How Do Crypto Wallets Work on Sports Betting?
As betting with cryptocurrency becomes more popular, getting a handle on crypto wallets is important, as they’re a vital part of storing and managing your crypto bankroll.
While it may be a bit daunting if you’re not tech-savvy, using a crypto wallet isn’t that complicated, and we’re here to give you the information you need to get up and running.We’ll look at examples of crypto wallets you can use, how they work with sports betting, as well as tips to make your life easier.
What Is a Cryptocurrency Wallet?
A cryptocurrency wallet is a way of accessing your cryptocurrency. Unlike cash, your crypto isn’t actually stored in your crypto wallet.
Rather, your crypto wallet allows you to view the amount of cryptocurrency assigned to your wallet address in the blockchain.Every crypto wallet has two keys: a public key and a private key.
The Public Key
The public key is also known as your wallet’s address, and it is the address used when you or someone else sends crypto to your wallet. Think of it as your mailing address; if someone were to send you a check, they would need to know where they were sending it.
The Private Key
The private key is used to sign transactions and is necessary for sending crypto. If you do not have the private key to your wallet, you can only view what’s inside it but not send anything. Think of your private key as the deeds to your property.
If you want to transfer ownership of a part of your land to someone else, you first have to prove that you own it. People use cryptocurrency wallets to store their crypto once they’ve purchased it. It’s inadvisable to store crypto on an exchange, as you don’t have access to your private keys.
The same can be said for online sportsbooks: when you deposit using crypto, your funds are transferred to a sportsbook wallet. While these wallets allow you to easily bet on the site, you aren’t in full control of your wallet, so you shouldn’t leave your whole bankroll on the site.
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Cryptocurrency and Sports Betting
When you bet with cryptocurrency, there are two ways of doing it. One is to deposit your crypto to your sportsbook wallet to make the funds available, just like you would with fiat currency.
The second option, depending on the sportsbook and the wallet you use, is linking your wallet to the site and placing bets directly from your wallet.
The second option is the most preferable, as you’re always in complete control of your crypto, and you don’t have to pay transaction fees to move your money on and off the site.
However, not all sportsbooks have this functionality, meaning you have to deposit your crypto to their site. While this is fine if you can trust the sportsbook, you lose control of your crypto, so always be careful when depositing large amounts.
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What Is the Best Software Wallet for Cryptocurrency Betting?
If you’re betting with cryptocurrency, the best wallet to use is a software wallet. This is because you’ll connect your wallet directly to the site or make frequent transactions to and from your online casino wallet.
While a hardware wallet is good for security, it’s not as good for frequent transactions. While different wallets support different cryptocurrencies, you’ll find that most online casinos that accept crypto only accept the major coins, such as Bitcoin, Ethereum, Litecoin, etc.
Best Software Wallet for Cryptocurrency Betting
Tips for Using Crypto Wallets
If you’re looking to bet with crypto and want to find a good wallet to store your crypto, it can be a little overwhelming with all the choices.
It’s important to remember that not every crypto wallet will offer what you need, so always be aware of what your plans are for the wallet before you commit to downloading one.
Pros and Cons of Sports Betting with Crypto Wallets
While there are definite advantages to using crypto for betting, there are some downsides too. Let’s examine the pros and cons of crypto wallet betting.
◭ Connecting your wallet to a betting site is easy to do and allows for crypto betting, where you remain in control of your funds.
◭ Crypto deposits to sportsbooks have very fast deposit and withdrawal times.
◭ Betting with crypto allows you to remain anonymous, particularly if you use a sportsbook that doesn’t require KYC.
◮ Smart contracts that allow you to bet directly from your wallet may be malicious if the site is a scam.
◮ You must pay crypto transaction fees for every deposit and withdrawal from a sportsbook.
Why You Should Use Crypto Wallets for Sports Betting
Crypto wallets allow you to connect your crypto portfolio directly to a sportsbook. This means you can make bets directly from your wallet without having to deposit to a site.
However, not all sites support this function. If your site doesn’t, you will have to make a crypto deposit, just like your fiat money.
In these scenarios, crypto wallets become a good place to store most of your crypto while depositing a small amount to gamble with on a sportsbook.
No matter how you gamble with crypto, a crypto wallet is an important tool for you to use.
Crypto Wallet FAQ