Bitcoin is one of the most popular cryptocurrencies of our times, which has completely changed the way one pays for a service or a good. Sports Betting and gambling is one sector where Bitcoin has emerged as the currency of choice for making payments due to several key factors.
Indeed, to tell the truth, the rise of Bitcoin has also given rise to a new category of sports betting site some of which solely use Bitcoin as their preferred currency and are in many ways much better than traditional sports bookmaking sites.
One of the reasons for the popularity of Bitcoin is the anonymous way in which this cryptocurrency works.
Why Should You Use Bitcoin?
Bitcoin comes to the rescue of those bettors who are trying to circumvent regulations and place a bet on their favourite sports, as Bitcoin is a cryptocurrency with its own payment network which is not controlled or regulated by any government or central bank of the world.
Another advantage is the anonymity and privacy offered by Bitcoin, as unlike bank transfers, credit cards, debit cards, it’s impossible to trace a Bitcoin payment back to you.
Bitcoin was launched in 2009 by an anonymous coder, who decided to create a store of value, which unlike normal fiat currencies will not lose its value in the long run.
As we’re aware, currencies lose their value due to inflation and what economists call printing money. Unlike other currencies, Bitcoin's supply is limited and is decreasing at a steady rate. This means that Bitcoin will remain to be a scarce currency to get hold of and this fact is the main reason behind the rise of Bitcoin.
In the times of mass surveillance by governments and systematic intrusions into our personal lives, Bitcoin comes as a huge relief for those who want to keep at least their finances private.
These salient features have made Bitcoin a darling of many which include a significant chunk of investors, traders, entrepreneurs and off course gamblers.
At the time of writing, 1 Bitcoin is valued at $4,200 which is nothing short of a miracle if we consider the fact that just 5 years ago Bitcoin used to trade in single digits and in 2011, 1 Bitcoin used to cost just $2.
Now, as we’ve covered the basics of Bitcoin, let’s move to the main topic of our discussion on using Bitcoin for betting on sports online.
How to Use Bitcoin to Bet on Sports Online
Using Bitcoins for betting on sports online is a complex process, thanks to the unique and complex way in which Bitcoin works. Bitcoin is a cryptocurrency which unlike your dollars or euros exists only in the digital world as an electronic medium of exchange.
Payments are processed via Bitcoin infrastructure which includes several elements such as Bitcoin wallet, Bitcoin sellers and exchanges. Here we’ll explain the whole process of how to use Bitcoin to bet on sports online in an easy way:
1. Sign Up for a Bitcoin Wallet:
As a crypto-currency Bitcoin only exists in the digital world and you need a bitcoin wallet to hold bitcoins.
Without a wallet, it’s not possible to buy or sell bitcoins. There are several ways in which you can get a Bitcoin wallet. You can choose from an array of Bitcoin wallet sites and mobile apps which allow you to set up and manage your Bitcoin wallet free of cost.
For the sake of simplicity, we’ll just keep our discussion limited to Bitcoin wallet websites as discussing mobile and tablet based wallet apps is out of the scope of this article.
Among the hundreds of Bitcoin wallets out there, we prefer Gemini, Bitquick, Local Bitcoins, Gocelery, Coinbase and Blockchain. You need to be careful as some of these sites prohibit betting or gambling using their platform. Coinbase is one such site, where users face problems if they try to use their Bitcoin wallet for betting.
Other than this all the sites mentioned above are good to go for first-time sports bettors.
2. Buy/Receive Bitcoins:
Bitcoin, unlike normal currency, is not available freely, you need to buy Bitcoins from a Bitcoin exchange where people buy and sell bitcoins.
As these two are the only known methods of acquiring Bitcoins in an easy way.
Many of the wallet sites, which we’ve mentioned above also work as Bitcoin exchanges, making it possible to buy and sell Bitcoins which you have.
After signing up at any of these sites, you can navigate to their exchange section where you’ll be able to buy Bitcoins for your new account directly from the exchange without paying any hefty fees.
Every Bitcoin wallet comes with a public address, which you can share with your friends or any person who can send you Bitcoins if you have someone willing to gift you a few bitcoins.
3.Set up your Sportsbook account:
Once you’ve added Bitcoins to your wallet, you are ready to bet on your favourite sports.Next step will involve finding a sportsbook which accepts Bitcoin as a payment method and then signing up for an account there.
Once your account is set up, you can go to the payments section and select Bitcoin as your deposit method. Your sportsbook provider will create an internal Bitcoin wallet for you which will have its own public address.
This will be required for making a deposit from your Bitcoin wallet to your sportsbook account.
Now, we’ve almost done everything needed for making the deposit and just a few clicks away from our goal of betting on your favourite sports via Bitcoin.
All you need to do is send the Bitcoins which you have in your main Bitcoin wallet to the sportsbook wallet by using the public-address keys of your sportsbook wallet.
Most Bitcoin transactions are processed immediately and you’ll be able to transfer Bitcoins from your main wallet to your sportsbook account almost instantly. Although, sometimes you may have to wait for a few minutes to see the bitcoins deposited into your sportsbook wallet.
Withdrawing With Bitcoin
You are all set and ready to place a bet on a sport of your choice by using the Bitcoins deposited into your sportsbook account.
Several sportsbooks allow players to withdraw their winnings using Bitcoin and in such a case you’ll have to just reverse this process and provide the public address of your main Bitcoin wallet when you initiate a withdrawal using bitcoins. There are also some limitations when it comes to betting with Bitcoins .
Several sports betting websites allow you to withdraw your winnings only in the currency which you’ve used for depositing funds. If you’ve chosen bitcoins for depositing funds, then you may not be able to withdraw the winning proceeds via any other currency.
Minimum and maximum limits imposed on Bitcoin transactions is another issue which regularly affects punters, sports betting sites normally have low deposit limits such as $10 or 20, and when it comes to Bitcoin these sites tend to have similar limits which can range from 0.01 BTC to 0.1 BTC.
Although, this may appear small, due to the high price of Bitcoin, these limits can translate into Bitcoin worth hundreds of dollars, which makes betting with Bitcoin a bit expensive as not all people are ready to bet more than a few bucks, but are forced to do so due to the minimum deposit limits placed by sportsbook sites.
You must also consider all the pros and cons of using Bitcoin for betting on sports online as this may not be right in all situations and sometimes you are better off using traditional methods of betting.
Bitcoin has emerged as one of the safest methods to bet on sports online, which offers complete anonymity and allows you to bet on your favorite sports easily.
Although, this guide is far from the only way in which you can use Bitcoins as we’ve not touched on the mobile wallets and mobile exchanges which are no less effective than the ones mentioned in this article.
For more articles on how to use Bitcoin to bet on sports online can be found by signing up to our newsletter. As the world of betting evolves, here at Alpha Sports Betting we make it our mission to keep up to date for all of our punters who are new to betting or have been around the block a few times.
Let us know below if you have any experiences with betting with Bitcoin!