From humble start-ups to key players in the fintech industry. These exchanges are now essential components of the rising crypto economy. They are the main bridge between FIAT and crypto trading, as well as the intermediaries between altcoin trades. Bettors that seek to dip their toes in crypto sports betting should carefully choose a suitable exchange for them.
Transactions with crypto exchanges are the first and the last steps of crypto gambling. They are the place where you will first trade your FIAT currency with a cryptocurrency and then finally convert your crypto winnings back to FIAT to cash them out.
There are hundreds of available options, so choosing the right one will not be an easy task. The best crypto exchanges pose a valid alternative to traditional banking methods. They are usually the best way for players to keep their gambling activity under the radar. However, looming regulations from governments and central banks are making their job more and more difficult. The majority of these exchanges hover over a grey area, which holds both advantages and disadvantages.
What Makes the Best Exchanges for Crypto Betting
There are several variables to take into account. The top-rated crypto exchanges offer a variety of altcoins, reasonable crypto exchange fees, and convenient deposit methods. Nevertheless, bettors who are interested in how to gamble with cryptocurrency have a bit different priorities than the average crypto investor. KYC policies and available withdrawal methods are some of the most important ones.
A player should carefully choose which characteristics are more valuable for his betting activity. For example, is complete anonymity the major point? Would you rather have the lower fees possible or the faster bank transfers to your account? The betting sites underneath combine all the best characteristics.
What characteristics to look for
- 1 Security: Make sure that the platform you are choosing is legitimate and use a provably fair predictor. That is especially true for the smaller and non-established crypto exchanges. Many reckless investors have been scammed out of their funds. You will have to conduct diligent research.
- 2 Crypto Exchange Fees: This is especially important if you conduct a high amount of transactions. Fees may apply both in coin conversions and in crypto withdrawals to your crypto wallet. High fees can eat up your bankroll subtly, so be mindful.
- 3 FIAT Deposit & Withdrawal methods: The essential way to onboard or offboard traditional currencies. The usual methods are debit cards and bank transfers. However, the key factor is the fees applied. Beware of high crypto exchange withdrawal fees, as many exchanges may charge an unreasonable percentage or fixed fee.
- 4 Supported Cryptocurrencies: A wide assortment of digital currencies gives you flexibility. Some cryptos have lower transaction fees than others. The betting site of your choice may not accept some, so you will have to find an alternative. Moreover, the crypto exchange liquidity level is a significant point, as it will be simpler to buy or sell different coins. This is even more important if you are not only a crypto gambler but an investor, too, as price speculation will be easier.
- 5 Customer Support: If you deal with a high volume of transactions and trades, it will be inevitable that an issue will arise at some point. It would be good to have efficient assistance. Additionally, a strong customer support team is usually a sign of a healthy and legitimate company.
Also Read: How to bet online abroad
Advantages of a Crypto Betting Exchange
It is clearly evident that gambling and cryptocurrencies are a perfect match. Who knows, perhaps the future of the iGaming industry will be entirely dependent on blockchain gambling technology and cryptocurrencies. For now, the best crypto exchanges are the optimal way to get your hands on cryptocurrencies. They bring several advantages compared to traditional financial services.
Circumvent Regular Banks: Despite the rise of the FinTech industry, brick-and-mortar banks are still the cornerstones of financial transactions. They are heavily regulated and have a say in every transaction you make. Everything is recorded and handed to the fiscal authorities. Many of them are also hostile to gambling transactions, so it would be better for players to stay away from them.
Increased Privacy: Most exchanges do not cooperate as closely as other financial services with local governments, as they are based offshore. Even in exchanges that require KYC documents, you are still better off than regular banks.
Variety of Cryptocurrency Options: Each different type of coin holds different characteristics. For example, XRP and DASH offer fast transaction speed, as well as low fees. XMR and ZEC secure your complete privacy. The top crypto exchanges give you multiple trading pairs, so you will quickly get the coin best suited for your gambling needs.
Spreading Risk: You are not limited to a single exchange. There are many good ones, and that gives you the ability to diversify your crypto bankroll management. If you are dissatisfied with one, you can transfer your funds to another one. The heavy competition between them also benefits the users with lower fees and a better overall product.
Risks behind the top crypto exchanges
Crypto exchanges may be less restrictive than most banks, but that does not mean that they are an unregulated wild frontier like they were in the mid-2010s. In order to stay afloat in regulated markets, they need to comply with common anti-money laundering directives. On top of that, in recent years, the crypto world has become too big to ignore. Regulators are squeezing the noose on most exchanges, so many advantages that they now hold may soon be gone. Of course, that does not apply to decentralized exchanges, a topic that will be analyzed later.
Centralization: On one hand, big centralized exchanges are against Satoshi Nakamoto’s (Bitcoin’s creator) vision. An independent transaction system with no central authority. When your funds are in the hands of the exchange, they have the final word on it. Payments may be declined and withdrawals unauthorized. If your crypto funds are not in your wallet, they are not truly yours.
