Cryptocurrencies have been widely used in online betting for years. Features provided by cryptocurrencies and blockchain networks are in many ways suited to the needs of those who bet online.
In this article, we’ll discuss the differences between traditional betting and using cryptocurrencies. Both options have their pros and cons that players should be aware of and weigh against each other. The differences don’t affect the gameplay or the chances of winning regardless of which way you decide to go in the end.
Pros of Crypto Betting
Using cryptocurrencies to bet comes with many advantages and players and casinos have been taking advantage of these.
Fast Transactions
Cryptocurrency allows for fast and in most cases instantaneous transfers of funds. Since cryptocurrencies don’t rely on a centralized financial structure, payments can be made right away and there’s no reason to wait on a middle-man to approve them. This is the case when players deposit funds to a casino and when they withdraw their winnings.
The ability to instantly transfer funds also requires the player to take bankroll management seriously and to be responsible for overbetting and chasing losses.
Betting Anonymously
Cryptocurrencies don’t rely on any centralized financial structures. This means that you can play anonymously with these bookmakers and deposit and withdraw your funds with nothing but an email address. It’s quickly becoming one of the most sought-after features, as players value online privacy more than ever.
Recently, however, some countries have introduced “know your customer” laws that require gambling establishments to ask their customers to provide their real names. Luckily, this regulation isn’t widespread and there are still plenty of casinos that allow users to bet without providing any personal info.
Provably Fair Bets
Crypto casinos provide provably fair bets. That’s because the terms of the bet are written into the blockchain code itself. The code is open source and every player can inspect it and make sure that the odds are satisfactory. The payments are also automatic and the funds are released to the player as soon as the terms of the bet are met.
The games played in crypto casinos still have an edge in favor of the casino, as does any game. The edge is the smallest in poker and other card games and the largest in slots and games of luck.
Cons of Crypto Gambling
There are downsides to using crypto casinos, as well. The players have been aware of these from the get and it was always a matter of balance between the inherent problems with cryptocurrency betting establishments and the innovation they provide.
It requires Learning
Using cryptocurrency casinos requires a bit of learning and adapting on the part of the players. The process is relatively simple and setting up a crypto wallet isn’t that much different than using digital wallets such as PayPal and Skrill, but it does require extra steps not needed for those using fiat money.
The players should also stay on top of trends and changes in the crypto industry, which is additional work not all players are ready to take on.
It’s Volatile
The value of cryptocurrencies isn’t tied to any central bank or any other financial institution. It’s worth only what the users are willing to pay for it. That means that the value of cryptocurrency changes over time. Most of the widely used cryptocurrencies have proven to be volatile and they’ve had their ups and downs.
The value of your winnings is therefore not fixed and you may end up getting more than you won or less, depending on the value of crypto and how it changes over time.
New Regulations
When cryptocurrencies were first introduced they were unregulated since no laws covered such an innovative financial tool. This was an exciting time for investors and players since the whole industry operated as freely as possible. Now when cryptocurrencies are widely used there’s much more regulation involved.
New regulations will also be introduced soon to prevent fraud and money laundering. This brings more security to the industry, but it also makes it similar to traditional betting establishments.
Pros of Using Traditional Casinos
Traditional casinos have been around for centuries in one form or another and fiat currencies are used for more than that. Using them has its advantages and chances are that traditional casinos will be around for a long time.
Tradition
Casinos that use traditional fiat currency have been around for much longer than the ones focused on cryptocurrency payments. This means they’ve had more time to establish their practice and to come up with a system that the players can rely on. This includes customer support, a bonus structure, and an approach to organizing tournaments.
Such casinos also work with financial institutions such as banks and cards that have similarly well-established operations. It creates a sense of trust and safety that’s so important to players using online casinos.
Ease of Use
Fiat currency casinos are easy enough to use and there’s no learning curve that some may need to go through when using crypto casinos. Transferring funds from your bank or a card to a casino is the same as making any online purchase and there are no additional tools to learn about.
The value of your deposits and winnings is also simple enough to understand as it’s not as volatile as cryptocurrencies. There’s no reason for players to know anything about national banks or financial institutions in order to bet.
Accessibility
Fiat currencies are accessible worldwide and easy enough to get to through traditional institutions such as banks or debit and credit cards. They can be used to make purchases and obtain services online and offline. Almost anyone can open a bank account almost everywhere in the world and connect it to almost every casino.
It’s equally simple and accessible to exchange one fiat currency for another for only a small fee and within seconds.
Cons of Traditional Casinos
Using traditional casinos has its downsides that come from the way fiat currencies work. Players are already of these and they are usually one of the reasons they move on to cryptocurrency casino establishments.