What is Bitcoin?
Bitcoin is a cryptocurrency payment. It is a decentralized digital-only currency that can be exchanged for goods and services as well as be used for online gambling. It is a peer-to-peer technology that enables Bitcoin users with a crypto wallet to make secure and anonymous transactions to each other. These transactions are verified by network nodes through cryptography and recorded in a public distributed ledger known as a blockchain.
Bitcoin was founded in 2009 by Satoshi Nakamoto. That said, unlike fiat money (physical money – cash and coins) and representative money (e.g. checks and credit cards), cryptocurrency like Bitcoin has no central bank or single administrator. It is also not linked to one specific company or organization, such as in the case of Visa, Mastercard, PayPal, Skrill, Paysafecard, etc.
Although it has not be legalized or recognized in some countries as a currency, Bitcoin is available worldwide and can be used by anyone. It is liked for its transaction speed, security and anonymity. Players can use Bitcoin for making deposits and withdrawals at gambling sites using bitcoins (BTC).
Integration and Functionality
Bitcoin can be easily integrated into your iGaming business’ payment system using an API. To integrate Bitcoin, you will require the help of a payment service provider (PSP) that offers a Bitcoin Payment Gateway. Examples of popular PSPs include: BitPay, Coinify, Cryptopay, Coinbase, CoinGate, etc.
That being said, we highly recommend getting in touch with one of the software providers we’ve listed above. The reason is that they understand online gambling industry requirements and can help you conveniently attain a Bitcoin payment system solution suitable for your online or mobile gaming operation.
How to get a business account through Bitcoin
As previously stated, there is no one single company or organization that offers a Bitcoin business account. Therefore, if you would like to accept Bitcoin at your iGaming site, keep the following in mind when opening a Bitcoin merchant account:
- Choose a PSP – You will need to choose a PSP that offers Bitcoin management services.
- Research your options – Each company charges different fees and has different features. Select the one that is the most ideal for your business.
- Add bank account details – To remove transaction restrictions, usually merchants must provide personal information (e.g. copy of passport, address of company, names, etc.) for verification purposes.
- Choose a currency – You will likely need to choose which currency you would like your bitcoins converted to when they are paid into you company bank account.
- Integrate the API with your platform – Follow all instructions provided by the PSP.
How Bitcoin functions as an iGaming payment solution
Bitcoin can be used by players for making deposits and withdrawals. Operators can run Bitcoin-only casinos (cryptocurrency is the exclusive payment method), or they can offer a variety of traditional payments as well as Bitcoin.
To use Bitcoin, players simply need to have a Bitcoin Wallet to deposit BTC to their gambling account and withdraw bitcoins back to their wallet. From there, users can convert their bitcoins into their usual currency (e.g. EUR, GBP, USD, etc.) to send this money back to their bank, or they can choose to keep their bitcoins and continue enjoying real money gaming or purchase goods and services at other sites that accept bitcoins.
Due to it being its own currency and available worldwide, operators can offer Bitcoin to just about any market where online gambling and bitcoin is legal. Learn more about how to start a Bitcoin casino.
Top Casino Operators Using Bitcoin
Benefits and Drawbacks for Players using Bitcoin
- Top Security – Bitcoin is decentralized and blockchain is highly secure.
- Anonymity – Players do not need to provide personal or financial information to make a deposit, keeping their sensitive data confidential.
- Speed – Direct crypto transactions often take less time to process than traditional payments.
- Win bitcoins – Players can win Bitcoins when they gamble, providing another way for them to acquire BTC.
- Not many casinos accept Bitcoin – Bitcoin and other cryptocurrencies are not commonly accepted at gambling sites.
- Bitcoin is volatile – The exchange rate frequently fluctuates and can be extreme, without warning.
Bitcoin is accepted worldwide, but it has not been legalized in all countries. Examples of countries where Bitcoin is legal include:
- United States
- United Kingdom
- El Salvador
Safety and Security
Bitcoin is considered to be one of the most secure forms of payments today. It uses blockchain, a technology that relies on cryptology and secure core concepts. Using cryptology, several volunteers sign hashes that validate transactions on the Bitcoin network. This system ensures strong data security and keeps transactions virtually irreversible.
Bitcoin is public and transparent. All transactions are available to the public, which makes it difficult to cheat or scam the system. This might sound unsafe, but there is no personal information (e.g. passwords, credit card number, a physical address, etc.) provided to the blockchain during bitcoin transactions, so there is no sensitive information to leak.
Bitcoin is also decentralized, with a distributed network of more than 10,000 nodes worldwide that keep track of all transactions occurring on the system. This massive number of nodes guarantees that if something happens to one of the servers or nodes, other nodes can pick up the slack. This makes trying to hack into one of the servers futile as there is nothing there that could be stolen that the other nodes and servers could not stop.
Bitcoin customer support depends on the PSP you choose. As such, it’s important to choose a PSP that can not only answer queries, but that can also offer technical support. Additionally, look for 24/7 customer service availability as well as multiple communication channels, including email, live chat, phone, etc.
Bitcoin Fast Facts
- Type of payment method – Cryptocurrency
- Deposit available – Yes
- Withdrawal available – Yes
- Multiple currencies accepted – Yes
- Easy integration – Yes
- Popular iGaming regions – Worldwide
With its high security, ease of use, and growing popularity, Bitcoin is a payment method that is being considered by more and more online gambling operators. If adding Bitcoin to your payment options is something you would like to pursue, get in touch with TCS today and we can assist you in finding a software provider to help you achieve your goals.