Bitcoin Gambling : Sites, Sites,Tips, Pros/Cons & Taxes
What’s Bitcoin Gambling?
When you use Bitcoin as a payment Deposit and or withdrawal method for the purposes of gambling, it’s referred to as Bitcoin gambling. This can include quite a few types of betting such as casino games, lottery, sports betting, etc. When Bitcoin first gained traction, about 50% of the transactions made with it were by gamblers making payments at online casinos. It’s well known by now that the price of Bitcoin varies quite a bit, and it’s safe to say that that price is very much influenced by the gambling industry.
Top Bitcoin Gambling Sites :
BTC Gambling Statistics:
According to websites that track online Bitcoin casino statistics such as Bitcoin Strip, in February of 2017 over 24 billion bets were placed using Bitcoins. Bitcoin’s popularity doesn’t seem to be diminishing with time as the number of cryptocurrency gaming destinations on the web are there by the hundreds.
2017 statistics from 60 cryptocurrency-based gambling sites show that people are placing 337 bets by the second and are wagering 3 bitcoins by the minute. It can also be seen that since 2014, people have wagered about 3.7 million Bitcoins which translates to 4.5 billion USD by early 2017.
Types of Bitcoin Casino:
There are two options available when choosing a gambling operator that deals with Bitcoin :
1.) Bitcoin-Only Casinos:
These platforms offer the option for players to make deposits and withdrawals strictly with Bitcoin or some of the other cryptocurrencies like Ripple and Etherium. Access to mainstream banking options such as credit or debit cards that work with fiat currencies isn’t available.Cloudbet, mBit are Couple of Top Bitcoin-Only Casinos based on Welcome Bonus upto 5 BTC ($50k at the time of writing) & Extensive collections of games available.
Bitcoin-only casinos are best suited for:
- People that live in regions where the status of cryptocurrency is unclear. These include the USA where the government has no defined rules on dealing with cryptocurrency.
- People that appreciate anonymity. Personal information such as names and phone numbers aren’t required on these platforms.
2.) Hybrid Casinos:
Hybrid casinos are traditional casinos and online casino websites that accept Bitcoin andcryptocurrencies, along with fiat currencies for transactions.www.betchain.com , www.22bet1.com are good choice to start with.
Hybrid Casinos are best suited for:
- People that want to play on well-established casino websites with legitimate licenses.
- People that like a bit of variety. These websites are updated with new games and new ways to gamble regularly.
A Step by Step Guide to Bitcoin Gambling:
Before taking the plunge into Bitcoin gambling, you need to acquire some bitcoins. So grab your wallet and prepare to fill it up.
STEP-1: Open a Bitcoin Wallet :- To create a Bitcoin wallet you need to sign up at a cryptocurrency giants the likes of blockchain.com or CoinBase.Firstly you needs to open website blockchain.com into your web Browser & Click on Signup button showing below on top right side.
Next Screen you see below so enter correct email id & put passwords of your choice.
After submitted form you will be transfer to “verify your email ” Page,Then you needs to open your email accounts and verify email sent by blockchain.com.It’s EASY.
Website (platforms) will give you a Bitcoin address that acts as your personal digital wallet.
STEP-2: Get Bitcoins:- Now that you have your wallet, it’s time to load it up with a few Bitcoins. Bitcoins are available for purchase on exchanges like Coinbase.com and Bitcoin ATM’s. Also you can request bitcoins from you friends/relatives etc.
When your bitcoins are loaded up, you’re free to play at one of the many Bitcoin casinos out there.
STEP-3: Register at a Crypto Casino:- This is the time where you choose which type of casino suits you best, hybrid or Bitcoin only. Once you’ve made your choice you need to sign up on the website of your choosing. The information these websites ask for is very limited, it’s usually kept to an email address, password, and date of birth. This guarantees anonymity and allows access to players from restricted countries like the USA.
STEP-4: Deposit Funds:- Once you’re done with your registration, you need to fund your Bitcoin casino account. To transfer funds from your Bitcoin wallet to your casino wallet you’ll need to log in from your bitcoin wallet and send the funds to your casino wallet address.
Your bitcoin casino address can usually be found in the cashier or banking section. When you find your Bitcoin casino address, copy and paste it to the receiving address field of your Bitcoin wallet. Choose the amount you want to transfer and it shows instantly (within 10-15 minutes) into your accounts on casino site.
Now you’re good to go.
STEP-5: Have Fun:- Now it’s time for you to enjoy the wide selection of games that these cryptocurrency casino offers. It’s important to note that some of the casinos may list your wager in a fiat amount such as euros or dollars. Don’t worry, this type of conversion is done in some places so newcomers can better understand the stakes.
STEP-6: Withdraw Funds:- Once you make some good earnings [via playing on best bitcoin sites], you can head on over to the cashier section and initiate a withdrawal. All you have to do next is enter your Bitcoin wallet address and the amount you want to transfer. The speed at which the transfer is complete varies depending on the casino.
Pros and Cons of Bitcoin Gambling:
Pros of BTC Gambling
There are lots of advantages when playing with Bitcoin, as playing with a cryptocurrency works both in favor of the player and the operators.One thing to keep in mind is that some of these benefits are only available on Bitcoin only casinos.
- Privacy – Anonymity is a big issue for many people that want to try online gambling as a lot of them come from countries where online gambling is illegal. Most of the Bitcoin operators won’t ask for personal information.
- Transparency – Transactions done with Bitcoin are publicly listed for everyone. The good thing though is that none of these have any personal information attached to them. They bare a transaction code that only the sender and receiver of the funds know. This makes everything clear and easy for everyone involved and prevents scams from happening.
