How to Use Cryptocurrencies for Sports Betting

What is Cryptocurrency?

Cryptocurrencies are emerging so rapidly that we may not be needing an introduction very soon in the future. However, to get you started, cryptocurrencies are a virtual decentralized asset that is powered by blockchain technology. These assets are represented by their respective tokens, such as BTC or ETH, and are valued based on their movement and demand in the market. Thanks to quick payments, privacy features, and decentralization, cryptocurrencies have made their way into online sportsbook platforms in recent times. Keep reading to find more fascinating information about Crypto Sports Betting and how to go about it.

About Crypto Sports Betting

The times have gone when crypto investors had to wait for the market to give a sign to make a profit. Best crypto sports betting is one of the recent developments that allow users to put their tokens to good use even when the market seems sluggish.

Not only that but using cryptocurrencies for your betting needs brings several other benefits including faster transactions, enhanced privacy controls, bigger bonuses, and security features. Moreover, blockchain technology takes care of any gap you might have witnessed in traditional betting sites. Now, without much ado, this article will bring all the necessary information to help weigh your prospects on a Crypto Sports Betting platform.

How to Use Crypto for Sports Betting

Although the terms might sound intimidating, Crypto Sports Betting is not rocket science and requires just as much effort as any betting platform would.

The first step, which is often tricky, is to find a trustworthy sportsbook that supports cryptocurrency. Users should verify the licenses and other regulatory approvals from the website. In cases when regulations are not applicable, read reviews about the platform from trusted providers. After finding a platform, users can provide information as required to open their betting accounts.

Image2

The next thing a user needs is a crypto wallet to store and transfer their funds. Crypto exchanges like Binance, Coinbase, and CoinSpot offer wallet services to users currently. Alternatively, they can also opt for a third-party self-custodial wallet.

Users can send their cryptos like BTC, ETH, or XRP from the wallets using either a request link or a QR code, if they are using a mobile wallet. These methods can be used for both deposits and withdrawals. Once the funds are in all one has to do is put their passion for sports to good use and place their bets.

Note that the crypto sportsbooks come with minimum and maximum limits for fund transfers. However, these limits are usually better than fiat money betting.

Popular Cryptocurrencies in Sports Betting

The decade-long dominance of Bitcoin is even visible in the crypto sports betting space giving birth to the BTC specific crypto bookmarkers – Bitcoin sportsbook. People prefer Bitcoin for various reasons like security and value despite being comparatively slower than other tokens. The number of sportsbooks supporting Bitcoins is higher than any other cryptocurrency thanks to a whopping 41% market share.

Ethereum falls second in this list with a 19.4% market share. Being the second-largest cryptocurrency has given credibility to ETH in crypto sportsbooks across the world. Apart from that, Ethereum offers performance better than that of Bitcoin thanks to its smart contracts.

Despite having fractional market shares, tokens like Bitcoin Cash, Litecoin, Dash, Ripple, and Dogecoin are also considered viable alternatives for the legacy tokens. Each of these tokens has its own utilities and your betting experience may differ significantly based on that.

Advantages and Disadvantages of Crypto in Sports Betting

Image3

Advantages

  • Users are likely to forget what waiting means once they get used to the faster transactions on cryptos. Transactions that might take days in banks can be processed in a jiffy on blockchains.
  • Cryptocurrencies charge only a fraction of what the banks ask for processing your payments.
  • Unlike fiat money, crypto deposits do not have demanding verification processes that require your personal information.
  • Your records will be stored safely on a public blockchain network with zero chances of data manipulation.
  • Cryptocurrencies often have higher wagering limits in sportsbooks significantly increasing your chances of profit.
  • Crypto Sports Betting usually offers bigger bonuses and promotions that are not found in traditional sportsbooks due to their upkeep expenses.

Disadvantages

  • The value of cryptocurrencies may change based on market volatility. There is an equal chance of the price hitting the bottom.
  • Currently, there is a regulatory system for crypto sportsbooks and it often becomes difficult for users to find a trustworthy platform.
  • Keeping track of your winnings could become a headache as cryptocurrencies are not valued like regular fiat money.

Legalities of Crypto Sports Betting

The world countries have only started acknowledging the presence of the crypto market. That means they are currently engrossed in forming the foundational policies regarding virtual digital assets. So, it might take some time before we see any specific laws regarding the nascent area of Crypto Sports Betting. However, it is advised that users should look out for any regional laws or regulations regarding sports betting and cryptocurrencies, in general, before going full-on in crypto sportsbooks.

Currently, the casino and sportsbook platforms are regulated by an independent organization called the Crypto Gambling Foundation. The initiative operates with strict ethical ideologies for crypto iGaming with cutting-edge tools like Provably Fair. However, that does not mean there is a legal nod to partake in crypto sportsbooks. In the US, only three states, namely New Jersey, Nevada, and Delaware, made crypto betting legal. Other states have either banned or have not formulated their laws regarding Crypto Sports Betting.

Conclusion

Sports betting is one of the lucrative areas where cryptocurrencies can spread their wings for the future. Moreover, the policies regarding betting are also changing at an impressive rate. In that case, the current regulatory issues can be solved and users can have better legal protection for their assets.

Jeremy Edwards
Jeremy Edwards
On Chain Analysis Data Engineer. Lives in sunny Perth, Australia. Investing and writing about Crypto since 2014.

Related Articles

Popular Articles