Bitcoin At Online Gambling Sites – Step By Step Guide
Welcome to the wonderful world of Bitcoin sports betting. If you’re here now, you don’t likely need any more convincing to begin using the crypto-currency for betting and other forms of online gambling. But, in case you do, feel free to read our “What Is Bitcoin: What is Bitcoin and Why Should Sports Bettors Care?” article, which goes over many of the advantages Bitcoin has to currencies like the dollar when it comes to betting online.
This guide will be useful for not only BTC sportsbooks but all types of sites that accept bitcoins, including online poker rooms and casinos. We’re going to be taking screenshots of the process along the way and providing a step-by-step guide to buying bitcoins, sending them to online sportsbooks, cashing out, and then converting the bitcoins back into the fiat-currency of your choosing.
Our guide is going to be geared towards Americans, due to the nature of sports betting laws in the United States. Online sports betting remains unregulated in U.S. online betting markets.
Best Bitcoin Betting Sites 2018
Alternative To Bitcoin Sports Betting – Litecoin Sports Gambling
Using Bitcoin For Online Gambling
Bitcoin is convenient and cost-effective for anyone looking to send payments anywhere in the world but is particularly valuable for U.S. residents where depositing and withdrawing with traditional currencies can be a lot slower and more expensive. However, the information is this article will work regardless of your jurisdiction. Bitcoins can be purchased in most countries around the world using a variety of different methods, including online exchanges and even face-to-face trades.
Even if you’re not interested in gambling with Bitcoin, this serves as a guide on how to buy and sell bitcoins.
How To Use Bitcoin For Online Gambling
Choosing a wallet and exchange can be overwhelming. Those new to Bitcoin as a currency will find a large number of wallets and exchanges competing for their business. For this article, we’re going to go through the process of signing up and buying bitcoins at Coinbase, a Bitcoin exchange and wallet and signing up for a wallet at BlockChain.info. It is important to note that these sites are just one of the options for choosing an exchange or wallet. We do believe they are among the best options, however. This applies in particular for BlockChain.info which in our opinion is the best means of storing your bitcoins online.
Coinbase Account: Sign up To Buy Bitcoins
Head over to the Coinbase website and sign up for an account. These screenshots are all taken from August 2016. Coinbase may upgrade their system or menus after we post this information, but the process of signing up and buying bitcoins will still be similar.
Opening Account At Coinbase
Sign up requires a name, email address, and password. Passwords for all of your sites should be secure, but you should take special care with the passwords to your exchange and wallet accounts. There are many security features, such as multi-factor authorization, that we will touch on later, but a secure first password is still necessary.
When signing up, it’s important not use a password that you use at other sites. We recommend as random as a password as possible. It should have lowercase and uppercase letters, numbers and other symbols if possible. Bitcoin is money and security is of the utmost importance.
Coinbase will send you a confirmation email that will get you started. From there, you can log in. Right away, Coinbase will prompt you to add to two-factor authentication (2FA). This is something that we recommend you do with all of their Bitcoin exchanges and wallets.
Two Factor Authentification For Extra Security
Enabling 2FA adds an extra layer of security to your account. When signing in, you will be required to enter a pin code from your cell phone to gain access. This helps prevent unauthorized access to your account because anyone trying to get in will have to know both your password and have access to your mobile phone. Coinbase also allows users to add a backup phone number of a friend or relative in case you lose your primary phone.
There is a reset process to go through if you lose your phone, but having a backup phone verified on your account speeds up this process. In addition to log-in preferences, there are other settings under the security tab that offer greater safety for funds. Users can set Coinbase to require 2FA on any amount of Bitcoin sent or over 1.2 BTC.
Best Bitcoin Sportsbooks & Betting Sites
If you haven’t realized it yet – Bitcoin is the future of online wagering. Bitcoin gambling and bitcoin sportsbooks have become so prominent, that they may be a minor reason for the currency’s rise in price. We have several recommendations when it comes to BTC gambling and the best Bitcoin gambling websites. Our top two are listed below and you can check out others in our Sportsbooks Review Hub.
