Ever since the high-profile bust of the dark web marketplace The Silk Road in 2013, cryptocurrencies have been associated with illicit activities like money-laundering and drugs. However, this one-off incident doesn’t accurately represent the true nature of cryptocurrencies and the important technology that supports them. While many people claim that cryptocurrencies are private and untraceable, they are in fact, far more traceable than cash and not really an ideal tool for committing financial fraud.
This is because blockchain technology is designed in a way that is entirely transparent and accessible by anyone with an internet connection. Although specific transactions don’t necessarily require identifiable information, the transactions themselves including the amount transferred, cannot be hidden. This makes blockchain and cryptocurrencies ideal for online gambling because it means neither the casino nor the player can trick the system without getting caught.
Proven fairness
Online casino games that are built on blockchain technology cannot be hacked by players or corrupted by the casino operator. All calculations, such as payouts, bonuses, and random numbers generators (RNGs), are hard-coded into the blockchain and clearly visible to all players. This way you know for certain what you are getting yourself into and know that the casino cannot rig the game against you.
Although it can be difficult for the average person to understand coding on the blockchain, independently verifies can check the code and ascertain whether a casino is legit. This dissuades casinos built on blockchain technology from tricking the system because they could easily get caught out.
Safer and Cheaper Withdrawals
Another great advantage of blockchain-based online casinos is that they operate purely with cryptocurrencies. Not only does this make it quicker and easier to deposit and withdraw money, it also means the money is secured by a smart-contract and cannot be withheld by the casino. Many disreputable online casinos have enacted complex withdrawal features that often make it near impossible for customers to claim their winnings. With cryptocurrencies and blockchain technology, these tricks can be avoided entirely.
It is also much quicker and cheaper to withdraw your winnings in cryptocurrency because it doesn’t require any third-party bank or financial institution. Crypto like Bitcoin (BTC) or Ethereum (ETH) can be transferred directly to your digital wallet and often clears within minutes, unlike bank transfers that can take up to 3 days and incur high fees. All crypto network fees fluctuate depending on how congested the network is, during low usage times it often only costs a few cents to transfer thousands of dollars worth.
Wider selection
The introduction of blockchain technology to online casinos has made it possible for a wider selection of people to gain access to their platforms. In the past, online casinos have had to partner with a limited number of banks and have been limited to operating in certain states and countries. Often, consumers have had to use credit cards to deposit cash onto the platforms, a dangerous and ill-advised method of gambling.
Now, there are several major online casinos and similar casino sites where players from all over the world can quickly and easily deposit cryptocurrency with minimal risk and low fees. Blockchain technology has helped the entire online gambling sector to become more transparent, trustworthy, and accessible, increasing its legitimacy and improving security for both customers and operators.
However, gambling still comes with inherent risks and no matter how good the security is, you should always practice a degree of caution and follow these simple steps:
- Never gamble with money you can’t afford to lose.
- Never gamble on credit or with a loan.
- Always read reviews and do in-depth research about a casino before depositing money.
- Read the terms and conditions to ensure you abide by the rules and don’t disqualify your winnings
- Make sure there is a withdrawal method that suits your needs (preferably cryptocurrency)
Other points to note:
Don’t get sucked in by flashy signup bonuses that promise unrealistic returns, like 10x or 20x your initial deposit. These are usually tricks that require you to first gamble a much larger amount of money before you can make a withdrawal. Read the fine print carefully – often when you sign up for these ‘bonuses’ you end up signing away your withdrawal rights and losing money in the long run.
When using cryptocurrencies, make sure you use a legitimate platform that is well trusted and has good reviews. Although most cryptocurrencies in themselves are safe and legitimate, there remain many bad actors in the space that use cryptocurrencies to take advantage of unsuspecting clients. Always do your due diligence and perform adequate research before handing over any money.