As Bitcoin grows in popularity, the world’s largest cryptocurrency becomes more common across the digital landscape. One place where Bitcoin is starting to take off is on online sportsbooks. The problem is most people barely know what Bitcoin is, let alone how to use Bitcoin to it on an online sportsbook. In this guide, we will explain what is Bitcoin and the advantages of using it for your online sports betting needs.
Why Use Bitcoin For Sports Betting?
People get excited over shiny, new things and the shiny new thing everyone is excited about right now is Bitcoin (although at almost ten years old, it is not that new).
Figuring out what to do with it is a bit more of a challenge. If you are a Canadian who likes to use online sportsbooks, Bitcoin is a great way to fund your account.
There are multiple reasons to make the switch from traditional services such as credit cards to Bitcoin. Some of these reasons include better rewards, enhanced privacy and quicker withdrawals.
- Better Bonuses
To entice new (and sometimes current) customers to use Bitcoin, an online sportsbook may offer a bigger bonus. Some online sportsbooks increase the amount they match on welcome bonuses, lower the rollover requirement or reimburse any fees associated with a Bitcoin transaction.
First-time users are not the only ones seeing the benefits of Bitcoin. Some online sportsbooks are offering Bitcoin reload bonuses. They often match up to 50% of your deposit when using Bitcoin. Depending on the online sportsbook, this could be a recurring bonus or a one-time offer. This type of bonus is great for individuals who are not looking to start their account with Bitcoin but may wish to try out the cryptocurrency in the future.
- Ease of Deposits and Withdraws
Speed, larger limits and no restrictions are just a few ways. Bitcoin beats other transactional methods. As the majority of Canadians use wire transfers and physical cards to conduct their business with an online sportsbook, many are aware of the drawbacks and limitations that come with these methods. Bitcoin works differently on online sportsbooks and has a competitive advantage in many areas over the methods as mentioned earlier.
Unlike Canadian banks, creditors and other intermediaries, Bitcoin will not request or restrict your online transactions. Bitcoin is not subject to your jurisdiction or country's restrictions on international transactions because Bitcoin only exists in the digital marketplace. Third-party transactions do not set off red flags or get denied. Bitcoin is happy to work with online sportsbook and does not reject transactions because they are wary of the source.
It is important to note that this information applies to use of a Bitcoin wallet, not a Bitcoin exchange. As mentioned earlier, exchanges may limit or reject the transaction. Remember to transfer Bitcoins into your wallet after buying them on an exchange.
- Speed of Transactions
If you “feel the need, the need for speed,” Bitcoin is the best option available. No transactional method is as quick as Bitcoin. Depositing into an account rarely exceeds 30 minutes. Withdrawals are even faster. Most Bitcoin deposits appear in your within 15 minutes. In rare cases, Bitcoin transaction can take up to two business days.
Along with faster transaction, online sportsbook also offer shorter windows for a free transaction.
- Higher and Lower Limits
Limits are often higher when using Bitcoin. The standard cap on transactions using credit and debit cards is $1000. Bitcoin limits are much higher, usually around $5000 per transaction. Conversely, some online sportsbooks offer lower limits on how much you can deposit using Bitcoin. If you see a last-second wager and want to bet $10 on it, Bitcoin is the best way to go.
Using state of the art technology (such as blockchain), Bitcoin is exceptionally secure. All transactions are tracked and monitored thoroughly. Bitcoin works diligently to prevent fraud, theft and any type of cyber attack that could compromise the cryptocurrency.
Using Bitcoin does not require the same verification as any other services. Despite the legitimacy of our top-rated online sportsbook, most Canadians prefer not sharing personal information such as banking information over the internet. With Bitcoin, this step is not required. All an online sportsbook need is your Bitcoin address and the private key.
*Please note to prevent fraud and ensure a customer is the minimum age to bet on sports legally, most online sportsbooks require some form of photo identification no matter what transactional service you use.
- Low Fees
While mining fees are typical in Bitcoin transactions, the party sending the Bitcoins only pays them. This makes all withdrawals done through Bitcoin free. Some online sportsbook will reimburse some or your entire mining fee when making a deposit.
Mining fees are not a flat rate. When conducting a Bitcoin transaction, you have the option choose how much the fee will cost. Higher fees result in quicker transactions. Contact your online sportsbook’s customer service department if you need clarification on who pays what fees.
How to use Bitcoin on an Online Sportsbook?
Now that you have seen the advantages to Bitcoin, you may wonder how it works on an online sportsbook. It may be daunting the first time you make a Bitcoin transaction. However, the steps are necessary to help keep Bitcoin safe and secure. Once you get the hang of it though, it will feel like any other online transaction.
- Depositing Bitcoin
First, log into your sportsbook account. Once logged in, select deposit and search through the methods available to select Bitcoin. If this is your first Bitcoin deposit, you will be redirected to a new page to enter your information. Enter your Bitcoin wallet address and private key, and then select the amount you wish to deposit into your account. Click submit to continue.
At this point, you will receive information from the online sportsbook. This information typically includes Bitcoin exchange rates, a Bitcoin address and a scannable QR code. Scannable QR codes act similar to Bitcoin addresses.
To complete the transaction, either enter the Bitcoin Address or scan the QR code into your wallet. Enter the amount of the transaction and select your mining fee. Once this is done, the transaction will send and your funds should appear in your account within a few minutes (although higher and lower mining fees can speed up or delay the process).
As Canadian online sportsbooks operate in Canadian funds, all Bitcoin deposits are converted into Canadian funds. Converting Bitcoin helps protect customers against price volatility and makes wagering much easier. When making a withdrawal, your Canadian funds covert back into Bitcoin.
