Digital and virtual currencies are not the sci-fi blunders that we see in movies or fiction novels. Instead of being an imaginary products, they are real currencies that can shape the world economy and affect the way we live. They are the main financial means for crypto casinos and various types of other businesses.
Cryptocurrencies are built on blockchain technology secured by cryptography. Thus, they are very hard to crack, counterfeit, or double-spend. They have already changed the economic agenda of the globe and shaped our realities. Stockholders and crypto bankers are biding their time, waiting with expectation as the value of cryptocurrencies shoots up and plunges.
In short, digital currencies are penetrating modern business with the speed of light. They are all-immersive, consuming most online businesses and offering various advantages and efficiencies to the clients and operators. Online casinos are not the exception; cryptocurrencies are also taking over the online gambling world, with more crypto casinos launching into the iGaming market.
In the face of such events, crypto casinos are rising to the surface of the iGaming industry and gradually becoming increasingly popular. This article will investigate how you can start your crypto casino (for more information, you can also check the article on how to start an online casino), its main characteristics and advantages, and the difference between a regular online casino and a crypto gambling site. So take a deep breath and follow the chapter to explore the world of crypto casinos.
What is the crypto casino?
In layman’s terms, crypto casinos are online casinos that permit clients to deposit and withdraw their money in one or more cryptocurrencies. There is still an ongoing debate around the clearest and the most precise definition of the term. Nonetheless, any casino that supports payments with cryptocurrency, ones along with fiat currencies, too, can be considered a crypto casino.
Thus, the focus is often placed on distinguishing the various types of crypto casinos. The experts differentiate three basic types according to the methods of deposits and withdrawals. The first type is a mixed casino that accepts payments through credit/debit cards, cryptocurrencies, and other common means of payment, such as e-wallets and bank transfers.
The second type involves typical crypto casinos, which allow payments only in cryptocurrencies. Accordingly, the line of main differentiation between the first and the second type is the limited quantity of options, which comes down to a Hobson’s choice where only one alternative is approved.
The third type denotes the online casino where the customers can deposit money into the account only from their hardware wallet, such as Ledger, and withdraw it to the same wallet they deposited. At the bottom, such crypto casinos draw the attention of professionals and gamblers on the lookout for maximum anonymity and security.
Difference between regular online casinos and crypto casinos
How can you differentiate a normal online casino from a crypto casino? While every casino that incorporates payments with digital currencies can be a crypto casino, there are more strict layers that could suggest clearer and stricter terms for distinction.
Several casinos incorporate blockchain technology into their platform’s foundation. Such casinos are known as blockchain casinos. It allows them to automatically execute payments through a transaction protocol known as a smart contract. Furthermore, such casinos acquire their own adherents and unique audiences, such as affiliates, other partners, and clientele. Nonetheless, it is also true that blockchain casinos have a restricted, limited gaming library, as they can only integrate the games that are based on blockchain technology.
Despite the various advantages, blockchain casinos have their drawbacks. At first, no one knows how regulations might change in the future. Cryptocurrencies are backed by a decentralized network, but no one can predict how certain governments and jurisdictions will look at them in the future.
Another downside is the volatile nature of digital currencies, such as Bitcoin, Litecoin, and Ethereum. Crypto online casinos must take into account the rapid swings and fluctuations in the value of currencies and ensure that they always have financial assets to dispense player winnings despite the vacillations in the value. One solution is automatically converting the cryptocurrency deposits into a standard fiat currency and converting them back when the player wins and requests a withdrawal.
The most popular cryptocurrencies used in online casinos
The online casino industry has been a testing ground for adopting new payment methods. Even though thousands of cryptocurrencies are in circulation, online casinos don’t use all of them. Most casinos use 4 or 5 main cryptos, while other platforms offer extended possibilities. If you want to know more about the payment methods, including cryptocurrencies and other means of payment, you can read the article about the most popular payment methods of online casinos.
The most popular digital currencies in the iGaming business are Bitcoin, Ethereum, Litecoin, and Tether.
Bitcoin is a payment method fueled by users, signifying the absence of central authority or any intermediary in transactions. Thus, it does not have any monetary value. The main characteristics of this currency are simplicity, speed, and no-fee transaction processing. Furthermore, Bitcoin provides a highly secured network with guaranteed user anonymity and transparency for the players. Customers are not entirely anonymous, but they can identify themselves by numerical codes and have various public key addresses.
