How to bet with crypto: Everything you need to know to start betting with cryptocurrency
By Simon Head
Crypto betting is a growing industry, with more online casinos and betting sites offering bettors the chance to gamble using cryptocurrency instead of traditional ‘fiat’ money. Here is our no-frills guide on how to bet with crypto.
What is crypto?
Crypto is short for cryptocurrency, which is a digital or virtual currency that has been encrypted to ensure secure transactions. Cryptocurrencies are decentralised, which means they aren’t tied to a specific government.
Transactions are made digitally and are stored on a public online ledger, called the 'blockchain', which records all transactions made by cryptocurrency owners. There are different cryptocurrencies currently in use, with the longest established and most well-known being Bitcoin, which has been in use since 2009.
Different cryptocurrencies are bought and traded by speculative investors in order to earn profit, but crypto can also be used simply as an alternative to regular currency, which is known as ‘fiat’ currency.
How to choose the right cryptocurrency
There are various different cryptocurrencies available on the market. Choosing the right one is a personal preference, but in general it’s safest to go with a well-established crypto.
While those looking to invest and trade cryptocurrencies may look to take advantage of market movements and the fluctuation of crypto values, for gamblers, the safest move is to select a well-supported, stable crypto that can be relied upon to hold its value.
Bitcoin is currently the most popular cryptocurrency used for gambling, with a report by SOFTSWISS stating that Bitcoin (BTC) accounted for 73.2% of all crypto gambling transactions in 2023. The remainder of the market was spread between other noted cryptocurrencies such as: Ethereum (ETH), Litecoin (LTC), Tether (USDT) and Dogecoin (DOGE). If you already use a specific crypto coin, check out the best crypto gambling sites to see if they support your chosen coin.
Pros and cons of crypto gambling
The nature of crypto offers a number of advantages and disadvantages for gamblers. They include:
Pros
Privacy and security
Many crypto casinos do not require players to provide personal ID or verification, as their account is tied directly to their crypto wallet. It means that players who value their privacy may find crypto casinos particularly appealing.
Crypto funds are potentially even more secure than traditional fiat funds, due to the added encryption of the blockchain platform cryptocurrencies run on. That, along with casinos’ and betting sites’ own account encryption technologies, should mean that your funds are even more protected than a bettor using regular fiat currency.
Speed and simplicity of transactions
A regular complaint with fiat currency betting sites and casinos can be the time it takes to withdraw your winnings.
For players using bank cards, that can sometimes take a number of days. However, with crypto casinos and betting sites, that process tends to be much faster and more seamless; with funds transferred within hours, rather than days.
Winnings can grow your crypto holdings for free
Usually, crypto holders who want to increase their funds need to either buy more currency, or look to increase it by trading. In both situations, an exchange is usually needed, which often charges commission on these transactions and trades.
However, winnings from online betting can be paid directly into customers’ crypto wallets, meaning that crypto players have the potential to grow their holding without having to incur transactional or traders’ fees.
Games are provably fair
Many gambling sites that offer crypto betting offer 'provably fair gaming'. This facility, which is made possible by crypto’s blockchain platform, allows users to check the fairness of game outcomes. It helps give crypto betting sites more transparency and helps foster trust between a betting site and its players.
Cons
Lack of regulation
One of crypto’s big benefits can also be one of its biggest drawbacks. The open-market nature of crypto allows plenty of accessibility, but the relative lack of rules and regulations regarding crypto gambling and their operators mean that extra care needs to be taken over the selection of your preferred casino or betting site.
It means that uninformed players could potentially lose their funds to an unscrupulous unlicensed operator, with no regulatory body in place to assist in retrieving the loss. With that in mind, sticking with established names in the betting and gaming space - such as those recommended by FIRST - is advised when betting with crypto to ensure you’re playing with a trusted operator.
Lack of choice
The crypto gambling market is a new and emerging market in the world of betting and gaming and as such, the number of games and sites that offer crypto play is relatively small compared to the online gambling market as a whole. It means that players looking for variety and a wide range of choice may find their options limited if they opt to play using crypto.
However, as crypto betting continues to grow in popularity, so will the breadth of sites and games that are available for crypto play, so this downside is likely to diminish over the coming years, as interest in crypto gambling continues to rise.
Volatility
Cryptocurrencies constantly fluctuate in value, meaning that it can be difficult to quantify risk and reward over a period of time. Large winnings can be significantly diminished (or increased) by a big market move and that volatility might not be to everyone’s preference. In effect, you could see it as gambling twice – once on the betting site and again by playing with a constantly fluctuating currency.
Crypto casinos
Sometimes known as Bitcoin casinos due to the dominant cryptocurrency used, crypto casinos are run very similarly to regular online casinos, with the main difference being the way transactions are processed with cryptocurrency, rather than fiat currency. The payment system processes transactions using blockchain technology, rather than traditional banking processes.
