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How Online Gamblers Buy and Sell Cryptocurrencies in 2021: A Step-by-Step Guide

If you’re looking to gamble on an online casino with crypto, you’ll need to learn how to buy and sell digital currencies and how to transfer them to your personal crypto accounts.

There are two main methods for buying cryptocurrencies: exchanges and P2P. When you’re starting out your crypto journey, deciding which option to go with and how to do it efficiently might be a little overwhelming, but this article is here to put those worries to rest.

Before You Start: Set Up A Crypto Wallet

No matter where you want to buy crypto, you should have a place to store it first. Holding all your crypto inside an exchange or casino might be convenient but has some significant disadvantages. While buying and selling are extremely easy, your money isn’t technically yours – it is kept inside the exchange or casino, and anyone who has access to the inner workings of the site has access to your crypto. 

The crypto community has a saying that goes something like this: “Not your keys, not your coins.” This is because crypto exchanges and online casinos holding crypto have been victims of countless hacking attacks at the cost of their users.

digital coins

That is not to say that you can’t keep any money in your balance on exchanges or casinos; keeping a little money on there for quick access is fine. But the majority of your crypto should be kept in a wallet.

Having self custody over your assets is a must when dealing with cryptocurrency. Crypto wallets are extremely convenient and easy to download. Check out this step-by-step guide on how to open a free software wallet for your crypto. To make your wallet even more secure, you can go the extra mile and buy a hardware wallet to store your crypto.

Another benefit of having a crypto wallet is that it allows you to gamble in decentralized casinos, gambling sites where you cannot keep your crypto at all.

Method 1: Buy From An Exchange

There are cryptocurrency exchange websites meant to help you quickly and easily purchase any type of crypto you want with a credit card or other selected payment method. You can then send that crypto to your personal wallet or directly to your online casino balance.

Step 1: Choose A Cryptocurrency Exchange

The most convenient approach to buying crypto is to use an exchange. Exchanges are safe and allow users to buy, sell and hold. Since everything is going to go through the exchange of your choice make sure to choose one that suits you the best. 

Consider factors like:

  • Payment method – What method do you use to purchase crypto on the exchange? Debit card? Western Union?
  • Supported Coins – Gamblers need to make sure the exchange supports the type of coin they want to buy for their casino balance.
  • Fee Structure – What percentage of each purchase will you have to give to the exchange? What other transactions are charged?
  • Interface Functionality – Do you like the user interface? Does the exchange offer a good balance of simplicity and user control?
  • User Reviews – Google the name of the exchange and see what other users say about it. Unfortunately, there are a lot of scams or low-quality crypto exchanges out there.

If you’re still not sure which exchange to settle on, here are some of the most popular crypto exchanges that are currently preferred by online gamblers.

Most Popular Exchanges

Exchange

Weekly Visits as of May 2021

Supported Coins

Binance

27,657,536

356

Coinbase

3,577,326

64

Kraken

2,938,774.00

62

Gemini

380,600.00

45

Step 2: Verify Your Account Through KYC Procedure

kyc

Just like most online casinos, crypto exchanges are bound by law to verify your identity before they let you make any medium or large transactions. In fact, a growing number of exchanges will not let you conduct any transaction at all until you are verified! This verification is done through a process called KYC, which stands for “know your customer”. Also, like with casinos, KYC is a way for the site to enforce anti-money-laundering laws, also known as AML. 

In order to verify you need to present your:

  • Photo of your ID/Passport
  • Billing Information that matches your ID
  • Selfie – sometimes you’ll be required to hold your ID next to your face.
  • Phone number
  • 2FA mobile app

Once submitted, the documents need to be verified manually by a staff member from the exchange. Depending on what exchange you’re using, the wait time for this verification process can take anywhere from just a few minutes to a week.

The process should already be familiar to online gamblers; it’s the same KYC protocol most online casinos use!

Step 3: Select Your Preferred Payment Method

Once your account is good to go, all doors are pretty much open. This is the first step into the crypto world and potentially the last one where you’ll be required to use regular currency, aka “fiat currency.” Choose the payment method of your choice to deposit money into your exchange balance.

Step 4: Choose Your Coins

Now that you have a balance of fiat currency in the exchange, you’re free to buy whatever crypto you want. Exchanges like Binance offer hundreds of unique coins and you can choose any of them. 

binance exchange

Whether you’re after Bitcoin, Ethereum, Dogecoin, or some other cryptocurrency, all you need to do is choose one and pay with whatever payment method you have previously connected your account to. That being said, your choices are limited to the types of coins the exchange offers, so make sure the coins supported by your casino are available on the exchange before signing up.

These are the coins that online casinos prefer. This is due to their popularity and ease to exchange for fiat or for other coins including stable coins (which are locked to the value of the US dollar).

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Ripple (XRP)
  • TRX (TRX)
  • EOS

Keep in mind that the price of crypto is often volatile and what you pay today might change drastically in the next few days.

Step 5: Withdraw Into Your Crypto Wallet

At this point, you have officially bought crypto. As mentioned, though, crypto is not really safe when kept on an exchange – the best course of action is to transfer it into your wallet. Some people prefer to keep their crypto at their trusted exchange and manage their transactions there, but it’s not recommended.