Recommended Online Bitcoin Sportsbooks 2018
- Accepts Bitcoin and Litecoin
- Excellent and timely payouts
- Competitive odds and excellent sportsbook for betting NFL, NBA or NHL.
- Football-specific bonuses offered at the start of each season.
- Large assortment of sports betting markets, including live betting, team and player props.
Why Is Sportsbook.ag The Best?
Its 50% up to $1000 Welcome Bonus is massive and the payout times are fast. Sportsbetting is the top betting site in the industry and easily the most professional. They offer competitive odds in all sports and tons of NFL markets, from propositions to live betting.
- Accepts Bitcoin and Litecoin
- Timely payouts guarantees
- Posts NFL, NBA, and NHL odds earlier than other sportsbooks.
- Takes up to $25,000 on NFL point spreads plus other popular sports bets.
- Large deposit bonus, up to $2,500, and endless reloads.
Why Bet At BetOnline?
New players receiving 50% up to $1000 on their first deposit online as its welcome bonus. BetOnline’s rise to one of the top sportsbooks online has been remarkable. They have a long history in the industry but have truly come on in the past few years.
Buying Bitcoins For Online Sports Betting
Buying bitcoins must be done with a fiat-currency. To buy bitcoins, you must link your bank account to your Coinbase account and verify deposits before the account can be linked. They can also link their debit card that is associated with their bank account to enable instant buys almost immediately.
If you have verified your bank account and debit card, you should have instant buys enable. If that’s not the case, your bitcoins may not be available instantly after purchase, and you may have to wait a few business days for them to hit your account. On this screen, you can type in the number of bitcoins you want to buy in either USD or Bitcoin. Your method of payment is listed below the amount you’re looking to buy. The fees are listed underneath the method of deposit.
Coinbase charges users a 1% when buying bitcoins from a U.S. bank account, but that comes with a $0.15 minimum per purchase. Once you click the “Buy Bitcoin” button, the bitcoins will arrive in your wallet in a matter of minutes if you have instant buys enable.
Bitcoin Wallet – Signing Up Bitcoin Wallet Online
Okay, so you’re halfway there. You have your bitcoins purchased, but before we move any further on Coinbase, we need to create a free wallet account on BlockChain.info.
Bitcoin wallets are available in a number of forms, including software stored on the hard drive of a computer and offline or “cold” wallets. They are also online web-based services that are acceptable from both desktop computers and mobile devices, like BlockChain.info.
Coinbase can also be used as a wallet, but for reasons, we will go into later in this article, we don’t recommend using exchanges as wallets. Once you’re on the main page, click “Wallet” at the top to start the process.
Once there, we can create a free Blockchain wallet. Think of a wallet as an online bank account that you can store your bitcoins. Each wallet, like exchanges, offer different levels of security. BlockChain.info is one of the most secure wallets in the world.
Once you create an account, you will immediately be logged into your BlockChain.info wallet. The first step is going to the security center to verify and further secure your wallet.
Blockchain.info doesn’t require any other sort of verification besides your email. However, as we said with Coinbase, we recommend on taking full advantage of their security measures. This includes your backup security phrase, which users should record in a secure file. The recovery phrase allows you to restore your wallet and access your funds if you forget your password. They also offer 2FA, like Coinbase, through your cell phone.
Bitcoin Transactions – Send and Receive
Okay, once you have secured your Blockchain.info account, head back over to Coinbase or another exchange where you have bought bitcoins. Keep the BlockChain.info wallet open in another window. On the left side of the side at Coinbase, there will be a “Send/Request” button. Click it and you should see this on your screen.
Bitcoins are sent through the blockchain through Bitcoin addresses. A Bitcoin address is an identifier that consists of 26-35 alphanumeric characters and represents a possible destination for bitcoin payment. Bitcoin addresses can be generated automatically through exchanges and online wallets. It’s as simple as the pressing the “new address” button and within seconds a new Bitcoin address will appear.
