As Bitcoin surges in value alongside other coins, it has become clear that cryptocurrency deserves serious attention. Online casinos are some of the businesses contributing to the increasing popularity of blockchain transactions. The industry is proving that virtual currencies are more than just investment opportunities. Over the past few years, crypto gambling has increased in prominence as more players use the payment options for deposits and withdrawals. Nonetheless, blockchain gaming is still a relatively new element of online gambling and many players only know a few basics.
You might have come across blockchain gambling and thought it was something you could try. However, your entertainment adventures are not as fun as you had expected. It might be because you are not approaching crypto gaming as well as you should. Mistakes are common when attempting a novel idea. However, no excuse justifies committing the same errors a few months down the line. So, you should know what you are doing wrong and fix it. Continue reading to learn some of the top pitfalls crypto gamblers fall into and how to avoid them.
Falling for Crypto Scams
One thing you can always count on in any new market is the presence of fraudsters trying to take advantage of misinformed, inexperienced consumers. Cryptocurrency gambling is no exception. As an increasing number of users turn to Bitcoin and altcoins as practical payment alternatives, cybercriminals are eagerly waiting to take advantage. The blockchain network is decentralised, with little to no regulation in some regions. Therefore, it offers enticing chances for malicious actors to exploit whatever vulnerabilities they can find.
The easiest to fall for a crypto scam is through a shady casino. Regulation of cryptocurrency websites is not as strict as regular gambling platforms. Some sites have loose or non-existent KYC and AML policies, leaving room for cybercriminals to act. Although virtual coins provide a high privacy level, they are not entirely untraceable. Therefore, hackers can still track you on online casinos. Whether you are searching for ETH gambling sites or other crypto platforms, ensure they hold licenses from reputable regulators. Even if you are playing from a region that doesn’t regulate digital currencies, avoid using unlicensed casinos.
Sending Funds to Incorrect Addresses
The most common mistake among new cryptocurrency users is losing money through the wrong wallet addresses. You need an address to send and receive digital coins. It’s one of the advantages of gambling with crypto. When depositing and withdrawing at an online casino, you don’t need to provide any personal details. The biggest downside of blockchain transactions is that if you transfer coins to an incorrect address, then it’s gone forever. Crypto payments are irreversible, meaning you can’t get your funds back.
If you have been using fiat payments on gaming websites for a while, then you might find yourself constantly making this mistake. Maybe you input the wrong address during deposits or withdrawals, then wonder why funds don’t reflect in your casino account or Bitcoin wallet. Hence, form a habit of double-checking payment information before that final click. It takes you extra seconds to verify wallet addresses, which is a small price for protecting your funds.
Staking the Wrong Amount
The first few times gambling with digital currency, you may find yourself betting an amount you didn’t intend to. This mistake happens because many gamblers forget that virtual coins don’t appear the same as fiat currency. Crypto trades up to 12 decimal places, as opposed to two in fiat. Inputting bet amounts can even be more confusing when a casino lists values in decimals, or, in Bitcoin’s case, in mBTC. For example, where Ethereum is worth $10,000, a bet of 0.10 would translate to $1,000, not 10 cents. Missing a decimal point could result in huge losses. Thus, you must pay special attention when placing bets to avoid messing up your budget.
Using Unsuitable Coin Wallet
A pitfall you might not even realise you are in is transacting from an unsuitable wallet. Cryptocurrency users require a wallet to send and receive money through a key. The problem is that since the inception of blockchain, the market has developed numerous wallet options. Different products fall under 5 primary categories – online, mobile, desktop, hardware and paper. Each of these caters to varying payment needs. A majority of first-time currency holders stick to online wallets because they are the most convenient. However, convenience doesn’t always equal suitability.
Your gambling habits determine the most appropriate coin wallet for you. Online services work if you are a small-time casual player. Therefore, you don’t keep a significant amount in your wallet. These storage solutions are usually under the control of coin exchanges. Given crypto exchanges are some of the biggest targets for cyberattacks, you can’t be too careful. So, if you are a high roller or own a considerable amount of virtual currency, then cold storage is the most suitable alternative. For a regular mobile gambler, a mobile wallet makes sense because it simplifies access. Take the time to compare crypto wallets and settle on one that aligns with your gaming demands.
Failing to Pay Taxes
A lot of gamblers make this mistake, and not only when gaming with digital coins. Some regions impose taxes on gambling wins, but not many players know this or even take it seriously. The situation is worse in blockchain gaming. Most crypto users believe since the government doesn’t control cryptocurrency, they are free to transact with it as they see fit. The truth, however, is that if governments want to learn about specific crypto transactions, they can. So, not paying the relevant taxes on winnings can land you in a legal mess. Before using Bitcoin or other coins for online gambling, learn about local tax laws.
Cryptocurrency gambling is more than a trend; it’s a legitimate gaming alternative for many players. However, new gamblers might find themselves committing various errors. Learning some of the mistakes to avoid allows you to enjoy rewarding gaming experiences.