Online gambling experienced a renaissance at the same time as cryptocurrencies bursted on the financial scene. But, while everyone has a general idea of what online gambling is all about, cryptocurrencies are still surrounded by a veil of mystery, and yet we can’t stop talking about it.
Whether it be Forbes, CNN, or a work colleague, it seems that everyone has an opinion about cryptos. After all, they are becoming so popular, that many online casinos offer them as a valid payment method, equal to more traditional ones like bank wire or credit cards. You can find top Ethereum casinos online, but if you want to learn more about the best cryptocurrencies for gambling, make sure to keep reading.
What Are Cryptocurrencies?
Cryptocurrencies, also known as cryptos or altcoins, are an alternative to traditional fiat currencies. The best way to think of them is as a digital money currency as they don’t have a physical form (even though they have a “coin” in their name). Cryptos exist online, and the only way to know who owns how many cryptos is via blockchain. A blockchain is a distributed ledger that tracks transactions.
Cryptocurrencies have no central authority or a bank that has to authorize the transaction. It is a peer-to-peer currency, which means that the only parties involved in the transaction is the person sending coins, and the person receiving coins.
Nowadays, there are over 5,000 types of altcoins available, with a total market capitalization of $201bn. Still, only a few of them are worth your time and money, especially if you plan to use them only to play in your favorite online casinos. Most online casinos support only a few cryptos, and not all 5,000.
How to Use CryptoCurrencies for Gambling?
Using a credit card or e-wallet has been an essential part of our everyday lives for decades, so there are no second thoughts about them. But how to make a deposit with cryptocurrencies in online casinos?
After finding a suitable casino, that not only supports the cryptocurrency of your choice but also has a proper license, clear and concise terms and conditions, and offers a variety of games, you will have to do as follows:
- Create an account with a crypto wallet. There are many brands available online, and some support more, and others just a single altcoin.
- Verify your personal information by delivering the requested documents. This is an important step that will enable you to do transactions.
- Buy a cryptocurrency of your choice. You can do so on special cryptocurrency exchanges.
- Go to the deposit page of your online casino and choose the cryptocurrency of your choice, type in the amount you wish to deposit, and submit.
- The deposit should be almost instant. Now you can enjoy all your favorite games.
As always when doing transactions online, make sure to do business only with safe e-wallet providers and crypto exchanges.
Top Cryptocurrencies for Gambling
Cryptocurrencies have been considered unsafe, unreliable, and even illegal for a long time, mostly due to the fact that they can be somewhat difficult to understand, especially as we are surrounded by traditional currencies at all times. But, the online casino industry was one of the first to see the full potential of cryptos. Just like many other innovations, the gambling industry welcomed altcoins from the very start. The number of online casinos offering deposits, playing, and withdrawal in cryptos is growing each day, and it seems that the growth of crypto casinos won’t slow down anytime soon.
If you are looking for a cryptocurrency to use in gambling, check out our favorites!
Bitcoin (BTC) is for many synonyms for cryptocurrencies. No wonder, as it was the first cryptocurrency ever. Created in 2008 by Satoshi Nakamoto, it remains the most popular digital currency all over the world. It is very exciting for many, as it can be exchanged for fiat currencies, rewarded for crypto mining, and is more often than not, considered the most reliable and trustworthy cryptocurrency on the market. Some even claim how 50% of all cryptocurrency transactions involve Bitcoin.
Bitcoin is widely available as a payment method in many online casinos, both mainstream ones and those specialized exclusively in crypto transactions. Bitcoin has a strong presence on all continents and in more industries than any other crypto, so it is fair to say how it won’t disappear anytime soon. Also, due to its longevity, it is becoming recognized as a “real” currency by regulatory authorities all across the globe.
The fact that is becoming more mainstream than ever is also a sort of burden on Bitcoin. Some former Bitcoin fanatics claim how it is on its way to becoming something between crypto and fiat currency. Also, Bitcoin prices are extremely high, and most people find it hard to afford even a fragment of it. In December 2017, Bitcoin reached its all-time high – $19,783. In 2020, however, the price is closer to $6,000, but still higher than average crypto price, especially considering how in May 2010 it was worth less than $0.01.
Ethereum (ETC) is another cryptocurrency that is gaining in popularity. It was created later than Bitcoin, in 2015, when a Russian-Canadian programmer Vitalik Buterin introduced a new concept of blockchain protocols. The main innovation was that Ethereum utilizes the data movements as well, but not only in financial transactions like Bitcoin does. Ethereum platform allows all users to create and participate in contracts. Basically, it is used as a modified and updated version of Nakamoto’s consensus. Ethereum platform generates cryptocurrency called Ether, but these two are often used as synonyms.
It is believed how each day 100 000 new accounts are opened, and a new Ethereum block is created every 14 seconds. At launch, there were only 72 million Ethers in circulation, and nowadays 18 million Ethers are mined every year.
Ethereum fans prefer it over Bitcoin as it is slightly less volatile and has more potential to be sustainable in the long-term. Also, all transactions are executed within a few seconds, which means the money can be transferred from your crypto wallet to the online casino wallet within less than a minute. On the other hand, the fact that more Ether can be produced at all times could significantly limit the maximum price, which makes it less than ideal for long-term investments.
Litecoin (LTC) was one of the very first cryptocurrencies that emerged on the market after Bitcoin. Launched in 2011 on Github by Charles Lee (a Google employee) it quickly became a popular choice among those looking for alternative payment methods. Modeled after Bitcoin (as almost any other crypto), some consider it to be the perfect copy: all transactions are stored on a common ledger, in the form of mathematical equations.
However, there are two important differences between these two altcoins: Litecoin’s blocks are much smaller and can be created much faster. In fact, Litecoin aims to generate a new block 75% faster than Bitcoin, which is rather impressive.
When it comes to online casinos, Bitcoin is still represented more frequently, and it may take some time and effort to find Litecoin casinos.
Dash was first known as Xcoin, and then as Darkcoin. It is a peer-to-peer open-coded cryptocurrency, created by Evan Duffield in 2014 as a fork of the Bitcoin protocol. Now, it is a DAO (decentralized autonomous organization) run by a group of users (master nodes). In April 2018, Dash’s market capitalization was around $4.3 billion. It is considered to be one of the top 10 currencies in the world.
The main feature that put Dash in front of other currencies is that it is very user friendly and easily accessible. In 2020, the average price of one Dash coin was on average $100. The main disadvantage is that it is not frequently featured in online casinos, unlike Bitcoin and Ethereum that are available in most of them.
Ripple (or XRP) was first only just an idea that popped up in the mind of developer Jed McCaleb and built by Arthur Britto and David Schwartz 2004, who approached Ryan Fugger with their idea. Fugger then created a website RipplePay.com that was supposed to be followed by a digital currency that can be distributed within local communities. Even though Ripple was developed by a series of people and investors, it is generally considered to be much safer than the average altcoin. After all, Standard Chartered Bank and Google Ventures made some investments in this popular coin. It is important not to mix up the Ripple Payment protocol with Ripple (XRP). The payment protocol supports smooth international and national transactions of fiat and cryptocurrencies and is used by many mainstream companies.
On the other hand, their XRP usually serves as a bridge between currencies, may it be fiat currencies or cryptos. The transactions are executed via special gateways, controlled by authorized users. This features convinced many how Ripple is just a fiat currency in disguise.