Unless you have been living under a rock in the past few years, you have probably heard of Bitcoin. This is a digital currency believed to be the future of money. That is why Bitcoin has become a widely-spread way to handle online payments. Many online sportsbooks accept Bitcoin payments, allowing bettors to easily manage their betting funds.
Bitcoin was first introduced to the public in 2009 and, in a couple of years, it started gaining popularity. The limited supply (only 21 million Bitcoins) and increasing demand are what give Bitcoin value. Bitcoin shares some similarities with fiat money. Both allow exchanges between two parties and function as a store of value.
Unlike fiat money that is issued by central banks, Bitcoin is decentralized, meaning that it is not controlled by a centralized authority. The cryptocurrency has some unique features that make it similar to gold. These include rarity, durability, and divisibility. But the yellow metal is less volatile as compared with gold.
Nowadays, Bitcoin can often be seen as a supported payment solution at various online merchants, including virtual sportsbooks. With numerous advantages and barely any disadvantages, Bitcoin has become a preferred payment option for numerous bettors which is why there are also betting sites that specifically cater to Bitcoin users.
The very convenient thing about Bitcoin is that it works anywhere, at any time. You can easily use it on mobile devices, which means that you can also fund your betting account on the go. You can use your Bitcoin wallet like any other digital wallet and handle your sports betting payments with ease. It is extremely easy to obtain a wallet and if you take the needed steps, your money will always be protected.
There are two types of Bitcoin betting websites as some accept only the cryptocurrency, while others allow you to convert Bitcoin into a fiat currency which is typically used for your payments. Provided Bitcoin can be also used for withdrawals, the second type of betting sites will convert your money from a sum in a fiat currency into Bitcoins.
Obtaining Bitcoins and Using Bitcoin Wallets
Generally speaking, there are two ways to obtain Bitcoins. These include mining Bitcoins and exchanging fiat currencies for Bitcoins which can be done online.
The process of mining is adding transaction records to the blockchain of Bitcoin. This, however, has become a very difficult and time-consuming task as the mining of the Bitcoins that are left requires seriously high-powered computers. This is why many Bitcoin users have resorted to the other way of obtaining Bitcoins.
In order to purchase Bitcoins on the Bitcoin exchange, you will need to create a Bitcoin Wallet. A Bitcoin Wallet is very akin to a physical wallet. It allows users to store cryptographic information needed to make Bitcoin transactions.
There are two categories of Bitcoin Wallets – custodial and non-custodial. The former allows the wallet provider to access your Bitcoin, while with the latter, you are the only one who can control your digital assets. Non-custodial wallets are safer because they provide users with sole control of their private keys and assets.
There are several types of Bitcoin wallets that you can obtain, and each of them is suitable for different types of users. Luckily, if you head to the official website of Bitcoin, you can choose the right wallet for you by answering several questions. You can pick from a Mobile Wallet which is available for Android and iOS users, a Desktop Wallet for Linux, Microsoft and iOS users, a Web Wallet, and Hardware Wallet.
- Desktop Wallets – these can be installed on a desktop device or laptop, giving users full control over their assets. Bitcoin Core, Electrum, and Armory are some of the most well-known desktop wallets. However, Bitcoin users have to keep in mind that desktop wallets are not the safest because a computer can be compromised at any time.
- Mobile Wallets – these are similar to desktop wallets. The only difference is that mobile wallets are installed on Android or iOS-based touchscreen devices. Bitcoin Wallet, Hive Android, and Mycelium Bitcoin Wallet are some of the most popular mobile wallets. If you go for Mobile Wallets, you have to be wary of malware.
- Web Wallets – these are the least safe type of Bitcoin wallets due to the risk of malware and phishing. Web Wallets do not require installation. Instead, they work online, allowing users to access their accounts from various devices and locations.
- Hardware Wallets – this is the safest type of Bitcoin Wallet as it does not rely on the Internet to store private keys. Hardware Wallets look like a USB device that users have to plug into the USB port of their PCs to initiate a Bitcoin transaction. The only disadvantage is that users have to pay between $100 and $200 for the device. The most popular hardware wallet brands are Ledger and Trezor.
