Crypto Casinos – Top Factors To Watch Out For

Posted: March 6, 2024

Updated: March 6, 2024

There are many reasons to remain wary of utilsing Bitcoin as a payment option when gambling online. For a start, its value can swing wildly, meaning you could lose a lot of money quickly. Worse still, if you lose your private key or someone steals it, your Bitcoin is gone forever.

In 2011, cryptocurrencies made their debut in online gaming, giving rise to crypto casinos such as those available here. This innovation enables you to take part in thrilling casino experiences utilising digital currencies like Bitcoin, Ethereum, Litecoin, and others. While there are numerous advantages to playing at these Bitcoin casinos, concerns regarding drawbacks persist. The question remains: do the benefits outweigh the disadvantages? Today at Gamingzion.com, we'll delve deeper to discern the pros and cons of crypto casinos and whether you should play in them.

Pros And Cons Of Crypto Casinos - A Brief Overview

Crypto casinos entered the online gaming scene in 2011, sparking the launch of numerous platforms built around Bitcoin and other cryptocurrencies. Bitcoin notably dominates over 70% of transactions within these casinos. The crypto casino sector has witnessed remarkable growth, soaring by 536.96% since its inception in the US. Online casino news in the US suggests a further 50% increase in digital currency usage within casinos by 2025. This trend is particularly promising for enthusiasts, as more online casinos embrace cryptocurrencies within their banking systems.

Pros of Crypto Casinos

It's important to differentiate between online casinos that only accept crypto and those more mainstream websites that are happy to see both fiat and crypto used as a means of making online deposits. Below we're speaking of crypto-only casinos.

Although the advantages for players at Bitcoin casinos appear to be many, in reality, governments are looking to constrain its use. Below, we've listed a few pros, though each of these should still be taken with a pinch of salt.

Swift Transactions

Traditional online casinos often fall short on their promises of rapid and secure transactions, leaving players waiting up to a week for deposits and withdrawals to process. This delay can be discouraging, particularly for new users eager to dive into gaming immediately after sign-up. In contrast, Bitcoin casinos offer nearly instant payment processing and withdrawal services. Deposits made with Bitcoin or other cryptocurrencies are typically finalized within minutes, allowing players to commence gameplay without prolonged waits. Moreover, winnings can be withdrawn promptly from Bitcoin casinos using various crypto-based payment options. However, keep in mind when examining the pros and cons of crypto casinos, that the speed is very much dependent on internet traffic. The blockchain can only process 5 - 7 transactions per second, making it incredibly slow. For comparison, Visa/MasterCard can process around 24,000 - 65,000 transactions per second.

Privacy

Bitcoin casinos offer a heightened level of privacy compared to conventional online casino platforms. While traditional online casinos offer various payment methods, they lack the anonymity provided by cryptocurrencies. These platforms typically require users to provide financial data for deposit and withdrawal processes. In contrast, Bitcoin casinos enable users to conduct transactions using only their wallet address, ensuring a more discreet gaming experience. Fans of anonymous gaming will appreciate the privacy features inherent in Bitcoin casinos. On the other hand, because we reckon you should only ever use fully licensed and reputable online casinos, then your privacy goes out the window. All casinos like the excellent King Billy Casino require players to fulfill KYC (Know Your Customer) requirements before being able to cash out. This includes uploading a government-issued photo-ID (like a driver's license or passport) plus a recent utility bill to prove your address.

Specialized Bonuses

Bitcoin casinos present exclusive bonus offers tailored specifically for cryptocurrency players. These bonuses often surpass those available on regular online casino platforms in terms of value. New users may encounter Bitcoin bonuses reaching up to 1 BTC in bonus cash upon registration. For players seeking unique bonuses not found elsewhere, Bitcoin casinos are a compelling choice.

Prior to making a deposit, you should explore the promotions page on Bitcoin casino platforms to capitalize on these special incentives. Furthermore, it's always a good idea to look through the website’s terms and conditions to see if there are any hidden requirements or conditions. Control An advantageous aspect of Bitcoin casinos is the level of control they afford players, made possible by their decentralized nature. Users have complete access and authority over their funds, safeguarding their accounts and cryptocurrencies from external interference.

