All the best-rated online sportsbooks for US gamblers have long accepted Bitcoin, and several sites have recently expanded their banking menus to accept even more cryptocurrencies.
However, there’s always been a slight hurdle when it comes to crypto betting with these operators:
You need to buy some crypto first.
Of course, for many users, that’s not a problem. Bitcoin was launched in 2009, and a huge number of younger players have been “holders” for their entire adult lives.
For them, using crypto coins to make online betting deposits is no different than non-gamblers using credit cards or debit cards to buy a pair of pants on Amazon or a can of Coke at the corner store.
However, for the majority of online gamblers, it can prove a significant headache to acquire cryptocurrency in the first place, even as the benefits of betting with it are blindingly obvious.
Aside from the trepidation that comes with not “trusting” this so-called new money, the biggest roadblock to gambling with cryptocurrency is all the legwork it takes to get started.
And though it’s not that difficult, it can be a big ask to expect someone to eagerly jump at the chance to create yet another online account with all the requisite passwords and custodial hoops that come with it.
Some folks just don’t want to jump.
Additionally, for those who don’t already own any crypto, gambling with it – despite the perks – can be unattractive for the simple reason that it just takes too long to get your hands on the assets themselves.
At most online crypto exchanges like Coinbase, Bittrex, Binance US, etc., the process works like this:
- Sign up with an exchange using your home computer or mobile device.
- Verify your identity by scanning in a state-issued ID or driver’s license.
- Enter in all required personal information, including your social security number, residential address, phone number, and email address.
- Wait for your account to be approved (1-2 hours).
- Link your existing checking or savings account to your online crypto exchange account.
- Move x amount of dollars from your bank to the exchange, transferring it in the form of USD or any supported crypto asset that allows instant purchases.
- Wait for your deposit/purchase to verify and be eligible for off-exchange transfers (5-10 days).
- Deposit your crypto into your online sportsbook of choice.
Given the lead time on this process, it’s already less than ideal for those who need to top off their betting accounts to wager on today’s or tonight’s sporting events.
Yes, there are faster ways to buy crypto for gambling deposits, such as the Zelle-to-BTC process, but this only works for Bitcoin, and it requires verified account creation and setup, too.
All in all, most bettors who don’t already gamble with crypto acknowledge that the option is superior, but when it’s crunch time, they’re going to make standard credit or debit deposits instead.
Now, however, there’s a happy medium:
At all the best sportsbooks operating legally online, you no longer have to deposit with crypto in order to be paid out in crypto!
This is a very recent development, and the ramifications are immense.
Effectively, you can now make a standard deposit like always, but when it’s time to collect, you can choose any cryptocurrency supported by your book to withdraw your winnings.
That said, if you decide to get into cryptocurrency this way, you still need to do one thing, which is download or purchase a crypto wallet compatible with the asset in which you’d like to withdraw.
Software wallets like Atomic, Exodus, Mycelium, and Jaxx are totally free and support most of the cryptocurrencies these sites utilize, and they’re also mobile-friendly.
If you want to use a hardware wallet instead, we recommend the Ledger Nano S or the Trezor One wallet, which cost $60 each.
(You can also get the Ledger Nano X and Trezor Model T, though these cost about $120 and $180 respectively.)
Alternatively, you can open an exchange account and receive your payouts there, though this is the least secure option.
Regardless of which wallet you choose, the only thing you have to be 100% on-the-ball about is your wallet recovery password.
Every crypto wallet will give you a mnemonic password that features 12-15 (or more) individual words.
Write these down in order and keep them in a safe place, because if you lose this password string, you’ll lose your money.
Finally, a word of caution:
Only download crypto software wallets (aka “hot wallets”) from their official developer pages or mobile app store listings. Similarly, only purchase crypto hardware wallets (aka “cold wallets”) from their official manufacturer pages. Never use third parties to download or purchase crypto wallets, as these can be compromised.
As with sports betting, when it comes to crypto investing, you are your own safety net.
But also as with sports betting, the rewards far outweigh the risks!
