Cryptocurrencies are no longer a science fiction story. Investors watch as the price of Bitcoin skyrockets and falls again. Now cryptocurrency can even be used to pay for your coffee, or to play slots like at www.playamo.com. And these are the pros and cons of crypto-casinos and how to choose the right platform.
Pros of Crypto-casinos
Operators accept Bitcoins and other currencies for several reasons. Crypto-casinos have several advantages over online gambling platforms that only accept national currencies. Accepting Bitcoin is smart because the currency is:
- Popular with the online casino audience.
The blockchain technology behind Bitcoins and other cryptocurrencies provides a high level of encryption. Each transaction is written in a block of code that never changes, and all transactions must be verified by a decentralized blockchain networK. Transactions go directly from one crypto wallet to another, which eliminates the involvement of any third party and reduces the possibility of fraud and eliminates the need to pay transfer fees.
The iGaming industry and cryptocurrencies attract a similar demographic: young people who are interested in technology. There are several crypto-casinos out there right now, and there are affiliates that can bring in a crowd of crypto-lovers.
Cons of Crypto-casinos
There aren’t many disadvantages to operating a crypto-casino. But you should still remember some essential nuances if you want to feel safe on the platform.
First, it’s hard to predict how regulation might change. One of the features of Bitcoin and other digital coins is that it has a decentralized network behind it. Still, it is impossible to predict how governments will treat cryptocurrencies in the future.
Moreover, in some places, cryptocurrencies have a bad reputation. Their anonymity and lack of a centralized authority leads to suspicions of criminal activity.
Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are known for their volatility. Casinos must be prepared for currency value spikes and ensure they always have enough capital to cover players’ winnings despite changes in value. Some casinos manage this risk by automatically converting cryptocurrencies into fiat currencies, converting them back when payouts are needed.
How to Distinguish an Honest Crypto-casino?
This is the question that worries players the most. After all, if the platform is unlucky, the concept of “winning” simply does not exist: either the roulette wheel will always spin “against the player”, or the winnings received are practically impossible to withdraw.
In such a situation, smart-contract casinos become very popular. We should not forget that one of the main advantages of blockchain is complete transparency. So, everyone can see the history of transactions between wallets. And this makes any machinations and tampering in one’s favor completely impossible.
If we talk about the main features that you need to pay attention to when choosing an online casino, the experts advise to look at:
- If the company is officially opened in the country where it is allowed, then it can already be trusted.
- The reputation of the regulator. The most popular of the regulators are the Maltese and the British. If the chosen institution is located in their jurisdiction, the risk is greatly reduced.
- The reputation of the casino. To get acquainted with it, it is enough to read customer reviews on third-party resources. The most critical point is the absence of problems with the withdrawal of funds.
As for accepting cryptocurrencies, in search of a cryptocurrency casino, you should look for those options that mean working on smart contracts. They are the ones that really reduce transaction fees, as well as eliminate the risk of fraud by either party.
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.