Ever wondered why so many people choose to gamble with crypto nowadays? Today, we’ll explain just that! This piece will cover everything you must know about this popular online casino payment method. We’ll show the essence of these transaction methods and how they work. Later, we’ll introduce you to some valuable tips and show you the truth about crypto payments in gambling. Towards the end, we’ll break the myth of fee-free payments, showing you some of the most valuable tips you must consider and even the advantages and disadvantages of these payment methods. So, should you gamble online and use crypto payment or not? You’ll find out by reading on!
The Essence of Crypto Gambling Payments
The “essence” of crypto gambling payments lies in the fact that they bring numerous benefits to online casinos, creating convenience for users around the world. According to the Blockchain Councill, these benefits include the following:
- Greater global reach. By accepting cryptocurrency, which is decentralized, online gambling sites allow players from all over the world to enjoy their hobby.
- Faster and safer money transfers. By utilizing crypto payments, gamblers are bound to benefit from swifter, almost immediate transactions that are protected by cryptographic techniques, providing an extra layer of security.
- There is a higher sense of anonymity. By utilizing the blockchain, players who choose to gamble won’t need to face financial institutions or banks when making any type of transaction.
- There are much lower transaction fees. Of course, by using the decentralized network, you’re able to transfer money from your crypto wallet to online gambling sites with much lower fees. Unlike banks and credit cards, crypto payment fees are insignificant.
- Broader inclusion. By adopting crypto payments, most gambling sites tend to cater to the needs of younger, more tech-savvy gamblers who utilize cryptocurrencies.
Accordingly, those benefits brought up the popularity of many cryptocurrencies that have not been adopted as payment methods in online casinos. From the progenitor of all its majesty, Bitcoin, to great alternatives like Ethereum, Bitcoin Cash, and Litecoin, the four major cryptocurrencies make up most of the crypto payments, according to studies by Statistics&Data from 2020. Considering the popularity and how it has grown over the course of the past four years, you can expect to see many more crypto payment options. To name a few:
- Dogecoin.
- Tether.
- Ripple.
- Cardano.
- Tron.
- Uniswap.
- Binance Coin and many more.
Now, you probably wonder if a growing-in-popularity crypto gambling payment method must be good. These transaction options must be swift and with low fees, right? But how exactly do they work? We’ll explain below by showing you what exactly is the secret that gives them these key traits.
Cryptocurrency Transactions and Their Speed
When we talk about crypto transactions, the first thing that comes to mind is that those payments are instant. That is because cryptocurrency payments in online gambling, and everywhere in general, have reinvented the way we pay and transfer money, far surpassing the traditional options. For example, if a traditional bank transfer takes several days due to intermediary processing, regulations, or simply bank rules, cryptocurrencies like Bitcoin, Ethereum, Litecoin, or any other crypto would not do so. In fact, Bitcoin has a swift transaction time averaging about 10 minutes per block confirmation, while Ethereum takes just about 15 seconds, making transfers even faster (Nakamoto, 2008; Buterin, 2013).
The Potential Problem
Now, ask yourself how that is possible. Well, when it comes to speed, there are multiple factors that may influence it. If you’re aquatinted with the matter, you can guess that some of the key ones are:
- The blockchain congestion.
- The size of the blocks.
- Network fees.
These are important because when there are high transaction volumes, meaning many, many transfers, the blockchain can get congested. This would ultimately lead to longer processing time.
To give you an example, you can look online and find data that shows that in peak periods of usage, BTC transactions can experience delays. You can find that verified by many sources, including reputable exchanges like Coinbase, who’ve written about the matter.
Network fees are also crucial, especially when it comes to the speed of crypto payments. As stated by the Binance Academy, higher fees can incentivize crypto miners to prioritize specific transactions, usually speeding them up. This, in turn, slows down other transactions, causing crypto payment delays. Another thing that can slow down crypto payments is the small size of some blocks (Binance Academy, 2023).
The Best Solutions
With that said, we ought to note the measures taken to prevent blockchain congestion and ensure that your crypto gambling payments are almost instant every single time you bankroll and cash out. Here is the solution that, according to experts and informational sources from exchanges like Binance and Coinbase, can deal with potential blockchain congestion:
- Increased block sizes.
- Sharding.
- Decreasing block time.
Generally, most networks prevent blockchain congestion by continuously improving themselves. They improve the scalability, which in turn ensures faster crypto-gambling transactions for all online casino players.
When we say scalability, you should understand network (be it BTC or ETH) protocol updates and Layer 2 solutions. These mean that the network could improve by often increasing the block size and decreasing the block time (the period required to construct a new block) (Coinbase, 2020s).
And while these measures may not seem as much to you, they’re a must. These solutions are what keep crypto payments superior to traditional ones, which often cannot scale out and deal with such problems. With that said, we ought to note that most of the crypto payment methods you’ll see are of coins with stable networks, with a low chance of experiencing blockchain congestion.
Crypto Gambling & How Do the Transfer Fees Work
In crypto gambling, transactions are known to be instant, but are they fee-free? The answer is NO—in most cases, a crypto transaction has its own cost, formed by different actors that we’ll discuss.
Below, we’ll explain just that, covering how crypto gambling fees are formed and why they exist.
