Bitcoin is almost certainly the newest and possibly the most unusual means of depositing money into an online casino. It hasn’t been as widely adopted as a deposit method as some other banking methods, but it’s gaining steam fast. It has several advantages and disadvantages over other deposit and withdrawal methods, which I’ll cover on this page so you can make an educated decision about whether or not it’s a good option for you.
Bitcoin is a kind of digital money, but it’s not a product created by the government of some country. It’s a decentralized network of currency that can be used to buy and sell things electronically. (And these “things” that are bought and sold can include other kinds of currency.) Bitcoins aren’t actual coins, either—they’re not physical objects at all. Instead, they’re just virtual currency based on math and algorithms. In order to buy or sell something with Bitcoin, or in order to transfer Bitcoins from one use to another, you need to use a Bitcoin wallet. Once you have one, you can transfer Bitcoins instantaneously and at almost no cost through your computer, just like sending an email.
This isn’t as confusing as it sounds, either. New users can get started using Bitcoin without understanding the complete details of how it works by just opening a Bitcoin wallet. This wallet generates Bitcoin addresses. You’ll use a different Bitcoin address for every transaction. And since this is an entirely transparent kind of currency, there’s a public ledger (called a “block chain”) which shows every transaction of every Bitcoin ever. Transactions are just transfers of value through these addresses.
Bitcoin prices can be expressed in dollars or any other currency. You can exchange Bitcoins for dollars or dollars for Bitcoins, either one. One of the only downsides to using Bitcoin as an online casino deposit method if the volatility of the price of these Bitcoins. As a currency, a unit’s value varies more dramatically with Bitcoins than with almost any other type of currency. So you might make a deposit when Bitcoins are worth $606 each, but when it comes time to make your withdrawal, they might only be worth $604. You lost money just because of the fluctuating value of the currency. On the other hand, Bitcoin prices have tended to rise over time, so it’s also possible that you could make a deposit with Bitcoin when it’s worth $606 per Bitcoin and see the price of a Bitcoin raise to $608, in which case you’ve made a profit.
A chart of price changes by Bitcoin.org.
Given that we’re discussing using this as a deposit method for online casinos, I’d be surprised if one of our readers decided against Bitcoin because of its volatility. After all, that’s the name of the game when you’re talking about gambling. Most online casino customers relish the chance to tack on a few extra dollars on the basis of chance when it comes time to withdraw.
The first step to using Bitcoin at online casinos to actually make a deposit is to visit the cashier page of the online casino where you’re playing. They’ll have a list of available deposit methods there. Naturally, you’ll choose Bitcoin. You’ll find instructions there about what information to include in which fields on the form, but the most important thing is that you set up a Bitcoin wallet. Without the Bitcoin wallet, you can’t set up any kind of transaction at all.
Instructions by Bovada.lv.
When it’s time to make a withdrawal, you’ll want to follow the same kind of process. Only this time, instead of moving the funds from your Bitcoin wallet to the casino’s, the casino is moving the funds for their wallet to yours. The only tricky part is the exchange rate—the price at which the Bitcoins are valued.
I have a friend who conducts a lot of business with online casinos using Bitcoin. He always tries to time his withdrawals from his Bitcoin wallet (converting it into cash) so that he makes a tiny profit compared to what the Bitcoin was worth when he made his deposit and/or withdrawal. I don’t think this is the way to go. It’s impossible to time the values of these types of currency. You might be able to consistently price these funds in a way to make a profit, but you might also wind up in a situation where you lose a significant amount of money. These coins are almost as likely to decrease in value as they are to increase in value.
Author: Steve Mitchell