Sportsbooks nowadays are evolving so fast, constantly improving their sites to accommodate a variety of new players. One of the ways it is currently succeeding is by using Bitcoin payments.
This virtual coin has taken the world by storm in the last few years and rightly so, as it has plenty of benefits, especially with sports betting. This guide will explain more about Bitcoin, its history, and how it works when depositing and making withdrawals.
What is Bitcoin?
Bitcoin was created in 2008 by Satoshi Nakamoto; this could be a person or a group of people under this name. With its sole purpose of becoming a decentralized currency. This means it’s not tied to any banking establishment, such as normal currencies. Allowing its value to be determined by its users rather than a bank.
It uses “the blockchain” as its ledger, meaning people can pass Bitcoin to each other and all transactions are recorded immutably in the blockchain. All of these transactions are processed by miners. These are miners using powerful computers rigs to solve complex puzzles to add multiple transactions, known as blocks, to the chain. In return for processing these transactions, miners will be rewarded with a small amount of Bitcoin.
Benefits of using Bitcoin
There are plenty of reasons why sportsbooks have adapted to using Bitcoin and other cryptocurrencies. Making a bet is also as straightforward as using normal currencies.
The first benefit of using Bitcoin is anonymity. When you deposit using your debit card, you are handing over your private information to a site. Many sites use a high level of encryption to keep this information safe, but it doesn’t stop your details, being stolen by hackers. With Bitcoin, there is no need to hand over any personal or sensitive information. Most sites can allow you to deposit without creating an account.
The second benefit is the lack of regulations involved in Bitcoin compared to normal currencies. It’s important for sports betting to use a stable currency, and with how volatile the economy is right now, certain currencies can lose their value. Since a bank does not control Bitcoin, it can hold its value over long periods of time.
Some U.S states offer legal sportsbetting and casino gambling, either in-person on online, however people not in states where regulators have introduced licensed gambling operators who want to bet on sports, or play casino or poker online generally use international or “offshore” betting / casino sites.
Finally, the lack of fees and speed of transactions. Most banks and e-wallets using require a small fee to process a deposit or withdrawal. With Bitcoin, there is no need for that, as there is plenty of miners available to help process a transaction quickly without the need for a fee.
How to use Bitcoin for Deposits and Withdrawals
To acquire Bitcoin sounds complex due to the technology involved, but it couldn’t be any simpler to do in regards to depositing and withdrawing. Here you will find plenty of tips on how to use Bitcoin in sports betting.
The first thing is to create an account. This will need to be done on a cryptocurrency exchange, such as Crypto.com or Coinbase, for example. Some sportsbooks will allow you to deposit straight away with Bitcoin, but you will need to exchange a fiat currency for obtaining Bitcoin.
Next is creating a wallet to store your Bitcoin. This wallet will be used to exchange your money for the sportsbook and back to your account. You will need to set up a 2-way authentication; you will then be given an address of your wallet in alphanumeric characters. Your wallet can be stored on external memory sticks for added safety.
Once you completed your wallet, you can now deposit it in a sportsbook. You will have to input the wallet’s address to deposit Bitcoin. You will need to convert how much fiat currency you want to exchange for Bitcoin; this can be done using Coinbase, for example. Then you are free to bet as you see fit.
If you lose your deposit, nothing will happen. In terms of winning a bet, you will need to transfer your winnings back to your Coinbase account and then withdraw your winnings to your wallet. This can be done using a QR code provided, making it very simple to get your withdrawals.
The Risk Involved using Bitcoin
As with anything, there are always risks to take into consideration. It’s a good idea to check your sportsbooks licenses and user reviews, as it’s a good indication if it’s safe to use your Bitcoin. Check your sportsbook’s FAQ section, or contact its customer support for more information.