Cryptocurrency is the future of online betting, and Bitcoin is already one of the most popular types of cryptocurrency used for sports betting.
But you have questions.
- Is it safe?
- Is it legal?
- How does it work?
We’ve got answers.
In this guide, we’ll discuss the:
- The legality of Bitcoin sports betting,
- How to buy it and use it, and
- The advantages and disadvantages of Bitcoin for online betting.
Table of Contents
- What is Bitcoin?
- Is Bitcoin Sports Betting Legal?
- How Do You Use Bitcoin For Sports Betting
- Advantages and Disadvantages of Bitcoin Sports Betting
- Advantages to Online Sports Betting with Bitcoin
- Disadvantages to Online Sports Betting with Bitcoin
- What Sports Betting Websites Accept Bitcoin
- ZenSports Online Sports Betting: Bitcoin vs. SPORTS Tokens
- SPORTS Tokens: Next Level Cryptocurrency for Online Sports Betting with ZenSports
What is Bitcoin?
Bitcoin is a type of cryptocurrency that is becoming extremely popular, even though it’s been around for more than ten years.
And it’s not only a desired and accepted currency on betting sites, but it is also used with major companies and retailers.
What is cryptocurrency?
Nerdwallet defines cryptocurrency as “a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions.”
You may be thinking, “Yeah, I’ve got that. But what exactly is Bitcoin?”
Simply put, Bitcoin is a virtual type of currency that can be used for purchases, buying and trading stock, and for all kinds of online betting.
Is Bitcoin Sports Betting Legal?
This is an excellent question but one that is not so easy to answer.
The short answer is that it’s neither legal nor illegal in the United States.
How can that be, you ask?
It’s neither legal nor illegal in the U. S. because it is generally unregulated on the federal level. Though gambling is legal according to U.S. federal law, individual states are responsible for regulating Bitcoin sports betting in their particular state.
Other reasons that make it difficult to accurately answer the question about the legality of Bitcoin sports betting include:
- Federal laws that clash with the published state regulations
- Legislation in Congress currently stalled
So, if it’s up to individual states to decide how to deal with Bitcoin sports betting, you may be wondering how different states manage the details.
Though it would be more consuming than you’d probably care to read about here, let’s take a look at how New York regulates the use of Bitcoin.
The main regulation in NY involves the necessity of businesses using virtual currency to secure a “BitLicense.” Additionally, several bills have been introduced and continue to be introduced in the state Senate to provide further regulation.
If you don’t live in NY and want to know the particulars about your home state, this website is extremely informative.
In general, states that are favorable to the use of Bitcoin include:
- Kansas
- Montana
- Tennessee
- Texas
States that are less friendly include:
- California
- Connecticut
- New Hampshire
- North Carolina
- Wisconsin
What about outside of the US?
Currently, many countries are looking more favorably toward cryptocurrency and are in the process of making their own regulations.
Places like Curacao and the United Kingdom are already giving Bitcoin licenses to casinos and control how websites using cryptocurrency operate.
How Do You Use Bitcoin for Sports Betting?
To use Bitcoin you will need to use a Bitcoin exchange and a Bitcoin wallet.
Get the wallet first and then set up an exchange account.
Once you have Bitcoin in your wallet, you can then deposit it into your betting account and start making bets.
Step 1: Understanding Bitcoin
Using Bitcoin for online sports betting can be confusing. There’s no way around it. So, if you use this popular form of cryptocurrency, you’ll need to educate yourself.
Here are some things you should know before purchasing Bitcoin or choosing to bet with it:
- Numerous Bitcoin exchanges are competing for your business. Do your research, which may be a daunting task, before making a final decision.
- Fees may be assessed when buying Bitcoin.
- Different types of wallets are available.
- Betting with Bitcoin comes with risk.
- Transactions are processed quickly.
Step 2: Purchase Bitcoin
After gaining some basic Bitcoin understanding, you’re ready to start purchasing.
As mentioned above, you’ll need to use a Bitcoin exchange and a Bitcoin wallet — more about wallets below. Exchanges are necessary so you can convert US currency into Bitcoin.
Again, you’ll need to do some more research to find the exchange you want to use, and there are many to choose from. Each exchange has policies and pricing, so one may look more attractive than the other depending on your needs or desires.
Exchanges can also be centralized or decentralized, so depending on the level of privacy you desire and what you want to achieve with your betting, you may be more partial to one over the other.
You’ll want to look for Bitcoin exchanges that are:
- Quick to establish
- Easy to use
- Cost-effective
- Secure
- Receive funds from a variety of sources
The Balance, a personal financial consulting firm, lists the following as the best places to buy Bitcoin:
- Coinbase
- eToro
- CoinMama
- BlockFi
- Bisq
Step 3: Create A Bitcoin Wallet
In addition to setting up a Bitcoin exchange, you will want to create a Bitcoin wallet.
What exactly is a Bitcoin wallet, you may ask?
A wallet acts much like the physical wallet you carry around in your back pocket — except it’s not physical but virtual. It’s the place you will store the Bitcoin you purchase.
Most people would agree that it is better and safer to store Bitcoin in your wallet rather than keeping it in the exchange.
The two basic types of Bitcoin wallets are:
- Hot wallets -These run on devices requiring the internet — computers, phones, iPads, etc.
- Cold wallets -These function offli ne and are therefore the safest to use.
In addition, while some wallets are only used for storage, some Bitcoin wallets can also be used for buying and selling.
