The world is moving towards digitization of all aspects of human life, and gambling is not left out of this evolution. As cryptocurrencies have become more popular and gained more attention, crypto casinos have also come up in addition to traditional ones.
A cryptocurrency casino is one in which gambling is done using cryptocurrency as opposed to the traditional casino where gambling is done using fiat currencies, such as the U.S Dollar, and in physical locations. This article explores the two types of casinos in order to give you a better understanding of their characteristics so that you can decide which one to use.
Cryptocurrency casinos, as mentioned earlier, allow customers to gamble using cryptos. Cryptocurrencies are decentralized currencies found on public blockchains. Examples of such currencies include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and many more. The unique thing about them is that they do not have any form of central control, and anyone can hold and use them. This is why they have come to be popular, offering more freedom than currencies issued from central banks.
They run on software programs that are either developed by the company or bought from a different software provider. Due to the decentralized and digital nature of cryptocurrencies, they are under close watch from regulators, as transactions with such currencies between casinos and users are not as easy to trace and verify as traditional ones are. Most of them use Bitcoin, but some have now added support for other cryptocurrencies, some of which are even preferred because of certain qualities they possess, such as higher privacy.
Traditional casinos are the stark opposite of cryptocurrency ones, and they are also the oldest type. They operate offline and exist in physical buildings, as we can see in cities like Las Vegas. For these casinos, fiat currencies, such as the U.S Dollar, Euro, or Pound Sterling, are used both for betting and for payouts. These currencies are centralized, as they are issued by the central banks of countries, which makes them easily traceable and verifiable. Bets are carried out physically with cash, and rewards are given in the same manner, making it more trustworthy for users.
Although this type of casino still thrives till today, they now face fierce competition from online casinos, which offer a number of advantages that we will get into shortly. This does not mean that traditional casinos do not have some advantages, but the digital world is taking over fast, especially in the era of COVID-19.
Fees, Operating and Transfer Costs
Cryptocurrency casinos mostly have zero transaction fees for some reason. This means users’ rewards are fully paid out to them with no deductions. There is an unlimited number of withdrawals or daily transactions, provided the minimum withdrawal is reached. However, for traditional casinos, there are withdrawal and other fees as well as taxes. There is also a limited number of transactions per day, which seriously affects the total reward.
Both traditional and cryptocurrency casinos offer bonuses to their players. For the former, this may be up to 100% for players who earn up to hundreds of dollars, for instance. Cryptocurrency casinos can offer at least 1 to 5 BTC, which runs into thousands of dollars. This is in addition to other promotions and perks that are meant to draw users who would otherwise use traditional ones.
Just as cryptocurrency casinos differ from traditional ones in some major ways, they also differ in the transaction mechanism. Cryptocurrency casinos make transactions through the blockchain, and payments are made from wallet to wallet. As the blockchain is immutable and information on it cannot be changed, this is also a safe payment method. As for traditional casinos, transactions are carried out through human agents. This could lead to several mistakes or deliberate alterations of these transactions as well.
Traditional casinos are fully regulated, and this is because physical gamblers can be verified for the appropriate age, location, etc. Moreover, casino owners can be fully monitored, as they have their casinos in physical locations. This is not so with cryptocurrency ones, which are strictly online. To start with, underage players can easily play casino games by just stating online that they are above 18. It is also quite difficult to regulate casino owners, as they don’t have any physical locations, although the casinos are said to be registered with regulators.
Cryptocurrency casinos generally do not demand so much information from customers. For most, all they have to do is register with an email address and a password. For a few, no registration is even required. Traditional ones, in turn, only admit players who provide sensitive personal details, such as physical I.D cards.
Fairness of the Game
As mentioned earlier, cryptocurrency casinos run on programmed software, which works automatically. This makes it easier for the game to be fair and validated when needed. Also, due to the blockchain on which cryptocurrencies operate, transactions can be easily verifiable. Traditional casinos may be more prone to manipulation, as they are operated by humans, and fairplay can sometimes be limited to maximizing profits for casino owners.
While traditional casinos have a limited variety of games for players, cryptocurrency ones have a wide variety of games that can be played and enjoyed even if they are for entertainment purposes only. The special promotions and huge bonuses also make them more attractive even to those who have not used crypto before.
Pros and Cons
- Ease of use: You only need to sign up online and play from the convenience of your home;
- Lucrative returns: With several huge bonuses running into thousands of dollars, crypto casinos bring more reward;
- Fairplay: On the crypto casino websites, there is a detailed description of how the game works and the assurance of fairplay. Transactions are also easily validated;
- Unlimited transactions and low or no fees: There is no limit to how many times players can withdraw their earnings and most do not charge any fees for these transactions while others charge insignificant amounts.
- No proper regulation: A crypto casino does not come under strict regulation because it is online;
- You have to use crypto: Cryptocurrency is yet to gain mainstream adoption. However, in order to use crypto casinos, you must use cryptocurrency, which may take some technical knowledge to buy and use.
- Full regulation: Regulators have traditional casinos under full regulation, so players and owners can be fully verified in accordance with the law.
- Lack of privacy: Those using traditional casinos have their identities fully revealed, as they have to be physically present to play;
- Subject to manipulation: As there is no automated system for running the casino, humans can easily manipulate the game;
- Less lucrative: Although traditional casinos offer a lot of bonuses, this is significantly smaller than what crypto ones give;
- High transaction fees and taxes: Taxes and fees are paid on earnings from traditional casinos, which may significantly reduce the net payouts.
Considering all cryptocurrency casinos offer to users, they bring a lot of competition to traditional ones. Some people, especially the older generations, may still prefer the traditional ones, as they may find them easier to connect with than online casinos.
However, as the world continues to move towards digitalization, more people may find online casinos more attractive in the future. This has been the trend in the COVID-19 lockdown, which has exposed many to this form of casinos and is likely to continue, thus making crypto casinos more popular in the future. Now that you know so much about them, you can decide which one best suits your purpose.