Using Bitcoin For Online Gambling
Learning how to use Bitcoin for online gambling might look like a complicated process. However, BTC gambling is easier than most people may think, and it has many advantages compared to using more traditional payment methods.
The great thing about this guide is that our steps apply to all types of gambling sites, including sportsbooks and casinos. They are also the same if you want to use a different cryptocurrency.
Let’s go through the full process of buying the crypto, sending it to a wallet, depositing at an online sportsbook or casino, and then withdrawing your gains in fiat currency.
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How To Buy Bitcoins For Gambling
Step #1 – Sign Up For A Coinbase Account
Head over to the Coinbase website and sign up for an account. Coinbase may have changed its system or menus after we posted this information, but the process of signing up and buying won’t change much.
Sign-up requires a name, email address, and password.
Take special care with the passwords to your exchange and wallet accounts. It’s important not to use a password that you use at other sites.
Bitcoin is money and vulnerable to hacks. Security is of the utmost importance. Once you complete this step, Coinbase will send you a confirmation email that will get you started. From there, you can log in.
Keep in mind that Coinbase is just one of many options available to buy BTC. You can use any other exchange you consider safe and legit.
Step #2 – Two Factor Authentication For Extra Security
Right away, Coinbase will prompt you to add two-factor authentication (2FA). This is something that we recommend you do with any Bitcoin exchange and wallet. 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 need access to both your password and mobile phone.
Coinbase also allows you to add a backup phone number in case you lose your primary phone. There is a reset process to go through if that happens, and having a verified backup phone on your account will make things easier.
Step #3 – Linking Your Bank Account With Coinbase
To buy Bitcoins you need to use fiat (regular) currency. In order to buy, you must link your bank account to your Coinbase account.
You can also link a debit card that is associated with your bank account to enable instant buys faster.
There are several steps of KYC and identity verification involved. After verifying your bank account and debit card, you should have instant buys enabled.
If that’s not the case, your bitcoin may not be available instantly after purchase. You may have to wait a few business days for them to hit your account.
On this screen, you can type in the amount 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.
Step #4 – Buying Bitcoins For Online Gambling
Once you click the “Buy Bitcoin” button, they will appear in your wallet in a matter of minutes if you have instant buys enabled.
Instant buys can ONLY be done with a credit or debit card, not just a bank account.
When the transaction is completed and the currency is in your account, you are just a few short steps from using BTC for online gambling.
Keep in mind that Coinbase charges users a 1% fee when buying bitcoins from a US bank account, but that comes with a $0.15 minimum per purchase.
Signing Up For The Best Bitcoin Wallet To Gamble
A wallet is the equivalent of an online bank account to store your Bitcoins and other cryptos.
We consider BlockChain to be the best Bitcoin wallet for online gambling. However, it is important to note that it is just one of many options available.
Coinbase can also be used as a wallet, but for reasons we will cover later in this article, we don’t recommend using exchanges as wallets.
Step #1 -Sign Up For BlockChain Wallet
Go to the BlockChain website. They offer online web-based services that are acceptable from both desktop computers and mobile devices.
Once you’re on the page, click on “Sing Up” at the top right corner to start the account creation process.
Fill in the blanks with your information and click on “Create Wallet”.
Step #2 – Verify and Secure Your Wallet
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 taking full advantage of their security measures.
This includes your backup security phrase, which users should record in a secure file. They also offer 2FA through your cell phone.
Transferring Bitcoin To Your Gambling Wallet
Bitcoin is sent through the blockchain through specific addresses. A Bitcoin address is an identifier that consists of 26-35 alphanumeric characters and represents a possible destination for payment.
Sending Bitcoins to specific addresses makes it possible to transfer payment for a service, send money to a friend, or deposit at an online sportsbook or casino.
Step #1 – Getting Your Wallet’s Address
Head to your wallet at Blockchain.info and click on the “Transactions” tab on the menu.
