With revolutionary changes tearing through the financial industry, the online betting industry has not been spared the onslaught. It has become a major player in today’s financial sector. Currently, withdrawal and deposit of cryptocurrency have become a routine carried out daily.
There are variations in terms of authenticity for crypto casinos and traditional casinos. Some may argue that due to the modus operandi of crypto betting, the casinos are much better than traditional ones. But, are they safe?
The Birth of the Crypto Casino
In the simplest terms, a crypto casino uses blockchain technology for betting. Its systems cater for deposits and withdrawal of different cryptocurrencies.
In essence, you need cryptocurrencies to fund your games in crypto betting. Your choice of casino boils down to personal preference. Some casinos are crypto-exclusive. These casinos only accept betting deals with cryptos.
On the other hand, there are hybrid casinos that take both cryptos and traditional cash for payments. Today, there is cryptocurrency in sports betting. There are several reasons for the reeling success of crypto casinos.
- Easy accessibility
- Low cost
- Quick payouts
- Alluring bonuses
- Better security
The Risky Business of Crypto Betting
In the Virtual Red Flag of Money Laundering and Terrorist Financing report of July 2020, the FATF mentioned betting services. On some occasions, crypto betting can be used as a pundit for laundering cryptos.
It is no longer news that there are benefits to using cryptocurrency. However, going into investments like betting without a clear understanding of the risks is a bad idea. It is vital to look at the potential for losses before settling down in a crypto casino.
This post is in no way telling you to kick crypto betting out the window. Its main essence is to make you aware of the potential risks to look out for when making your bets.
Pressure from the Political and Institutional Sphere
It is worth noting that governments with regulatory bodies were not exactly bothered with crypto in the early days. As the popularity began to grow among the people, the eyes of the government were turned on cryptocurrencies.
Several governments around the world have hipped pressure on the crypto sphere. This has caused certain investors to hopelessly watch as their capital fell quickly. The front and back tussle has caused the crypto industry to be highly volatile.
Volatility
The endpoint of betting with cryptocurrency is to gain more coins. You can then use the coins to acquire products or services. Who wouldn’t want a quick way to multiply their coins? The key issue is that those coins you are probably betting with are not fixed in value.
You will argue that there is no asset without some form of volatility. While that is true, cryptocurrency coins are some of the most volatile assets you can own. When you purchase coins, you face the risk of facing a significant drop in value at any time.
Crypto casinos do not determine the value of your coins before and after betting. Nevertheless, volatility remains a major risk for punters in crypto casinos.
Tips to Ensure Your Safety in Crypto Casinos
Having explained the major risks faced in owning crypto assets, let us look at some steps you can take to protect yourself. These tips are very valuable for those in the crypto casino space. I’m sure no one wants to lose the precious coin assets due to some basic oversights.
Stick to Reliable Casinos
Don’t go playing around with your coins. There are several whales out there waiting for the opportunity to swallow your crypto assets. Getting a reputable online crypto casino is one of the most important steps in ensuring your safety in crypto betting.
The sad reality is that many online casinos have been created for the sole purpose of defrauding betting enthusiasts. This is no surprise seeing the incredible rate at which online casinos are expanding.
There are some prominent features that reliable crypto casinos have. These include verifiable licenses from reputable bodies such as the UK Gaming Commission and positive reviews. You will also find high-fidelity games and software on their sites.
The most important feature will be their encryption. You need to be sure of the safety of your info, password, and payment data. You will also get customer support as a plus.
Avoid Phishing Platforms
Hackers use phishing websites and even emails in their attempt to access accounts and carry out their fraud. There is some comfort in the security offered in the crypto space. The several modes of authentication are some of the hardest to crack.
Nevertheless, with the use of phishing sites, these hackers can access these delicate pieces of information. A general rule of thumb is that no financial institution will ask for your login details in resolving any issue. Ensure that you double-check your emails or even questions before giving your response.
Use Multiple Protections
Please, take the stress of crafting a strong password. This is the very first defense you have. If possible, avoid using anything related to you as your password. Rather, go for something difficult and obscure.
Many online crypto casinos offer two-factor protection. Cash in on all the several means of verification to secure your betting account. This is your safest bet against fraud.
Bank with a Reputable Crypto Exchange Platform
There is a piece of disturbing news from several sources including CNBC claiming $14 billion lost to crypto fraud in 2021. Fake crypto exchanges have sprung up in the same vein as fake crypto casinos.
Ensure that you carry out your transactions using a secure crypto exchange. Several verified crypto exchanges will assure you of safe transactions.
Conclusion
Volatility is one of the major concerns in the crypto space. Nevertheless, crypto-betting has continued to gain ground among old and new punters.
It’s important to take the necessary steps to secure your crypto assets before venturing into any crypto casino. The bottom line is, don’t bet where you are not sure of.
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