Bitcoin Betting Tips and Information
There is a lot of information on Bitcoin. We have gone through a good chunk of it, to help Canadians become better acquainted with the cryptocurrency. This information can help you better understand Bitcoin prices, how the market is expanding and things to watch for in the future.
- Historical Price Information
When Bitcoin entered the digital marketplace, the price of a single Bitcoin was very low (around ten cents). It took nearly two years for the price to reach $1.00 per Bitcoin. The same day a Bitcoin hit a dollar in value was the same day it first hit $10.00. From here on, Bitcoin experienced slow but sustainable growth. From February 2011 to April 2013, the cost of a Bitcoin grew from $10.00 to $100. It took another two-plus years to grow to $1000.
At this point, Bitcoin began to show signs of extreme price volatility. After hitting a peak of around $1200 slowly after it first reached $1000 in value, the price crashed, bottoming out around $250 in March of 2015. Growth returned to stable, until May of 2017. Opening around $800 in May of 2017, the price began to skyrocket, hitting $4000 by August. In this timeframe, $1000 swings within a few days were frequent.
In the last quarter of 2017, Bitcoin experienced one of the most massive growths in the history of trading. By December 2017, each Bitcoin neared a value of $20000. The value of a Bitcoin quickly crashed afterwards, falling to $6500 in April 2018. Since then, Bitcoin has stabilized a bit, but daily swings of $500 remain common.
- Other Cryptocurrencies
As Bitcoin grew in popularity, so did the amount of cryptocurrencies available for purchase. Now hundreds of different cryptocurrencies are available for purchase. Most online sportsbooks do not accept other forms of cryptocurrency. Many enter the marketplace looking for investors. Once they hit their initial investment goal, the creators take the money and run.
If you are looking into other cryptocurrencies, make sure they are legitimate. The few other cryptocurrencies accepted by online sportsbook have been vetted and proven reliable. Other new options will take time before most online places (not just sportsbook) accept them as payment.
- Government Regulations
Since Bitcoin is still relatively new and governments are slow to react, there is not much in terms of government regulation surrounding Bitcoin. However, as the value of Bitcoin is exceeding that of many multi-national corporations, more plans are in place to regulate and tax the currency.
If you are a small investor or simply using Bitcoin to fund your online sportsbook account, these changes will have little to no impact on you. However, it is important to follow the news closely, as any change could have a trickling effect on the industry, including the relationship between, online sportsbook, their customers and Bitcoin.
Frequently Asked Questions
If there is one topic garnering a lot of question it is Bitcoin. As cryptocurrency is new to many, Canadians want more information before making the switch to Bitcoin. Here are some answers to commonly asked questions, to help you learn more about the subject.
What is Bitcoin?
Bitcoin does not operate as a standard currency. There is no central bank or country controlling or even influencing the value of Bitcoin. Instead, its value is based on speculation, manipulation and basic supply and demand principles.
Bitcoin does not exist outside the digital space. You cannot have a Bitcoin in your pocket nor can you trade it for most physical goods like automobiles and groceries. Instead, Bitcoin is traded on peer-to-peer servers. These servers do not restrict Bitcoin activity and provide its users with anonymity, which is a benefit to both the user and an online sportsbook accepting the currency.
Bitcoin’s value is dependent on the network. As the cryptocurrency grows, the cost to make and monitor one Bitcoin increases. The price of a Bitcoin is also very volatile. Unlike traditional currencies, stocks or commodities (such as gold and oil), Bitcoin experiences extreme swings in prices (sometimes within a matter of minutes).
Speaking of prices, you do not need tens of thousands of dollars to invest in Bitcoin. Bitcoin’s are dividable. Instead, you can purchase a piece of a Bitcoin. Buying a portion of a Bitcoin allows for regular investors and people to get in on the action.
How To Purchase Bitcoin
Once you have your wallet, you pick a Bitcoin trader. Make sure the trader is reputable and secure. As Bitcoin values and popularity increase, the number of traders has as well. Do some research to find the best option for you. If you are not too sure where to start, Coinbase is a popular and secure option. However, you should not use Coinbase or other trading sites to conduct your Bitcoin transactions. Traders may block certain transactions (such as those with online sportsbooks). Have the money loaded into your wallet, to avoid any problems.
To buy the currency, you will need to load your wallet. Most wallets accept credit/debit cards and direct banking information. Most other methods of payment are restricted or not allowed when buying Bitcoin (due to a history of people defrauding trading sites). Once your money is in your wallet, you can purchase Bitcoin. You should receive your Bitcoin almost instantaneously. Once you have it in your wallet, either you can store it offline for safekeeping, trade it or use it online.
Is Betting with Bitcoin Legal in Canada?
Can I make a Change to a Withdrawal Request?
Can I ask to bet in Bitcoin?
Are there Betting Restrictions on Bitcoin?
What if I enter the Wrong Bitcoin Address?
Are there Disadvantages to Betting with Bitcoin?
The other issue involves Bitcoin deposits going to the wrong source. Banks and credits have ways of recovering misplaced money or fixing incorrect transactions. Mistakes made with Bitcoins are much harder to correct (and sometimes your money is lost forever). Be swift and vigilant when using Bitcoin to minimize these disadvantages.
What Happens if there is a Large Change in Price?
How much Should I Deposit in Bitcoin?
Canadian Sportsbooks Guide
- Lesson 2: How to sign-up for a sportsbook
- Lesson 4: Best sportsbook sign-up bonuses
- Lesson 5: 100% deposit bonuses explained
- Lesson 7: Using Bitcoin at an online sportsbook
- Lesson 8: Safest Bitcoin sportsbooks