When it comes to the bitcoin concept, Bitcoin gambling to be precise, a lot of questions are often asked. Well, as far as risk management in gambling is concerned, it would only be wise to do some background check before investing your cash.
We have seen bitcoin gambling become a trendy issue in recent days. But although it comes with its promised share of goodies, it is in general, a concept that can be quite confusing at times. We’ve compiled a list of the most frequently asked questions (FAQs) that will help you get a better understanding of what you are in for.
#1. What are Bitcoin Wallets?
Like any other type of currency, Bitcoins also need to be stored –and that is where a Bitcoin wallet comes in. It is just like your bank account, only that it stores your money in the form of cryptocurrencies instead of the usual fiat currencies.
If you are relatively new with the Bitcoin concept, it is advisable you run some background checks before settling on a wallet of your choice.
Remember, it will be where you will be storing your crypto-cash. Therefore, make sure you go for the most secure wallet for your bitcoin.
#2. What are Bitcoin Addresses?
A bitcoin address is simply an identifier consisting of 26-35 alphanumeric characters that represent a possible bitcoin payment destination. The bitcoin payment destination, in this case, can be a bitcoin wallet.
It is important to note that you can have multiple addresses for a single wallet. Addresses are also not meant to be used more than once as reuse could have serious repercussions. That should, however, not be a problem since some wallets have an option for their customers to generate a new address after each transaction.
So generally, you will be using your BTC address to receive transactions (for example, from your online casino). The same process applies when depositing to your online casino account. You will get a generated bitcoin address from your cashier tab which you will then paste on your wallet-end transaction to make a payment.
#3. Are Bitcoin Casinos a Scam?
You’ve probably heard of casinos that got away with their customers cash after just disappearing overnight. So to answer your question, legit bitcoin casinos exist, and so do scam bitcoin casinos.
It is quite easy to differentiate between the two. For one, if an online casino is by nature confirmed to be a legit one, so will its bitcoin transactions. You are simply funding your account using cryptocurrency option instead of the regular currency. So before you actually think of playing at an online casino with real cash (BTC included), make sure that you have confirmed the casino to be legit.
When it comes to the safety of your transaction, that should not be a major concern since all you need to do is copy the given address on your cash tab. You will then paste the address on your bitcoin wallet and finalize your transaction.
The same applies when receiving a payment. All that is required of you is to provide a bitcoin address. No one should ask for your login credentials to your wallet account!
#4. Which games can I bet on Using Bitcoin?
As a matter of fact, you are not limited to any specific number of games you can gamble using bitcoin. Provided they are offered by your casino (or the gambling company of your choice), you should be able to use bitcoin to fund your account and make withdrawals.
That is, regardless of whether they are virtual or real games. The only thing you should probably be concerned about is the type of casino you are using. That is, whether they are a scam or legit ones.
#5. Is it Legal to Gamble with Bitcoins?
The answer to the legality of gambling with bitcoins will depend on several factors, among them your region of residence. Although Bitcoin is recognized globally, it is illegal in some jurisdictions.
So, if Bitcoin itself is illegal in your jurisdiction, it might likely also be illegal to gamble with bitcoins, right? You’ve probably heard of scenarios in which bitcoin has been used for illegal transactions such as drug trafficking. So it would be understandable if some states might want to regulate that.
Take the United Arab Emirates, for instance; they have banned online gambling. So as far as online gambling is concerned, it will not only be illegal to gamble with bitcoin but also to open an online casino account itself. But you can still use bitcoin to do a ton of other things in UAE. You now get the idea, right?
Generally, you should not be worried about gambling using bitcoins provided bitcoins themselves are legal in your area. Also, since an online casino must first be licensed before an operation, they might not offer you a service that is not available in your region. You will probably be met by the notification that the service is yet to be available in your area.
If bitcoins are illegal in an area, purchasing them might prove a bit tricky when compared to the areas where they are already legal.
#6. Where can I Buy Bitcoins?
Anybody who is new to bitcoin gambling might have a hard time purchasing bitcoins. However, provided Bitcoins are legal in your area, it should not be much of a problem.
Prior to purchase, make sure you have a ready bitcoin wallet and a bitcoin address to receive your bitcoins.
