For some online bettors, using bitcoin to bet on sports is standard practice. Others don’t even know what bitcoin is or how it works for sports betting. So, in these Bitcoin betting FAQs, we cover the main issues that can come up when you bet on sports with bitcoin.
Is Bitcoin Use Legal or Illegal?
Bitcoin laws vary depending on where you live. However, in most parts of the world, no law bans the use of bitcoin. Because bitcoin is still fairly new, the law has not quite caught up with the technology. For example, most US states have not updated their laws to cover bitcoin. In fact, many governments around the world still struggle to understand what bitcoin is.
Even so, governments are very aware of bitcoin. Regulators fear people could use it to launder money, because bitcoin transactions can be anonymous. Bitcoin may also compete with traditional currencies, such as the euro and the US dollar.
So far, Europe and the United States have not treated bitcoin unfairly as a currency. Still, they are keeping a close eye on it. For instance, both the European Banking Authority and the FBI have published documents about illegal bitcoin use.
How governments regulate bitcoin will affect how many people accept it as a real currency. It will also affect whether using bitcoin is legal, as well as its price. For example, China cracked down hard on bitcoin exchanges. As a result, bitcoin payment processors shut down, and bitcoin lost much of its value there.
How Volatile Is Bitcoin?
Some people doubt bitcoin can become a worldwide currency, mainly because it seems unpredictable and unstable. Since its launch, its value has risen and dropped sharply at times. In fact, the price can fall quickly within days or even hours. As a result, some people avoid buying bitcoin, because they never know where the value will go next.
Even so, bitcoin has come a long way. When it debuted in 2009, a bitcoin was worth almost nothing. Since then, the price has risen a lot, despite governments’ efforts to regulate it.
There will always be bumps in the road. So, online bettors holding a large amount of bitcoin should think carefully about the risks. After all, anyone who earns, spends or transfers bitcoin is making a small investment in the currency.
On the plus side, bitcoin is one of the most cost-effective currencies around, and it helps users stay anonymous. In addition, no other currency moves between people around the world as easily. By comparison, traditional banking systems feel outdated.
What Is the Best Way to Buy and Store Bitcoin?
There are several ways to buy and store bitcoin. For example, some money transfer services support bitcoin, and you can also pay in person with cash. However, the most common method is to use an online bitcoin wallet.
There are hundreds to choose from. Even so, most US residents use Coinbase.com, the leading bitcoin marketplace in the country. You can buy bitcoin there instantly for a small fee, generally no more than 1% of the purchase.
A bitcoin wallet is the best way to buy, sell and use bitcoin online. Each wallet holds a set of private addresses and keys, which let you use your bitcoin anonymously.
Can Bitcoin Sportsbooks Be Trusted?
It depends on the sportsbook, because some are more trustworthy than others. In general, the most heavily regulated bitcoin sportsbooks are the safest choice. In contrast, less regulated sites may be dishonest with bettors’ money. Some of the most regulated and trustworthy bitcoin sportsbooks include BetOnline.ag and Bovada.lv.
These sportsbooks are as trustworthy as most US-based ones. Still, the best way to find a trustworthy bitcoin sportsbook is to do your own research. For example, a quick Google search will often reveal complaints about sites you should avoid.
As bitcoin grows in popularity, more online resources are appearing too. For instance, on the Bitcoin Talk Forum you can find out which sportsbooks are the most trustworthy. Many bitcoin sportsbook owners also post there, so it is easy to find your best choice.
Can Bitcoin Be Hacked?
Hackers like bitcoin, because a digital currency can be vulnerable. Ironically, many people like bitcoin because governments can’t interfere with it. Yet that is exactly what makes it risky, since no authority can step in if hackers steal your bitcoin.
That said, most bitcoin users never get hacked. Even so, you should always use bitcoin carefully. Here are two simple ways to stay safe:
- Use a different bitcoin address for each transaction.
- Protect your wallet with private keys and passwords, and don’t store your addresses on your computer.
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