Cryptocurrency gambling sites have quickly become very popular with players all over the world. Crypto and gambling are very well suited to each other.
Blockchain technology provides many features that the players are looking for. It allows the players to gamble without providing their personal information and to make transactions quickly and safely.
In this article, we’ll explore how cryptocurrency gambling sites work and what kind of security measures they provide. It’s these features and qualities that have helped the tech take root and allow so many new players to start betting online.
Blockchain Technology
Cryptocurrency casinos take advantage of blockchain technology as it provides immutable records of each transaction. Blockchain is also transparent. The open code allows every player and every user to look underneath the hood and make sure that the online casino is honest.
The transactions made with blockchain are also immutable meaning that there’s no way for the casino to back out of a bet if the player wins. Blockchain uses cryptographic techniques to secure transactions and control access to data. Private keys available only to players are used to authorize payments.
Making Sure the Games Are Fair
Blockchain can also be used to make sure that the games are fair and that the odds are suitable for the players. The term of the bet is written into the crypto code itself. Therefore the payment is made automatically once the terms are met.
This doesn’t mean, however, that the games will work in favor of the player. In fact, most casino games, even those based on skill, have an edge in favor of the house. BTC casinos are transparent about the odds and the players should be aware of this.
Secure Transactions
To secure the financial transactions BTC casinos use a variety of different encryption protocols. The most commonly used protocol is known as SSL or Secure Socket Layer. It creates a secure and encrypted line between the user’s browser and the casino. The information used to make this transfer is scrambled so that it can’t be detected by a third party.
That way cryptocurrency casinos protect both the integrity of the transactions and the identity of those who use them. The latter is becoming an increasingly important feature as more users than ever before worry about privacy online.
Anonymity
One of the most important features cryptocurrency casinos provide to their users is the ability to bet without providing your personal data or any banking information. The blockchain technology lacks any centralized authority or a government agency to enforce it. Therefore, there’s no one to provide this information to.
Since BTC has gained traction and many gambling establishments were open, the regulations in this regard have become somewhat stricter. This means that “know your customer” laws that are used to prevent money laundering can apply. Some casinos will ask their users to provide an ID in regards to this law, but they don’t share that info with third parties. Most, however, still allow for completely anonymous betting.
Cold Wallet Storage
The funds that the players win using BTC casinos are activated using keys that are available only to interested parties. That way the casino and the users have complete control over the funds. The keys are stored in so-called digital wallets that protect the integrity of the process. These could be virtual storage facilities or they can be actual hard drives.
BTC gambling sites often offer cold wallet storage, meaning storing the keys on hard drives that aren’t connected to the internet at all, therefore making hacking impossible.
Two-Factor Authentication
Many if not all BTC gambling sites use two-factor authentication for the users to log in and allow payments. This means that in order to log in or deposit funds to a casino account a player needs to use two devices that will confirm this action. The devices are usually a computer and a mobile device such as a phone, but it’s also possible to use two different mobile devices.
That way, the gambling site makes sure that the action isn’t done by accident or based on a scam of some kind. In most cases, once a player authorizes an action, they get an SMS code or a notification on their phone. It’s the second device, needed to confirm that the action is authentic.
Security Audits
Bitcoin casinos operate in a crowded market and there are a lot of competitors to worry about. Security and safety are the most important features gambling sites offer to their users. Therefore, these sites often provide regular security audits as a way to prove the quality of their security features.
Casinos usually hire an outside agency that will check the quality of the security measures and the overall systems put in place. This is a regular occurrence and gambling sites tend to publicize the analysis results.
Responsible Gambling Measures
Cryptocurrency casinos are obligated to provide responsible gambling measures for their players. There are a few important features entailed by this. First and foremost the casino should be open and honest about the fact that gambling can be addictive. Many casinos also provide professional assistance regarding gambling addiction as a part of their customer support program.
Casinos also allow the players to automate a stop-loss system and to lock themselves out of an account for a while, once that stop-loss is reached. That way a player can take a break after a few bad rounds instead of chasing their losses.
Proper Licensing and Regulation
Bitcoin casinos need to be licensed and registered with the proper government authority. These are usually based off-shore in areas that allow online gambling, thus allowing players to bet from countries that don’t allow gambling. It’s made even easier with the use of crypto which can be exchanged anywhere in the world.
The licenses are in themselves proof that the casino has taken safety measures seriously and that it operates in accordance with relevant laws and guidelines. The players shouldn’t try to play at the casinos without the proper documents.
Reputation
The online reputation that the cryptocurrency casinos generate serves as a security measure. The players can use it to avoid the casinos that aren’t to be trusted. Online gambling communities provide detailed reviews that cover every feature a BTC casino provides. This includes everything from games to customer services and bonus structures.
It’s important for players to investigate the casinos they plan to use. As well as to take into consideration any complaints regarding security or personal data that may come up during such investigations.
To Sum Up
Crypto casinos are safe to use. There are many different security features put in place to make sure online players can place bets without having to worry about their private data or how fair the games are. Most of these measures rely on the technical properties of the blockchain itself. That way the procedures put in place are written into the cryptocurrency code itself.
Casinos also need to be registered in order to provide their services in the first place. Players who frequent online crypto casinos leave reviews. The players can use these to select which establishments are trustworthy.
