Our first objective in this article will be to answer the question, “What is crypto gambling?” This is where you will get acquainted with online crypto gambling. Aside from covering the basics, we will also address some of the most common questions crypto newcomers ask. Next, we’ll highlight some of the best crypto gambling sites and cover the basics about each of the candidates on our list. Then, it will be up to you to decide whether or not you want to explore and perhaps even take some of these crypto gambling sites for a ride.
This article will also touch base on the legal aspects of online crypto gambling. And although we’ll look at the legal aspects, we’ll devote more attention to the pros and cons of crypto gambling.
You’ll also learn about gambling with various cryptocurrencies, including Bitcoin and Ethereum. Nonetheless, you’ll also have a chance to take your newly obtained knowledge to compare crypto gambling with crypto trading. As you’ll soon learn, there are several things to consider regarding crypto gambling vs. trading. That said, you’ll get a chance to learn why crypto trading is better than gambling, and you’ll also find out how Moralis Money can help you not mistake the former for the latter ever again.
What is Crypto Gambling? Online Crypto Gambling Explained
“Crypto gambling” is an umbrella term for all activities that combine “games of chance” (iGaming) and cryptocurrency. In short, crypto gambling combines conventional gambling with cryptocurrencies, incorporating blockchain technology into the gambling sector. Here, individuals use digital currencies such as Bitcoin, Ethereum, or other alternative coins to participate in diverse gambling activities like casino games, sports betting, lotteries, poker, and beyond.
For example, an online crypto gambling platform could allow players to deposit one or multiple cryptocurrencies to its platform to access its unique games. Some of the best crypto gambling sites could also allow players to connect their Web3 wallets and retain custody of their crypto funds while gambling. Additionally, some crypto gambling platforms may also offer their own native crypto gambling tokens, which can serve various purposes. They can be used for rewards systems, take the role of casino chips, or they can even serve as tickets for special games and events. Essentially, the sky’s the limit regarding platforms deciding how to utilize their native gambling tokens.
Online crypto gambling projects can also take different forms. For example, there are special Telegram bots allowing users to place bets. There are also projects that use online platforms that look and feel very similar to an average traditional online casino or online betting platform.
There are already several traditional online iGaming platforms transitioning to crypto gambling. However, they typically just offer players an option to deposit/withdraw cryptocurrency without deploying the true benefits of blockchain technology.
What is Crypto Gambling? FAQs
“What is crypto gambling?” is just one of the many questions related to crypto gambling that newcomers in the Web3 space ask. To address these questions, we’ve prepared an FAQ section below that we know you’ll benefit from!
How Does Crypto Gambling Work?
The best crypto gambling sites utilize the power of blockchain technology, meaning they incorporate at least some levels of decentralization and increased transparency. Furthermore, these platforms incorporate blockchain technology in several ways to enhance transparency, security, and fairness within the gambling ecosystem.
From a user perspective, crypto gambling works in the way that users deposit their cryptocurrency into a specific platform’s account. From there, they use these funds to play various games of chance. Then, they can withdraw their winnings back into their personal crypto/Web3 wallets.
How Do Crypto Casinos Make Money?
There are various ways crypto casinos and other crypto iGaming platforms make money. However, the most popular methods include collecting transaction fees, affiliate commissions, advertising, and something known as a casino’s “house edge” – a statistical advantage that the casino has over players in a particular gambling game. It represents the percentage of each wager the casino expects to retain as profit over the long term. The higher the house edge, the more the casino is expected to win in the long run.
Is Crypto Gambling Safe?
Is crypto gambling safe? Well, it all depends on the platform that one decides to use. Just like there are scammy sites pretending to be reliable traditional online casinos, there are shady players in the crypto gambling space as well. However, when it comes to reputable platforms – especially the ones that allow users to stay in control of their funds – it can be safe, even safer than traditional online gambling.
Why Do People Gamble with Crypto?
If users choose reputable crypto gambling platforms, they can enjoy several benefits. Some of the most common ones include added security, lower fees than traditional currencies, faster processing speeds, and increased anonymity.
How Big is Crypto Gambling?
According to available numbers for 2022, the crypto gambling industry accounts for $4.6 billion. However, the online crypto gambling phenomenon is in its early stages and is yet to reach mainstream adoption. Some speculative forecasts expect this industry to cross $65 billion by 2027.
Best Crypto Gambling Sites
You already know that crypto gambling sites can come in various forms. And if we were to also focus on sites that are essentially traditional online gambling platforms that allow you to deposit cryptos, there are quite many options to choose from.
According to most lists that are circulating the web, these are currently the best crypto gambling sites:
- Mega Dice
- Lucky Block
- 7bit Casino
Now, if you are looking for online crypto gambling platforms that deploy blockchain tech in more than just allowing cryptocurrency deposits/withdrawals, Rollbit, Bazed, BetSwirl, and WINR Protocol deserve their spot in this section. These projects also have their own crypto tokens that you can actually invest in. Thus, we decided to quickly outline each of these four projects.
