Bitcoin and other cryptocurrencies are definitely the hot thing in the world of online casinos. The problem is, finding information about how to set up a wallet and start wagering with Bitcoin or any other digital currency can be difficult. This is especially for those who are new to the world of crypto and its terminology.
So to help out, here’s a quick guide geared specifically at gamblers that guides you through a step-by-step process on how to open one of the wallets.
Why Online Gamblers Need a Crypto Wallet
As an online gambler, opening a crypto wallet is one of the most useful things you can do to boost your opportunities for big wins. There are many reasons why online gamblers prefer crypto, but here are a few of the main ones:
- It’s less expensive – you don’t need to pay transaction fees to a bank whenever you withdraw or deposit. Even when sending money to other wallets, the transaction fee is much smaller than at a bank.
- It’s quicker – blockchain transactions process more quickly than bank transactions.
- It’s more private – your personal information is not tied to your Bitcoin wallet like it is to your bank account.
- It’s more secure – a bank oversees all your transactions with them so they could hypothetically reach into your account or halt the transaction if they see fit. With crypto transfers, no one has the power to control your money except you.
- Bonuses – online casinos benefit from the added efficiency and monetary savings of using crypto. Not only do they accept Bitcoin, but also offer exclusive crypto bonuses to players.
- Extremely convenient – You can use your own phone device as your mobile wallet. Depositing and withdrawing from your crypto casino sites has never been easier.
Some crypto newbies are tempted to keep their money on cryptocurrency exchanges since they do offer free crypto storage. It’s not safe, though. Crypto exchanges have been hacked in the past, and crypto-wallets are virtually impenetrable as long as no one finds your written private key.
Non-Custodial Wallets vs Hosted Wallets
There are two main types of crypto wallets you can get: non-custodial and hosted. To understand the difference between the two, you first must understand that crypto wallets rely on long strings of randomly generated words called “private keys.” Without the correct private key, the wallet cannot even be opened.
Non-custodial wallets were the original crypto wallets and are still preferred by many users today. There are 3 types: hardware wallets, software wallets, and paper wallets. Out of the three, software wallets are by far the most popular and the most convenient for online crypto casino gambling. They can be used as either desktop wallets or quick and handy mobile wallets. They do not store private keys for you, so it’s up to you to remember your private key. If you lose it, your wallet becomes useless. Because no one is in between you and your money with non-custodial wallets, they are the only kind that can be truly decentralized.
Hosted wallets are the more mainstream evolution of crypto wallets. They are sites that provide you with a crypto wallet and hold onto the private key for you. You can access the wallet with a login more akin to a traditional banking app.
Both types of wallets allow balances for different types of crypto, and sending or receiving each type of cryptocurrency in both cases requires a separate private key that you can find in the wallet itself.
Advantages of a Non-Custodial vs Hosted Wallet
Both types of wallets have their pros and cons.
Non-Custodial Wallet Advantages
- You’re In Charge – There is no third party who’s technically in control of your funds, a comforting idea to many crypto users. In other words, they really are decentralized.
- Lower Data Breach Possibility – With hosted wallets, there is a chance (however small) that they will be infiltrated by hackers and the money drained. Even though hosted wallet breaches are extremely unlikely due to two-factor authentication, non-custodial wallet breaches are unheard of and next to impossible. Again, this links to the fact that non-custodial wallets are decentralized.
- Instant Transactions – With non-custodial wallets, you can withdraw or transfer cash instantly. Hosted wallet transactions have to wait to be approved by the hosting organization. This is especially important to online gamblers, who often like to wager crypto as soon as they transfer it.
- Offline Access – Since a non-custodial wallet is stored on your server rather than a third party’s, you can access the wallet to view its contents or organize it even without an internet connection.
- Anonymity – One of the draws of crypto to some people, especially online gamblers, is that it is truly anonymous, something hosted wallets negate because of the KYC (know your customer) methods they usually implement.
Hosted Wallet Advantages
- Recovery is Possible – You cannot lose your key like with a non-custodial wallet. You’ll almost always have a way to retrieve your login info, like password recovery on most websites.
- Less Fees – Hosted wallets generally let users send funds to other users within the same network for free, whereas non-custodial wallets impose a small fee on all transactions.
- Redos are Allowed – Hosted wallet networks keep logs of user transactions, and they allow users to undo or modify some transactions like a traditional online banking network.
Opening a Wallet
It’s not as difficult as you might think. Here are short step-by-step guides for opening each type of wallet.
How to Open a Non-Custodial Wallet
If the main purpose of your wallet is to play online casino games, sports betting, horse racing, or any other form of online gambling, a simple mobile or desktop wallet is your best non-custodial option. Follow these steps to open one.
- Download a Non-Custodial Wallet App – Especially for first-timers, it’s best to start with a trustworthy platform! Go with one of the popular ones like Exodus, BitGo Cryptocurrency Wallet, or Electrum.
- Create Login Info – Most wallets will prompt you to create login info like with any other online profile. If the wallet really is non-custodial, though, it will not ask for any personal info like an email address. In some cases, you may not even be required to create a login. In this case, just skip to step 3.
- Get Your Private Key – The wallet will then present you with a private key, which will be a string of between 12 and 24 random words. Write them down and KEEP THEM SECURE!!! If you lose them, you will be unable to access your crypto. If anyone else finds these “keys”, they will gain access to your crypto. So again, KEEP THEM SAFE AND SECURE. We’d recommend doing so through the use of a hardware wallet.
And that’s it! ow you’re ready to deposit at your favorite Bitcoin casinos! Casual online gamblers should be able to handle it as long as they can remember their private keys.
How to Open a Hosted Wallet
Opening a hosted wallet is even simpler than a non-custodial wallet, though it may involve some waiting time.
- Choose a Trustworthy Platform – Honestly, the best strategy here is to go with one of the big names like Coinbase or Binance. The primary reason they’re so big is due to their security being top-notch and them having good customer service.
- Create an Account – Just like you would on any other site, locate the “create an account” option on the site and fill in your account info. That info will include all the fields you might expect when creating a social media account, from personal info like email address and full name to site-specific info like a password. You can keep this info like you would info for any other site, although we’d highly recommend you don’t save it in your password manager if you’ll be using it for investing any significant amount of fiat currency. You should definitely set up 2FA (two-factor authentication) as well.
- KYC (Know Your Customer) – Most hosted wallets require you to confirm your identity by submitting photos of your identification documents. This is the part that might entail waiting time, as the documents must be reviewed by the site before the account becomes active.
Transferring Fiat Currency to Your Crypto Wallet
Non-Custodial Wallets – Non-custodial wallets usually do not allow users to deposit directly via bank or credit card, because that would ruin the air of anonymity. Most of the time, though, the wallets will partner with companies that can accept credit card or ACH transfers and add to a specified account on the site without identifying anyone.
Hosted Wallets – You can usually make deposits on these from your card, just like you can on traditional online gambling sites.
Since the principles behind cryptocurrency and the blockchain are pretty complex, people often think creating a wallet will be complicated too. As you can see, though, it’s actually dead simple for anyone, regardless of tech expertise.