Decentralised Transactions and Crypto Casinos: All You Need to Know

We won't exaggerate when we claim that crypto casinos have revolutionised the online gambling industry, offering hundreds of valuable perks to players and casino operators. With better security, speed and convenience, crypto online casinos' decentralised transactions are highly appealing and for good reasons.

In our Crypto Gamba analysis of decentralised transactions, we'll discuss how they affect casino players’ online activities. Whether you are a seasoned player or a complete crypto novice, there are perks to take advantage of.

What Makes Decentralised Transactions Special

Visa, AmEx, Paypal, Interac, Neteller and other traditional casino banking methods have one thing in common: they always have an intermediary. It can be a bank or a payment processor. Comparatively, crypto transactions with BTC or ETH, amongst others, operate on blockchain technology, which makes them decentralised.

This allows two sides or parties to exchange money directly without a bank or a payment processor. The blockchain is a transparent ledger that tracks all transactions. Instead of a bank or a central authority governing it, it is maintained by a network of computers around the world.

Every transaction is grouped into a block, which is verified and added to the chain of previous transactions. Thus, the name “blockchain” was coined. To ensure safety in the process, multiple mechanisms validate the transactions, such as Proof of Work, which Bitcoin uses, and Proof of Stake, which Ethereum uses. The blockchain ledger is public, meaning anyone can verify the transaction without exposing personal information. On the blockchain, you can only see the wallet address and no personal details.

Excluding a middle person or authority from transactions makes them considerably more convenient, but there are other reasons, too.

Speed of Transactions

Traditional banking methods are not often associated with fast payouts. Due to the bank or payment processor involved and multiple checks involved, payouts can take days and sometimes even weeks. For example, PayPal, Neteller, and Skrill can take up to 24 hours, whereas Visa, Mastercard and other credit and debit cards can take up to 5 days. Bank Wire Transfers and eChecks are even slower, with transaction times of up to 7 business days. In a modern era, this is simply unacceptable.

That's where the uninterrupted blockchain becomes highly attractive. Most cryptocurrency cashouts are instant, and the only delays occur when the network is overloaded, which can increase the cashout time to up to one hour. With cryptos, players often can access their winnings in seconds.

Lower Fees

It almost seems counterintuitive that the increased speed of crypto withdrawals doesn't come with additional costs. However, according to averages for all crypto casinos, it is quite true.

Traditional banking methods impose a fee for each withdrawal. For instance, transactions via credit and debit cards come with a fee of up to 3% and an additional fee from most online casinos. Paypal, Neteller, and Skrill have an average withdrawal fee of 2.5%, whereas bank transfers come with a very high fee ranging between $10 and $50. It can increase even higher if the transaction is international.

Compared to traditional banking, crypto transactions have a 0% withdrawal fee at most online casinos. But that doesn't mean that costs are non-existent. Sometimes, if the network is congested, the fees can rise.

The fee for most cryptos is usually around $1, but it can also increase during bull markets or high-demand periods. Still, despite the possibility of fees increasing, cryptocurrencies tend to be more attractive because players can opt to wait for a few hours for a lower fee. In contrast, the fees of traditional banking methods are often fixed.

Global Accessibility

Legal frameworks, such as banking regulations and licensing, are serious obstacles to traditional online casinos. However, with the decentralised blockchain, crypto casinos can offer services without considering country borders. Crypto casinos allow players to access them from anywhere in the world, so players who live in countries whose laws frown upon gambling can bypass these legal obstacles.

Enhanced Security

The digital world has security risks, especially for private information that could be misused for malicious purposes. Cryptocurrencies, and, by extension, crypto casinos, address this issue directly by using modern encryption technology. This argument expands in four ways.

1. First, the mechanisms mentioned above ensure that transactions are validated securely and resistant to hacking.
2. Second, most of our recommended crypto casinos have smart contracts, and there is no human interaction with games, rules or payouts.
3. Third, the blockchain's decentralised nature means no single server, device, or authority can be hacked to obtain personal information maliciously.
4. Fourth, players never share their personal or sensitive financial information with the casino operator when using cryptocurrencies for banking.

Ownership of Funds

The last benefit of decentralised crypto transactions is not to be taken lightly. When you have money deposited in the bank, you technically own the money, but the bank has complete access to your assets. With crypto, you and only you own and have access to your money. Sometimes, for example, when using cold wallets, your wallet is not even connected to the internet until you want it to be. We find that crypto is a wise financial investment for players who have an aversion to financial risk.

Final Thoughts

Cryptocurrency has proven worthy of consideration, offering invaluable benefits to both casual and professional players. Although many players initially took a conservative approach to crypto gambling, current trends are leading to crypto casinos becoming the preferred option due to the benefits of decentralised transactions.