Rollbit, a crypto project born in February 2020, has seen significant growth in 2023 after migrating from Solana to Ethereum. The project thrives on innovation and is known for high-leverage crypto trades, casino games, sports betting, and NFT loans.
Rollbit shares 70% of the house’s profits with users. Supporting major cryptos (BTC, ETH, LTC, and SOL) and offering easy deposit methods, it’s a user-friendly platform. The RLB token, introduced in November 2021, is the backbone, given to early adopters via airdrops and now driving demand through lotteries.
As a Web3 casino powered by Ethereum, Bazed Games offers a diverse range of crypto games and prioritizes player experience. Users over the age of 18 can enjoy slots, live games, sports betting, and unique in-house creations. The project shares 60% of its revenue with players and accepts BTC, LTC, ETH, and USDT. Bazed’s roadmap includes expansion and innovative features. The BAZED token, an ERC-20 cryptocurrency, is poised to play a crucial role in revenue sharing – entering the world of DeFi.
BetSwirl, a crypto pioneer, is reshaping GambleFi using advanced blockchain tech. Their site showcases Chainlink’s cutting-edge randomness and automation. It’s more than a gambling dapp; it’s a cross-chain gaming hub and randomness provider, fostering open-source tools for dapp integration. Their ecosystem spans games, sports betting, staking, and more.
BetSwirl v2 widens the project’s reach, particularly on Ethereum, offering improved trade capabilities. The BETS token, their native cryptocurrency, is expanding across multiple blockchains.
WINR Protocol is not a typical crypto gambling site; it is a platform designed to help other projects create Web3 gambling sites. It’s a decentralized on-chain iGaming infrastructure empowering developers with the WINR SDK to access a robust liquidity pool and incentivize players.
Is Online Crypto Gambling Legal?
Just like regulations for traditional iGaming, laws for crypto gambling vary from country to country and state to state. Plus, since the entire crypto industry doesn’t have proper legal guidelines set in place, there are many areas where there’s no clarity yet.
With that said, it is your responsibility to check what laws apply in your location and whether or not you can use crypto gambling sites without breaking any laws. If you are unsure, it’s important to protect yourself by using reliable VPN services, and we recommend you stick to self-custodial platforms. That way, you’ll never have to worry about your funds being stuck in the hands of the platform.
Pros and Cons of Crypto Gambling
Crypto gambling, like any form of gambling, has its own set of pros and cons. It’s important to be aware of these before engaging in such activities. Below, you can find lists of some of the main pros and cons of crypto gambling.
- High Volatility: Cryptocurrencies are known for their price volatility. Your gambling funds can increase or decrease in value rapidly, leading to significant financial losses.
- Lack of Regulation: Many crypto gambling platforms operate in a regulatory gray area, which can make it difficult to resolve disputes or ensure fair play.
- Limited Adoption: Crypto gambling is not as widely accepted as traditional gambling. Finding reputable platforms can be a challenge, and there is a risk of encountering scams or unreliable operators.
- Risk of Addiction: Like any form of gambling, crypto gambling can be addictive. The easy accessibility and potential for large wins can lead to compulsive behavior and financial problems.
- No Consumer Protections: Unlike traditional gambling, where regulatory bodies provide some level of consumer protection, crypto gamblers may have fewer resources to turn to in case of disputes or fraud.
- Tax Implications: The tax treatment of cryptocurrency gambling winnings and losses can be complex and vary by jurisdiction. It’s essential to understand the tax implications in your area.
- Technological Barriers: Some users may find the process of acquiring and using cryptocurrencies to gamble confusing or intimidating, which can be a barrier to entry.
Pros and Benefits
- Anonymity: Cryptocurrencies can provide a level of anonymity that traditional gambling methods can’t. You can place bets without revealing personal information, which some users find appealing.
- Security: Cryptocurrencies use blockchain technology, which is highly secure. Transactions are recorded on a decentralized ledger, making it difficult for hackers to manipulate or access your funds.
- Accessibility: Crypto gambling platforms are often accessible 24/7 from anywhere in the world, making it convenient for users to participate at any time.
- Fast Transactions: Crypto transactions are typically faster than traditional banking methods. Deposits and withdrawals can occur almost instantly, reducing the waiting time for users.
- Global Reach: Crypto gambling platforms can cater to a global audience without the need for currency conversion or dealing with different regulations for each country.
- Provably Fair: Some crypto gambling platforms use blockchain technology to provide provably fair games, ensuring that the outcomes are not rigged or manipulated.
Online Crypto Gambling with Various Cryptocurrencies
There are thousands of cryptocurrencies across multiple blockchains. As such, different crypto gambling sites support different cryptocurrency assets. Sometimes, you need the project’s native token to play; however, many platforms let users gamble using the most popular cryptocurrencies, including $BTC and $ETH.
What is Bitcoin Gambling?