Again, The Balance has named the following wallets the best of 2021:
- Coinbase
- Trezor
- Ledger
- SoFi
- Mycelium
- Exodus
Step 4: Deposit Bitcoin into a Sports Betting Account
You’re ready to start betting, but before you can do that, you’ll need to deposit your Bitcoin into a sports betting account.
How do you do that?
That all depends on which sports betting account you are using. Procedures vary with each sports betting account, but in general, you will probably follow some of these basic steps:
- Login to your account.
- Follow the instructions for depositing Bitcoin.
- Transfer Bitcoin from the wallet to the sports betting account.
- Receive confirmation.
These steps look simple, but in reality, it may be much more complicated than this.
ZenSports accepts Bitcoin, but you should consider using our SPORTS tokens because of the following perks:
- Rewards
- Lower fees
- Cashback rewards for certain betting volumes
- Bonuses
Click here and start betting with SPORTS tokens today.
Advantages and Disadvantages of Bitcoin Sports Betting
Maybe you’re really into cryptocurrency and are knowledgeable and feel comfortable using it.
Or maybe this is completely new territory.
You’ve performed all kinds of Google searches like:
- “Online sports betting bitcoin”
- “Best bitcoin sports betting sites”
- “Sports betting sites that accept bitcoin”
- “Bitcoin sports gambling sites”
And still, you’re not quite sure what cryptocurrency is or wonder if it’s safe to use.
Taking a look at some of the pros and cons of using Bitcoin may be helpful to clear things up a bit.
Advantages and Disadvantages of Bitcoin Sports Betting
Maybe you’re really into cryptocurrency and are knowledgeable and feel comfortable using it.
Or maybe this is completely new territory.
You’ve performed all kinds of Google searches like:
- “Online sports betting bitcoin”
- “Best bitcoin sports betting sites”
- “Sports betting sites that accept bitcoin”
- “Bitcoin sports gambling sites”
And still, you’re not quite sure what cryptocurrency is or wonder if it’s safe to use.
Taking a look at some of the pros and cons of using Bitcoin may be helpful to clear things up a bit.
Advantages to Online Sports Betting with Bitcoin
The popularity of Bitcoin sports betting is easy to understand when you consider the following advantages:
- Unregulated
- Easily processed transactions
- Safe and fast deposits
- Few fees
- Anonymity
Faster Processing Time
Perhaps you’ve used resources like Venmo or PayPal to receive payment for a service or reimbursement from a friend. There likely have been times you’ve had to wait 2-3 days for those funds to make it to your bank account.
With Bitcoin, deposits are processed quickly, from as little as a few minutes up to a few hours.
Anonymity
Though betting with Bitcoin isn’t 100% anonymous, the privacy you experience is unparalleled.
How is this accomplished?
Many sports betting agencies may not require setting up an account and only ask for a login and password. In that case, you will not be required to give out any personal information like your name, address, or phone number.
Disadvantages to Online Sports Betting with Bitcoin
Pros are always followed by cons. Weighing the two will help you know if Bitcoin sports betting is for you.
Some disadvantages include:
- Higher fees than betting with US dollars
- Transactions that can’t be reversed
- Volatility
Irreversible Transactions
If you have more than one bank account, you’ve probably transferred funds between the two. And maybe you’ve made a mistake and transferred the wrong amount of money.
No problem, simply access your account online and reverse the transaction. Easy.
But that’s not possible with Bitcoin. If you make a mistake, like entering the incorrect Bitcoin amount or the wrong wallet code, you could lose a lot of money.
Not only that, if your computer crashes or you get a virus, your Bitcoins may be lost without a way to recover them.
A simple mistake can end up being a very costly one.
Volatility
Bitcoin value is unstable.
Just like foreign currencies around the world, Bitcoin exchange rates are constantly changing, which makes Bitcoin betting a volatile business.
Of course, this can also work in your favor if the prices rise.
Still, many would consider volatility the greatest downside to Bitcoin sports betting. When prices suddenly fall, you could lose tons of money.
Or if you keep Bitcoin in your wallet for several months, it may be worth less in dollars than when you first deposited it.
What Sports Betting Websites Accept Bitcoin
Not every sports betting website or app accepts Bitcoin, but many do.
The growing popularity of this type of cryptocurrency, along with the advantages and conveniences it provides, make Bitcoin sports betting widely available.
Be wary of sports betting sites that aren’t trustworthy and:
- Don’t honor wagers
- Have extremely slow with payouts
- Can’t guarantee the security and safety of your funds or personal information
ZenSports Online Sports Betting: Bitcoin vs. SPORTS Tokens
Bitcoin sports betting may come with some enticing advantages, but the disadvantages are too risky or make you uncomfortable.
In that case, betting with ZenSports and using SPORTS tokens may be more up your alley.
ZenSports is the fastest and easiest way to bet on sports with anyone in the world, right from your phone.
Not only that, but ZenSports is the safest and most reliable sports betting app out there.
SPORTS Tokens: Next Level Cryptocurrency for Online Sports Betting with ZenSports
SPORTS tokens streamline the betting experience for ZenSports customers and let them take advantage of:
- Discounted betting fees
- Cash-back rewards
- Bonuses
And they are simple to use.
Here’s how it works:
- Customers use Bitcoin to purchase SPORTS tokens.
- Bets and the discounted betting fees are deducted from the customer’s SPORTS wallet.
- Rewards and bonuses are earned for the volume of bets placed and performing other actions.
- SPORTS tokens can be withdrawn or exchanged into Bitcoin or USD.
Take away the risk of betting with Bitcoin and enjoy the benefits and rewards of ZenSports SPORTS tokens.