KYC/AML Requirements: A crypto exchange may always request personal documents. That usually happens if your transaction volume exceeds safety thresholds or your payments appear to get directed to risky addresses. That is also true for exchanges that advertise themselves as non-KYC crypto exchanges. Keep this in mind to not get caught with your pants down.
Gambling Restrictions: Perhaps the most negative point. Gambling sites are characterized as risky addresses. Almost all exchanges state in their terms & conditions that they do not allow transactions with them. That is why you should never deposit to Crypto Bookmakers directly via your exchange account. Always use your personal wallet for deposits and withdrawals, and then transfer the funds to a crypto exchange.
Also Read: Does betting affect credit score?
Decentralized exchanges (DEX)
Established decentralized exchanges are also the safest crypto exchanges. They are built upon a blockchain network, and their operation is facilitated by the algorithms programmed in the same blockchain. Two of the most popular ones are Uniswap and PancakeSwap. They are not under the control of any third party and they do not store any personal data. You can not keep any funds in them as they merely execute exchanges between two independent parties. They are the solution for all players that seek to maximize their privacy. Additionally, they charge only a very low fee for maintenance reasons, as most of them are non-profit.
On the other hand, their nature means that you hold all the responsibility for securing your assets and transactions. A certain level of tech-savviness is also required to use them safely. Moreover, decentralized exchanges have a limited selection of coins, as their native blockchain limits them. On top of that, they have lower liquidity compared to their centralized counterparts. Most importantly, you can not trade FIAT currencies within them, so you can not completely avoid using a centralized exchange. In simple words, you trade liquidity, ease of use and the ability to exchange FIAT funds for complete privacy and independence.
Which is the best crypto exchange for gambling
Sadly a single top crypto exchange does not exist. Each exchange has its own pros and cons. You will have to compromise on some aspects in favour of the factors that are of the utmost importance to you. Each player has its own set of priorities. We will include below a list of the most reliable exchanges.
There are many other respectable ones, but our selections are tested and offer a good product. Their main characteristics are undisputed security and good liquidity. After that, we took into consideration fees and withdrawal methods. It is essential to keep in mind that all characteristics we will describe are susceptible to change, so we suggest doing your own research before opening an account.
What to keep in mind
It would be better first to clear out some features that apply to most exchanges. Those are crypto exchange fees, crypto withdrawal fees and FIAT deposits & withdrawals. Remember that the crypto world is extremely volatile, and changes may happen overnight. That is why we recommend visiting each exchange's help page before commencing your trading activity. However, some characteristics are identical to most exchanges and can be grouped up as below.
Exchange fees usually work on a market maker-taker fee model: That means that orders that take liquidity from the exchange are charged a higher fee, the taker’s fee. For example, instant buys and market orders that get filled immediately. On the other hand, maker orders (limit orders) provide liquidity for the exchange. So they are usually charged lower fees. Those are orders that do not get filled immediately and stay in the order book. Additionally, users with high trading volume are rewarded with lower fees, but that depends on each exchange.
The second point is crypto withdrawal fees: Crypto exchanges charge extra fees or have a minimum fixed fee for each cryptocurrency withdrawal. Those are totally different for different coins and may vary from a few cents to a few dollars. For example, XRP withdrawal fees are around 0,25 XRP (~0,1EUR) and Ether withdrawals 0,0036 ETH (~6EUR). Sometimes it is better to convert your funds to another cryptocurrency and then transfer it.
Last but not least, FIAT deposits and withdrawals: Most crypto exchanges offer credit/debit card deposits and bank transfer deposits and withdrawals. The fees depend on your country of residence, the bank networks used, and the currency. Check the relevant page in each exchange and find the best one for you.
Binance is undoubtedly the biggest name in the crypto space. They are the largest cryptocurrency exchange by trading volume. However, their US branch, Binance US, is a different entity, and we do not recommend it as it offers a subpar service compared to Binance.com, their international brand. They offer a wide variety of altcoins and also have futures trading for the more advanced users. KYC is required if you want to access its regular features.
You can deposit or withdraw euros with SEPA bank transfers. Deposits are free and withdrawals via SEPA cost 0,8 EUR. If you are KYC verified, with a government ID, a selfie and proof of address, you may also deposit via debit card. Deposit fees range from 3% to 4,5%. The crypto exchange fees are just 0,1% for market makers and takers both. We recommend completing the KYC process, as you will be able to order the Binane VISA card, one of the best Bitcoin cards. A convenient way to spend your winnings without moving your funds to a bank.
Kraken is one of the most popular and safest crypto exchanges. They are US-based and available in most countries. They offer a stable platform and pride themselves on quality customer service. You will need to get KYC verified to be able to withdraw cash. Deposits and withdrawals are possible via bank transfer in USD, EUR, GBP, CAD, AUD, CHF and JPY. The fees vary depending on the selected bank transfer method and country. They range from free to 20 USD or equivalent. Crypto exchange fees are 0,16% for market makers and 0,26% for market takers. Cryptocurrency withdrawals depend on each coin, but most of them are between 0,5 and 2 EUR.
