Cryptocurrency Betting: Getting Started

Cryptocurrencies are currently taking the world by storm. In the last few years alone, the number of innovations they have offered has been staggering. A great example is DeFi, which competes with traditional finance. These milestones still resonate strongly in the gambling industry of today. NFTs are another example, which was heralded as the new form of digital art for a while. In crypto gambling, we have seen bookies take NFTs, fan club tokens, and Skins as deposits, a trend that could be dying now. 

Cryptocurrency betting has been one of the earliest and most lucrative ways to use crypto, and it does not seem to be slowing down. It is similar in many ways to traditional gambling sites, but players play with digital assets such as Bitcoin, which have gained great value through the years.

To put it simply,  if you gamble with cryptocurrencies instead of FIAT, traditional money, you are part of the sphere. This includes topping up a bookie's FIAT balance with crypto or buying an amount of a token through an on-ramp and playing it as it is. If you are new to digital currency, follow our guide and become an expert in no time. We provide vital information on achieving this and some tips and tricks to get you started.

How to Bet with Cryptos

There are some basic things you need to know before you begin. For instance, how do you purchase crypto in the first place? Then, how do you deposit and withdraw from a bookie? We will guide you through everything. If you want to go the extra mile, it would help if you also learned how to securely manage your bankroll and stake when it is in the form of crypto.

Then, it is best to acclimate yourself to crypto peculiarities. For example, cryptocurrencies' high divisibility may seem strange at first, even confusing. However, it is important to understand what a difference a couple of decimals makes.

In today's markets, 0.1 BTC is a considerable amount of money, whereas 0.00006 Bitcoin is a more reasonable and realistic size for your stake. In a few months, these amounts can go up or down dramatically. Using a calculator or an online converter will help you manage the wagering funds and keep track of your profits and losses.

Some bookies give the option to see the amounts in FIAT equivalence, even though you are holding the crypto and not the currency (EUR, USD, or others). This way, you can maximize the benefits of crypto gambling. Of course, to do that, you first need to select the ideal cryptocurrency. If you want to start by testing small amounts, check out the low-deposit betting sites that offer more room to wiggle. 

Selecting your Cryptocurrency for Gambling

Do not worry if you are confused with all the token details, news, hypes, and misinformation. There are more than four thousand coins. To say that selecting a couple is intimidating is an understatement. We are here to help you learn which cryptocurrency is the best for your betting.

We are sure you have heard about Bitcoin and Ethereum already. Granted, they are the most popular cryptocurrencies, but there are so many other gems out there that may better fit your purpose. The prime reason is the high fees that come with these two. For more in-depth information on the operators that accept popular coins, check out our page for the Best Crypto Bookmakers.

Opting for the big ones

You could go with the largest ones, Bitcoin and Ethereum. But you will be missing out on some exciting options. BTC and ETH have been amongst the first options crypto bookies offered. They lead the way for the massive adoption of crypto in gambling.

After all these years and the updates that came with them, both provide great speed in withdrawals. This roughly ranges from a couple of minutes to an hour for Bitcoin and within minutes to half an hour for Ethereum. They also come with great divisibility of the funds in your bankroll. 

Meaning you can place much more bets than with conventional currency. They are also the safest bets, pun intended, given the exceptional volatility in cryptocurrency prices. Of course, there are several up-and-coming ones, while some of the older coins have their history entrenched with gambling; you will often see BCH gambling sites that provide all the perks of using Bitcoin at much lower cost and faster speed. 

Opting for newer, faster options

We recommend XRP, LTC, and BNB as some of the established options in the market with substantial market caps. They offer greater speed than Bitcoin and Ethereum, especially XRP, which is almost instantaneous. That can be very useful in Live Betting, in case you connect an outside wallet to the website, but more on this later. These tokens also have meagre fees. Even though bookmakers are supposed to absorb fees, this doesn't always apply to network charges.

You can make lots of transactions with almost no cost at all. Imagine doing this with your VISA. High-cap coins are fairly popular in crypto bookies, with some options more available than others. In addition, the more established the coin, the more you will find it on exchanges and FIAT-to-crypto gateways. So, you will have no trouble exchanging them for other cryptos or cash.

Anonymous Sports Betting with Privacy Coins

If privacy and anonymous sports betting are your cup of tea, then you can achieve it using a privacy coin. This is a term for a group of cryptocurrencies focusing on privacy. The first and arguably the most popular option is Monero (XMR). With its unique ring signatures and other features, it achieves truly untraceable transactions.

Combine XMR with a crypto bookmaker that does not require Know Your Customer verification; then, you can hide 100% of your betting activity from prying eyes. Other privacy coins that can be used for under-the-radar betting are Zcash (ZEC) and possibly Dash.

Use Stablecoins to avoid volatility

Surely, you have heard that cryptos have extreme volatility in their price. You can easily bypass this and avoid violent fluctuations in price by using stablecoin. As the name implies, these cryptocurrencies have a stable price, usually pegged to one USD.

