Bitcoin is changing the way we spend and invest online, with benefits including better security and faster transactions, but how much do you really know about Bitcoin for sports betting?
And what are the benefits of betting with Bitcoin?
This ultimate guide will explain all.
What Is Bitcoin?
Bitcoin is a digital currency that can be used to buy products and services.
Bitcoin is described as a cryptocurrency.
This is simply another term for a digital or virtual currency.
There is only a finite supply of Bitcoin available worldwide (21 billion Bitcoins).
How To Store Bitcoin
Now you know what Bitcoin is, now you must know how to store it.
Most of the solutions are known as “wallets” ie a virtual bank account.
They are very secure and store the information you need to access and spend your Bitcoin.
Here are the types of wallets available.
Online wallets are provided by third-party cloud services and can only be accessed from a working internet connection.
They are the most popular way to store Bitcoin, with many users accessing their funds on their desktops and smartphones.
Online wallets are the best way for betting with Bitcoin when at home or on-the-go.
They make it easy to transfer funds from your wallet to your betting account.
Online wallets also have varying levels of security.
Some may require an ID and password, while others require multi-factor authentication.
This only enhances the claim that betting with Bitcoin is very secure.
Desktop wallets are similar to online wallets, such as the better security, but your Bitcoin is stored on your machine’s hard drive rather than the cloud.
They also require an internet connection.
Desktop wallets are available on Windows, Mac and Linux users.
Mobile wallets make use of Simplified Payment Verification (SPV) and QR codes to easily transfer Bitcoin.
They are great for betting with Bitcoin because a sportsbook generates a unique QR code for an almost instant transaction.
Mobile wallets are available on Android and iOS.
For completeness, the final way to store Bitcoin is with cold wallets, which are wholly offline.
These wallets require you to manually write down your Bitcoin address and digital keys.
If you get an offline wallet, make sure to make multiple copies of this information.
Cold wallets are not great for betting with Bitcoin.
The offline aspect is inconvenient for transferring Bitcoin to and from your sports betting account.
You’re better off using one of the previously mentioned wallets for betting with Bitcoin.
How To Get Bitcoin For Sports Betting
The best way to get Bitcoin for betting is by buying through a regulated exchange.
Most exchanges let you store Bitcoin so they effectively function as an online bank account.
The best one for you depends on your location and your desired payment method.
Set up an account and convert your fiat currency (ie normal currency like USD) into Bitcoin.
You can also get Bitcoin for sports betting through peer-to-peer exchanges and ATMs with cash.
However, exchanges are more secure and efficient than these two methods.
Transferring Money To Bitcoin Exchange
It’s important to exercise caution at a Bitcoin exchange.
While Bitcoin is legitimate, banks are on high-alert for shady crypto-related transactions.
Just take a look at this New York Times headline:
So, if your bank considers your account is being shady with Bitcoin transactions, they may freeze your account.
If this happens, contact them to explain the situation.
Fortunately, sportsbooks don’t look at it the same way.
Using A Bitcoin Wallet For Sports Betting
Bitcoin wallets have superior security over online exchanges.
There have been cases where regulated exchanges don’t allow Bitcoin transactions directly to a sportsbook from an online wallet.
In rare circumstances, an exchange may freeze your Bitcoin if you try to fund your betting account.
In this event, don’t worry, you won’t lose your Bitcoin, you’ll just be banned from making any more transactions on that exchange.
You must also move your Bitcoin to another Bitcoin wallet.
Therefore, to avoid these issues, always transfer your Bitcoin from the exchange to a separate wallet like Blockchain.
It’s important to note that the previously mentioned Bitcoin exchanges follow the same anti-money laundering (AML) and know your customer (KYC) rules as other monetary exchanges.
Regulators don’t entirely understand Bitcoin, so exchanges like Coinbase comply with AML and KYC regulations to a very high degree.
Finally, many online sportsbooks are offshore in jurisdictions that license gambling websites.
With sports betting considered shady in some countries that Bitcoin exchanges are situated, funds can be prohibited from being transferred to such gambling websites.
On the other hand, with your Bitcoin in an online wallet, you can do whatever you like with your Bitcoin.
