselves to deposit, bet, and withdraw funds. It offers a level of anonymity and privacy that a lot of online gamblers crave.
What to Keep in Mind When Choosing the Right Crypto Casino?
Choosing the right crypto casino to gamble on is the most crucial part of the gaming experience. Here is a list of things that you need to consider when on the lookout for crypto gambling sites.
- Security and Licensing
Although some crypto casinos are unregulated, most are licensed or registered in jurisdictions where gambling is legal and regulated. It is important to go with crypto casinos that are licensed and legal.
- Game Variety
Check what games are available in the crypto casino. Most online gambling sites have slots, video poker, and sports betting. Do consider checking which software the casino employs for its games.
One way to increase your gambling bankroll is by making use of bonuses. Online casinos entice users by promoting their bonuses. Therefore, prioritize platforms that offer a generous welcome package and have fair betting terms.
- Accepted Crypto
When choosing the right crypto casino, also consider what cryptocurrency you want to deposit, gamble, and withdraw in. Most casinos support BTC, ETH, LTC, USDT, and DOGE. However, the recommended option would be USDT since it is a dollar-denominated stablecoin that is less volatile than other crypto assets.
- Customer Support
Customer support is a key part of the playing experience. Most crypto casinos accept players globally and have made available 24/7 customer support portals like live chats to assist users.
Also Read: Best Crypto Trading Signal Providers in 2024