It is a fact that demand for cryptocurrencies keeps rising. A study recently mentioned that almost half of the world’s ultra-rich are interested in crypto. Another fact is that stablecoins are the next level in terms of crypto advancement. These are cryptocurrencies designed to keep a steady value. This is why they bring together the good of crypto without the inherent volatility in the form of stablecoin gambling.
Volatility is a major issue in crypto, which, on a good day, can multiply your bankroll overnight. But on a bad day may severely diminish your funds’ value. Obviously, this is very off-putting and a major obstacle for many players who may wish to tip their toes in it. By using stables, you can bypass this volatility and keep your bankroll at a steady value, avoiding the risk of diminishing prices traditional cryptocurrencies entail.
Stablecoin bookies are already aware of this, that is why they have adopted stables, such as the most popular, USD Coin (USDC) and Tether (USDT). Even though they are not so widespread in gambling yet as Bitcoin and Ethereum are, stablecoins their namesake value by being pegged to a specific asset, usually the US dollar. Let’s move on and go through all you need to know about stablecoin gambling, starting with the best places to use your stablecoins for your bets.
The Best Stablecoin Gambling Sites
Even though nowadays, many betting sites accepting crypto, we can not say the same for stablecoins. Given that stablecoins are not that widespread, we include all the crypto bookmakers who take these coins. If you want to focus on the two most popular stablecoins, check our articles on USDC gambling and Tether Gambling.
Decoding Stablecoin Bookmakers
As mentioned, the word stablecoins refers to a certain group of cryptocurrencies that have been designed as a means of exchange within crypto while having a stable price at the same time. They have been around roughly since 2014 but gained traction towards 2018 and even more during the last year, with the explosion of Decentralized Finance applications in crypto.
Stablecoins achieve stability in their price, which is 1 USD, supposedly by backing each one of their supply with the equivalent of actual USD or another asset, such as gold. Below is a quick look at the most popular and widely used stablecoins:
Tether (USDT). Perhaps the most notorious of all. Owned by Tether, a private firm of nebulous reputation, USDT is the most widely used stablecoin. Backed by the US dollar and very common in almost every crypto exchange and crypto bookie.
USD Coin (USDC): USD Coin is a cryptocurrency with major backers, such as Coinbase, the largest exchange globally and Circle, a large corporation offering payment services. Among the limited crypto bookmakers, USDC along with Tether are the two most popular.
DAI: The most decentralized stablecoin of all. Pretty much loved by crypto enthusiasts because it achieves stability utilizing a truly cryptocurrency-centric algorithmic system. It is less common to find than the others.
Other notable stables are Gemini Dollar (GUSD) and Paxos Standard (PAX). Both are very respected with major backers behind them. However, it is very difficult to find them in bookies.
As you can see, there is no shortage of options. However, despite this plethora, crypto bookmakers that accept stablecoins mostly offer them as an additional option to the most popular ones such as BTC, ETH, LTC, XRP. It is not their main crypto course. That is why until exclusively Stablecoin bookmakers exist, smart players should opt for stables to minimize their risk exposure and enjoy the best of both worlds. We are sure by now you are wondering how actually to go about stablecoin gambling.
How to go about Stablecoin Gambling
Starting with crypto can indeed be a complex undertaking for many. Trust us, though; the process is relatively simple and more straightforward than you might think. You basically just need to follow the steps below. And for a more in-depth look, check our guide, Crypto Gambling 101.
Purchase some from a reputed exchange. We recommend FTX or Binance. Note that for amounts up to 2 Bitcoin, you will not even need to go through KYC verification.
Next, if you haven’t already, create your wallet and send your stables to it. Never deposit straight from an exchange to a bookie! For deposits, Sign up for your bookie. Be sure to pick one from our list, just to be on the safe side. Go to deposits, select your stable, copy the address.
Back to your wallet, paste the address. CAUTION on the network, it will most likely be Ethereum since most stables are ERC-20. If this sounds gibberish to you, have a look at our Crypto Glossary. Wait for confirmation and you are good to go.