The rules that apply to exchanges do not apply to wallets.
Advantages Of Sports Betting With Bitcoin
Sports investing professionals earn success by gaining an edge over the sportsbooks – and Bitcoin is a simple way to do so.
There are 5 key advantages for betting with Bitcoin over fiat currency:
- Bitcoin transactions do not get rejected;
- Bitcoin is very secure;
- There are little to no fees associated with Bitcoin;
- Bitcoin transactions take priority;
- Sportsbooks offer great bonuses for using Bitcoin.
Here’s more detail on each advantage.
1. Bitcoin Transactions Do Not Get Rejected
Bitcoin runs on a decentralized, open ledger so it is not controlled by a single entity.
This means that Bitcoin transactions are not subject to third-parties, so you are free to send your Bitcoin to any person or business you please.
All Bitcoins deposits, withdrawals and transfers are secured through mathematical equations on the blockchain.
In contrast, fiat currency transactions are not decentralized, meaning that funds meant for online sports betting accounts can be blocked by the bank.
Bitcoin is transferred from your Bitcoin wallet to your sportsbook’s wallet.
Unlike fiat currency deposits and withdrawals where you must provide ID, proof of address, etc, all you need to provide is your Bitcoin address and a private key.
This prevents any unnecessary chats with the customer service team about why your funds are yet to hit your account.
All transactions are very secure, which brings us to the second advantage for betting with Bitcoin…
2. Bitcoin Is Very Secure
The wallet options and sites mentioned earlier are all incredibly safe and secure.
This has been a recurring theme but it’s so important.
Sportsbooks, like all other business, face hacking attempts all the time.
It only takes on successful attempt to break in and steal all your personal and financial information.
You never enter any of this information when betting with Bitcoin – you just need an address and the required keys.
Here are some examples:
All addresses and keys are generated randomly, making it extremely tough to hack.
Plus, when a Bitcoin transaction completes, it is irreversible.
This makes it impossible for hackers to manipulate a transaction once it has been confirmed on the blockchain.
3. There Are Little To No Fees Associated With Bitcoin
Bitcoin transactions avoid several fees that fiat currency transactions are charged, including banking fees and conversion fees.
As discussed above, this is because Bitcoin is decentralized, so there are no third-parties active that charge you for their services.
Instead, transactions are confirmed on an open ledger.
There are some fees associated with Bitcoin transactions.
These are called “miner’s fees” and they go towards the maintenance of Bitcoin and the blockchain themselves.
With Bitcoin mining, the mathematical equations used to protect transactions could not be solved and Bitcoin would fail.
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4. Bitcoin Transactions Take PriorityFiat currency deposits and withdrawals are slow.In the case of wire transfers, they can take weeks to complete.Plus, your bank may flag your account if they deem an incoming transaction fraudulent, which happens more often than it should.On the other hand, betting with Bitcoin avoids banking interference for smooth and almost instantaneous deposits.They take a couple at minutes at most as the transaction must be confirmed on the open ledger.Sportsbooks may pay Bitcoin miners additional fees (at no cost to you) to speed up the process.In terms of withdrawals, they are usually completed within a few hours but can take up to two days.Compared to the weeks it takes for a wire transfer to conclude, Bitcoin is lightning fast.
5. Sportsbooks Offer Great Bonuses For Using BitcoinSince they don’t have to pay any deposit fees etc on, sportsbooks can afford to offer generous bonuses to Bitcoin players.You will most likely get them from an email with the latest gambling news and casino updates.These range from bigger and better deposit bonuses and reload bonuses to cashback rewards and VIP access.For example, you can usually expect to get two first deposit bonuses with Bitcoin, compared to the single deposit bonus with fiat currency.
How To Deposit Bitcoin Into Your Sports Betting Account
The first step is to create an account with the sportsbook of your choice.
Then, head over to the cashier and select Bitcoin as the deposit method.
Enter the amount of Bitcoin you wish to deposit (the cashier will show you the fiat currency conversion), a bonus code if you have one and continue.
You will then be presented with a transaction ID, the exchange rate, the Bitcoin address and a QR code.
