Answer Your Biggest Questions About Betting with Bitcoin
Bitcoin present numerous benefits to those betting on sports, from increased security to improved transaction times. We know that getting started with cryptocurrency can be intimidating, but it’s all about having the right info.
That’s why our team of experts compiled this list of the most common questions and biggest misconceptions related to the “internet of money.”
Reference this helpful FAQ guide when using Bitcoin for deposits and withdrawals at your sportsbook.
Why is my betting site accepting Bitcoin?
The are many compelling reasons for sports betting sites to accept Bitcoin:
- Fees are significantly lower than those for credit card payments and bank transfers
- Those in underdeveloped (or underbanked) regions can still place bets with Bitcoin
- Tech-savvy clientele want a secure, modern way to place their bets
These same advantages apply to online merchants everywhere; hundreds of thousands of online retailers accept Bitcoin, and hundreds more are signing up by the day. It might seem hard to fathom, but we believe that Bitcoin is only in its infancy. It will only continue to grow as merchants and users alike come to realize Bitcoin’s massive benefits.
Why are there transaction fees?
Transaction fees are paid to Bitcoin “miners,” who provide the computing power that solves the complex mathematical problems necessary to confirm a transaction on the blockchain. Miners secure the integrity of the blockchain, and they are collectively responsible for ensuring Bitcoin is a well-oiled machine that responds to users within its network.
The miner’s fee is technically voluntary. But there is nothing forcing a miner to accept a transaction and include it on the blockchain. Without an incentive, your transaction may drift into the recesses of the network, taking weeks to confirm.
Sending a nominal transaction fee ensures that your transaction is successfully verified, or ‘mined,’ and added to the blockchain. It is common practice for the sender to pay the miner’s fee.
You can also counteract processing delays by including a higher transaction fee: the bigger the fee you include, the greater the incentive for miners to add it to the blockchain.
Will my sportsbook cover transaction fees?
Some sportsbooks will absorb this cost for you, meaning that sending Bitcoin to that sportsbook is free of charge.
Sportsbooks entice you to fund your account with Bitcoin because even the largest mining fees are small in comparison to the fees associated with banks, credit card companies, and third-party payment platforms like PayPal or Neteller.
If your sportsbook does not absorb the miner’s fee, rest assured that Bitcoin transaction fees are significantly lower than with any other currency or payment platform.
How much are transaction fees?
Most Bitcoin wallets will automatically add an appropriate mining fee to your transaction.
If this is the case, your wallet will let you review the fee before you officially send off your Bitcoin. You can adjust the fee as you desire, but remember that the amount you send affects the speed of your transaction.
Note that miner’s fees are not proportional to how much Bitcoin you are sending; in fact, the smaller the transaction, the higher the fee may be.
Generally, the recommended miner’s fee is 0.0001 Bitcoin.
Sites like BitCoinFees.21.co offer users live updates on the fees paid to miners. This provides a real-time baseline and average for transaction fees.
Is Bitcoin legal?
Yes, Bitcoin is legal.
Certain nationalities restrict Bitcoin exchanges, like China (and soon Russia), while others restrict the use of foreign currency within their borders, such as Argentina.
Bitcoin is a new technology, and different countries and jurisdictions are integrating Bitcoin into their legal systems and financial regulations at different speeds.
Can my Bitcoin be hacked?
Bitcoin cannot be hacked.
Hackers cannot gain access to, manipulate, or reverse any transaction on the Blockchain; it is simply impossible thanks to the built-in security of Bitcoin.
It is possible for your wallet to be hacked if you do not take the proper security measures. However, if you use a trusted wallet or exchange in addition to always using two-factor authentication, your Bitcoin will be safe from anyone trying to lay their hands on your virtual cash!
What is mBTC?
You might see mBTC listed on your sportsbook. This is simply a metric that makes it easier to deal in Bitcoin.
Bitcoin’s supply is finite (fixed at 21 billion Bitcoins), and Bitcoin is infinitely divisible, so there is a need for metrics that could represent quantities of Bitcoin less than one. A single mBTC is the equivalent of a millibitcoin or one one-thousandth of a Bitcoin.
mBTC = millibitcoin = one one-thousandth of a bitcoin = 0.001BTC
What is uBTC?
This is similar to the unit mBTC, except uBTC represents one microbitcoin, or one one-millionth of a Bitcoin.
uBTC = microbitcoin = one one-millionth of a bitcoin = 0.000001BTC
Will my Bitcoin be converted to USD by my sportsbook?
No, you are not actually placing bets with Bitcoin.
When you make a Bitcoin deposit at your sportsbook, they will instantly convert your Bitcoin into USD. Of course, you are always eligible to convert your winnings in USD back to Bitcoin when you make a withdrawal!
What happens if Bitcoin’s price goes up, or drops after I transfer funds to a gambling site?
You are protected from any swing in Bitcoin’s price and will not be exposed to its volatility after placing a deposit.
Because sportsbooks instantly convert your Bitcoin to USD at the time of your deposit, you are not privy to changes in the market value of Bitcoin.
Technically, the bets you place after depositing with Bitcoin are in USD. The amount you will have to bet is always going to be equal to Bitcoin’s conversion rate to USD at the time of your deposit; regardless if Bitcoin goes up, or goes down, your funds will not be impacted in any way whatsoever. Sportsbooks absorb the risk of a wild drop, but also retain the benefits of a massive upsurge in price.
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