According to numerous sources, including the Motley Fool, the CryptoLiteracy Organisation, and others, all cryptocurrency networks have fees. These costs or expenses are part of every cryptocurrency. For example, Bitcoin, Solana, and some other coins call them “Transaction fees.” Other networks like Ethereum use the term “Gas fees,” but they’re still present and part of every network.
Here are a few things you must know about the Network Fees:
- They’re usually paid to the minders who process the crypto gambling transaction on the blockchain and validate them
- Each network fee differs based on the blockchain’s congestion and the cryptocurrency’s usability.
- Network fees are not fixed and fluctuate from cents to dollars.
One good example is that Bitcoin fees can go from a few cents to well over 20 USD during peak times. Another example would be Ethereum, where Gas fees fluctuate more often and are based on Gas prices.
When it comes to online gambling, you should not only consider the network fees, but also the withdrawl ones. The cashout fees are costs that can apply to your crypto payments but do not come from the network and the gambling site you’ve chosen.
Here are a few things you must know about crypto Withdrawal Fees:
- Those are costs taken from your crypto transfers by the chosen gambling site, usually when withdrawing funds.
- Withdrawal crypto payment fees can and almost always are a fixed percentage.
- Some online gambling sites do not charge fees at all.
For example, many online casinos may charge you a 1% withdrawal fee.
The Myth of Fee-Free Crypto Transactions: Busted!
As we’ve shown you, there are no “FEE-FREE CRYPTO TRANSATIONS” even is some gambling sites promote such. That’s because as explained above, crypto payments fees split in two categories. The first being the network and the second the withdrawals fees.
Therefore, when you see a crypto gambling site, promoting cryptocurrency transactions with no fees, they likely mean that their site does not charge a payout fee on your crypto. To verify that you can do simply contact the customer support of the site or read its Terms and Conditions.
Hidden Cost: The Dark Side of Fee-Free Crypto Transaction Advertising
You’ll see many gambling sites promoting fee-free crypto payments online, but that’s not always the case. During our experience, we’ve noticed some malicious attempts from third-rate crypto casinos that have neglected to note (purposely or by mistake) important fees like:
- Network fees, charged for each crypto transaction, are costs that the casino does not have influence over. These are almost always ignored by some gambling sites and noted nowhere.
- Conversion fees are often present when exchanging crypto for another or crypto for its equivalent in USD on the gambling site.
- Withdrawal limits: Some crypto casinos that advertise fee-free payment really do not charge a withdrawal fee, but often only for the first few payouts. Afterward, they charge for each and often limit the withdrawal limits, forcing players to perform multiple transactions.
- Delayed transactions and delays during high network congestion can boost your crypto payment fees.
12 Tips for Minimizing Fees in Crypto Gambling
Now that we’ve discussed the lack of fee-free crypto payments, it’s time to introduce you to some time-proven tips for minimizing fees related to your crypto gambling journey.
Advantages and Disadvantages of Crypto Payments
At this point, it’s time to consider the benefits and negatives of making crypto payments. Knowing there are always fees and that even the transfers sometimes can be slow may be impactful, but before making a choice, read the advantages and disadvantages we’ve prepared below.
Advantages of Crypto Payments:
- Fast Crypto Transaction: One of the best advantages of cryptocurrency transfers is that they are processed quickly thanks to blockchain. It may take seconds or minutes at most.
- Lower Fees: Compared to traditional transaction methods and their fees, crypto payments tend to have lower costs based on the network fee.
- Decentralized Payments: Being decentralized, these crypto payments are out of control from a central authority like the government.
- Global Reach: Using blockchain technology, they’re available for almost anyone around the world, limiting restrictions from financial institutions.
- Superb Security: The best trait of cryptocurrency transactions is their robust safeguards in the face of high-tech network encryptions.
- Tranperancy and Fariness: With crypto payments, you can track your transactions in your wallet or by checking the public ledger.
- Highened Sense of Anonymity: Using crypto transfers ensures players do not reveal their identity to third parties and financial intermediaries.
- Reduced Fraud: Cryptos minimize the risk of being subject to scams, frauds, and hacker phishing attacks.
- Investment Potential: Crypto payments can be used in many ways. Aside from transactions, they can be a long-term investment that appreciates its value.
Disadvantages of Crypto Payments:
- Crypto is Volatile: Using crypto payments is convenient until you realize how volatile cryptocurrencies are, with the potential of depreciation in their value.
- Limited Acceptance: Not all crypto casinos accept all of the popular cryptocurrencies. Some limit only to five or ten options at best.
- Complex for Beginners: Crypto transactions are swift and reliable, but often, new players find it hard to understand and get started with them.
- Irreversible Transactions: Crypto payments cannot be returned once sent. Therefore, if you send them to the wrong address, the money will be gone forever.
Should You Gamble With Crypto in 2024
Now, on to the decisive question: Should you even bother to gamble with crypto, considering the not-so-fee-free cryptocurrency payments?
The short answer is a big YES. According to studies by OMFIF, crypto payments are superior to traditional ones because they have better transaction speed, cost, and accessibility.
These three qualities alone make them a much better option if you plan to venture into online gambling, especially considering the trends in the industry, shifting from fiat to crypto payments. And if you wonder how to even get started, here are a few steps suggested by us:
All that’s left is verifying your account, claiming a few bonuses, and playing on will. If you get lucky and score big, remember what you’ve learned and get your payout with as few fees as possible!