Litecoin is another popular digital currency forked from the Bitcoin blockchain. Because it is built on open-source cryptographic technology, Litecoin is decentralize, open-source, and independent, like Bitcoin. Nonetheless, when it comes to differences, Litecoin is faster than the previous one – while it takes less than 9 minutes to verify a Bitcoin transaction, LTC requires less than 2.5 minutes.
While the crypto gambling industry is still developing and reaching new heights, Ethereum is becoming one of the most demanding currencies for betting. Players frequently use Ethereum because of the decent price, high-level security, speed, and unique blockchain. In fact, nowadays, Ethereum is the main competitor of Bitcoin. Bitcoin is still more popular, and gamblers tend to use it more than any other digital currency. Nevertheless, Ethereum is much faster for transactions when it comes to deposits and withdrawals. Furthermore, it steadily holds its position in the top ten list in terms of market capitalization, with an indicator of $360 billion.
Tether is another cryptocurrency that is based on the Bitcoin blockchain, like Litecoin, and the Omni platform. Nonetheless, it can provide greater security and stability. Thus, it can be a preferable option for some punters seeking maximum safety and anonymity. Tether is a stablecoin, tied to the value of a specific asset. Specifically, the tether is backed by U.S. dollars. Therefore, compared to other digital currencies, it has the most stable nature. The current market capitalization value of Tether equals $79.6 billion.
Gamblers use various other cryptocurrencies online casinos allow on their platform. While all of them share certain basic characteristics, each of them can provide various opportunities and unique features to their users.
The benefits of using blockchain in online casinos
What is the main driving force that stands behind the explosion of crypto gaming?! How we can explain its’ popularity?! It’s not a surprise that crypto casinos are skyrocketing. In fact, there are some significant crossovers between the global cryptocurrency market and the iGaming industry.
First of all, it’s security and transparency. IGaming businesses value safety and try to embrace the modern technologies to protect the platform from cyber-attacks or have strong defensive walls deployed against illegal activities. In a nutshell, such systems have fewer vulnerabilities and are hard to crack or exploit.
The blockchain, which powers Bitcoin, Ethereum, Litecoin, and other cryptocurrencies, is the system that administers its operations through a high level of encryption. Thus, every transaction is stored in a block of code that cannot be modified or changed. Furthermore, each transfer must be verified by the decentralized blockchain network, excluding the intervention of any third party. These and other factors build up a strong defensive system, which is very hard to hack.
Cryptocurrencies are supported by the decentralized ledger (the record of transactions), which is spread across a broad database with millions of copies. It means that anyone with access to the network can verify a transaction. The users who verify the transaction are miners. It is because of such transparent nature that hackers are having a hard time cracking the system.
There is the possibility of attacking blockchain, but such an action’s efficiency is very low. It requires many resources, which significantly decreases the profits for the attacker. Therefore, the types of attacks, such as 51% attacks and Sybil attacks, are mostly theoretical. In a perfect hypothetical environment, 51% attack has to be carried out by a group of miners who control more than 50% of the network’s computing power. This seems like a part of fiction rather than reality.
Security, transparency, and decentralization are one of the main reasons for adopting cryptocurrencies in the online casino business. IGaming operators are craving safety, seeking the best ways to protect their clients. In fact, online casino players are one of the first segments that embrace cryptocurrencies.
The advantages of crypto casinos
Cryptocurrencies offer a high level of anonymity to users. Specifically, the only proof of identity exists in the transaction history embedded in the ledger. The ledger maintains the clients’ identities anonymously, the genuine transactions implemented between network members, and their cryptocurrency balances. Although it does not guarantee perfect anonymity, it ensures that the safety of confidential information is on the highest level. Furthermore, cryptocurrency users enter less personal information during transactions than other payment methods.
The ease of the payout process and withdrawal speed are another advantages cryptocurrencies provide to players. Thus, incorporating cryptocurrencies in your payment system can exclude negative reviews and comments about the time lags and delays during the withdrawal when clients request it. You do not want to have bad reports and feedback on casino forums. Prospective clients often check the comments of the old, experienced users. If they find out information about the flaws of your casino, they might not wish to join your platform.
Withdrawal is conducted instantaneously because of another advantage cryptocurrencies offer – decentralization. Crypto transactions do not involve third parties. Therefore, digital currencies move directly from the casino to the player’s pocket instead of being processed by banks or other financial organizations. The process itself requires only an hour rather than taking days. There are no extra fees, and the player gets the exact winnings.