Drawbacks Of Crypto Casinos

While playing at true crypto casinos offers numerous benefits, it's essential to acknowledge the potential drawbacks associated with crypto betting:

Unstable Value

With the pros and cons of crypto casinos, one notable disadvantage of Bitcoin casinos stems from the inherent volatility of cryptocurrencies. The value of digital currencies can fluctuate dramatically within short periods. Players who convert fiat currency into crypto during periods of instability risk experiencing losses or overspending. Additionally, rapid fluctuations in crypto value may catch users off guard, impacting the value of their deposits and withdrawals. For instance, depositing $100 worth of Bitcoin when its value is stable could result in receiving a lesser Bitcoin value upon withdrawal during an unstable period. It's crucial for players to be mindful of this volatility when engaging with Bitcoin casinos.

Untraceable Transactions

While we've highlighted the anonymity provided by Bitcoin casinos as a benefit, the issue of untraceable transactions cannot be overlooked. What happens if your Bitcoin casino account encounters an error? Unfortunately, refunds are not feasible since transactions conducted with digital currencies cannot be reversed or tracked. One might be inclined to transfer their digital assets to an offline wallet to mitigate losses during value fluctuations. However, this poses limitations as deposits can only be made to a Bitcoin casino account.

Currency Conversion Imposes Additional Charges

Deposits at crypto casinos operate through two channels: utilizing digital currencies or converting fiat currency into crypto via the platform. While many Bitcoin casinos offer both deposit options, some exclusively accept cryptocurrency deposits. When fiat currency is converted into cryptocurrency by the Bitcoin casino, additional fees are incurred. The extent of these charges is contingent on the amount being converted. Furthermore, this currency conversion fee applies when attempting to withdraw Bitcoin in fiat currency.

Challenges In Regulation

The pros and cons of crypto casinos also entail certain drawbacks. Notably, due to the decentralized nature of digital currencies like Bitcoin, governmental or financial regulatory bodies face considerable hurdles in detecting and curbing fraudulent activities. Additionally, rectifying unfair gaming practices by an online casino proves to be a complex endeavor.

Limited Availability

Despite the increasing global adoption of cryptocurrency as a payment medium, its acceptance at online casinos remains relatively restricted. Consequently, individuals relying solely on cryptocurrency for transactions may encounter difficulties in locating Bitcoin casinos.

Furthermore, users must exercise caution as cryptocurrency deposits are irreversible, emphasizing the need for certainty prior to initiating such transactions.

A Work In Progress

Despite its existence for several years, the Bitcoin network continually undergoes alterations to enhance accessibility and refine its features and usage protocols. However, when it comes to the pros and cons of crypto casinos, the network, which was initially not designed to accommodate the current volume of transactions, encounters scalability issues as Bitcoin adoption expands. Nevertheless, players engaging in casino and sports betting with crypto experience relatively swift deposit processing times owing to integrated features like CoinsPaid.

Proliferation Of Unlicensed Crypto Casinos

Regrettably, the burgeoning popularity of crypto gaming has led to the emergence of numerous unlicensed casinos. Participating in unlicensed Bitcoin casinos poses a significant risk to one's cryptocurrency holdings. Although our focus lies on unlicensed Bitcoin casinos, traditional online casinos are also targeted by fraudulent operators. Therefore, it is advisable to opt for a licensed and regulated crypto casino. As a given, you should be looking for a UK Gambling Commission or Malta Gaming Authority license.

Conclusion - Pros And Cons Of Crypto Casinos

While integrating cryptocurrencies for deposits and withdrawals in online casinos presents both the pros and cons of crypto casinos, some players believe that the benefits of Bitcoin casinos outweigh the drawbacks. The prospect of further innovations cryptocurrencies may bring to the online gaming industry is indeed intriguing. At the end of the day, here at Gamingzion.com, we are not so confident. In fact, we recommend you play it safe and stick with only the best online casino sites in the US. Online casinos like King Billy Casino are happy to accept crypto, yet are far from being clandestine offshore casinos, as they have a reputable gaming license under their belt.