Online gaming enthusiasts now have more payment options with cryptocurrencies like Bitcoin. They’re not only anonymous and convenient, but they also offer security with their peer-to-peer decentralized network and public ledger called the blockchain. Find out everything cryptocurrencies have to offer players like you with these cryptocurrency basics.
What cryptocurrency is in simple terms
Cryptocurrency or crypto is a form of digital payment that can be exchanged for goods and services. Transactions using crypto can only be done online since it only exists in digital form.
Users usually deposit or exchange cryptos with other users using their device without the services of a bank. You can also send any amount of money from your digital wallet to anyone, anywhere in the world as easily as sending an email.
Bitcoin milestones
In 2008, an anonymous person using the pseudonym Satoshi Nakamoto posted on a cryptography mailing list, saying that he’s been working on an electronic cash system that has fully peer-to-peer transactions.
The post contained a link to a white paper in which Satoshi proposed a new type of payment system on the internet. It described the protocol for peer-to-peer networking, proof-of-work and public key cryptography.
Satoshi was able to devise a decentralized way to exchange digital money and named it ‘bitcoin’. The first exchange rate for Bitcoin was published with the value of 1,209 BTC to $1 in October 2009.
The first Bitcoin transaction
During its early years, Bitcoins were cheap and were only worth a fraction of a cent. The first Bitcoin transaction was made in the spring of 2010 when a Florida man named Laszlo offered 10,000 BTC to anyone who would buy him pizza.
A man in London accepted and placed a long-distance phone call to order him two boxes of pizza from Papa John’s.
Sending and receiving Bitcoins
When you send someone Bitcoins, the transaction is shared with the entire network that verifies it and then recorded in a public ledger called the blockchain.
The blockchain contains a record of every Bitcoin transaction that has occurred since the system began. It is shared and maintained by the network so everyone keeps the books on all transactions.
Bitcoin is a peer-to-peer system where there is no central authority that regulates it. Instead, Bitcoins are issued to miners as incentives for processing transactions in the network’s blockchain; this is also known as Bitcoin mining.
Opening a crypto account
Now that you know your Bitcoin basics, the next thing to do is to open a crypto account! There are more than 4,000 cryptocurrencies to choose from nowadays and online transactions have come a long way since the first payment for two boxes of pizza.
You can use cryptos for quick payments without bank charges. You can also invest in different types of cryptocurrencies and trade them at crypto exchanges online.
To transact with cryptos for payments or trade, you need a digital account called a crypto wallet. There are many different types of crypto wallets, but the most popular are hosted wallets, non-custodial wallets and hardware wallets.
Hosted wallets
A hosted wallet is a digital account hosted by a crypto provider which allows you to store, send and receive cryptos. It is the most popular and easiest way to set up a crypto wallet. You usually use an app from the provider similar to how you use an online banking app.
If you forget your password, you won’t lose your crypto if it’s a hosted wallet because it’s secured by the provider.
How to set up a hosted wallet
- Choose a platform you trust
- You should consider its security and ease of use
- Check if properly licensed
- Transfer crypto to your wallet.
Non-custodial wallets
In a non-custodial wallet, you are in complete control of your crypto because you won’t rely on a crypto provider to keep your crypto safe. You will also be responsible for your crypto wallet’s security. If you forget your password or if someone accesses your private key, there is no other way to recover your account.
How to set up a non-custodial wallet
- Download a wallet app
- Create your account
- Be sure to write down your private key which is usually a random 12-word phrase
- Transfer crypto to your wallet.
Hardware wallets
A hardware wallet is a physical device that is usually a flash drive. It stores the private keys to your crypto offline, keeping your funds safe from any online threats.
How to set up a hardware wallet
- Buy the wallet device like Ledger and Trezor
- Download and install the app
- Transfer crypto to your wallet.
Online casino gaming and Bitcoin
Online casinos are one of the early supporters of popular cryptos like Bitcoin. They offer greater convenience in online payments than online banking, debit and credit cards. Some of the benefits of Bitcoin payment include:
Increased security
You don’t have to worry about account safety because Bitcoin transactions are recorded in public ledgers and are readily available if you want to check the details.
The fastest transaction time
Some banks take time to transfer your funds because of their security steps. Other traditional online fund transfers even take days to complete. With Bitcoins, you only need to wait a few seconds to minutes to complete your transactions.
The lowest transaction charge
When you withdraw your winnings in fiat, there are bigger transaction fees that will be cut by your bank for service fees and taxes. Bitcoin transactions, on the other hand, are charged with low fees. That’s why more and more players prefer to play using Bitcoins.
It’s easy to open a Bitcoin wallet and play at online casinos. Casino Days has secure payment methods for most types of cryptocurrencies like Bitcoin, Litecoin, Ethereum and Ripple.
You won’t have to go through the hassle of exchanging your cryptocurrency for other currencies when you transfer funds. All you have to do is open an account and deposit to play!