Another established crypto exchange, mostly famous for its convenient VISA crypto card. The Hong Kong-based exchange is available in most countries and offers a competitive product. Again, KYC documents are necessary to use their service. You can deposit FIAT funds via credit/debit card with a 2,99% fee, which is waived for the first 30 days of your sign-up. Bank transfers are also available and fees vary per country and bank network. Crypto exchange fees are 0,10% for makers and 0,16% for takers.
The smallest exchange on our list but quite the hidden gem. Coinmetro is based in Estonia and focuses mainly on the EU and UK markets, but you can also n use it in the US and Australia. They offer a stable platform and excellent customer support. KYC is mandatory to use their services. You can deposit funds with credit/debit cards or bank transfers. Fees are 2,99% for EU-issued cards and 4,99% for non-EU ones. Bank transfer charges start from 1€ for SEPA transfers and up to 50$ for international USD transfers. The same is valid for withdrawals via bank transfer. Crypto exchange fees are free for market makers and 0,1% for takers. Crypto withdrawal fees are just 0,15% (+Network fees for Ethereum-based tokens).
An offshore Seychelles-based crypto exchange. Like Binance, KYC verification is optional and the daily withdrawal limit for unverified users is 2 BTC. Third-party services facilitate fiat deposits with credit/debit cards or bank transfers. Fees are around 5%. FIAT Withdrawals are not possible, so in that case, you have to transfer your crypto to other exchanges. Market maker and taker fees are the same for most trading pairs, priced at 0,1%. Crypto withdrawals depend on each coin, but they are on the low end of the market prices.
Coinbase is the most popular US-based exchange. They are also listed on the NASDAQ stock exchange. They are the first crypto exchange that went public. Coinbase is a staple for security and regulatory compliance. As you may guess, the KYC process is mandatory. Coinbase is quite hostile with accounts directly dealing with gambling sites, so be extra careful and only proceed to minimal gambling-related transactions. Keep in mind that there are two versions.
The simple Coinbase and Coinbase Pro. They are the same company, but the simple Coinbase offers a more user-friendly interface at the cost of higher fees. We recommend going directly to Coinbase Pro and familiarizing yourself with it, as it holds a higher value. You can top up your account with credit/debit cards and SWIFT/SEPA/Wire bank transfers. The same methods can be used for withdrawals. US citizens can also use PayPal. Fees vary per location. Crypto exchange fees are 0,5% for market makers and takers.
Uniswap is the most used decentralized crypto exchange for ERC-20 tokens (Coins based on Ethereum). Anyone is free to join, and you need to connect a compatible wallet with them to trade. You will be able to do so without any verification requirement, entirely anonymously. Apart from the standard transaction fees, as you can check in our article for Ethereum Bookmakers, Uniswap charges a 0,3% fee to maintain their service. We do not recommend this exchange for first-time users, as there is no support if anything goes wrong. Additionally, you can not deposit or withdraw FIAT currencies. In any case, you may trade ERC-20 tokens for gambling with stablecoins like USDT and USDC and then transfer them to a centralized exchange that allows FIAT withdrawals.
Which Crypto Exchange to Use for Sports Betting
The top crypto exchanges are a useful arrow in the quiver that enhances your financial flexibility. They perfectly supplement traditional banking methods and help you circumvent the always-increasing regulations. I generally encourage serious players to get involved with crypto gambling, and finding the best crypto exchange is the first step to this.
One of the most convenient features of centralized exchanges is the issuing of crypto debit cards. An optimal way to cash out crypto gambling winnings. Companies like Binance and Crypto.com are the leaders in this. However, if you truly want to stay off the grid and take advantage of crypto anonymity to the maximum, decentralized exchanges like Uniswap are your friend. As always, in crypto, do your research and beware of scams.
Best Sportsbooks for Crypto Exchanges
After carefully evaluating the pros and cons of each company, you will undoubtedly find the best crypto exchange for you. The second step is to find a reputable crypto-friendly bookmaker to kickstart your activity with the best Bitcoin sports betting bonus. Here is a list of our top-rated ones. You can also check their dedicated reviews for further information.
If anonymity is your primary concern, exchanges that do not require KYC are the best, like Binance, Kucoin and Uniswap. However, verified accounts can enjoy the benefits of crypto cards that are issued by certain exchanges like Binance, Coinbase and Crypto.com.
All exchanges accept deposits of the cryptocurrencies they support. For FIAT currencies, most exchanges accept bank transfers, and some even credit & debit cards. Fees vary per country, method and currency.
As with deposits, all exchanges allow crypto withdrawals, albeit with a small fee. FIAT withdrawals are another story. Some exchanges may even not have such methods. Nevertheless, the primary method that most offer is bank transfer. Again, fees depend on the country, bank network and currency.
In terms of trading volume, the big players at the time of writing (2022) are Binance, Coinbase, BitMart, Kraken, Hotbit, Bitfinex, Crypto.com and Gemini.
For gambling transaction purposes, yes, Binance is a better option if you are not a US resident. Binance gives you the option to not proceed to a KYC process, and Coinbase generally speaking is way stricter with regulations.