- Lower house edge rates- On average the percentage of house edge at regular casinos is 5%. Some of the best Bitcoin Casinos, however, offer a house edge of 1%. This means that in the long run, you’ll save a lot more money by playing there.
- Speed – Transactions involving Bitcoin are usually a lot faster than traditional payment options. Waiting days to finally get your money will be a thing of the past.
- Low Transaction Fees – The fees on these platforms are generally very low. Since the platforms have a lot fewer costs when developing their cashier sections, they can afford to give better odds and lower margins.
- Promotions – Bitcoin users are privy to the best bonuses for most games. You can get bigger wins compared to casinos that use traditional currencies.
- Security – In comparison to traditional gambling websites, the risk of your bitcoin wallet being hacked is a lot smaller since you don’t share any details with anyone.
- Tax-Free – While governments are making efforts to tax Bitcoin, it is currently tax-free. This way you fully keep whatever you make.
Cons of BTC Gambling
Unfortunately, Bitcoin does have some cons that you should be informed about before making the decision to start gambling with it.
- Volatility – As mentioned in the beginning, the price of Bitcoin can vary quite a bit. This brings with it a lot of uncertainty and some aren’t willing to take that risk.
- Not User-Friendly – Bitcoin does take some tech knowledge to get around, so if you’re not a tech-savvy person you might have some issues. Thankfully, most wallets and casinos are working on ways to improve their UI’s.
- Security – You might be puzzled by how the same point can be included in both sections. The answer is simple. Even though you’re safe from the gambling operators who can’t steal any money from you, hacks have been known to happen. It’s extremely rare but it’s a possibility.
- Uncertainty – The future of Bitcoin and other cryptocurrencies is uncertain since plenty of countries are trying to find ways to regulate them.
Tips for Bitcoin Gambling :
In essence, Btc gambling is pretty much the same as gambling with traditional currency. However, there are some things you should keep an eye on.
1.) The price of Bitcoin is ever-changing. If you don’t keep proper track of how much it’s worth you won’t have any idea how much money you’re making or losing.
2.) Keep to provably fair Casino. Many websites out there that don’t have proven provably fair games could be rigged. The chances of this are very likely, and no matter what they might be offering, or how good they look, stay away from them. Sticking to provably fair websites gives you the option to verify if the games are fair or not.
3.) Always keep an eye out for games that have no betting margin, zero house edge, or no rake. Many Bitcoin operators offer these types of games which are practically non-existent on traditional gambling sites.
4.) Always keep track of local laws. A few countries have begun to regulate Bitcoin use, and some have even banned it altogether.
Bitcoin and Taxes:
Like for most things out there, the tax laws for bitcoin are different in different countries. Some countries even have differing regions. This makes creating a fully comprehensive list impossible as the resources needed for that kind of research are currently out of our reach. Let’s start with the UK. Everything you win through gambling in England, Scotland, Wales and Northern Ireland is 100% tax-free. The currency used for gambling makes no difference whatsoever. The US is the complete opposite of this. Not only are all gambling winnings taxable, but online gambling is restricted. This is interesting since even though the US doesn’t want its citizens gambling online at all, they expect them to pay taxes from all online gambling earnings. It’s pretty obvious that the tax laws related to online gambling are quite different between the US and the UK. That being said, the next few countries on this list don’t tax gambling winnings.
- Austria
- Australia
- Belgium
- Bulgaria
- Canada
- Czech Republic
- Denmark
- Finland
- Germany
- Hungary
- Italy
- Luxembourg
- Malta
- Romanian
- Sweden
Online gambling is very popular in these countries. The reason being that no matter how big of a win you get, you don’t have to pay a dime towards taxes for it.
Note: Generally, you don’t need to pay any taxes on cryptocurrency including Bitcoin. The amount of tax you need to pay for bitcoin can also depend on how your transactions are managed. If you manage to find a way to hide your Bitcoin transactions, you don’t need to pay taxes.
Bitcoin Faq’s
1.What is Bitcoin?
Bitcoin is a type of cryptocurrency, a consensus network that enables a new payment system and completely digital money. Bitcoin is a great choice for the Internet.
2.Who controls the Bitcoin network?
Bitcoin is controlled by all Bitcoin users around the world. Users are free to choose which software and version they use. In order to compatible with each other.
3.How does it work?
Bitcoin is a mobile app or computer program that provides a personalized bitcoin wallet and allows a user to send and receive bitcoins with them. The user’s computer preserves the authenticity of each transaction with a digital signature to verify the validity of each transaction.
4.How does one get bitcoin?
- As payment for goods or services.
- Buy bitcoin at bitcoin exchange.
- Exchange bitcoin with someone close to you.
- Earn bitcoins through competitive mining.
5.How specific is bitcoin payment?
Bitcoin payments are made easier to debit or credit card, payment is made from a wallet application on your computer or smartphone, by entering the recipient’s address, payment amount and pressing send.
6.Is bitcoin anonymous?
Bitcoin is not anonymous and cannot offer the same privacy as cash. Bitcoin is designed to allow its users to send and receive money in another form with an acceptable level of privacy.
7.Can I use them at online casinos?
Yes, Many licensed online casinos allowed Bitcoins payment.
Conclusion
Even though Bitcoin has existed for quite some time now, many countries still have no ways of regulating, restricting or banning cryptocurrency. This is a challenging feat for countries around the globe as the anonymity of Bitcoin makes it close to impossible to allow legal use, and prevent criminal activities related to it at the same time. Bitcoin is still drifting in a legal gray area which is one of the biggest reasons for the Growth of Bitcoin Casinos.