So you are thinking about gambling through an online casino that uses cryptocurrency, such as bitcoin, rather than cash? How safe are crypto casinos and will you risk losing all of your cryptocurrency after you deposit it into a crypto casino account? The short answer is that these types of casinos are relatively safe as long as you use secure, verified, and trustworthy casinos. If you do your homework before depositing any of your cryptocurrency into a crypto casino’s gambling account, which includes reading this article, then you should feel much more comfortable about how safe your cryptocurrency is with this crypto casino. Do your homework about the casino before making your deposit and you should feel as safe as can be expected using cryptocurrency.
As an initial matter, let’s discuss the threat of an online crypto casino being hacked and a player losing all of the cryptocurrency in his or her gambling account being managed by the crypto casino. This risk is actually less likely than you might expect.
As most people know, in the past holders of cryptocurrency have fallen victim to hacks and threats. For example, in 2016 the bitcoin exchange Bitfinex was hacked and lost $77 million of bitcoin. Then in 2018, the Italy-based exchange Nano was hacked for $187 million of bitcoin. The last notable hack was against well-known bitcoin exchange Binance for $40 million of bitcoin in 2019.
There are certain important takeaways associated with these previous hacks. First, these hacks did not occur in casinos and have not occurred against online casinos. Instead, all of these thefts occurred on cryptocurrency exchanges. Players should realize that due to the multiple layers of encryption and verification that is often required for casinos, online crypto casinos are effectively more secure than crypto exchanges. This security is often even more extensive when the online crypto casino is licensed and regulated by a recognized oversight body, such as the Malta Gaming Authority or UK Gambling Commission. Second, these hacks were largely a result of the exchange’s mismanagement and lack of security. Since 2019, exchanges (and casinos) have invested even more resources to keep their clients and customers secure.
There are a number of steps that a player should take before selecting what crypto casino to link with their Bitcoin wallet. Players would be wise to confirm that the crypto casino that they are considering can offer the following benefits to the player:
After making sure that the crypto casino that a player is considering meets the above recommendations, players should then review the crypto casino on MrCasinova.com to double-check their conclusions.
Along with players feeling safe once his or her crypto is deposited with a crypto casino, players should also be diligent about how to deposit the crypto into the online casino. In short, players should make sure that any transfer of cryptocurrency to an online casino is done securely and in an informed manner. Before depositing their crypto with a crypto casino, there are three ways for a player to store their cryptocurrency in a Bitcoin wallet: offline, online, or hardware.
First, offline wallets are stored on a player’s cell phone app or their desktop, and can therefore only be accessed through that device.
Second, online wallets use cloud storage and can be accessed by the player from any device. Players would be wise to only use private networks when accessing their wallet to take advantage of this convenient wallet opportunity.
Third, hardware wallets require players to store their bitcoin in a separate, physical piece of equipment, like a USB flash drive. Although these are the least convenient, they are likely the most secure option.
Once a player decides what type of Bitcoin wallet to use, the player will then link the wallet to their secure casino gambling account. This direct link between a player’s Bitcoin wallet to their crypto casino gambling account is key in order to remain as secure as possible.
When handled in a responsible manner and after having done the necessary background research, a player should feel more confident that using a crypto casino can be extremely safe and secure. A player should know how they are currently storing their cryptocurrency, ensure that their Bitcoin wallet has a secure link to the crypto casino, and ensure that the crypto casino they have chosen is a reliable, established casino. After checking each of these boxes, players should relax and focus on what matters—winning their casino game!