Cryptocurrency in the digital age has found considerable traction for many reasons. The gambling industry has welcomed the emergence of a secure and anonymous form of currency, with many casinos offering wide-ranging options.
The crypto market continues to grow rapidly, and while casinos want to offer the option of digital currency, they want to stick to the ones with the greatest reliability. One such currency is Ethereum (ether), which has successfully infiltrated the gambling industry. It affords what players value most: anonymity. Cryptocurrencies do not require personal information, reducing the chances of this information being leaked or lost.
Ethereum was launched in 2015, following the emergence of Bitcoin. While it initially faced several technical challenges, it has successfully developed into the world’s second-largest digital currency. The launch of Ethereum 2.0 offers an even better experience, including, but not limited to, improved anonymity. Ethereum in the gambling industry has been a game-changer for many players.
What are Ethereum casinos?
Ethereum casinos feature all those online casinos that accept Ethereum. There is no great difference between these and traditional casinos; they offer the same kind of games and the same method of playing. The only difference is that they will accept Ethereum for deposits, withdrawals, and gambling.
Ethereum is based on a blockchain, which operates as a decentralised network. Not only does it ensure the validity and integrity of transactions, but it also allows digital currencies to operate independent of centralised authorities like a bank.
Features of Ethereum include:
- Acting as a currency, allowing anonymous transactions, and which can be stored in a secure digital wallet
- Decentralised apps and sites, which allow users to play games and send and receive money
- Financing, reducing government control and oversight over the money
- Smart contracts, which operate on the Ethereum blockchain, with predefined functions like a traditional contract, that are executed automatically once the conditions are met
Advantages of an Ethereum Casino
An Ethereum casino can offer many advantages over traditional gambling and even other digital assets.
Faster and cheaper
- Cryptocurrencies are generally considered much faster than traditional currencies and banking systems. Gambling requires a continued pace which can be interrupted with traditional banking, which can take days to be verified before you can continue.
- Being a digital asset, cryptos like Ethereum operate in real-time and can substantially reduce the waiting period to a few minutes. Ethereum is also known to be faster than Bitcoin due to its scaling issues.
- The payout process is much faster, making players’ winnings accessible quickly. Due to lower Gas fees on Ethereum, it can also end up being cheaper than Bitcoin. Traditional banking charges additional transactional fees, which make it quite expensive
Security and Anonymity
- Anonymity is a major driving force behind the success of crypto. A traditional online casino would require substantial personal information to verify a player. This information, stored on third-party servers, is at a greater risk of being stolen by hackers and misused.
- With Ethereum, no personal or private information is required. Sign-up is a much simpler process involving only a username that connects with your digital wallet containing the Ether to carry out transactions. The anonymity protects from possible security breaches, allowing low-risk gambling
Casino bonuses and offers
- Many casinos advertise special bonuses and offers on Ethereum use. While this does not apply to every online casino, checking out and potentially increasing payouts is worthwhile. These casinos also include special-offer games not available without Ethereum.
- The bonuses may also be offered in the form of zero Gas fees or other transactional charges. Again, not every casino offers these benefits, so do your research.
Potential for larger payouts
- Some may see the higher volatility of Ethereum as a risk that can turn them away from its use. While crypto is generally more volatile, and Ethereum slightly more so than Bitcoin, this can be a major advantage to players looking for bigger payouts.
- Keeping up to date with Ethereum highs and lows and withdrawing at the right time can dramatically increase the payout. Ethereum acts as a valuable investment and, when done right, is a financial advantage.
- Ethereum’s smart contracts offer various advantages in casinos. In addition to allowing faster transactions, they offer fair play and a more secure experience. The smart contracts feature also allows other games to be developed and offered by casinos to Ethereum users. Smart contracts are exclusive to Ethereum, and therefore their benefits are only available to Ethereum users.
How to buy Ethereum
|Decentralized cryptocurrency||Cannot be bought or sold through a bank. It requires going through a cryptocurrency exchange that handles crypto transactions. Before you begin investing in it, you should check the exchange rates|
|Volatile currency||Much like any other cryptocurrency, the price of Ethereum fluctuates constantly. However, one of the reasons for its popularity is that it has been locked in a constant increase, with very few lows, and so is considered incredibly valuable. When keeping an eye on the price, you should also focus on external factors, like media attention, that can cause sudden and unprecedented fluctuations in crypto prices.|
|Cryptocurrency Exchanges||Coinbase and BitPanda, range from easy-to-use platforms for beginners and casual investors to complicated dashboards for veteran traders. As a popular cryptocurrency, it is easily bought on most platforms, though it is better to stick to the more popular ones. Remember that each platform also comes with various security measures and fees, so shopping around is also a good idea|
Cryptocurrency offers anonymity, but the process of buying it does not. When signing up with an exchange, you will likely have to provide various personal information, following which you will need to link your bank account with your crypto exchange account. This process is called funding your account, and you can only begin purchasing once you have done so.
The next part is much like any other transaction. Use your currency to trade for Ether, and the amount you get will depend on the current exchange rate. Again, it’s best to look up the exchange rate and understand how much you will be spending and what you will receive before the transaction.
Store your ether
If you only intend to buy a small amount of crypto, you can keep it in your exchange account. However, it is easier to maintain any cryptocurrency, such as Ether, in a digital wallet. Digital wallets offer more security and total anonymity when using Ethereum in casinos or for other purposes. Different types of digital wallets offer different amounts of security:
Store your ether: Web-based wallets
These are online wallets hosted by the cryptocurrency exchange where you buy your Ethereum. They are secured using a security key that enables access to the wallet. The wallet is completely web-based and connected to the internet.
