The Use of Cryptocurrency in Online Casinos 12 March 2024

Online casinos are always on the frontlines of innovation and technology to enhance the access, gameplay and payment processing for players. One of the most reviewed areas at online casinos is the payment methods and processing.

In the past, the most commonly used payment methods have been credit/debit cards, e-wallets and bank transfers. More recently, cryptocurrency has been introduced to fix some of the challenges of traditional payment methods.

In this article, you will learn about what cryptocurrencies are, the different types commonly available at online casinos and their benefits.

What are cryptocurrencies?

Cryptocurrency is a digital currency that records transactions on the blockchain. The blockchain is a ledger that records all transactions on a distributed ledger across a network of computers.

The selling point of cryptocurrency is it is decentralised which means it is not under any central authority. Instead, it uses a consensus mechanism including proof of work and proof of stake, maintaining the anonymity of the users and providing privacy and security to users.

Bitcoin, the godfather of cryptocurrency, was launched in 2009. The founder of the cryptocurrency runs under the pseudonym Satoshi Nakamoto. More coins also known as altcoins later came onto the market including Ethereum, Ripple, Tron, Bitcoin and Tether.

The benefits of cryptocurrencies

Enhanced security and privacy

SSL and TSL encryption have done a great job for the security of private and personal information at online casino websites. But cryptocurrencies have gone a step further by using decentralised and blockchain technology.

The technology ensures security by using cryptographic techniques that add a layer of security that makes it difficult for hackers and fraudsters to access personal and financial information.

Greater bonuses

Online casino bonuses attract new players and retain existing players with their bonuses. Online casinos that offer cryptocurrencies seem to have more generous bonus offers.

They are even more attractive because they may offer lower wagering requirements and higher maximum winnings.

Global accessibility

Traditional currencies limit what jurisdictions can use them to access online casinos. However, cryptocurrencies can be used across jurisdictions. This allows players who do not hold the foreign currency of their favourite casino or game to access them by using cryptocurrency.

Anonymity

Cryptocurrency allows players to maintain anonymity by using pseudonyms. This means players who want to keep their identity and gambling activity private can do so easily with cryptocurrencies.

Lower transaction fees and faster speed

Since cryptocurrencies remove the need for intermediaries such as banks and other payment processors, it means players can enjoy lower transaction fees. Lower transaction fees mean players and online casinos can enjoy cost savings.

More so, cryptocurrencies have faster transaction speeds compared to traditional payment methods. Traditional methods like bank transfers can take up to five working days to process but with cryptocurrency, players can make deposits and withdrawals at faster speeds with payment processing taking minutes.

Conclusion

The influence and benefits of cryptocurrency on online casinos cannot be ignored. They are more generous with bonuses, provide greater security and privacy, anonymity and lower transaction fees.

While the benefits outweigh the costs, it is important to consider the drawbacks including the high volatility and regulatory uncertainty.