Crypto gambling is among the hottest forms of gambling today and the number of online casino gamblers using cryptocurrency as a payment method keeps increasing rapidly. After all, the perks of using Bitcoin or some other coin for online gambling are well-documented by now. However, those players who are new to the crypto world, there is a possibility they fall victims of dangerous misinformation online.
Check out these common cryptocurrency myths so you yourself don’t fall into the same trap.
Cryptocurrencies Are Nontaxable
Many people choose crypto gambling for this reason but unfortunately, it doesn’t always hold true. Most cryptocurrencies are traceable, you can even see every transaction public on the blockchain. And many countries, including the US, tax cryptocurrencies like they are stocks (0-20% for long-term gains and 10-37% for short-term gains, depending also on income level). Just like the winnings from casino gambling, lotteries, horse races, and game shows, crypto gambling sites are all subjected to tax in the US.
That being said, the IRS probably won’t be knocking on the door if you won like 0.0005 BTC. Some say the IRS only bothers tracking crypto earnings when you earn a lot but the fact of the matter is, if they want to, the IRS can absolutely track you down. A few countries whose tax system most favors crypto gamblers include Portugal, Malta, Singapore, Switzerland and Germany.
Crypto Casinos Are Illegitimate
As of 2021, the legality of crypto casinos is in no way definite. In countries where cryptocurrencies themselves are banned, of course crypto casinos are illegal. The same thing goes for countries banning online gambling. But apart from these cases, crypto casino sites hold just as much legitimacy as traditional online casinos.
If you want to be careful, you can read the terms and conditions of any crypto casino. In there, you can find out where the casino is licensed, players from which countries are not allowed to play and any other legal concerns.
Bitcoin’s Trading Value Affects The Payout Rate
Bitcoin and many other cryptos have a volatile market, so the same winnings can be valued much differently a week later: that much is true. However, the trading price of cryptocurrencies cannot determine how well casino games pay out.
Some people think an online crypto casino will intentionally reward players less when certain coins are trading at their peak. This is one hundred percent a myth, as it is illegal for online casinos to predetermine or influence the games’ results in any way.
Crypto Gambling Is 100% Anonymous
You can definitely protect your privacy much better with crypto gambling instead of traditional online gambling, but don’t be fooled to believe that cryptocurrencies are completely untraceable to you. First of all, different types of crypto will have different levels of anonymity with Monero famous for being the most private one.
Secondly, although most crypto transactions are encrypted to hide the users’ identities, your wallet address is still public and suspicious transactions can be traced back to that same address. Furthermore, most crypto casinos still require you to do a know-your-customer process (KYC) anyway because they have a legal responsibility to combat fraud and money laundering. The privacy crypto gambling protects is privacy from gambling authorities, identity scammers and prying eyes from other people.
You Can Win More With Crypto In Online Casinos
Some crypto gamblers believe that they can win more at the same game just because they’re playing with crypto. While privacy, transaction speed and convenience are all parts of cryptocurrencies’ perks, this one is not. The same slot, for instance, will have the same RTP no matter what currency is used. However, there are games made exclusively for crypto users that might have a better payout rate.
Cryptocurrencies Can Be Easily Hacked
Just because you see cryptocurrencies getting hacked on the news, it doesn’t mean that it’s something that happens frequently or easily. If someone manages to hack a normal crypto casino, they can only get access to the coins you deposited into your casino account. Furthermore, if it’s a decentralized casino, they can’t access your money at all without your private key.
Massive, sophisticated hacks into cryptocurrency exchanges have happened in the past, but nowadays it’s incredibly difficult. Therefore, personal hacks and scams are what you should be concerned with. Use a reputable wallet, protect your private key, don’t click on suspicious links and your crypto will likely be safe and sound.
Online Casinos, Crypto Casinos, Bitcoin Casinos and Decentralized Casinos
Many players interchange these terms because they don’t know exactly what they mean. Online casinos can be both used to refer to traditional ones that only accept fiat as payment or any casino that exists on the Internet.
Crypto casinos are online casinos that accept cryptocurrencies as payment, where you can play the most popular slots and casino games. Surprisingly, Bitcoin casinos/Bitcoin gambling sites for the most part don’t just accept Bitcoin as payment. They are, instead, another way to refer to ‘crypto casinos’ and usually allow for a multitude of coins like Ethereum, Bitcoin Cash, Tether, Litecoin… The name ‘Bitcoin casino’ simply stems from Bitcoin being the mainstream face of cryptocurrencies.
Decentralized casinos are a different breed altogether. In these casinos, you can play unique games exclusively made for crypto gamblers. Plus, you don’t have to deposit your money in a casino account to play as deposits and withdrawals directly go to and from your crypto wallet.
The Lack of Perks in Crypto Casinos
This myth originates from people mistaking decentralized casinos for crypto casinos. In a crypto casino, players can still enjoy the newest slot games, video poker games, table games, sports betting and live dealer games from their favorite game providers. If you’re torn between using fiat or crypto, you can even join a hybrid casino.
In addition, crypto gambling sites also offer a great welcome bonus, deposit bonus, free spins and reload bonuses. The best Bitcoin gambling sites can have even more generous bonuses than your average online casino.