The recent increase in players looking to use cryptocurrencies instead of traditional payment methods when gambling online is down to a combination of reasons. They include technological advancements, player preferences and wider trends across the finance and gaming industries.
Today, we’ll delve into the many different reasons why players may be looking at these new payment methods, and explore the unique benefits of using cryptocurrencies when gambling online.
Speed and convenience
When we think of using cryptocurrencies, many of us associate these transactions with speed and convenience above almost anything else. This is why they can be so useful for online gambling. Cryptocurrencies allow for (almost) instant deposits and withdrawals, and are typically processed within minutes.
When compared to traditional banking methods, such as bank transfers or credit cards (which can take several days), the difference is clear. These rapid transactions are especially useful for players who want immediate access to their funds for re-wagering or cashing out.
Privacy and anonymity
Understandably, many online gamblers have concerns about their privacy. This can be a point of contention for many new, prospective players. Because transactions made using cryptocurrencies are not tied to a person’s private details and instead are only associated with their wallet ID number, there’s less information that can be directly connected to the user.
While a user will still likely need to be logged into an account to place bets, players don’t need to hand over financial data in the same way as they would for a traditional online casino or betting platform, this being part of the anti-money laundering license requirements imposed by many regulatory bodies.
Security and trust
Cryptocurrency transactions are secured by the blockchain, which serves as the foundation of all cryptocurrencies and provides an additional level of security that traditional transactions lack. In simple terms, the blockchain allows for encryption and records all transactions on a digital ledger that isn’t controlled by one person or organization. It’s entirely decentralized. This lack of centralization means that transactions can’t be tampered with and are less likely to be traced back to a user, and this can reduce the risk of fraud and identity theft.
Lower transaction costs
Because cryptocurrencies aren’t managed by traditional financial institutions and don’t require third-party systems for transactions to be processed, the associated fees are often much lower.
This not only saves the player money when making a withdrawal from their account but it also saves the platform money as it costs less when a player wants to deposit funds. Players often have to take the initial hit when processing the transaction fee for a withdrawal to a linked bank account.
With cryptocurrencies, these savings can be passed on to the player in the form of better promotions and offers, as well as higher jackpots and better player support.
Greater global accessibility
Because cryptocurrencies aren’t managed by traditional banks with limited operations in some parts of the world, players don’t need to worry about losing access or having their ability to play hindered. Possible obstacles may include sanctions from another country or their government wanting to tighten financial access.
Cryptocurrencies aren’t limited by borders and make it easy for players from around the world to participate in online gambling without the need for currency conversion or dealing with local banking restrictions. This is particularly beneficial for players in regions with limited access to traditional banking systems or where online gambling is heavily regulated.
Higher bonuses and promotion
Gambling on platforms that encourage the use of cryptocurrencies often provides access to more generous bonuses and promotions, especially when compared to traditional casinos. Because of the higher transaction costs associated with traditional payment methods, as we mentioned earlier, setting aside some time to search online for the best Bitcoin casinos can be financially worthwhile.
While we can’t promise that every online cryptocurrency casino you find online will have jaw-dropping offers and promotions, it’s not uncommon to see higher deposit match percentages, free spins or cashback rewards being offered for cryptocurrency users.
Innovation and technology
Even if you aren’t particularly thrilled by the potential financial and security upsides of using cryptocurrencies when gambling online, it’s hard to argue that this current wave of technological innovation isn’t incredibly exciting.
The increased accessibility of new cryptocurrency assets, blockchain technology, smart contracts and decentralized finance tools has made it not just a form of entertainment but also a way of learning about the latest innovations and technological trends. Smart contracts, in particular, are especially promising because they can be used to ensure that payouts and winnings are processed instantly without human intervention, reducing disputes and delays.
Final thoughts
The increasing popularity of using cryptocurrencies for online gambling is being driven by a number of factors. The advantages include transaction speed, personal privacy, data security, lower processing costs, increased accessibility and advanced features.
As the gambling industry continues to evolve and transform, players are likely to find even more reasons to choose cryptocurrencies. This may open the industry up to new demographics, particularly those with a keen interest in the technology that underpins these new, innovative features.
