Ethereum and Bitcoin Casinos: Safety, Risks and Security
The early days of digital currencies were confusing, uncertain, and chaotic. The very first Bitcoin purchase saw thousands of these coins being used to buy a few pizzas, a value of less than $100 that would later be worth millions.
When these payment methods were eventually embraced by the online gambling industry, they lacked the framework needed to make them work and to ensure they were safe and secure at all times. What’s more, the very first use was on the dark web, where it became the currency of choice for criminals selling drugs and guns, and this association and limited framework scared consumers away.
Over time, however, the framework improved, public opinion shifted and now, cryptocurrencies are one of the safest ways to gamble online.
Is Bitcoin Gambling Risky?
There is always a risk that you could be hacked and lose your money. But that could happen just as easily with Bitcoins as it can with anything else. In fact, it could be argued that fiat currency is even riskier, as it’s a centralized currency and one that relies on the strength of the economy. So using casinos that accept Bitcoin as a payment option and allow players to make these payments (deposit or withdrawals) is certainly not riskier than playing in any other casino online.
The problem with Bitcoin, Ethereum and other cryptocurrencies, is that they can be quite volatile. However, while this has been the case in the past, the value of these coins has leveled somewhat in the last couple of years. Furthermore, most of the changes are positive, and even when there are large dips, they tend to occur after significant rises.
Protection and Security
It seems that every time cryptocurrencies make the headlines, it’s either because there has been a sharp rise or fall or because there has been a major hack. These hacks concern many potential users and scare them away from using cryptocurrencies. And it’s a justifiable concern, as it is possible to lose all your coins in a single hack.
However, these hacks occur on cryptocurrency exchanges, not gambling sites. Gambling sites are incredibly secure and they are also regulated by the authorities of countries like the UK, Sweden, Malta, and Curacao. It’s very rare for these sites to be hacked and in the unlikely event they are hacked, your cryptocurrencies should be safe.
The best cryptocurrency gambling sites guard against these risks by storing coins like Bitcoin or Ethereum in “cold storage”, which means they are added to wallets that only a few people have access to, wallets that are not stored within reach. Your funds are also secured by the regulators, especially in countries like the United Kingdom and Sweden, where there are strict rules governing how gambling deposits are controlled and secured.
In other words, there is no risk with the online casino itself. The only risk comes from you. If you don’t store your wallet safely, allow third-parties to access it, or use questionable cryptocurrency exchanges, your money is at risk. But the same could be said for credit card or bank account details.
As with all payment methods, it’s also important to use regulated, certified, and safe online casinos. These scam casinos are more likely to use cryptocurrencies than credit cards and web wallets, as those methods are easier to trace, whereas cryptocurrencies provide scammers with the anonymity they crave.
Note: It’s also important to remember that not all countries allow online gambling, and some offer only partially gambling activity, in only some regions. Therefore, it’s crucial to make sure you play within the rules and regulations of your country, and that you’re not breaking any laws while playing online.
Bitcoins and other cryptocurrencies are not completely anonymous, as is often claimed. Money can be traced to an extent, but it’s not as easy as tracing card or web wallet payments and this anonymity is great if you’re concerned about your details being tracked or stolen.
Anonymity also scares many users away, as there is a misconception that it only benefits those who have something to hide. But we live in a world where every movement we make is monitored, every payment we transact is recorded, and every piece of information can be stolen and used against us. Anonymity is not only beneficial, but it’s becoming increasingly essential.
Cryptocurrencies are safe, convenient, and anonymous, but that’s not all. They are also one of the quickest payment options you can use at an online casino. Transactions take just a few minutes to process, after which the money is yours to do with as you please.
The only delay is the pending time, which is the length of time that the casino sits on the withdrawal before releasing it. This is a common practice applied to all withdrawals, but it typically takes less than 24 hours and many of the better cryptocurrency casinos don’t have any pending time at all.
The increased acceptance of cryptocurrencies has led to some huge improvements. They’re just as safe and secure as they have always been, but now the world’s biggest casino and payment aggregators are embracing them and this is leading to a surge in digital currency casinos.
As little as three or four years ago, “cryptocurrency casino” typically meant a slightly suspicious website that had no other payment method and offered proprietary software from developers you had never heard of. Today, a cryptocurrency casino is just like any other. It can include online games from the biggest developers and is offered alongside many traditional payment methods. Cryptocurrency gambling is as acceptable and widespread as PayPal gambling, and considering all the benefits outlined above, that can only be a good thing.