Once you have settled for the type of wallet you want to use, you can see all of the Bitcoin wallets that will be available to you. You can download the wallet you wish to prefer from websites such as Blockchain.info or Chainbase or you can find the wallet app for your Android or iOS device, using the dedicated App Store. Once you have set up your Bitcoin wallet, you can use traditional payment methods to purchase Bitcoins on the Bitcoin exchange. Here is a step-by-step explanation of how to add funds to your Bitcoin wallet:
- Log into your Bitcoin wallet account and choose the Bitcoin tab
- Select the Deposit Bitcoin button
- Open the external wallet you want to use to add funds to your Bitcoin wallet and share the unique address associated with your Bitcoin wallet with it. Bitcoin users can also use their bank cards and accounts to fund their Bitcoin wallets
- Confirm the transaction with your PIN
|Bitcoin Registration Requirements|
|Copy of ID/DL||Yes, for verification purposes|
|Utility Bill||Yes, for verification purposes|
|Link bank account||Punters have to link a bank account or card to fund their Bitcoin wallet|
|Link bank card||Punters have to link a bank account or card to fund their Bitcoin wallet|
Depositing with Bitcoin
If you have decided to top up your betting account via Bitcoin, you will have no issue doing that in a few simple steps. Before you proceed with the deposit, however, make sure that you have a Bitcoin wallet that has been funded. As it was mentioned earlier, some sportsbooks will allow you to make the payments directly in BTC, while others will transform your bitcoins into the fiat currency you have chosen for your betting account.
If you want to use Bitcoin to top up your sports betting account, follow the steps described below:
- Head to the Cashier and choose the “Deposit” option
- Select the amount you would like to upload to your betting account
- Pick Bitcoin from the available payment options
- Depending on the type of Bitcoin Wallet you are using, you will have three different options for your payment:
- for Mobile Bitcoin Wallet users: Scan the QR code which will be provided by the virtual sportsbook and confirm the payment.
- for Desktop Bitcoin Wallet users: Click on a button that says “Pay using Bitcoin” which will open your desktop wallet and will ask you to confirm the payment.
- for Web Bitcoin Wallet users: You can make a manual payment which will require you to copy the Bitcoin address that the sportsbook has provided. Then, open your web wallet and paste the address in the “Send To” section of your Bitcoin web wallet. Enter the amount you wish to deposit and confirm the transaction by clicking on “Send”.
Whichever Bitcoin wallet you are using, you can be sure that your money will be instantly available in your betting account. In fact, many punters select Bitcoin as a preferred payment solution due to its promptness and reliability. Punters who opt for Bitcoin to fund their accounts do not have to share their banking credentials with the operator. Hence, the cryptocurrency is a good option for sports fans who are uncomfortable with sharing sensitive information.
Most online bookies have zero commission on Bitcoin transactions. Furthermore, unlike credit/debit transactions, Bitcoin transactions cannot be rejected due to legal restrictions. That is because Bitcoin transactions are not controlled by a third party.
Some of the best Bitcoin wallets for sports betting are Binance, Coinbase, and Bittrex. Of course, you will find a lot more Bitcoin wallets that you can use to deposit your sports betting account.
Some sportsbooks offer special promotions for punters who use Bitcoin to fund their accounts. But bettors have to keep in mind that not all bookies that accept Bitcoin are trustworthy. Many operators use cryptocurrency to circumvent regulations. Sports fans should know that Bitcoin deposits are irreversible. If you transfer funds to the wrong Bitcoin address, you cannot reverse the transaction.
|Depositing with Bitcoin Summary|
|Minimum per transaction||10 (varies with the different sportsbooks)|
|Maximum per transaction||10,000 (varies with the different sportsbooks)|
|Available currencies||Punters can use whatever fiat currency they wish to buy Bitcoin|
Withdrawing with Bitcoin
Many betting websites will allow their members to also use Bitcoin for their withdrawals. The process is just as easy as the depositing one, and it takes just a few minutes. One of the biggest advantages of using Bitcoin for withdrawals at online sportsbooks is that the transactions are carried out in a very secure manner and are processed in no time. If you want to withdraw your earnings generated from sports betting, follow the steps described below:
- Head to the Cashier page of the virtual sportsbook and select the “Withdraw” option
- Enter the amount you wish to withdraw and choose Bitcoin from the list of supported payment options
- Provide your Bitcoin wallet address that can be generated from your mobile, browser, or web wallet
If you are using a mobile Bitcoin wallet, just open the app, select the option “Receive” and tap on the QR code which will be generated. This will allow you to copy the address so that you can paste it in the field required by the sportsbook. If you are using a desktop or web Bitcoin wallet, you simply click on the address that has been generated and it will be copied. Once you have provided the betting website with your wallet address, you can complete the cashout request.
Bitcoin has lower minimum deposit limits and higher maximum withdrawal limits as compared to most traditional payment solutions. Bitcoin withdrawals take between 1 and 48 hours. On average, punters who use Bitcoin to withdraw their winnings receive the money within 4 hours. For comparison purposes, we would like to mention that withdrawing via traditional banking solutions usually takes from 2 to 10 business days.