Many traders, especially those that deal with larger amounts of crypto, consider this a comparatively unsafe option since your finances will be exposed in the event of a cyber attack on the exchange. But this is also considered the fastest and simplest option.
|Security||Fast Transactions||Huge Amounts||Offline function|
Store your ether: Mobile wallets
Mobile wallets operate on smartphones or tablets, where you may often be responsible for managing the security key to your wallet. Many mobile wallets can be directly linked to the exchange, providing hot storage for your Ethereum.
Other mobile wallets can offer cold storage with offline options. Since offline wallets cannot be virtually attacked, this option is considered to add another layer of security. Ethereum is not actually stored on your wallet but on the blockchain. The wallet simply allows the use of the private key to access the blockchain for your Ether.
Store your ether: Desktop wallets
Desktop wallets are specifically designed for PC users in the form of downloadable software. Most of these wallets come with cold storage options that add a layer of security. Just like mobile wallets, they give the user control over their private keys and funds, though that also means the user alone is responsible for the safety of the key.
They are considered more secure than web-based wallets since they are not connected to the wider crypto exchange network, which is more susceptible to attacks. While hot wallets are easy to use, cold wallets are more secure, and desktop wallets offer both of these options.
Store your ether: Hardware wallets
Hardware wallets, as the name suggests, are stored offline on an actual piece of hardware. They can be accessed by connecting to a computer through a USB port, which is the only time they go hot. The rest of the time in storage is completely cold, offering the best security in terms of potential cyber-attacks.
The obvious disadvantage here is that, as a piece of hardware, it can be misplaced, lost, or stolen. You would need to keep track of the wallet, preferably keeping it in a set and secure location when not being used.
What makes Ethereum better?
Ethereum is currently the world’s second-largest cryptocurrency, not the first- so why should players go for Ethereum casinos when other cryptocurrencies are available? Whether one is better than the other is a very subjective position, and many players would rank Ethereum against other cryptocurrencies for gambling based on their personal experiences, preferences, and the laws and policies of their region.
That said, a sufficient comparison of the merits of the cryptocurrency can reveal certain benefits it offers over the original and market leader crypto, Bitcoin. These factors may make Ethereum a more desirable choice.
Ethereum vs Bitcoin
|Lacks the fame and therefore trustworthiness that Bitcoin has garnered with the general public||Original cryptocurrency, very popular and well known|
|Based on the Bitcoin concept that improved on its mistakes||As the first of its kind suffered from many technical and scaling issues|
|659,051 blockchain transactions per day||219,345 blockchain transactions per day|
|Proof of stake mining, implementing randomly chosen validators to ensure reliability||Proof of work mining, encouraging competition between miners to earn rewards|
|Some amount of Gas (Ether) is required for each transaction||Transaction fees are optional|
|Takes about 12-15 seconds to complete a transaction in Ethereum||Takes about 10 minutes to complete a transaction in Bitcoin|
|Better suited to smart contracts and distributed applications||Better suited to peer-to-peer transactions|
|30 transactions per second||7 transactions per second|
|Rising prices and volatility can offer higher investment and gambling value||Does not offer the same kind of cashout value|
Whether the above-listed factors make one cryptocurrency better than the other or not simply depends on the purpose for which they are to be used. What appears a benefit in one situation may not appear so in another. As far as Ethereum casinos go, they are likely better suited even to the average player due to the fast transaction and smart contracts capability that reduce players’ chances of defaulting on bets.
What to look out for in Ethereum Casinos
Online casinos, much like any other platform, come in all shapes and sizes, and not all of them are suited for everyone. An Ethereum casino operates much like any other casino, so check off a few boxes before the betting begins.
Not all online casinos deal exclusively in cryptocurrency. Not only should you check whether they accept crypto for deposits, betting, and withdrawals, but also whether they accept Ethereum as one of those currencies. Some casinos are known for dealing exclusively with one cryptocurrency.
This may not be a specific requirement for all players, but it does sweeten the deal. Many casinos offer deposit bonuses and rewards, which can vary depending on your currency. Some of the best Ethereum casinos offer some of the greatest initial rewards and play promotions.
Although it is possible to buy Ethereum directly from the casino site, it is recommended to buy the Ether independently. That should give a better sense of the exchange rate and the fluctuating nature of the currency and helps better prepare for investing in Ethereum.
As many players consider cryptocurrency like Ethereum an investment. It is advisable to stay informed on the exchange rate even when playing. As a volatile currency, it has the potential to increase payouts exponentially.
Ethereum Casinos Deposits
Many, though not all, Ethereum casinos have a minimum deposit limit. This means that players must deposit at least that much amount to their casino accounts to begin betting. If you try to deposit any amount any less than, it is likely that you will not only be unable to bet with it but will also lose the deposit since the first initial deposit must equal or exceed the minimum amount. This amount also unlocks deposits and welcome bonuses on many of these Ethereum casino sites.
|Casino||Deposit Minimum (ETH)|
Ethereum casinos range in what they offer to the player and what the player can bring to the table. There isn’t one casino that is the best in every respect, so players may choose their casino based on a range of personal factors. Regardless, Ethereum offers a quick, smooth and reliable gambling system that assures anonymity and security.
Ethereum is a leading cryptocurrency, and with its smart contracts feature, is the future of online gambling. Its rising success and popularity only confirm the role it can play in the online casino market, making the process fun, easy, and even profitable.