Furthermore, crypto casinos provide convenience and affordability for users from countries where gambling is illegal. By using digital currencies, they can safely deposit to your casino, bypassing the legal and financial obstructions that hamper online gaming activities in certain countries.
How to start a crypto casino?
To launch your crypto casino, you need to carry out and underwent the same processes as you would do when opening a normal online casino. Thus, before embarking on any activity, you must research the market and carefully plan the initial steps. After identifying your target market, you have to learn as much as you can about your audience. Afterward, you need to understand and analyze their gaming preferences, as it will carve your gaming portfolio.
After conducting the research, you have to follow the consecutive steps:
- Acquiring a license
- Getting an iGaming platform
- Choosing the gaming content library
- Payment systems
When it comes to licensing, there are no clear-cut, definite rules that regulate crypto gambling. Thus, while it is not officially allowed, it is neither prohibited. As a result, if you plan to open a crypto casino, you might think that you do not need a license but hold that thought for a minute. Understanding that an iGaming license gives you many privileges is vital. It helps you to avoid legal complications and the chance of shutting down your casino by official authorities.
Most players will check for a license, especially professional, mature players. The license will enable you to gain the trust of your players and offer them a safe environment. Moreover, it allows you to have a fixed, stable ground of operations and assures that your crypto casino won’t be blacklisted. You can check the information about various authoritative gambling licenses in this article.
IGaming platform is the critical component of your crypto casino. It needs to be fast, flexible, and effective. The reliable, solid back office is one of the most important features of the gaming platform, providing information about the performance of your casino, monitoring the progress, and generating reports. Furthermore, you will need a payment system, affiliate system, risk management, and fraud prevention tools, bonus system, 24/7 technical support, and live chat.
Upgaming has designed a leading-edge technology gambling platform that ensures your casino’s smooth, efficient, and effective working. It includes all the aforementioned details and various additional features that enrich your casino with cutting-edge technologies.
When it comes to deciding what sort of games you want to purchase and include in your crypto casino library, you have to look into the results of your market research. Namely, try to answer the following questions: What games do your potential clientele tend to play? What are the incentives that spur them to make their decision? It will be more effective if you focus on a particular audience and expand your base after you build a successful connection with an original one.
The most common choices you want to incorporate into your offerings are slots, roulette, blackjack, and other live casino games. As mentioned above, your gaming library must illustrate the interests of the specific market that you have as a target. It should reflect the preferences of your audience. Thus, according to your clientele, you may need to emphasize the games with specific themes. If you are opening a crypto casino, you may need to design the slots for crypto games.
Another important preference is acquiring a sportsbook. Betting on sports events is very popular across the world, and clients with crypto wallets are no exception. Nonetheless, bear in mind that bettors in different regions have various interests. For instance, Australian players love wagering on rugby, while Indian players bet on cricket. Furthermore, you must not forget about e-sports, fantasy sports, and virtual sports betting, as they are one of the biggest growing markets in the iGaming industry. Upgaming can offer you the all-inclusive, ultra-fast, multi-functional sportsbook suited to your needs.
Every online casino should integrate a vast variety of payment methods. Crypto casinos also have to follow the same line and accept as many cryptocurrencies as possible. Crypto casinos can also incorporate fiat currencies as a depositing method in the payment system, increasing their client base significantly.
On the other hand, if you plan to launch a pure blockchain casino, it will have a payment system for cryptocurrencies only. Moreover, blockchain casino platforms may only be suitable and consistent with blockchain-based games. In such cases, your clientele will also consist of the users of digital currencies who play crypto games.
There we go. Marketing is your final but uninterrupted, ceaseless chain of actions designed to increase awareness about your business, bring in new clients and work on retaining the existing ones. If you want to learn more about marketing efforts, check the article about how to market an online casino.
It does not require a lot of thinking to deduce that cryptocurrencies are a very important part of modern business. In the future, they may become the primary method of payments and financial transactions (well, we certainly know that it is not another blunder of fiction).
By all accounts, digital currencies are becoming increasingly popular. You need to follow the trend if you do not want to fall off the cliff. Blockchain is a big, overwhelming platform that can create a strong base for replacing the standard currencies. Moreover, it offers the advantages of transparency, anonymity, decentralization, and increased safety, which appeals to tech-savvy people and all who care about security and speed.