How to Bet With Crypto
There are a number of reputable sports betting websites that allow players to use cryptocurrency to make a bet. This includes websites like Cloudbet, Nitrogensports, Sportsbet, and many others.
There are also completely decentralized sportsbooks emerging these days. Wagerr is a solid option.
Most often, sites will accept bitcoin, the world’s first and most popular cryptocurrency, to place a wager. But some sites will also accept Bitcoin Cash, LiteCoin, and Ethereum.
Contrary to popular belief, however, is that these websites do not store your crypto. It’s not like a crypto exchange, such as Coinbase, where you send and store your funds, using them at any time.
That would pose a huge threat, as storing massive amounts of crypto on the website could lead to increased cyberattacks.
Rather, when using cryptocurrency like bitcoin to make bets, you store your crypto in your own bitcoin wallet. Crypto wallets can either be software wallets, downloaded to your phone or computer, or hardware wallets, that work as a hard drive.
This ensures that you always retain control over your crypto, and you don’t trust a third party to hold custody over it on your behalf.
When you are ready to make a sports bet through an online sportsbook, you transfer the amount you are looking to wager to the website. That crypto is then automatically converted into digital chips, usually denoted in $USD. You then use these chips to make your wager.
Withdrawing Your Winnings
If you make a winning bet, you’ll receive your winnings in the same $USD denoted chips. If you want to withdraw those funds, they will be converted back into bitcoin, or another supported cryptocurrency, and then sent back to your personal crypto-wallet.
All you have to do is copy and paste your crypto wallet address into the withdrawal box on the website. Depending on the cryptocurrency you send, it can take a few seconds, or up to 30 minutes, depending on how congested the network is at the moment.
Types of Crypto Wallets
So if you want to place bets on some of the more popular online sportsbooks, you’re going to need a cryptocurrency wallet. There are two main types of wallets available.
Software wallets are applications you can download either to your smartphone or computer. These are usually free to download and use.
In just a few minutes, you’ll have a crypto wallet set up. Just make sure to write down and save your seed phrase during the setup process, as this is your wallet security. Never share it with anyone.
While software wallets are easy to start using, they aren’t the most secure option. Because software wallets live on your devices, they are considered”hot” since they are always connected to the internet.
Hackers create many elaborate scams to get you to click on malicious links, where they can then siphon funds out of your software wallet. If you practice good internet hygiene, however, software wallets can be a good option for storing your crypto.
A better option, though, is a hardware wallet. These are physical hard drives, about the size of an old thumb drive. While they do cost money, they provide maximum security for your crypto.