Sports betting with crypto
Crypto sports betting is a growing industry, with a number of dedicated betting sites for crypto bettors now on the market, while other established brands in the sports betting space are beginning to offer betting on sports using crypto.
Learning how to bet on sports with crypto is no different to betting on sports with fiat money. Betting on sports with crypto works in the same way as betting with fiat currency. The only difference is in the account management side, with your betting account connected with your crypto wallet, rather than a bank or credit card.
How to set up a crypto betting account
Once you have chosen the online casino or sports betting site you want to use (and checked that it accepts crypto as a payment/withdrawal method) the next step is to set up an account.
Set up your crypto wallet
To start with, you will need a crypto wallet and funds in the form of your chosen crypto coins. You will need to ensure that your wallet has funds in it in order to set up an account with a betting site or casino.
Create a betting account
Create an account by filling in the relevant online form. Different sites will ask for different levels of information, with some that offer multiple payment methods still requiring some level of personal ID/information.
Deposit funds
Deposit funds by going to the relevant area on the sports betting/casino site and select the amount you wish to deposit into your betting account. Be sure to check that the blockchain address you are sending funds to is correct, as blockchain transfers often cannot be stopped/revoked once sent.
Once you have an account set up, and have funds deposited, you are ready to start betting with crypto.
How to withdraw your winnings in crypto
Crypto casinos and betting websites tend to offer one of two different withdrawal methods: via either crypto or traditional fiat currency. If you want to withdraw your funds as crypto, the process is very straightforward:
Verify your account
This may require confirmation of your crypto wallet ID or the submission of ID documentation to comply with a casino’s Know Your Customer (KYC) regulations. It’s possible you may have done this already during your account registration process.
Check the withdrawal limits
All gambling sites have minimum and maximum withdrawal limits and these can be found in your chosen site’s terms and conditions. Make sure the amount you plan to withdraw falls within those limits before requesting the transaction.
Log into your account and go to your account dashboard or banking section. From there you should be able to get to the withdrawal page, where step-by-step instructions should guide you through the process of requesting a withdrawal for your chosen amount.
Choose to withdraw in crypto or convert to fiat currency
Finally, you will need to choose how you would like to receive your withdrawn funds. This can be to your crypto wallet, or you can ask that the site converts your winnings into fiat money to be withdrawn to a bank in fiat currency, via a card or bank transfer. In that situation, the site’s exchange rates will apply, which you will find in their terms and conditions.
Final checks
If you are withdrawing to your crypto wallet, ensure that the withdrawal amount and destination address are both correct before clicking on the submit/confirm button, as errors cannot always be rectified.
Betting with crypto vs betting with ‘fiat’ money
The actual process of how to bet with crypto is largely the same as the experience of betting with fiat money. The differences come in a few areas:
Different currency
The obvious difference is the currency used. Crypto betting uses cryptocurrencies (often Bitcoin), while traditional betting uses traditional ‘fiat’ currency.
Different providers
While traditional casinos and betting sites are starting to offer crypto as a currency option, there is also an emerging market for crypto-specific casinos and betting sites. You can see the best crypto bookmakers and the best crypto casinos right here at FIRST. The range of choice for crypto bettors isn’t as wide as for traditional fiat betting, but the market for crypto is growing.
Different processes
The nature of crypto means the process of using it is different to the standard bank-driven procedures used when playing with fiat currency. Crypto transactions are typically faster and are often cheaper, especially for international payments/transactions.
Different levels of regulation
While traditional betting sites are heavily regulated by governments across the world, crypto remains far less regulated. Some countries/jurisdictions have regulations in place that cover cryptocurrencies, but others do not, leaving potential loopholes for unscrupulous operators to do business.
FAQs
Can you bet with crypto?
Yes. You can bet with crypto with a number of online casinos and sports betting sites that operate around the world. Visit our best crypto bookmakers and best crypto casino pages to find a reputable brand that accepts your chosen crypto coin before opening an account.
Is crypto gambling tax free in the UK?
Yes. Per the HMRC website, there is no tax on winnings from gambling in the UK and this includes crypto gambling.
Is crypto gambling bad?
No. Crypto gambling is, in essence, exactly the same as gambling with traditional currency. But it is worth remembering that gambling can be addictive and it is sensible to have measures in place to ensure that gambling does not turn from a fun activity to a dangerous addiction. All reputable gambling websites offer responsible gambling tools to help you stay safe and in control while gambling.
Can HMRC track crypto?
Yes and no. HMRC cannot automatically track crypto outright, but it has requested UK taxpayer information from key crypto exchanges and wallets in the UK. It is not clear whether all exchanges have complied with these requests, but it is safest to assume that if you are a UK taxpayer and use a major crypto exchange or wallet platform, your details may well have been passed to HMRC.
Is winning a bet tax free?
Yes. All winnings from bets in the UK are tax free, whether using crypto or fiat currency.