Bitcoin Gambling 101
Bitcoin is a peer to peer decentralized digital currency that is not controlled by any central authority such as a bank or a financial intermediary. It is cryptographically secured, pseudonymous and fast to process.
Blockchain Technology is the backbone of Bitcoin, it is a distributed ledger that keeps track of each transaction made in an encrypted and immutable form. When a Bitcoin transaction is verified, it is instantly as a permanent record on the blockchain. Bitcoin miners are main engines of the blockchain, they share the role of audits. Miners are the ones that confirm secure the transactions, under a process known as ‘Proof of Work’ where they solve complex computational math in order to add the transaction on the blockchain, they earn rewards in return which are the miners fee that you pay.
What makes this ecosystem captivating, the fact that Blockchain is based on pure mathematics and it is designed in a way where it cannot be manipulated, data on the blockchain cannot be changed which makes Bitcoin an effective digital currency.
Bitcoin and Gambling
It is no surprise that the online gambling industry fully embraces Bitcoin, it is a perfect payment mechanism that adds great value to online gamblers by offering the perks of fast deposits and withdrawals, more security and some degree of anonymity. What makes Bitcoin effective in online gambling is its divsibility. The smallest unit in Bitcoin is called a satoshi (0.00000001 BTC) which enable micro-transactions that traditional payment methods cannot achieve.
How to start with Bitcoin
You do not need to have any technical skills to grasp the basics of using Bitcoin in online casinos.
The first step is to download a bitcoin wallet which will take the role of your own bank. There are many types of Bitcoin wallets that you can use, but for the sake of simplicity we’ll only discuss Desktop Wallets.
After installing your BTC wallet, the first step is to take note of your wallet seed, back it up and password protect your wallet. It is very important to know the difference between a private and a public key. Your Private Key is the most important piece of data needed, it should always be kept safe and never shared with anyone but yourself. Your bitcoin are yours simply because you have access to the private key, if you lose your private key you lose all of your BTC which is impossible to recover. Your public key is your public address (ex: 1EoPveFUfyKSACdnT94YVGfUKgNRmJ6y6e) that you will use to send or receive btc to.
After you’re set up you need to buy Bitcoin and store it in your wallet. You can buy BTC with a credit card from LocalBitcoins, Binance, Paybis, CryptoPay. Bitstamp is a good option as well to consider if you’re looking to buy Bitcoin in big amounts, it is important to note that KYC is obligatory. After you receive your BTC, you finally can send it to any bitcoin casino of your preference. When you sign up on any online casino that supports BTC, they will provide you with your personal BTC address, which you will use to send your funds to.
If you are an Arab speaker, make sure to check out SaudiCasinos they have a comprehensive guide on Bitcoin written in Arabic and how it can be used in gambling.