ESPORTS BETTING WITH BITCOIN GUIDE
Betting with bitcoin is becoming the new normal for many players these days. It is extremely easy to use and very convenient. Once you have your accounts setup it is just as fast and has less fees than using a credit or debit card. There are some things you should know before using bitcoin or any cryptocurrency which we will outline below.
WHAT IS BITCOIN?
Bitcoin is the first successful digital currency and because of this it became the proof of concept of an even larger concept: distributed ledger technology also known as blockchain technology.
Bitcoin exists in a encrypted peer-to-peer (P2P) network, where transactions are recorded on a public distributed ledger which is completely decentralized, with no one authority having the power to control the network or make changes. To make changes to the network, many miners have to come together and agree on them.
For a bitcoin transaction to take place, it must be carried out and confirmed by a set of rules based on the network participants’ consensus.
The network participants, called miners, validate transactions by performing intensive computational work and the proof of that work renders them a reward paid in bitcoins.
In more simple terms, the miners are using vast amounts of computing and processing power as well as electricity to solve complex math. This is what makes the bitcoin network work. For their effort, they are paid in bitcoins.
This is just scratching the surface of bitcoin, if you want to learn more, check out the bitcoin whitepaper.
HOW DO YOU BUY BITCOIN?
To purchase bitcoin, you can do so with services such as Coinbase, Gemini, Bittrex, or Cash App (amongst others, these are just a trusted few). You can link your bank account and debit card, and purchase Bitcoin directly that way.
Alternatively, if you know any trusted friends or family that uses or owns bitcoin, you could also ask to buy some directly from them. You can create a free wallet on services such as Blockchain.com, or even use a wallet that is provided to you in commonly used apps like Cash App.
HOW DO YOU SEND AND RECEIVE BITCOIN?
After you purchase bitcoin, it goes into what is called a ‘wallet‘. Your wallet consists of a unique public address which you give to others to receive payments, as well as a private key which only you should have access to, as anyone with access to the private key can spend the coins.
When you buy bitcoin from one of these services, you can then send them to the bitcoin address the sportsbook instructs you to deposit at.
BETTING IN BTC VS USD
When you deposit with bitcoin, there are two ways the sportsbooks will handle your funds afterwards. The way most sites handle cryptocurrency deposits, like Bovada is once they receive the bitcoin in their wallet the BTC will be converted into USD and your account will be credited in USD so you can place bets in USD format.
However, there are some sportsbooks like Nitrogensports.eu that are 100% bitcoin based book and when you send them bitcoin, it will be credited as so and you will make bets in BTC and satoshi.
Once sent average time from your sportsbook receiving it is generally between 15 minutes and up to 2 hours. Some books credit instantaneously once the transactions receive at least 1 confirmation on the blockchain, while others conduct a manual review. Nevertheless bitcoin makes esports betting extremely easy, efficient and safe.
CASHING OUT YOUR BITCOIN WINNINGS
So you’ve successfully deposited, placed some bets and won some money and now you want to cash out your winnings. Instead of waiting for a check, you can recieve your bitcoins usually within 48 hours from most sites and then sell them and withdraw the proceeds to your bank account.
To cash out with bitcoin, you will want to go to your wallet where you purchased the coins originally, and get your deposit address there. That is where you will withdraw the BTC to. Your bitcoin address will look similar to this (note this is our donation address, do not use this unless your feeling generous):
Once you received your bitcoins you can sell them at market price and withdraw the USD to your bank account. Alternatively you could also elect to hold onto them in hope they continue to gain value and rise in price. Bitcoin often moves very quickly in either direction, it is best to not panic when it comes to cryptocurrency price fluctuations, but if you don’t want to stomach the swings, it’s best to sell them as soon as you get them.