Cryptocurrencies or Virtual Wallets for Gambling Enthusiasts: Pros and Cons

The gambling industry had a compound annual growth rate of 7.4% in 2023, which saw an increase in the market size from $540.27 billion to $580.36 billion. This surge in the industry is accompanied by technological advancements, as several online casinos keep up with the latest trends to improve punters' experience. Since 2011, some of these advancements include cryptocurrencies and digital wallets. Here is a detailed comparison of these payment methods.

CryptocurrenciesVs. Virtual Wallets

Cryptocurrencies are stored in crypto wallets. These wallets hold a limited variation of digital currency that consists mainly of cryptocurrencies. Virtual wallets hold fiat currencies. Top casinos integrate these two methods in their banking. For instance, Lemon casino logowanie offers various payment methods, and punters can wager on several games, including:

Several online platforms like crypto casinos make it possible for their customers to pay using cryptocurrency. Below is a table on the differences between crypto and virtual wallets.

Features
Crypto Wallets
Virtual Wallets
Function
Stores cryptocurrency.
Store digital duplicates of payment IDs and cards.
Assets
Cryptocurrencies.
Traditional fiat currencies.
Transaction and payment types
Decentralized and unregulated.
Centralized and regulated.
Security
Cryptographic protocols such as private keys.
Encryption and other security measures like face ID.
Privacy
It allows anonymous transactions.
Requires personal details and KYC verification.
Payment Method
Connected directly to the blockchain.
Connected to credit/ debit cards.

Advantages of Cryptocurrencies in Gambling

No Third-Party Interference

Unlike digital wallets and traditional banks, crypto payment methods at online casinos involve no Interference from third parties. For instance, if a bank blocks your card, your transactions with your digital wallet will default.

Investment Opportunities

Besides providing anonymity, transacting in cryptocurrency provides a huge investment opportunity. In the beginning of 2017 the price of Bitcoin was $1,100 and as of now it capped at $51,000. That is a 5,000% increase in less than a decade! Many punters take advantage of this opportunity, which gives them extra earnings and confidence.

Provably Fair Gaming

This feature guarantees the fairness and transparency of gambling in an online casino. For instance, you can verify the integrity of each of your wagers, including the objectivity of the results with cryptographic approaches. Only crypto casinos possess this feature.

Disadvantages Of Cryptocurrencies in Gambling

Below are the expected cons of using cryptocurrencies in an online casino.

Volatility

While cryptocurrencies present investment opportunities, they have risks because their prices fluctuate. For example, last year, the price of bitcoin dropped by almost 22%. This fall could lead to losses for those gamblers who wagered with cryptocurrencies.

Impact on Gambling Winnings

The risks, as well as other hassle that accompanies crypto, cause distractions to punter. These distractions prevent the punter from focusing on their strategy, which can lead to loss or dissatisfaction with the experience. Price fluctuations also have an impact on the gambling power of the punter. During the drop of the prices, the punter will have low gambling power.

Untraceable Transactions

Over the years, people have associated Bitcoin transactions with illegal activities such as fraud and money laundering because of its anonymity. This factor also affects gamblers who use cryptocurrency, as hackers and other scammers escape with funds leaving no trail.

Advantages of Virtual Wallets

Here are the pros of using virtual wallets with online casinos.

Trustworthiness

Unlike cryptocurrencies, virtual wallets are regulated, as punters must verify their details and complete KYC before using their accounts in any online casino. This function prevents punters from scammers, especially with fraudulent behaviors becoming a trend in recent times.

Stable Currency and Convenience

The currencies in virtual wallets are fiat currencies, which means they have stability and little or no price fluctuations. The fluctuations depend on conversion rates. This feature also leads to low transaction costs with digital wallets. Digital wallets like Apple Pay and Google Pay give you convenience when investing in an online platform.

Disadvantages of Virtual Wallets

Below are some shortcomings of virtual wallets that gamers should be aware of.

Restricted Access

One drawback of virtual wallets in the gambling industry is that some online casinos have yet to leverage the technology. This feature is common with American casinos because they are highly regulated, so virtual wallet platforms tend to avoid any discrepancies.

Device Dependent

Another drawback is that since virtual wallets are digital, they require a device with an internet connection to operate. The issue arises when something happens to the owner's phone. For instance, the battery died or it was stolen. It can lead to loss and prevent punters from enjoying their experience.

Conclusion

Cryptocurrencies and virtual wallets are various forms of digital payment methods. They have their ups and downs, which we've discussed above. You can make a choice now with your online casino and have a wonderful gaming experience.