Once you are ready to withdraw, go through the same steps as above but in reverse. Now you just decide what to do, cash out or invest your winnings. Wait. I am pretty positive you are wondering whether all of this is legal.
Stablecoin gambling sites vs Crypto & fiat bookmakers
As already mentioned, stablecoins started as a means to introduce stability in the price of a cryptocurrency. This is the main difference from other crypto options in betting sites. You get the best of both worlds without the intimidating price swings that Bitcoin and the other popular crypto options have. For that exact reason, by opting for stablecoin gambling, you also avoid a double gambling situation, where you risk your gambling and the price swings that affect your bankroll’s value.
What about Stablecoin gambling legality, safety and taxes
The truth is that stablecoin betting sites are legal. For the most part, this is defined by whether you play at a trusted bookie. Spoiler; we most certainly recommend you play at trusted stablecoin bookmakers. When in doubt, simply check to make sure gambling is legal in your region. As for taxes, the best part is that in most cases, if you do not convert, meaning sell your stablecoins for fiat, you do not have to pay a tax.
Once again, however, this is very dependent on the country you reside in. You can learn more about legality and taxes in our article, Bitcoin Legality and taxes. By the way, the incentive for less taxation is only one of the reasons we recommend you do not sell your stables for fiat.
Furthermore, another exciting part is that you can just keep them in your wallet, but why not indulge in other options. Ιf you still don’t know what a wallet is, make sure to check out our guide on the Best Crypto Wallets for Online gambling. Back on the subject at hand, mostly due to the birth of Ethereum smart contracts and the subsequent rise of Decentralized, the possibilities for a passive income are endless.
Once you finish playing on Stablecoin Gambling Sites, look for the countless options out there which allow you to deposit your stables and earn passively. Sure, it may not be the degree of gains you could achieve on the rise of BTC or ETH, but the risk is by far smaller. Many of these options offer cards too. So you can directly spend the fruits of your labor without any banks denying you or slowing you down. For a more detailed look at crypto cards, check out our article Best Bitcoin Card for Gambling.
And the best part, unless/until you pull them again to sell them, you will not be taxed about it. We have already touched on this earlier but keep in mind that you can always partly cash out your winnings. This way, you successfully break down the amount of tax you pay. You also your locked gains to compound.
Our strong belief and recommendation are that you should try out stablecoin gambling, at least as your initial dive into crypto. Even though they are not that widespread, you will most certainly get the best of both worlds without the increased risk exposure to crypto’s wild price swings. We would also recommend you opt for stables such as USDC or Tether. It is more transparent and unofficially has the US government’s blessing. Or go straight to the most popular and widely used, USDT.
Tether is even more available as an option but brings a little more risk to the table; legal woes Tether is facing, albeit successfully until now. And who knows, once you are ready, you can then move to the big boys. BTC, ETH, LTC, XRP and the like is where the true opportunity lies to multiply your bankroll indeed. Of course, the latter works both ways, so best keep it in mind before you bet more than you can afford to lose. All in all, stables are a fascinating opportunity to try out stablecoin betting sites.
The best stablecoins for gambling are arguably Tether (USDT) and USD Coin (USDC). They are by far the most widespread in use in crypto bookmakers that accept stablecoins. It is less known and more difficult to find bookies accepting Gemini Dollar (GUSD) and Paxos Standard (PAX).
Bitcoin is legal in most countries, including the United States. To be more precise, it is not illegal, so basically it belongs to a grey area. More important, though, is the gambling legality. If a state allows online gambling, not many do in the US, then you can also gamble with Bitcoin there.
Stablecoin gambling is when you use a group of cryptocurrencies called stablecoins for gambling. This group of cryptocurrencies is characterized by stability in price since this is how they were designed in the first place. This is achieved by pegging their value to a certain asset, predominantly the US Dollar.
Nowadays, there are several ways to earn passive income after securing some gains from your gambling in stablecoins. Use reputable services like Celsius, Aave, Compound or similar, lock your stablecoins there and enjoy a nice yield.
It is perfectly legal to use stablecoin gambling sites, provided gambling and the use of crypto are legal in your region.