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How Safe Is It To Use Bitcoin for Online Gambling

by Naveen Agarwal
Online Gambling

Since the COVID-19 pandemic started in 2020, gamblers began looking for an online casino to play slots while Vegas casinos were shut down. 

While some people couldn’t gamble using an online casino due to gambling bans in their state, others would have the opportunity to take advantage of their state’s gambling laws that allow online gambling. With online gambling offering a fix for people looking for slots to play, it also provided a way for people to gamble using Bitcoin. 

This cryptocurrency has been the standard of all cryptocurrencies since its beginnings in 2009.

Some gamblers want security when it comes to using money online to gamble, and this is no different with Bitcoin. No one wants to use either fiat money or cryptocurrency to place a wager, only to find out they will be getting scammed in the end. 

While debit cards for cash deposits on online casinos offer very little protection, Bitcoin transactions can offer added security due to the blockchain, which gives detailed records of all transactions that can not be tampered with.

While the Blockchain Keeps Transaction Records, Crypto-Wallets That People Use to Hold Bitcoin Might Not Be as Secure

With cryptocurrency scams and hacks going on, people don’t realize it’s not from the blockchain that the criminals are stealing crypto. Crypto-wallets are where thieves take advantage of security flaws and of people giving out their crypto-wallet information (think of it as the new Nigerian Prince e-mail scams that people saw in the past). 

There is, however, a way to secure your Bitcoin on a crypto-wallet as crypto-wallets are cracking down on hackers and giving customers a more secure experience.

Hot Wallets and Cold Wallets, The Differences and Uses for Both Types of Crypto-Wallets

To the average person that isn’t big into Bitcoin, knowing what a hot wallet and cold wallet are can make a huge difference in whether or not someone can swipe all your Bitcoin. A hot wallet refers to an online crypto-wallet that can be accessed from a computer or cell phone for the user to spend their Bitcoin. 

A cold wallet refers to an offline crypto-wallet on a CD or USB drive that stores the amount of Bitcoin you have in your wallet.

While hot wallets can be hacked, a cold wallet can’t be hacked. However, if you lose the CD or USB that the cold wallet is stored on, you will, in turn, lose all the Bitcoin you have stored on there. 

While the cold wallet is best to secure most of your Bitcoin, a person can use a warm wallet to keep a smaller amount of Bitcoin for everyday use.

How Using a Separate Warm Wallet for Online Casinos Can Be More Secure Than Using Your Debit Card or Bank Account Information

Even though some crypto-wallets might get targeted for hacks, there are safeguards that Bitcoin has over fiat money for gambling. Most crypto-wallets are constantly making upgrades to fight off any would-be hacker. The hot/cold wallet concept also helps keep your Bitcoin secure. So how does this apply to online casinos?

If one wants to only gamble with a set amount of money, they can use the Bitcoin off their cold wallet stored on a USB or CD and add the amount desired to a hot wallet. The CD or USB will have the rest of the Bitcoin secured offline while the gambler can then use the hot wallet to transfer Bitcoin to their online casino account. 

This route is safer than using your bank account to deposit funds, exposing personal information that could be hacked and used.

Online Casinos See the Value in Bitcoin

Since the first Bitcoin online casino started in 2012, many Bitcoin-friendly online casinos have emerged since then. They see the value of Bitcoin and other cryptocurrencies in the market, which has seen cryptocurrencies break $2 trillion in worth during 2021. 

That isn’t all; it is also estimated that the online crypto casinos are worth over $250 million. While the value of Bitcoin itself is constantly fluctuating, that hasn’t stopped online casinos from accepting the cryptocurrency as a form of use on their games.

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