We want to receive any BTC we currently have in our balance at Coinbase. To do this, we need to hit the Receive button at the top left, right under “My Wallet”. You’ll see something like this:
The long combination of numbers and letters is your destination Bitcoin address.
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.
Step #2 – Sending BTC To Your Wallet
Okay, once you have your wallet’s receiving address, head over to Coinbase or the crypto exchange where you bought Bitcoins. Keep the BlockChain.info wallet open in another window.
In Coinbase, find the “Send/Request” button and click on it. Now you can copy and paste your wallet’s address and input the amount of BTC to transfer.
Double check all the info and once you are sure everything is correct hit the “Send Funds” button.
Don’t worry. Coinbase will give you another opportunity to check all the information, including the amount and the destination address.
Important: Addresses are case-sensitive and must be entered with complete accuracy to be sure they arrive at the correct destination.
Step #3 – Confirming Bitcoins In Your Wallet
Your Bitcoins have been sent to your Blockchain.info wallet. Log back in and see if they’re available.
In most cases, the transaction will be extremely quick, you should receive the BTC within a few minutes, or even faster.
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Bitcoin Deposits At Sportsbooks Or Casinos
We’re going to deposit Bitcoin at an online sportsbook. This process is the same for any betting site or real money online casino.
Step #1 – Login To Your Sportsbook/Casino Account
At this point, you must know which site you want to use to bet or gamble. If not, don’t worry, check our review of the best online sportsbooks to make the right choice.
Like Coinbase and Blockchain.com, gambling sites also provide two-factor authentication and other security measures. Be sure to keep your account details safe.
Step #2 – Send Bitcoins To The Gambling Site
The same process for moving Bitcoins from Coinbase to our Blockchain.com wallet will be used here.
Go to your betting site’s cashier and select BTC as the deposit method. Input how much you want to deposit in USD and copy the destination address they provide.
In the image we are trying to send $200 worth of BTC to an online sportsbook.
Head over to your wallet and send the Bitcoins to the gambling site’s address. The crypto deposit should be completed in a matter of minutes.
Step #3 – Confirming Bitcoin In Your Sportsbook Wallet
Success! The amount in USD should now appear on your sportsbook account. Now you can start betting on your favorite sports.
Notice that you don’t really deposit BTC in a sportsbook, but the equivalent in USD based on a dynamic exchange rate.
Selling (Converting) Bitcoins Back To Fiat Currency
Making it this far into our guide means you’ve won some money betting with Bitcoins, and you’re looking to sell and convert them back into fiat currency.
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 P2P trading that we won’t cover here.
The first thing you need to do is cash out your winnings from the sportsbook or online casino back to your wallet and then to your Coinbase account.
Using an exchange like Coinbase is the most practical way of converting your BTC back into cash. You can use the same process we used previously to send the funds back to a crypto exchange.
Coinbase charges the same fees for selling bitcoins into US Dollars as they do for buying them from a US bank account. These fees are around 1% of the total amount sold. Other exchanges have similar rates.
Using Coinbase For Gambling
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.
However, they are probably not devoting time to tracking down customers who are using their Bitcoins for these purposes.
Having a disclaimer might just be the best way for them to keep the governmental regulators off their backs with a digital currency that could still be considered a novelty.
Coinbase Online Gambling Policy
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.
Bans often happen when users make the mistake of sending their newly purchased Bitcoins at Coinbase directly to an online betting site (without sending them to a wallet first).
That’s why we went through the process of buying BTC at Coinbase, sending them to a wallet, and then sending them to the sportsbook or online casino.
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 happen to get banned for gambling transactions.
What If Coinbase Bans You For Gambling?
If you follow our instructions when it comes to moving your Bitcoins in and out of betting sites, a ban is unlikely to happen. But, 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. There are plenty of other options.
The most important aspect to remember here is that you should be using a different Bitcoin address for every transaction. The BlockChain.com wallet makes this amazingly simple.