One of the main foundations that has to be in place for online casino play to be possible is the transfer of funds to and from the casino. Without a reliable payment option, it's simply not possible. However, these options open players up to potential security risks sometimes. Sharing your credit card details online always has a level of risk, especially if you aren't completely sure about how trustworthy an online casino is. Even with an electronic wallet that puts an effective buffer between your bank account and your casino account, there are risks with having your account hacked.
A Solution to These Problems: Bitcoin
Due to these issues, bitcoin has started being used in a number of online casino sites. Its advantages really line up with the problems that were outlined above. For example, the anonymous nature of this digital currency means that it's not tied to your name or account information, so no one could use it to put your other funds at risk. However, bitcoin presents a number of new problems if you don't play with a casino that has their proverbial ducks in a row, so we want to show you what you need to know to make it work for you.
The Basic Process
There's a basic process you'll need to follow if you want to deposit. First, you'll create your bitcoin wallet using special software. Next, you'll purchase bitcoin to add to that wallet through an online exchange. Finally, you'll be given a destination wallet from the online casino that you're playing with, which is where you'll send your own bitcoin for a deposit. From that point, there are two different ways things can play out. One way works well, and the other takes on more risk than is probably worth it.
The Bad Way
We'll start with the bad way that online casinos can handle bitcoin deposits. Essentially, if your account balance is held in bitcoin, then you're going to have a bit of a problem. The value of bitcoin has been known to be particularly volatile, so if it's sitting in your account just waiting to be wagered, its value could potentially shift around more than what's probably considered reasonable. The end result is that the bitcoin just sitting in your account turns into more of a gamble than actually playing the games. This isn't really acceptable, so we don't recommend players use bitcoin to deposit at sites that keep your actual balance in bitcoin.
The Good Way
The alternative method for handling bitcoin deposits is to exchange them for another type of currency upon deposit. The idea is that your balance stays in US dollars, euros or British pounds instead of bitcoin so that the volatility inherent in this digital currency doesn't affect the funds that are waiting in your account. As a result, all of your risk happens at the casino games instead of being primarily based on what happens in the market for this particularly volatile currency.
Safety and Security
People who aren't familiar with bitcoin would be well-served to read up on its history and how the software around it works so that they know exactly what they're getting into. While there are a number of inherent safety features build into this digital currency, there's also a number of inherent security issues that you'll need to keep an eye on. One of those is keeping your wallet backed up. Your wallet is essentially a file on your computer, and without that file, you cannot access your bitcoin that are located in it. Backing up this file is essential.
Overall, there are pros and cons to using bitcoin. You'll need to weigh these for yourself and decide if it's something that you want to use for your online casino transfers.