Cryptocurrencies are decentralized and unregulated, which to some people means unsafe. However, recent statistics from CryptoGamblingNews.com show the industry is now worth more than $150 million, with speculators trading more than $3 million worth of coins daily.
That means plenty of people have confidence in it, but if you still remain skeptical, here are reasons why cryptocurrencies are safe:
- Confidentiality: Some crypto can provide high levels of anonymity, as all you have to do is provide an address where they can send your winnings without disclosing your identity. Even though crypto is traceable, a combination of this and other security features should help secure your identity.
- Multi-factor authentication (MFA): Crypto often comes with MFA, which provides an extra level of security. After keying in the password, the app will require additional proof of identities such as inputting a code sent to your phone, or a fingerprint scan.
- Licensed casinos: before a casino is licensed, they must demonstrate an ability to safeguard your data, including online transactions. If you can confirm the validity of a casino’s license, then it is a safe place to use your cryptocurrency.
How to keep safe when using cryptocurrencies in a casino
Sure, there have been some losses caused by hacking, but that never happened in a casino as most cybercriminals target crypto exchanges. That said, there is a first time for everything so here are some of the ways you can keep your cryptocurrency safe when using a casino.
- Choose the right cryptocurrency wallet
Digital wallets offer some of the most secure ways of storing your cryptocurrency. Choose an e-wallet based on how frequently you transact using crypto. There are different types of digital wallets, including:
- Exchange wallets: are basic online e-wallets therefore are the least secure. Most crypto exchanges offer or require you to open one as they make the exchange process convenient if you are a frequent user.
- Third-party wallets: same as the exchange wallets, the only twist is third parties own it. The security benefit of this is if a cybercriminal hacks your exchange, they won’t get to your crypto. However, that also means if a hacker breaks into your third-party wallet, they will have access to your cryptocurrency.
- Hardware wallet: yes, there are hardware wallets for crypto and since they operate offline, are the most secure. However, it puts a dent to convenience, as you have to connect the wallet to a USB drive before you access the crypto.
- Use a reputable crypto casino
Online safety starts with you, so be sure to conduct due diligence before using cryptocurrency in any casino.
A secure, trustworthy, and reputable casino should have an up-to-date license issued by a recognized oversight and regulatory authority such as the Malta Gaming Authority or the UK Gambling Commission.
In addition, the site should use encryption services with an SSL certificate. If it has a padlock sign or ‘HTTPS’ at the front of the website name, that means it’s safe as they have encrypted your information.
An easy way of confirming a casino’s reputation is to trawl the internet for the casino and customer service reviews on websites such as https://cryptocasinos.lol/.
- Monitor the value of the cryptocurrency
While not necessarily related to losing your funds, cryptocurrency is highly volatile. You might let the crypto lie in your account only to check later and find an unhealthy dent in its value, which might feel like theft.
Cryptocurrency has no regulation, meaning its price is bound to dip and rise at the blink of an eye, schedule frequent withdrawals to prevent such occurrences. Further, once you make a transaction, it is uninsured and irreversible so confirm the address next time before hitting the ‘send’ button.
- Provable fair games
Playing games in casinos offering provably fair games enhances your chances of using your cryptocurrency safely. By utilizing the Bitcoin blockchain, you can verify whether a game is provably fair.
To ensure fairness, the procedure starts before you start playing. The random number generator (RGN) creates two seeds and encrypts them. It will then send you a cryptographic hash version of the same beforehand, which is traceable like ordinary crypto. Once you place your bet and the game is over, you can verify the starting seeds, without the encryption.