Such coins are Tether (USDT) or USD Coin (USDC). The decision of which cryptocurrency you select is important because it will also determine which digital wallet you will use. Let’s dive in.

Choosing a Wallet for Crypto Gambling

Since cryptocurrencies are digital assets, you need a place to store them. And since the peer-to-peer, decentralized nature of cryptocurrencies makes them impossible to squeeze into your bank account, you need a digital wallet. Basically, cryptocurrency wallets fall into two categories: hot and cold.

Hot wallets are always online, whether in the form of a browser extension or software you download to your device. These are the most convenient options, but they are more prone to security issues in case of a hack, loss of device or similar.

On the other hand, cold wallets are external devices that do not require a constant internet connection. Think of them as special USB sticks where you can store your cryptocurrencies. They are slower to use but are the safest option. The two options we recommend are Ledger and Trezor. Always shop from their official online stores.

Then, there is the issue of selecting a hot or cold wallet compatible with the cryptocurrency you will be gambling. Not all wallets are compatible with every coin, so you must weigh which option fits your needs best. Choose wisely. For more extensive information on wallets, check out our Best Crypto Wallets for Online Gambling guide.

Dos and Don’ts when Purchasing Cryptocurrency

After you select your wallet, you now need to purchase some crypto. The best place to do this is at a cryptocurrency exchange. Some bookies incorporate an on-ramp, but it would not be our first option, as it usually comes with unnecessary fees and not optimal prices. Still, in some cases, it might be the best option.

We recommend that you use a reputable exchange. There are numerous reasons for this. First, it is about liquidity. You need liquidity so that you can trade your FIAT to crypto. Then, you need a reliable and trustworthy exchange.

Finally, if you decide to gamble using a less popular option, such as ADA or EOS, you would want to go to an exchange that offers these coins. Don't forget to check our guide on Crypto Exchanges for anything you need to learn before signing up for one. 

Custodial and non-custodial cryptocurrency exchanges

When gambling with cryptocurrency, one critical factor is whether your exchange has non-custodial wallets. Some good examples of such wallets would be Ledger, MetaMask, Trust Wallet, or Blockchain.info, having the occasional option to buy with FIAT. The on-ramps here are the same as the ones you will find at bookies. This is still not the optimal choice regarding fees and conversion rates, but you will need such a wallet to transfer funds from the exchange to the bookie.

Major and trustworthy exchanges like Binance, Kraken, and Coinbase usually have custody of your funds because they are centralized, and that's ok for small amounts and fast transactions. You only need these to buy a token before transferring your funds. These centralized exchanges (CEX) provide unbeatable trading pairs, prices, gateways, tools, and more.  

If you purchase cryptocurrency from a custodial option, you cannot transfer your cryptocurrency directly to a bookmaker. If we could, we would have stomached the fees of Revolut or Paypal for the convenience of direct transfers, but these services will block your transaction and are not anonymous. The same goes for services like Binance, Crypto.com, and others that have to follow international regulations. 

In summary, the optimal way to fund a bookie's balance would be buying crypto with FIAT on a CEX and transferring it to a non-custodial wallet. Afterwards, you can make a crypto transaction directly to your betting site. This method will require you to pay minimal fees to withdraw from the CEX to your private wallet. Charges could be as low as 0.05%, while you might be able to buy your crypto at a maker's market and grab some extra profits.  

If you choose the right coin on the right network, this will be way less than the 5-7% on-ramps charge, not considering the unfavourable conversion rate they usually give for the token. It is worth noting that DEXs and escrow websites, like Bisq and LocalBitcoins, used to accept FIAT-for-crypto, usually through P2P. However, despite the boom in decentralized crypto finance, these gateways are becoming less frequent to find and riddled with scammers, while the legit options will require KYC, just like a CEX. 

Cryptocurrency Betting: How to deposit

Moving on, you must select the bookie that fits your preference. Go ahead and sign up. In some cases, you will need KYC, so consider your selection carefully, especially if under the radar is something you are aiming for. We also recommend not to use a VPN.

The reason is that bookmakers have a way to detect this. Even though they may allow you to register, a VPN may prompt them to lock you out of your account by confiscating your deposit or restricting and flagging you on their entire platform. When the time comes for your withdrawal, all these issues come under scrutiny, so you best avoid them unless the T&C specifically states that you can use a VPN.

Speaking of which, make a habit of reading all terms and conditions before depositing your precious cryptocurrency. Then proceed with the following steps:

• Go into your account. Usually, this is located in the upper right corner of the screen. Select the deposit option on your account. At this point, keep a keen eye out for any applicable bonuses, which may require you to select them manually.
  
  
• Select also the appropriate coin. Then, you will see the address you need on the screen. Go back to your wallet and carefully paste the address for the recipient. Always double-check this part because cryptocurrency transactions are irreversible in case of a mistake.
  
