The online betting industry has changed significantly within the last couple of years and cryptocurrency has emerged. If you’re wondering how to exchange your money into crypto to use it in betting, you are not the only one. Millions of people are switching to it on a daily basis, attracted by the faster, more confidential and convenient nature of digital currencies.
Making the switch may appear to be a complex process, but it is really simple. It has become much easier due to the expansion of cryptocurrency exchanges and digital wallets focused on ordinary users, not only tech-savvy ones.
Crypto conversion: The basics
To get started, you’ll need to learn what cryptocurrency is: it is a digital or virtual currency secured through cryptography and not based on the traditional banking system. This is appealing to online betting because transactions can be conducted quicker, more discreetly and with lower fees due to its decentralised nature.
The most popular cryptocurrencies to use in betting are Bitcoin, Ethereum, Litecoin and stablecoins such as USDC. All of them have their benefits, with Bitcoin being the most prevalent. A growing trend in crypto is stablecoins, which are tied to well-known currencies like the USD. This makes your betting funds less volatile.
You can read more about the cryptocurrency fundamentals on educational resources like Webopedia.
You will need to choose a cryptocurrency exchange to begin with. Services such as Coinbase, Binance, Kraken, and Gemini are popular. With these sites, you can purchase cryptocurrency using a bank transfer, credit card, or debit card. The process has been simplified by most exchanges so much that you can even make your initial purchase within a few minutes of confirming your identity.
The step-by-step conversion process
The conversion process is a number of simple steps. To begin with, you will need to sign up with a trusted cryptocurrency exchange. This usually involves giving some basic personal details and identity confirmation, which is a normal security check. There is nothing to worry about, since your information is secure with bank-level security in legitimate exchanges.
When you have created an account and verified it, you may connect your bank account or a payment card. Deposits are possible on most exchanges by bank transfer, which is typically the cheapest option, or debit/credit cards to make the process quicker.
Once you have financed your account, you can order some cryptocurrency. You may purchase at the prevailing price (a market order) or name a certain price at which you are ready to buy (a limit order). Market orders are often the easiest choice for beginners. As soon as you have made a purchase, you will be able to see the cryptocurrency in your exchange wallet.
The last thing to do is to transfer your crypto to where you intend to place bets. The site you have decided to bet on will provide you with a wallet address, which is the equivalent of an account number, but in crypto. Here is something to note: after sending it, there is no way you will be able to retrieve that money, even if you make a mistake. That is why you should always copy and paste that address and then verify it character by character and confirm the transaction. A single misspelled character can cost you your money in the digital abyss. The majority of transfers are quite fast, typically taking 10–15 minutes, but there are times when the network is congested and the transfer may take as much as an hour.
Exploring Crypto Casinos and Betting Platforms
Crypto casinos have really shaken things up in the gambling world, and once you try one, it's hard to go back to the old way of doing things. These platforms operate using digital currencies, and the user experience is like night and day. The biggest game changer is withdrawing your money when you win. While regular online casinos might make you wait three to five business days for a withdrawal, crypto casinos often process payouts in under an hour – sometimes in just minutes. This is because they don’t need to deal with banks. The house also tends to cut a smaller percentage as they are not paying credit card processing fees.
There will be your usual blackjack and slots, but there will also be some crazy new games that would not exist without the blockchain technology, including games where you can even be sure that the results will not be rigged. Plus, crypto casinos love to throw bonuses at their players, especially when you're depositing in Bitcoin or other cryptocurrencies, with welcome packages that would make traditional casinos jealous.
Betting without having much knowledge on sports
The thing about sports betting that no one ever tells you is that you do not have to be a walking sports encyclopedia to have fun and possibly even win some money.
Of course, it could be useful to know that the starting quarterback has a sore shoulder, but there are numerous ways to bet where you do not need to know all the players’ numbers. For instance, take over/under bets. You just make a guess on whether the points in a game will be more or less than what the bookmaker believes. You don’t need to know how to run an offensive, a defensive, a scheme, a strategy — you only have to know whether you think it will be a high-scoring game or a defensive struggle.
The advantage of live betting is that you physically see the game happening and then you bet. Perhaps you notice that one team is playing slowly in the first quarter, or a pitcher who obviously is not on his game on this particular day. This instant coverage may be much more useful than reading what someone who has never even been on the field is saying about the game. Most sportsbooks nowadays are also throwing boatloads of statistics and professional bets at you, so you are never really betting uninformed.
Bankrolling Your Crypto Betting
Investing your crypto betting funds is slightly more complicated than investing normal currency, due to crypto prices that can fluctuate like a ping-pong ball. This means that one day your Bitcoin may be worth $1000 and the following day it may be worth $900 even though you did not make any bets. This is the reason why intelligent bettors only convert what they are intending to spend immediately, leaving the remainder in stablecoins that do not fluctuate wildly in value.
You need to draw a line and follow it like any other kind of gambling. The issue with crypto is that it is just too easy to buy more, because there is no waiting on bank transfers, or credit card holds.
This is where it is ideal to have various wallets to serve various purposes. Do not mix your betting money with your normal crypto investments, or with the crypto you use to purchase everyday items. It is just like having multiple checking accounts, - you can see exactly where every single penny is going, and you are not going to spend your rent money gambling.
Security and Best Practices
Your priority in handling cryptocurrency in betting should be security. Never use untrustworthy exchanges or betting sites that have poor security track records. Use two-factor authentication on every account, and do not share your private keys or passwords to your wallet with anyone.
Find out the legal position regarding the betting of cryptocurrency in your area. There are restrictions and outright bans in some jurisdictions.
Lastly, maintain records of your transactions as taxes. Cryptocurrency earnings and losses must be declared to the tax authorities in the majority of countries, and the winnings made during betting can be taxed despite the currency of the bet.
Crypto betting offers speed and privacy. Follow the correct strategy and implement adequate security precautions to reap the advantages of crypto betting with minimal risk.
