Bitcoin is the easiest and safest way to gamble online if you follow a few rules carefully. This dummies guide is designed to help you keep your money and yourself safe when gambling with crypto. This guide will walk you through what you need to know, step by step.
“Dummies Guide To Buying Bitcoin For Gambling”
We will show you how and where to
- Create a safe gambling friendly wallet before purchasing any bitcoin
- Purchase bitcoin with US dollars safely and at competitive rates
- Create your account for the bitcoin in your wallet
- Find a gambling site that meets your needs and is totally legit
- Make the deposit the bitcoin at the gambling site
- Withdraw winnings back to your secure wallet
- Turn your bitcoin back into US dollars (optional)
and finally add some “Do’s and Don’t’s“. Without further ado, let’s get you started!
Step 1: Create a Bitcoin Wallet for Gambling
This first step will have you set up to keep your bitcoin in a wallet that you have control over the private keys. You always want to own your private keys to your wallet so no one else can access your bitcoin except you.
You have a few choices. The best is a hardware wallet. These cost money but are worth it. There are a handful of hardware wallets you can choose from.
My personal favorite is the Trezor as it is easy to use and I like the way the login works compared to the earlier edition ledger. Plus forks and coin splits are handled easily and I know my crypto money is secure.
If you are just going to gamble a little bit of money then you can use a desktop wallet that you can download or a web-based wallet you can access securely.
One rule to follow when buying a hardware wallet is to buy directly from the source company (Trezor.io and Ledgerwallet.com). Don’t buy from a third party seller through Amazon because you don’t know if you can trust the third party seller or not. In the past, shady middle men had copied down the private keys and then sold the ledgers. Once they had bitcoin in them, the shady middle men could take over the wallet since they had the keys.
*”Keys” are your 24 ordered word list that you use to recover your wallet with if you ever lose it.
Again if you are only looking for a way to get money from your bank account to the betting site fast, then a hardware wallet might not be for you.
There are apps, web-based wallets, and desktop software you can download.
I recommend the following wallets
- Trezor (hardware wallet – order directly from the company, not through amazon)
- Ledger (hardware wallet – again order directly)
- GreenAddress – web-based wallet that is free and secure.
- BRD – iPhone and Android App
- Electrum.org – desktop software
Transacting with a gambling site directly to or from Coinbase will get your account shut down with Coinbase itself as it is against their terms of service.
Do not send bitcoin to or from a gambling site from your Coinbase wallet.
Only use coinbase as the gateway for USD -> Bitcoin and vice versa.
What you do is turn your US dollars into bitcoin at Coinbase (buy bitcoin) and then send them to your secure wallet you created. I explain that below after buying bitcoin.
Step 2: Find Where and How To Buy Bitcoin For Gambling Using US Dollars
If you are in the USA, you have a fair number of options depending on which state you live in. You are most likely buying bitcoin from Coinbase, Localbitcoins, CashApp, Bitquick or one of the regulated fiat exchanges. These are the most popular options today although there are a few more.
You have $USD and you want to buy BTC to place a bet on the game or play some blackjack. What do you do? Use CashApp for bitcoin is the easiest I believe. You can see a guide on how to do that on Kickass Poker’s Bitcoin page.
CashApp allows it’s users to purchase up to $10,000 worth of BTC in a day and withdraw it to your own private wallet. Cash.app from the team at square. You can create an account there, hook up a bank account, send money to cash app, buy bitcoin there, withdraw to your hot wallet and then you are ready to spend it as you please. Once you fund your Cash.App account, buying BTC is a breeze. Plus the spread and prices are competitive, meaning you will get a fair price for buying bitcoin.
Coinbase (Special Instructions!)
Coinbase is the largest USD to Bitcoin gateway in the states. It is completely fine to buy your bitcoin from them. You can attach your bank account or use a credit card (with a premium expense) to buy bitcoin the fast and easy.
The key is just to not directly use coinbase to send or receive from a gambling site.
To see the details of how Coinbase works you can read my review.
If you tell them BestBitcoinExchange.com sent you (this website) then you will get $10 free of bitcoin if you buy $100 or more worth and so will I. Thanks in advance!
LocalBitcoins LocalBitcoins is a person-2-person marketplace where users buy and sell bitcoin. You can read the full LocalBitcoins review here but here are the short things to know about.
Only buy from sellers with an strongly positive reputation with history. If you follow this rule you will be just fine dealing with sellers at LocalBitcoins.com.
- Don’t go for the “deals to good to be true” from new sellers
- Don’t go for sellers who have less than stellar feedback
- Do not buy significant quantities of bitcoin to you right away. Start smaller
Bitquick is a bitcoin to cash service with proof of bitcoin held in escrow.
Sellers escrow their bitcoin with Bitquick. You find an offer you want to buy and for how much.
You buy it by getting the sellers bank account info and making a cash deposit into their bank account. Get a receipt, take a current photo of it and upload it to bitquick. Bitquick sends you the bitcoin.
You can learn more about Bitquick here but it’s been a way to privately purchase bitcoin with cash usable by people around the USA.
Decide which of these three options work the best for you, or you can search for a local Bitcoin ATM machine where you can deposit cash and they will send you bitcoin. These machines are growing around the country but may or may not be near you (check here).
Accounting For the Bitcoin In Your Wallet
How Do I Send Bitcoin To My Secure Wallet?
