What is bitcoin?
Bitcoin basics
Bitcoin was invented to function both as an online payment processing system and as a fully digital virtual currency. The plans and basic engineering concepts for this endeavor were first published back in 2008 under the pseudonym of the inventor, who ten years later the world recognized as Satoshi Nakamoto.
Soon after this technology became available to the public, people began to actively use bitcoin’s unique characteristics and sought to get their hands on it at any cost, thus changing the market value of the cryptocurrency. Amid massive fluctuations between exchange services and platforms, bitcoin identified its main systemic flaw, corrected it, and became the way to handle mass online payment traffic coming from all kinds of platforms.
Key features of bitcoin
Bitcoin’s unique cryptocurrency and associated payment processing systems have achieved rapid and massive success through a set of specific features. To begin with, it is important to understand that bitcoin users or potentially interested parties are aware that bitcoin was created as a B2B system, meaning it is completely decentralized and independent of any federal or private bank or any other financial institution.
Although the idea seemed like a dream come true in the early days, the cryptocurrency’s ensuing volatility soon proved otherwise. Namely, bitcoin owners experienced both the collapse of the cryptocurrency and the subsequent rise in its value within hours. After the system error was found and corrected, the cryptocurrency continued to exist as intended – as a limited form of payment. At the same time, the maximum amount allowed at any given time in the processing system (blockchain) is 21 million bitcoins.
Thanks to revolutionary blockchain technology, users were able to transfer the bitcoin in their possession to other owners through the components of the system, which acted as a single registry containing all information about any transaction ever made. However, given that owners only handled the cryptocurrency through a special type of bitcoin e-wallet, the only transaction data available were strings of numbers and letters indicating the sender and receiver’s e-wallet address and amount.
This factor, along with the absence of a central regulator, played a double role: on the one hand, it provided optimal anonymity for currency transactions, even despite a certain level of available information about the origin of the transaction. In the early days of bitcoin, “gray” online platforms made all sorts of transactions, making the most of this peer-to-peer approach to transactions. However, on the other hand, this approach to the payment network came in handy in online casinos, as cryptocurrency was not regulated or banned in jurisdictions around the world.
The use of cryptocurrency
This is the second use of bitcoin and cryptocurrency we have mentioned. But this issue requires a more in-depth approach, as not all online commerce platforms are ready to embrace this technology and go further. As mentioned earlier, all sorts of criminal activity has been transacting via blockchain, which has discredited the service as a whole.
Anonymity
Regarding the anonymity and security achieved by not using the owners’ personal information, this cryptocurrency found another use, which we mentioned above. Back then, online casinos were just starting to position themselves as licensed, regulated and profitable establishments with stable and reliable support from one jurisdiction or another.
After learning about the nature of the new currency, some platforms refused to include this system in their payment processing methods. Others have fully embraced the method and used it to expand into new markets. Bitcoin’s lack of traceable information on the network fits well with the needs of new markets, as consumers are interested in paid services.
Bitcoin as a payment method in online casinos
Obviously, bitcoin cryptocurrency and its corresponding payment processing system are of great importance to the world of online gambling, and online payment processing in general. In fact, the online gambling industry has reached a certain level of development and has been able to vouch for the bitcoin system and promote it to other e-commerce platforms. So now you can enjoy all the benefits of the system described above and pay with bitcoin for just about everything from food and clothing to real estate.
When it comes to bitcoin casino payments via blockchain-based technology, using only cryptocurrency, players need to follow a few basic steps. You just need to figure out with the help of the following recommendations how to make a deposit and withdraw funds, so that you can then take full advantage of payments in cryptocasinos.
Bitcoin deposits on online casino platforms
- Step 1: First of all, players need to choose an electronic bitcoin wallet service that best meets their storage and transaction needs. Current options include online wallets that store currency on their servers, or downloadable applications that allow players to store their bitcoins offline on their chosen platform. Given the increased functionality of mobile operating systems, the same options have become equally available on PCs, smartphones and tablets, although players can also save their e-wallet address and corresponding key on a hard copy or removable hard drive.
- Step 2: Once players have chosen a suitable storage solution, they must obtain the currency. Bitcoins can be mined independently through appropriate programs. They can also be purchased from current owners or simply bought for fiat currencies at appropriate exchange platforms.
- Step 3: Once you have a bitcoin bankroll to play at an online casino, all you have to do is find a suitable casino that accepts bitcoin and meets your needs. It is best to choose well-known and reputable gambling operators that offer an industry-standard selection of games, user security and customer support (such as those establishments listed on this page).
- Step 4: At the online casino platform of your choice, go to the “Payments” page and select bitcoin as your payment method. It’s important to note here that some online casinos only work with bitcoin and focus exclusively on this payment method. On the other hand, there are hybrid operators that offer their players a number of options, including both cryptocurrencies and fiat currencies.
- Step 5: After choosing bitcoin as a payment method, players must enter their e-wallet address in the appropriate fields, along with the amount they want to deposit and an authentication key to confirm the transaction. Due to the fact that bitcoin transactions are not controlled by any authorities, the processing of deposits in this currency is almost instantaneous. After the funds are credited to your game account, all you have to do is to go to the selection of games and make your selection.
Withdrawing Bitcoin on online casino sites
- Step 1: Withdrawing funds via bitcoin starts with the same steps as the deposit process. Go to the “Payments” section of the online casino platform. Players wishing to withdraw their winnings this way must select bitcoin from the list of available options.
- Step 2: Enter the appropriate e-wallet address where you plan to store your bitcoins won at the casino. Although transactions with this cryptocurrency are essentially instantaneous, withdrawals from reputable casino operator sites usually take up to 24 hours. That’s usually how long it takes for the platform to confirm a player’s eligibility and approve their withdrawal request, given the presence or absence of any wagering requirements for the bonus.
- Step 3: Once the bitcoins have been transferred from the player’s online casino account to the corresponding e-wallet address, the user only needs to visit one of the many online exchangers and convert their bitcoins into one or the other fiat currency. Keep in mind the volatility of the cryptocurrency and its exchange rate. Also, try to use any possible e-commerce platforms where you can pay for purchases directly in bitcoins.
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