Copy the Bitcoin address into your your online wallet provider, or scan the QR code.
Then, enter how much Bitcoin you wish to deposit.
Your wallet then provides the option for a high priority or low priority fee.
This determines how quickly your transaction is confirmed on the blockchain.
Then confirm the transaction.
You will receive an email from your sportsbook to confirm the deposit has been made.
How To Withdraw Bitcoin From Your Sports Betting Account
The steps are similar to depositing.
First, you must head to the cashier, choose to cash out or withdraw and select Bitcoin as the withdrawal method.
(If you haev only deposited with Bitcoin, this will also be the only withdrawal method available).
Choose how much you would like to withdraw and continue.
You will then get a transaction ID and a blank space to enter your Bitcoin wallet address.
Copy your Bitcoin address from your online wallet client and enter it into the blank space on the withdrawal screen.
Make sure to check the address is correct as Bitcoin transactions are irreversible once confirmed.
Confirm the withdrawal and you will be presented with a confirmation page that the withdrawal has been finalized.
You will also receive an email to once the process has completed.
Betting With Bitcoin FAQs
In terms of the major markets, Bitcoin is legal in the US, UK, Canada, some EU countries and Australia.
However, it is currently illegal in China and Russia.
Sportsbooks pay fewer and lower fees on Bitcoin transactions.
They can also provide players with a safe and secure payment platform.
Bitcoin is still in its early stages.
It will continue to grow as more and more people/businesses to get grips with its capabilities.
Not always, but even if you do pay a charge, it’s very small.
These charges are known as “miner’s fees”.
Bitcoin miners support the blockchain.
They solve the mathematical problems that process Bitcoin transactions.
These fees encourage miners to accept Bitcoin transactions and include them on the open ledger.
You can choose to pay a large miner’s fee if you wish.
The larger the fee, the quicker your transaction will complete.
Bitcoin wallets automatically charge you a nominal miner’s fee per transaction.
You must review the fee before you confirm your transaction.
The recommended miner’s fee is 0.0001 Bitcoin.
As mentioned, you can increase this fee if you want to speed up the process.
However, the fee is not proportional to the amount of Bitcoin sent per transaction.
In fact, you may be charged a higher fee for a smaller transaction.
Some sportsbooks may pay your miner’s fee on your behalf.
This is because the fees are so small compared to regular bank fees and third-party service charges.
It’s one of their ways to encourage Bitcoin transactions.
Yes, sportsbooks will covert your Bitcoin into your currency upon deposit.
When you want to withdraw it, you are eligible to convert it back to Bitcoin.
No, your Bitcoin cannot be hacked.
All Bitcoin transactions are irreversible one they have been confirmed on the blockchain.
However, if you don’t keep your information safe, hackers can still break into your Bitcoin wallet account.
Therefore, use a trusted Bitcoin wallet provider that uses multi-factor authentication security measures.
mBTC is a millibitcoin ie one-thousandth of one Bitcoin.
mBTC = 0.001 Bitcoin.
uBTC is a microbitcoin ie one-millionth of one Bitcoin.
uBTC = 0.000001 Bitcoin.
Bitcoin SV was created as a result of the Bitcoin Cash hard fork in August 2018.
in November 2018, the blockchain split into two competing coins: Bitcoin ABC (Adjustable Blocksize Cap) and Bitcoin SV (Satoshi Vision).
The purpose of Bitcoin SV is to emulate the values of the original Bitcoin, such as a decentralized system for for secure transactions.
The price of Bitcoin is fixed once the transaction has been confirmed on the blockchain.
Sportsbooks then convert Bitcoin to regular currency at the time of deposit.
Regardless if the price of Bitcoin increases or decreases after your deposit, you always have the amount equal to the conversion rate at the time of deposit.
To round off this guide to betting with Bitcoin, here are the best sportsbooks that accept Bitcoin.
This is everything you need to know about sports betting with Bitcoin.
Now we’d like to hear from you.
Have you ever used Bitcoin for sports betting?
If yes, what was your experience?
If not, are you going to start now?
Let us know by leaving a comment now or let us know on Twitter.