Usually, a simple google search on ‘where you can buy bitcoins in (add your current location)’ should help you know the available options near you. For instance, LocalBitcoins is one renowned and trusted site that shows you the Bitcoin sellers in your immediate vicinity.
The good thing is that most of the sites offer simple payment options, so you should be able to go around the payment without much of a hustle.
You should, however, be careful with how and who you do your transactions with. The best way to go around this is to make use of escrow services to help protect your hard earned cash until you’ve confirmed receipt of the Bitcoins. Most of Bitcoin exchange services have integrated escrow services to help protect both the seller and buyer.
#7. Must I Purchase an Entire Bitcoin?
You don’t necessarily need to buy a whole Bitcoin. Instead, you can buy them in small fractions of as low as $1. A single Bitcoin is relatively expensive with prices usually ranging from around $3000 to $10,000 (estimate).
The prices often fluctuate, and it is normal to buy bitcoins at a different value from the one you bought the last time.
#8. Are My Bitcoin Gambling Transactions Safe?
Bitcoin itself is very secure as it has never been successfully hacked. You, however, have your part to play to ensure that you too remain safe. If you are using an online wallet, you might consider taking some precautions during your transactions. Such precautions could be;
- Using a safe and secure network connection
- Not sharing your wallet credentials
- Using only valid bitcoin addresses
- Changing your Bitcoin address after every transaction, among others.
Most online casinos and other organizations that have integrated Bitcoin transactions use a ‘cold storage’. This is an offline bitcoin reserve meant to protect the company in case of a cyberattack. So as far as the security of your deposited funds is concerned, that should not be an issue.
#9. What happens when I make a Transaction to a Wrong Bitcoin Address?
Too bad, the process is irreversible in every design. That is why you are advised to make sure it is the right address before you initiate a transaction. However, unless you have mistaken the address and used another valid one instead, the chances that you will send to an unknown address are very slim.
This is so because Bitcoin addresses usually have a built-in code, so it is close to impossible to mistype an address. You will probably be met by an ‘invalid address’ error.
#10. Is the Value of a Bitcoin Constant?
No, the price is never constant. The Bitcoin price actually fluctuates depending on the rise and fall in the financial markets. It would, therefore, not be a surprise to buy a Bitcoin at a different price from the one you last bought –even if it just after a couple of minutes.
Back in 2012, one Bitcoin was worth only $13. However, when you look at its current price, it averages around $500. There was actually a time when its value had rocketed to $1250, so anything is possible with Bitcoins.
#11. Bitcoin Exchange Places: are they a Safe Place to Store My Bitcoins?
Exchange places often come into handy when exchanging bitcoins too, that is, when you are buying and selling Bitcoin using different fiat currencies. It is, however, not advisable to store your bitcoins because they might be subject to a cyberattack.
Mt.Gox, a Bitcoin exchange based in Japan was handling at least 70% of all the transactions before it was hacked $450 million! You probably now get the idea of why it might not be the best idea to hold your BTC in exchange places.
#12. Is it Advisable to hold a lot of Bitcoins?
You might choose to hold Bitcoins for several reasons, possibly best known to yourself. But unless it is planned, it is not advisable to hold large amounts of Bitcoins because of high risks of price crashes.
There’s still that possibility that the value might change in your favor. However, it is never advisable to keep a large amount of bitcoins as you don’t know when a new cryptocurrency might emerge.
#13. Does Bitcoin Gambling mean that I am fully anonymous?
To a certain degree, YES, but not fully anonymous. The truth is that when compared to other modes of payment such as credit cards, Bitcoin gambling provides more anonymity.
Unlike other payment methods where you will be required to enter your personal details so as to finalize a transaction, all that is required in Bitcoin Gambling is to copy and paste the given Bitcoin address.
As far as Bitcoin Gambling is concerned, it is upon you as a Bitcoin user to acquaint yourself with as much information about how Bitcoin operations work, and how you can protect yourself.
The benefits that arise from Bitcoin gambling are, however, quite unmistakable. In addition to the stress-free mode of payment, you can also enjoy specific bonuses only available to BTC gamblers. The bonuses are as a result of online casinos who want to encourage their players to use Bitcoin payment methods.
Enjoy low overheads as a result of promotions, lower fees, and lower payouts, and enjoy speedy withdrawals and deposits.