  
• Most popular currencies are available on many networks. A bookie will either give you a list of networks you can use or point out the one it is using. Just like sending funds to the wrong address, if you do not choose the right network, you might be unable to retrieve your money. So pay extra care to this point.
• Once you check everything is correct, confirm the transaction on your wallet. Within a few moments, your bankroll will be funded, and you will almost be ready to start cryptocurrency betting.

Best Crypto Gambling Sites

If you want to dive into cryptocurrency betting, you must be careful. Many sketchy bookmakers out there will not hesitate to scam you. This is why we put together a list of the most trusted and best crypto gambling sites.

We only include bookmakers who have been around for a while and do not compromise on markets and games offered. We also provide a list of operators supporting a substantial variety of cryptocurrencies.

Making a Withdrawal

After you finish a successful session of sports betting with cryptocurrency, logic says you will want to withdraw your precious winnings from the website. The process is straightforward, especially if you did all the steps correctly. Technically, it is the same as the deposit, and cryptocurrencies offer lightning-fast transaction speeds. The tricky part is fulfilling the bookmaker's requirements, like funds or bonus rollover. Sometimes, you have to have to pass verification and upload identity documents.

It might seem counter-intuitive for a website to ask you to submit KYC and AML forms when you have been gambling with cryptos to remain anonymous. For players who are concerned about this, we include more useful information about each brand in our reviewed list. They might be more interested in no-KYC brands and prefer their transactions' privacy over a regulated bookmaker's security. In any case, we scrutinize the brands we review with withdrawals at the core of our tests. 

Some sites may allow for a limited amount of daily, weekly, or monthly withdrawals, which hurts them in our bookmakers ranking. Others may process withdrawals manually. Consider this carefully to know when to expect your profits back in your wallet. When you have your funds, you can decide whether to keep them in crypto or return them to an exchange and convert them into FIAT or another cryptocurrency. At this point, you may wonder whether all this is legal and safe.

Cryptocurrency Gambling Legality and Safety

There is always a consideration for the legality of cryptocurrencies in gambling. The fact of the matter is that it depends on whether gambling is legal or not, as well as the gambling age limits to your region. If you profit from gambling or holding crypto, you must also consider your jurisdiction's stance on declaring your winnings and paying taxes.

Cryptocurrencies are considered legal in most countries, but intricate laws and regulations exist about certain aspects of obtaining/transacting with them and making un-taxable gains. Then comes the issue of crypto gambling itself and the problem of your online safety.

Let's say you are a resident of a US state where online gambling and crypto are legal. First, you must check for bookies that accept American players and whose domains are not blocked by the authorities. This means you will go through a full KYC, and at this point, it will not matter if you use crypto. The IRS will be informed of your activity.

To avoid the intrusive nature of this system, most players will flock to off-shore bookies that accept VPNs and take only a valid email to register. Needless to say, if you win money on these websites, you cannot declare it, and you will be breaking the law as a US citizen. This is not necessarily the case for someone who lives in Europe or elsewhere.

To make a long answer short,  the use of crypto is legal, and so are the websites we list. It all depends on where you live and what you make of it. For example, Curacao brands have a solid reputation and excellent customer service in chat and email. They operate under international regulations and do not assume responsibility for your actions outside their website. Signing up and betting on them is still within the law. 

Crypto Gambling is the King of Under the Radar

One of the coolest things crypto gambling offers is anonymous sports betting. Only with cryptocurrencies is it possible to achieve that. This is done by utilizing the blockchain, the anonymous online ledger almost all cryptocurrencies have so that no one can know about your transaction.

Read more on this fascinating technology in our Blockchain gambling article. However, make sure you do not link your identity to your crypto address, as this will compromise and expose your activity. Our recommendation for complete under-the-radar betting is to use an operator that requires only an email address during registration.

A good example could also be no age verification bookmakers. They should also accept one of the two best privacy coins around, Zcash (ZEC) and Monero (XMR). Using any of these two coins at a bookie such as above ensures that no one will ever know your betting activity. It is very useful if absolute privacy is what you are looking for.

Is Crypto Gambling Worth it & TIPS?

Despite the learning curve required to use them, you will be ready to benefit from all that crypto gambling offers once you get the hang of it. If you haven’t already, at this point, take notes because I would also like to provide some extra tips to consider to help you master it.

The following tips have helped me make the most of my game over the years. You should always keep your wallet’s seed phrase secret and never share it with anyone. If possible, keep at least two copies of it stored in separate locations.

Consider using a different address for each transaction, which maximizes your privacy and makes your moves harder to follow. Pay attention to wagering requirements for the crypto bonuses you encounter on each bookie; this way, you can distinguish the good ones from the frivolous ones.

Also, keep track of the crypto markets to know when it is a good time to withdraw your gains for maximum profit or a good time to purchase your favourite crypto at a discounted price. Cryptocurrency betting is a fantastic option for gambling and is here to stay. Be sure to utilize our online betting guide, and you will be able to profit from crypto gambling in no time.