Ever heard of bitcoin casinos? What they are and how they work? Bitcoin casinos are online casinos that recognize bitcoins as currency and accept it in transactions.
Bitcoin is the most widely used cryptocurrency globally. Satoshi Nakamoto developed it in 2008 and its implementation released under the General Public License (GNU) license.
Bitcoin works on a peer to peer network and does not have a single regulator. It is decentralized, and the transactions verified by network nodes called miners. These “miners” also help maintain the blockchain, which is the technology employed to verify the authenticity of bitcoin transactions and ensure their security.
How do they work?
Bitcoin casinos work much like the traditional casinos which accept dollars as currency.
The rest of the “rules of the game” remain the same. Players need to sign up and make deposits (in the form of bitcoins) to the casinos. These deposits will then buy into games and place wagers by the players.
By use of bitcoins, the casinos can then avail a wide variety of games for players online for example;
1) Online slot machines
3) Video Poker
4) Bingo games
5) Sports betting
6) Online lotteries
Types of Bitcoin casinos
There are two types of bitcoin casinos;
- Exclusive Bitcoin Casinos
Exclusive bitcoin casinos operate only in bitcoins. All the fees, deposits and withdrawals are through bitcoins while fiat currency is not accepted.
Therefore, gamers wishing to join these casinos would first need to acquire bitcoins to be eligible to play.
- Hybrid Bitcoin Casinos
These casinos accept fiat currency as well as bitcoins.
Using bitcoins in casinos
The first step would be to acquire a bitcoin wallet which used to hold the bitcoins and support transactions. Once you’ve got a purse, use your unique wallet ID to log in to your wallet for deals.
But since your wallet is empty, you will need to acquire bitcoins first. There are three ways through which you can get bitcoins;
- Accept bitcoins as a form of payments for products sold or services rendered.
- Purchase bitcoins from an exchange dealer. Exchange dealers are available and accept fiat money in exchange for bitcoins.
- Dive into the world of bitcoin mining. Bitcoin mining is the process by which miners validate bitcoin transactions by solving complex equations, and they get some coins in exchange for their struggle.
Advantages of bitcoin casinos
1) Bitcoin casinos ensure anonymity
Bitcoins work on the principle that they are distributed and have no single regulator. The parties involved in the transactions are identified in the network by pseudocodes, and therefore their identity is safeguarded.
Transactions in cryptocurrency are more secure as compared to credit cards which are more susceptible to identity theft and hacking.
As bitcoin transfers are not regulated, the transaction happens ‘directly’ between the player and the casino without involving a third party.
3) No transaction fees
Since the transaction happens directly between the casino and the player, there are no additional transaction fees from third parties like bank transfer fees.
Nevertheless, bitcoin casinos are much safer than casinos dealing with fiat currencies. Again, bitcoin transactions take a shorter period to be processed. Bitcoin transactions also have fewer transaction charges compared to fiat currencies.