Bitcoin gambling typically refers to gambling platforms where players can use Bitcoin to place bets or play various games of chance. So, any crypto gambling site that allows players to deposit/withdraw Bitcoin ($BTC) falls into that category.
What is Ethereum Gambling?
Just like Bitcoin gambling, Ethereum gambling follows the same principles. However, in this case, the cryptocurrency is not $BTC but $ETH. Furthermore, since Ethereum is also the leading programmable blockchain, “Ethereum gambling” could also refer to ERC-20-based crypto casinos. After all, these types of tokens live on the Ethereum network.
Crypto Gambling vs. Trading – Things to Consider
Is crypto trading “gambling”? Well, the line between crypto gambling and crypto trading is quite blurry. After all, in both cases, you are placing a bet on the expectancy of a specific outcome.
However, with the proper knowledge, skills, and tools in place, the answer to the “Is crypto trading gambling?” question gets a firm and clear “no.”
Unlike gambling, trading is all about applying a certain set of skills to find the edge in interpreting the market, fundamentals, price action, and capitalizing on trends. To do this properly, one needs reliable tools – ones that offer real-time data.
Another important aspect that clarifies the line between crypto gambling and trading is risk management. One of the best books on trading psychology – Market Mind Games by Denise Shull – points out that risk is “measurable uncertainty.” By measuring uncertainty, skilled traders get to ensure their plays always have favorable risk-to-reward ratios. That is how they stay profitable in the long run.
So, these are the aspects to consider in order to ensure that crypto trading doesn’t turn into gambling:
- Obtain the proper knowledge (crypto basics, market reading, FA, TA, etc.).
- Use the right tools (e.g., TradingView, Moralis Money, etc.).
- Build your skills using the knowledge and the best tools (practice trading with “play/fake” assets or small amounts).
When it comes to steps one and two, Moralis Academy and Moralis Money will get you on the right track. As for step three, it’s up to you to take action. You may also want to check out our guide on how to become a successful crypto trader.
Note: You can learn how to get going with Moralis Money below.
Why Crypto Trading is Better Than Gambling
With the right approach, crypto trading allows you to create strategies that give you the edge. And that edge allows you to be profitable.
For instance, crypto markets come in cycles, meaning you can time your swing trades in a way that allows you to ride those cycles. Plus, when it comes to trading, you have many more options – there are literally countless combinations of different timeframes and crypto assets to choose from. And if you also add leverage to the mix, you can really easily find your unique favorite strategy.
As such, we strongly encourage you to set your online crypto gambling plans aside and instead focus on crypto trading. Below, you can find out how to start with the tool that allows you to focus on altcoins – the cryptocurrencies with the largest potential.
Get Started with Moralis Money
Moralis Money is the ultimate on-chain analysis tool that enables you to run predefined or unique Token Explorer strategies to find the best altcoin opportunities at any given time. In case you don’t know, Token Explorer is Moralis Money’s core feature. It uses search metrics to return dynamic lists of altcoins with potential based on real-time, on-chain data.
Anyone can use Token Explorer for free. To access this powerful tool, follow the steps in the animation below:
Once on the Token Explorer page, you can apply a predefined filter:
Or, set in place a unique combo of search metrics:
If you want to increase your chance of making profits with altcoins, you want to be able to find tokens before they pump. So, to ensure you’re not too late, you want to access all of Moralis Money’s lower timeframes (daily, hourly, 30-minute, and ten-minute). To get that advantage, you want to lock in the Moralis Money Starter or Pro plan.
For more details regarding these two popular plans, follow the link in the previous sentence. One main advantage of the Pro plan is that it gives you full access to the Bull Run Ready course.
As a quick sneak peek at what awesome features come with the Pro plan, you can watch the video below:
What is Crypto Gambling? Full Guide to Online Crypto Gambling – Key Takeaways
- What is crypto gambling? In short, it is any sort of iGaming activity that involves the use of cryptocurrencies.
- The best crypto gambling sites are the ones that also deploy the power of blockchain. That way, these platforms can be more transparent and secure and offer verifiable randomness.
- There are several pros and cons to online crypto gambling, so it’s up to users to weigh them and decide what path to take.
- We recommend leaving any form of gambling in the rearview mirror and instead focus on crypto trading.
- With the right knowledge, tools, and skills, trading crypto can be very profitable. In fact, crypto can make you rich if you approach trading/investing with on-chain insights.
- Altcoins represent the best opportunities.
- There’s no better tool to find altcoins with potential than Token Explorer.
It’s totally up to you to decide what you want to do with the information obtained in today’s article. If gambling is really something you want to pursue, you might as well consider the advantages of cryptocurrencies.
However, if we were in your shoes, we’d make sure to master running Token Explorer strategies before the next bull run takes off. After all, during bull markets, the average altcoin tends to increase by 50-70x.
You can run your first Token Explorer strategy using the interactive widget below. It’s your time to learn how to find the next coin to blow up!