With increasing numbers of real money online casino gamers turning to crypto for their online financial transactions, customers have begun to wonder how they can secure their funds when playing real money games  using crypto payments.

Crypto differs from other forms of online banking transactions in that they are decentralized and verified by a peer-to-peer network of computers, a "blockchain", so that you have direct control and ownership of your funds. Transactions involve direct transfers from one digital wallet to the next.

What do you need to know to ensure that your crypto transactions are safe?

About Crypto

Cybercurrency was introduced in 2012 as a method for transferring funds without the involvement of any government or other centralized authority. The digital currency uses cryptography to record transactions and secure the transfers.

When a crypto transaction occurs, it is broadcast to the network. A network of computers ("miners" or "validators") verifies the transaction. Once verified, the transaction is added to the blockchain and is displayed on an open ledger that is completely transparent and can be viewed by anyone.

Cybercurrencies are decentralized and secure. Transactions are irreversible.  Cybercurrency allows for transfers of funds without the need of traditional banking intermediaries.

Advantages and Disadvantages

There are advantages and disadvantages to using crypto for online transactions.

Advantages

  • Cryptocurrencies operate on a decentralized network, meaning there is no central authority like a bank or a government to control or censor transactions. Users enjoy greater autonomy and control over their funds.
  • For international transactions, cryptocurrency fees can be significantly lower than the fees charged by banks, ewallets, evoucher cards and wire transfer services. There are lower processing fees – other online transfer services typically charge a percentage of each transaction.
  • While traditional bank transfers can take several business days to clear, especially across borders, cryptocurrency transactions can be processed and verified more quickly – in some cases, within minutes.
  • Cryptocurrency transactions are tied to a digital wallet address, not to a person's name or identity so users enjoy a higher level of privacy than with traditional payment methods, which are tied to the customer's personal information.
  • Payments are secured using advanced cryptography, and once a transaction is verified and added to the blockchain, it is nearly impossible to alter or fake. This makes cybercurrency transactions among the safest options possible for online banking.

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Disadvantages

  • The value of most cryptocurrencies is volatile and can fluctuate significantly within a short period. This makes cybercurrency a risky form of payment since the value of the currency that's sent or received could change significantly by the time the transaction is complete.
  • While ebanking services like credit card transactions can be reversed through a chargeback, cryptocurrency transactions are irreversible.
  • If you hold a crypto ewallet, you are solely responsible for managing your digital wallet and its private keys. If you lose your private key, you lose access to your funds forever.
  • Some cryptocurrency networks can become congested when there's a high volume of transactions, which can lead to slower transaction times and higher fees.

Safety

Is crypto a safer option for real money gambling? Financial advisors cautiously advise the use of crypto as a safer method of transferring funds to and from the casino, but remind users that, together with those advanced protocols, the burden of responsibility is shifted entirely to the use,r so if you're planning to make deposits and withdrawals with crypto, you must be prepared to keep your funds safe.

Crypto is believed to be a safer ebanking method because it eliminates the third-party risk that exists when you trust both the casino and the payment processor to protect your sensitive financial information. As a decentralized transaction, blockchain transactions are resistant to a single point of failure.

In some ways, using crypto can be riskier than traditional ebanking transactions. There's no safety net – the transactions are irreversible, so if you make a mistake or allow a third party to access your crypto ewallet password, there's no way to recover your funds. If you lose your private key, your funds will be permanently inaccessible. And, as mentioned, the value of crypto coins is volatile and can change quickly – sometimes within minutes. That introduces a financial risk that you don't face with fiat currencies.

Staying Safe with Crypto

Whichever form of ebanking you choose, you need to secure your funds and your private information. It's fairly easy to do that if you're using crypto. Experts' tips for staying safe while using crypto to play casino games include:

  1. Your digital wallet is where your cryptocurrency is stored, and its security is your top priority. It's suggested that you use a "cold wallet", also known as a "hardware wallet", which is understood to be the safest way to store cryptocurrency, especially if you're storing a large amount of money. A cold wallet is a physical device that stores your private keys offline. It is immune to online hacks, malware, and viruses. Hot wallets are connected to the internet and are more convenient for daily transactions, but they are more vulnerable to online threats. Only keep a small amount of cryptocurrency in a hot wallet for spending.
  2. Your private key (also known as a seed phrase or recovery phrase) is the master password to your funds. Anyone who has it has full control of your wallet. Do not take a photo of it, store it in the cloud, save it in a text file on your computer, or send it via email or text. These are the most common ways people lose their crypto. Write it down with a pen and paper and then store it securely with multiple physical copies placed in different, secure locations (e.g., a safe, a safe deposit box).
  3. Stay updated on the latest scams. The irreversible nature of crypto transactions makes them a prime target for scammers. Never share your private key to your crypto wallet or any other private information with anyone, even if you're directed to do so in a text message or email that purportedly comes from a government office, your bank, the post office, etc. If you think that the email/text/phone call might be legitimate, double-check – go to your account directly through the website (don't click on any links – type the website into your browser's address bar) and check to see if there are notices waiting for you in your account.
  4. Use best practices. Enable two-factor authentication on every crypto account that you have, including exchanges.  If possible, use a separate computer or phone that you don't use for anything else to manage your crypto. Never go into your crypto account when you're on a public WiFi network.

If you're new to crypto, start sending and receiving crypto using a small amount of money. You'll be able to learn and practice these security measures without risking a too much capital. Once you're proficient you can move on to larger amounts and enjoy all the benefits of casino gaming with crypto.

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