Go to the withdrawal page of your exchange and simply input your wallet address for the type of crypto you are transferring. The withdrawal speed can vary but in the worst-case scenario shouldn’t take up more than a few hours.

crypto wallet

You will also want to send a small portion of the crypto you bought on the exchange directly to the casino. As mentioned, though, a wallet is more secure and you should send the majority of the crypto you buy to one of them.

Sell Crypto On Exchanges

After winning crypto at an online casino, you may want to sell some of it for fiat or exchange it for a different cryptocurrency. An exchange can help with this. The convenience of direct crypto buying and selling is one of the biggest advantages that exchanges offer.

Step 1: Choose An Exchange for Selling

If your goal is selling cryptocurrencies, the things you want to look for in exchange will probably be different than if you’re trying to buy. For instance, you want to focus on the specific coins you possess and how easy it is to cash them out.

It is important that your exchange supports both your withdrawing and deposit method. Make sure to choose an exchange that supports the desired coin you’re trying to sell. If the site doesn’t support such a coin you won’t be able to sell it at all.

selling crypto

Moreover, the method of withdrawing might get you stuck. While bank account transfers are pretty much guaranteed as a withdrawing method, services like Skrill or Paypal might not be. If that were your preferred option you might want to consider another exchange.

Once you’ve weighed the options and settled on an exchange, you’ll need to verify your account like you would do when you’re buying.

Step 2: Deposit Digital Currency You Wish To Sell

Once you’re ready to sell your coins visit the withdrawal page of your exchange. Sending money with crypto is as easy as obtaining it. 

  1. Choose the supported crypto you own and copy the wallet address they provide for you. 
  2. Copy and paste the address you were given with the number of coins you’re trying to transfer into your wallet app or your online casino if it supports outbound cryptocurrency transfers.
  3. Your coins should be loaded instantly as there’s no need for lengthy verification processes from the website’s end.

Sell Your Crypto And Withdraw Your Profit

Now you can sell your crypto for any available form of payment. You can exchange them for other coins or for regular fiat money. The exchange is happening fully on the site’s end at this point and the conversion will be instant. However, it is important to check the rates of your payment method and make sure you agree with the price.

This is the main disadvantage of exchanges and while mainstream coins like Bitcoin, Ethereum, or Monero get converted for good value, other lesser traded cryptocurrencies might not yield the same results. The volume of trades on your specific exchange affects the conversion heavily so keep that in mind whenever selling.

Method 2: P2P Trading

If you prefer the idea of trading with other people rather than with an exchange, you can try P2P trading. In other words, trade in-person with your friends, your gambling associates, or other crypto enthusiasts. The centralized networks also offer networks for a P2P connection, although going that route may incur some fees beyond other types of P2P trading. The bottom line, though, is that the blockchain’s encryption allows for extremely safe transactions from P2P, so might as well utilize it.

P2P trading is sometimes also called OTC, which stands for “over the counter.” The terms are essentially interchangeable, although OTC generally has more official connotations.

Sometimes, P2P trading means finding someone else who can offer you crypto for cash (if you’re buying) or cash for crypto (if you’re selling) through your personal channels. Maybe you know a friend who wants to do a crypto deal, or maybe you hit up a local community forum to find someone who does. From there, just arrange a meeting with the other party, give or receive the appropriate wallet code, and make the exchange once you meet. This method is a great option if you live in a large city and can easily find crypto enthusiasts nearby. Since crypto is getting so popular in the gambling community, the bonds you have formed online if you use social casinos may be a good starting point.

bitcoin exchange

You could also use a third-party site to trade with other people online. There are a number of P2P sites on the market which will act as an escrow service for you and the person you’re trading with. Some are centralized sites, meaning that they oversee and handle every part of your transaction as a traditional website would. 

Others are partially decentralized, meaning they let the blockchain and some of its smart contracts handle most of the transaction. Even in these cases, though, the exchanges are generally not fully decentralized; the exchange acts as a middleman to hold the coins until the seller accepts the cash payment.

The sites are especially helpful to those who do not use social casinos and do not run into many other crypto enthusiasts during the course of their everyday lives.

Some of the easiest-to-use P2P exchanges include:

Site

Weekly Visits as of May 2021

Decentralized?

Binance P2P

1,750,000

Yes

Paxful

1,000,000

No

LocalBitcoins

900,000

Yes

Remitano

500,000

Yes

Hodl Hodl

80,000

Yes

LocalCoinSwap

60,000

Yes

Beware Of Transaction Fees

Besides the usual percentage fees that exchanges take on transactions, there is the blockchain fee. The blockchain fee is highly variable and depends on 2 things.

  1. Fee structure specific to each coin.
  2. Traffic demands at the time of your transaction.

There are times when this fee can be hundreds of dollars, so it is best to wait a few days before going through with your transaction and wait for a time when fees are at a low.

This quick guide should serve as a terrific jumping-off point for online gamblers buying and selling cryptocurrencies. Now it’s up to you to decide whether you want to go the route of centralized exchanges or P2P transactions. Either way, you can use the included tables to take your online casino game from fiat to the future of currency.