Furthermore, the process of cashing out your profits via Bitcoin is easier as compared to some traditional payment solutions such as credit/debit cards and Bank Transfers. Punters who decide to use Bitcoin to withdraw their earnings should not worry about the safety of their funds because Bitcoin uses blockchain technology to record transactions.
|Withdrawing with Bitcoin Summary|
|Timeframe||From 1 to 48 hours|
|Minimum per transaction||10 (varies with the different sportsbooks)|
|Maximum per transaction||10,000 (varies with the different sportsbooks)|
|Available currencies||Bitcoin can be converted into any fiat currency|
Fees Related to Bitcoin Betting
Many bettors prefer using Bitcoin for their payments at sportsbooks as this is one of the most pocket-friendly solutions. When you are resorting to this payment method for your sportsbook deposits, you can be sure that the website will not impose any surcharges. This also applies to the withdrawals via Bitcoin at online sportsbooks as they also levy no fees.
Using Bitcoin wallets is also extremely cost-effective as most of the services are free or impose very reasonable surcharges. Mostly, user-to-user transactions between individuals who utilize the same Bitcoin wallet are free of charge.
One of the advantages of using Bitcoin for your payments is that you will determine the fees that you will pay for your transactions. This is because Bitcoin users can choose how fast their payments can be processed and the faster they want to be the process, the bigger their fee will be. This being said, even the fees for the faster transactions converted into USD are less than $1.
If you wish for your transaction to be processed by miners on the next block, i.e. in about 10 minutes, the fee will be $0.21. For transactions mined within 3 blocks, which takes around 30 minutes, the fee will be $0.13. For a processing time of up to 1 hour which means that the transaction will be mined within 6 blocks, the fee is $0.04.
|Fees Related to Bitcoin Summary|
|Deposits to Bitcoin wallet||A fee might apply|
|Withdrawals from Bitcoin wallet||A fee might apply|
Benefits of Betting with Bitcoin
A growing number of sports fans prefer to use Bitcoin to deposit and withdraw funds. That is because the cryptocurrency has plenty of advantages that no traditional currency can offer. As a result, many bookies have embraced Bitcoin and added it to their payment solutions.
Security and User Anonymity
It is always very secure to handle your online payments via Bitcoin as it will not require you to share any personal information with the merchant. This is also one of the biggest advantages that virtual bettors who use Bitcoin enjoy.
Wide Acceptance and Availability
While residents of some countries may have a limited list of available payment methods at online sportsbooks, resorting to Bitcoin is often their best option. For example, many sportsbooks geared toward the US market accept Bitcoin payments. As the service is legal in many countries, it is a payment solution that various online punters will have access to.
Due to the wide accessibility of Bitcoin, there are many virtual sportsbooks that accept payments via this cryptocurrency. What is more, some betting sites specifically cater to Bitcoin users which means that you will have an easy time finding an online sportsbook that allows Bitcoin payments.
|Bitcoin Security Summary|
|Face ID||Some Bitcoin wallets offer this option|
|Touch ID||Some Bitcoin wallets offer this option|
|App/SMS Notifiactions||Some Bitcoin wallets offer this option|
Low Transaction Fees
It is certainly a big plus to be able to manage your betting balance in a budget-friendly way. This is why many bettors prefer using Bitcoin as it almost always ensures deposits and withdrawals free of charge. On top of that, even if there are some fees, they are nowhere near as big as the ones imposed by other payment methods.
Bitcoin Transactions are Prompt
The speed of transactions is also a big advantage of Bitcoin. If you use it for your deposits, you have the chance to top up your balance within a few minutes. What is more, if you decide to use it for your sportsbook withdrawals, you will receive your money in no time. That is because a new Bitcoin block is mined in every 10 minutes, processing a large number of transactions, Roughly estimated, Bitcoin can handle approximately 2,759.12 transactions in 10 minutes.
High Withdrawal Limits
Many online sportsbooks that support Bitcoin offer withdrawal limits that are much higher as compared to the available traditional payment solutions. At the same time, Bitcoin users enjoy lower minimum deposit limits because sportsbooks do not have to pay fees on Bitcoin payments.
Drawbacks of Betting with Bitcoin
When compared, the advantages of using Bitcoin prevail over the service’s disadvantages. However, it is still important to know the downfalls of this payment method. This will allow you to determine whether it is the best option you can resort to when betting online.