Sending bitcoins to Bitcoin addresses makes it possible to transfer payment for a service, send money to a friend, or deposit at an online sportsbook. Now, let’s take another look at our wallet at Blockchain.info and send over some bitcoins that we recently bought at Coinbase. Click on the “Transactions” tab on the menu located on the menu and you should see this screen:
The screen will list all of the transaction in the wallet regarding sending and receiving Bitcoins. Okay, so we want to receive the Bitcoins we currently have in our balance at Coinbase. To do this, we need to hit the receive button at the top left, under “My Wallet.”
The address on the left is a bitcoin address that can be used as a destination for bitcoins. The QR-Code is a version of the address that can be scanned using a mobile phone. Both have the same destination for any incoming bitcoins.
Okay, so now it’s time to copy and paste the address from our Blockchain.info wallet into Coinbase and send the bitcoins. Bitcoin addresses are case-sensitive and must be entered with complete accuracy to be sure the bitcoins being sent arrive at the correct Bitcoin address.
Once the bitcoins are sent you will see a confirmation screen:
Okay, so your bitcoins have been sent to your Blockchain.info wallet. Log back in and see if they’re available. In most cases, the bitcoins will be extremely quickly, within a few minutes or even faster.
As you can see, we successfully received the bitcoins into our wallet. Congratulations, you just learned how to send and receive bitcoins. You will see the transaction appear almost immediately your wallet but it won’t entirely clear until miners have confirmed it.
This may take several minutes or up to an hour in some cases. Some merchants may make users wait until the entire block is confirmed before they allow them to use their service. However, most sports betting sites don’t make bettors wait until the full block is confirmed.
Bitcoins At Online Sportsbook – Deposit Procedure
We’re going to deposit at a sportsbook that is currently our top-rated Bitcoin sportsbook by a large margin, Nitrogen Sports. Nitrogen has nearly instant withdrawals which are automatically processed and doesn’t require any confirmations before a user can start betting. Nitrogen automatically creates accounts for each user using cookies. They recommend (and we do too) that bettors add a username and password to keep their account more secure. Like Coinbase and Blockchain.info, they also provide two-factor authentication.
Be sure to keep note of your Nitrogen account details. The sportsbook is anonymous and doesn’t require an email address, but if you misplace your account particulars of an account that is funded, you may not be able to access it again, therefore losing any bitcoins you had in the account.
That will take you to this page:
Okay, so the same process we utilized when moving bitcoins from Coinbase to our Blockchain.info wallet will be used here, except we will be sending bitcoins from our wallet to Nitrogen Sports.
We simply copy the address inside our Nitrogen Sports account and head over to the Blockchain.info wallet. On the main page, we have the option to send bitcoins right next to the receive button. Once we click “Send”, we will be brought to this screen:
As you can see, we entered the address located in out Nitrogen Sports wallet. The bitcoins we have in our BlockChain.info wallet will now be sent to our Nitrogen Sports account.
Once the coins were sent, it didn’t take long for them to be credited inside our Nitrogen Sports account. If you take a look at the time sent, we can see that the bitcoins were available for betting at Nitrogen just a minute after sending them from our wallet on Blockchain.info.
Success! The bitcoins are in our Nitrogen Sports account, and we can begin betting on sports immediately. Before we move onto the process of turning your bitcoins back into U.S. Dollars or another fiat currency, we’re going to touch on the process of sending and receiving bitcoins and the anonymity factor when it comes to exchanges and online gambling.
Bitcoin Isn’t Truly Anonymous: Sending and Receiving BTC
One of our biggest issues with much of the content written on about Bitcoin and online gambling is that many publications profess that “Bitcoins is completely anonymous.” Bitcoin offers far more anonymity than betting online with a fiat currency, but it isn’t truly anonymous. We decided to use Coinbase.com for this article because of how user-friendly they are when it comes to people who are just getting into Bitcoin. But, the San Francisco-based exchange and wallet does track where their users send their bitcoins, at least to some extent.