Once you’ve purchased your bitcoin you need to send it to your private wallet BEFORE gambling with it.
Log into and open up your secure wallet.
There will be a button or tab that says “Receive”. Click on that and click on create a fresh bitcoin address.
Carefully copy this address.
Log into the place where you purchased the bitcoin and find the “Send” button. Click on that and paste in the address you copied from your wallet.
Choose the amount of bitcoin to send (usually all of it). Verify the receiving address is correct and click the button to send the bitcoin.
Usually within moments to minutes (depending on the bitcoin network traffic at the time) the bitcoin shows up in your wallet balance.
You should have the same amount of bitcoin minus a small mining fee. The mining fee changes based on market conditions but is usually a tiny fraction of an amount.
Once the bitcoin is in your private wallet you are ready to find yourself a place to gamble at.
Finding A Legit Gambling Site
Online casinos with stellar reputations exist. Stick with one of them and you will be safe, secure and betting at a reliable gambling site.
- Bovada Casino – my personal favorite online gambling site. Casino, sportsbook and online poker all in one. You can find all the Bovada bonuses at SBPC but as of right now you can get a $750 bonus for sports betting or a $3,750 bonus for casino gambling.
- Betonline – excellent reputation and takes players from all 50 states.
- Slots.LV – slot machine centrist site with huge deposit bonuses
You can read more about bitcoin and casino history and of course read reviews online before deciding where to gamble for real money.
Deposit Bitcoin On Your Gambling Site
Register and create your account at the gambling site of your choice. They will make it very easy to find your deposit options (either in the cashier, or the big ‘deposit’ button. Bitcoin will be easily found to click on as your deposit method of choice.
Click on deposit and they will provide you a bitcoin address to send your deposit to. Copy this address.
Open back up your personal wallet and click on the ‘Send’ button. Choose your amount of bitcoin to send and paste the address in the ‘Send To’ field. Confirm the address and the amount of bitcoin you are sending is correct and, once again, click ‘send’.
Now go back to your account at the casino. Your deposit will likely show up within moments to minutes. In most cases it is instantly converted into a USD balance. You are now gambling in normal USDT amounts. Some online casinos (FortuneJack for example) do not convert your bitcoin. You gamble with actual bitcoin (fractions of a bitcoin obviously).
Withdrawing / Cashing Out Using BTC
Gamble as you want. Once you are ready to cash out your mountain of winnings the first thing you need to do is create a FRESH bitcoin address to receive your bitcoin from the casino.
To do that, open up your btc wallet and click on ‘receive’ and then click on ‘generate a new address’ and copy that. Now head back to your online casino.
Still logged in at your casino of choice, click on cashier and then ‘withdraw’. Choose the amount you want to withdraw. This will most likely be an amount in USDT (depends on casino). They will ask you for a bitcoin address to send the money to.
How it works is that amount in USDT is converted into bitcoin and sent to your provided address. This is done at a market rate that is provided to you before cashing out. So if you cash out $1000 they will turn that money into bitcoin and send you that amount of bitcoin. There will be the mining fee’s but other than that (unless the casino says so otherwise) there are not additional withdrawal fee’s. Most legit online casinos we list offer at least 1 free crypto withdrawal per month. Some offer more.
A gotcha to be aware of at all online casinos is that if you’ve accepted a bonus then there are terms and conditions that have to be followed before a cashout is authorized. If cashing out without having to meet rollover requirements is important to you, then by all means, refuse any bonuses.
Turn Bitcoin Back into US Dollars / In Your Bank
Now you have this mountain of bitcoin in your private wallet and you need some cash money right. I’m not going to get into any tax implications but here’s where you have a few choices on turning bitcoin into dollars.
- Utilize coinbase/coinbase-pro.
Open up your account, click deposit and choose bitcoin as your deposit method. They will give you a bitcoin address to send the bitcoin to. Send it there. Open up their exchange and sell bitcoin for $USD. Once in USD you can withdraw it via ACH to your bank (assuming you set up your banking details etc. Never send your bitcoin directly from the online casino to coinbase. Always send it to your private wallet first.
- Utilize localbitcoins.
You can buy and sell btc there. Sell it for cash and have someone deposit it into your bank account and you send them the BTC.
- Utilize bitquick from the seller side.
It’s a cash to BTC and BTC to Cash arena.
- Try some of the other USA Fiat exchanges that are licensed, regulated and all that goodness.
Do’s and Dont’s
- Do use a private wallet for all gambling bitcoin transactions.
- Do research owning your wallets private keys and why it is imperative to do so
- Don’t use the exchange’s built in wallet to store your bitcoin
- Don’t send btc directly to or from an online casino and your exchange (use the wallet in the middle)
- Do start out with a small amount to walk through the process yourself one time
- Do always generate new send to addresses whenever you are sending money to deposit or re-deposit at an online casino
- Don’t seek the treasure.
- Do read the terms and conditions carefully at any online casino you choose
- Do always create fresh receive addresses whenever you have bitcoin sent to you
- Don’t use Coinbase’s wallet to send or receive from a gambling site
- Do invest in a hardware wallet if you have any moderate level of bitcoin activity
- Do gamble within your means and with money you can 100% afford to lose
- If you have or think you have a gambling problem, visit GamblersAnonymous
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