Not All Sportsbooks Accept Bitcoin Withdrawals
While Bitcoin can often be seen as a supported payment method at many online sportsbooks, some betting sites will limit the use of the service only to deposits because of the high volatility of Bitcoin. This is quite inconvenient as it will require resorting to another method for one’s withdrawals.
Some Offshore Bookie Use Bitcoin to Avoid Government Regulations
You might notice that some Bitcoin betting websites do not hold any licenses which can also be the reason for certain online sportsbooks to ensure little or no fairness and safety. Unfortunately, Bitcoin betting sites might often be a part of a scam which is definitely alarming. This is why it is a good idea to use Bitcoin only at trustworthy and licensed websites where you can be sure that you and your money will be safe.
Bitcoin is Highly Volatile
One thing to keep in mind is that Bitcoin is a volatile currency which means that it can quickly and drastically change its value. This is why, those who bet online and use Bitcoin for their payments are taking a risk, not knowing for sure the future value of the cryptocurrency.
Of course, Bitcoin’s volatility is not always a bad feature. Usually, bookies automatically turn Bitcoin deposits into fiat money. Once you accumulate enough winnings to initiate a withdrawal, the fiat money will be converted into Bitcoin. And if the price of Bitcoin has surged in the meanwhile, you will end up with more money than you have won.
Bitcoin Transactions are Irreversible
Unlike debit/credit card transactions, Bitcoin payments are irreversible. So, if you enter the wrong amount you wish to deposit to your sports betting account or you send the assets to the wrong recipient, you cannot reverse the transaction. What makes Bitcoin transactions irreversible is the blockchain structure. It consists of blocks that are linked together via cryptography.
Regulation and Availability of Bitcoin
The specific thing about Bitcoin is that it is a cryptocurrency, meaning that it cannot be regulated like any fiat currency. This also means that it provides quite a lot of freedom but can also offer a certain level of risk. Since this is in no way a recognized currency in any country, it does not require any processing of real money and the transactions are carried out without the confirmation of any banking institutions.
Since Bitcoin is not your typical currency, it is not regulated by any government or banking institutions. This is why it is a payment service that is available to numerous users across the world, as it can barely be controlled and restricted.
Many online sportsbooks will allow their members to use Bitcoin for their payments but will try to prevent residents of certain countries to register and make any deposits. This is as far as the restrictions of betting sites can go. Since Bitcoin is keeping the payments of its users’ identity completely private, it is not possible to track whether a bettor is located in a country that prohibits online betting. This is why it is often difficult to regulate Bitcoin payments and some websites are trying to take other measures to prevent illegal betting activities.
Bitcoin has become a widely accepted currency. People use it to make cross-border transactions. The cryptocurrency needs regulation for two main reasons – protect investors from wide price fluctuations and prevent the use of Bitcoin for illegal purposes.
But Bitcoin is a virtual asset and as such, it exists online only and is not controlled by a bank or government. The specific nature of Bitcoin makes it impossible for a single authority to regulate it. Furthermore, some financial experts claim that Bitcoin can trigger a financial crisis because it can substitute international currencies.
Each country has taken a different regulatory approach when it comes to Bitcoin. For example, Australia regulated cryptocurrencies and cryptocurrency exchanges, treating digital currencies as property. Cryptocurrency exchanges must be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). In Japan, cryptocurrencies are also treated as property, and cryptocurrency exchanges must be registered with the Financial Services Agency.
In the United States, cryptocurrencies are not considered legal tender. However, some states allow cryptocurrency exchanges that are regulated by the Bank Secrecy Act. In 2020, the United Kingdom announced that cryptocurrencies should be considered legal tender, but no specific cryptocurrency law has been implemented so far. Cryptocurrency exchanges are legal throughout the country and fall under the regulatory scope of the Financial Conduct Authority.
If you reside in a country that taxes gambling profits and cryptocurrency exchanges are legal, you are required to pay taxes on sports betting winnings. Usually, if a country treats Bitcoin as property, punters’ earnings from betting activities are taxed in a manner similar to stocks or real property.
While Bitcoin is not a legal payment option, per se, its service can be used in numerous countries around the world. However, some territories have banned or restricted the use of Bitcoin. These are the countries with absolute bans on cryptocurrencies, including Bitcoin:
As mentioned above, Bitcoin is an extremely secure payment method that many can safely utilize for their online betting payments. There are several factors, contributing to the high level of security that this cryptocurrency provides.