Coinbase has a long list of prohibited uses for bitcoins purchased, which include internet gambling of all kinds, fraud, intellectual property infringement and other activities. Coinbase probably doesn’t want to devote time to tracking down customers who are using their bitcoins for these purposes, but that’s the best way for them to keep the governmental regulators off their backs with a digital currency that has just come out of its infancy.
Coinbase does suspend users for online gambling or other uses that violate their terms and conditions, but it seems to be rarer than most think and is often the case when users make the mistake of sending their newly purchased bitcoins at Coinbase directly (without sending them to a wallet first) to an online gambling site. That’s why we went through the process of buying coins at Coinbase, sending them to a wallet, and then sending them to the sportsbook. When withdrawing from the sportsbook (or any other gambling site) for that matter with Bitcoin, always send to the wallet first, and then back to your exchange to convert to USD or another fiat currency.
Coinbase isn’t the ideal exchange for gamblers, and we encourage bettors to seek out other alternatives if they happened to get banned for gambling transactions. If you follow our instructions when it comes to moving your bitcoins into and out of betting sites, that is unlikely to happen. If Coinbase happens to ban you for gambling, it’s not that big of a deal. You simply won’t be able to use their services anymore. They won’t confiscate your bitcoins or anything like that. You will just have to transfer them to a different wallet or exchange to convert into fiat currency.
The most important aspect to remember here is that you should be using a different Bitcoin address for every transaction. The BlockChain.info wallet makes this amazingly simple. Once the public Bitcoin address inside your account receives an incoming payment, a new address will be generated automatically. Ultimately, if you use the same address every time you receive funds, it becomes exponentially easier for anyone to track your payment history. Using different addresses for each transaction won’t leave you entirely anonymous, but it will offer a lot more security and anonymity.
Another option is mixing your bitcoins through a mixing service. Bitmixer.io is one of these services. They charge 0.5% fee on the amount mixed, plus 0.0005 for every forward address. These mixing services have a large reserve of bitcoins already in their system. When a user sends their bitcoins, they end up capping it onto the end of their reserved bitcoins. The bitcoins they move to the address specified by their users come from the front of their chain.
Mixing services offer more anonymity and security when it comes to preserving your identity. We don’t consider this a requirement if you’re moving funds around from Bitcoin gambling sites, but it is an extra step that does offer added security. We’re just not sure it’s worth 0.5% fee for sports bettors or online gamblers in general.
Selling (Converting) Bitcoins Back to Fiat Currency
We hope that you’ve made it this far into our article because that probably means you’ve won some money betting bitcoins, and you’re looking to sell and convert some back into fiat currency. Bitcoin has been an outstanding investment since its inception. The price has gone up a lot since then, but there are plenty of reasons to consider investing in the crypto-currency.
With that said, we understand that isn’t for everyone. Bitcoin has become increasingly stable in the past few years, but we can understand why some might not want to hold a currency that is changing in value (even if just slightly) every minute. Converting bitcoins back into fiat currency is done through exchanges like Coinbase, but cannot be done through wallets. There are also other options, such as using localbitcoins.com and selling them individually and/or in-person.
Using an exchange like Coinbase is the most practical way of converting your bitcoins back into cash. You can use the same process we used in the upper parts of this article to send the funds back to an exchange (don’t forget to betting site, to wallet, to exchange/conversion). Coinbase charges the same fees for selling bitcoins into U.S. Dollars as they do for buying them from a U.S. bank account. These fees are around 1% of the total amount sold. Other exchanges have similar rates.
Bitcoin Online Gambling – In Conclusion
We hope that this guide was an excellent start for you in the world of bitcoin sports betting. The market is only a few years old but continues to grow at an exponential rate. Even if you don’t use Coinbase and Blockchain.info, all exchanges and wallets work in the same way. The tutorial should be helpful no matter which wallet or exchange you end up using. Be sure to check back on our main page for more information on bitcoin sports betting.