If you have read about other payment options, you have probably discovered that many of them employ encryption technology to protect sensitive information. Bitcoin is also using encryption which, however, is even more advanced as it is backed up by a system known as a blockchain. With the help of an enormous number of volunteers, incoming transactions are examined and encrypted while being stored in the blockchain. Thanks to the work done by the volunteers, it is made sure that sensitive information is protected. And even if there is a potential hacking, there will be no valuable information left to take advantage of.
In fact, cryptocurrency transactions are not completely anonymous. That is because of the specific nature of blockchain. Bitcoin transactions are recorded on a ledger that everyone can access. This means that the address of your crypto wallet is visible. Contrary to popular belief, public transactions can be much safer. What is more, payments via Bitcoin are irreversible and there is no way to ask someone to give your money back but also, no one can demand that from you.
Another factor that ensures Bitcoin’s safety is the fact that it is decentralized. Essentially, this means that the control over transactions is equally spread among thousands of servers and nodes around the world. So, even if there is an issue with one of the servers, the rest of the servers and nodes in the network can prevent any problem and continue protecting transactions.
Here are some tips for keeping your Bitcoin safe:
- Never share your private key – Bitcoin users will receive two keys, including a public and private. The public key is visible, but your private key works like a password that you must not share. It is a string of letters and numbers that is used to initiate transactions.
- Avoid using Bitcoin wallets connected to the Internet (hot wallets). Such wallets are vulnerable to cyber-attacks. Instead, select a cold wallet that stores information on an encrypted data device or hardware. These are immune to cyber-attacks, security breaches, and phishing.
- Use a strong password and change it regularly. Make sure that the password you select is unique and activate the two-factor authentication (2FA) option. If the Bitcoin wallet you use features other security options, do not hesitate to activate them.
- If you use a mobile Bitcoin wallet, beware of malware disguised as a wallet. Hackers often use such malware files to steal your login details and gain access to your assets. Bitcoin users are advised to install antivirus software on their portable devices if they intend to use mobile Bitcoin wallets.
Bitcoin Reviews from Around the Web
As Bitcoin has taken over the world, it has become the preferred payment solution for numerous people paying for purchases online. Due to the unusual but extremely secure payment system of Bitcoin, it has been integrated as a supported payment solution at a handful of online sportsbooks.
Those who are uncertain whether Bitcoin will allow them the best possible way to handle their betting payments can read the various reviews on the payment solution available online. Many expert reviewers have explained the advantages and disadvantages of the method so bettors can decide if Bitcoin is the right solution for them.
Several websites also provide customer reviews of people who have rated the payments carried out via Bitcoin. They base their opinion on several factors such as integration, service and support, and other elements that may make a certain payment method convenient. One website that offers customer reviews on Bitcoin payments is Gartner. Based on 27 reviews, the cryptocurrency has received an average score of 4.7 out of 5.
Negative Bitcoin Reviews
Generally speaking, most customers have expressed approval of Bitcoin and the payments it offers. That said, there are still some people that are not completely satisfied with the payment solution that Bitcoin is offering. Most of the people who have given Bitcoin a lower rating, however, mostly share that they are not fully aware of the way crypto payments work and still need to learn more about Bitcoin.
It can be said that most customers who are not fully supporting Bitcoin payments are simply new to cryptocurrencies and just need more time to get familiar with these sorts of transactions. That said, the general sentiment among Bitcoin users is rather positive.
Positive Bitcoin Reviews
Based on the customer reviews available online, it can be concluded that most people are fully supporting the new way of handling payments worldwide. Out of the 27 reviews that are available on Gartner’s website, 74% have given the cryptocurrency 5 stars, 19% rated it with 4 stars, and 7% believed it deserved 3 stars. Meanwhile, no one gave Bitcoin a lower rating, making its overall score 4.7.
Many reviewers believe that Bitcoin payments will become even more popular in the future as they allow fast and extremely secure transactions. As there is no trace of money movements, customers enjoy the convenience of paying with Bitcoin and many believe it is a great replacement for traditional currencies.
|Gartner Rating of Bitcoin|
A growing number of online sportsbooks have started accepting payments via Bitcoin which is great news for the users of the cryptocurrency. There are plenty of advantages of using Bitcoin for your betting deposits and withdrawals, and safety is one of the major ones. Being an unusual payment solution, it is still hard to define and regulate it.
Finding an online sportsbook that accepts Bitcoin payments is a walk in the park. But do not forget to make sure that the betting platform you select is licensed and reputable. Using Bitcoin at betting sites is a straightforward process. The cryptocurrency allows fast, secure, and convenient payments. Furthermore, Bitcoin transactions are fee-free, meaning that you will have more money to bet on your favorite sports.