Understanding the Security Behind Bitcoin Gambling Websites

Bitcoin (BTC) has become a very secure form of currency these days. This cryptocurrency can be volatile, but it has seen a steady rise across a number of industries across the globe — a rise that is the result of what is now a reasonably stable platform. One of the most popular industries to find Bitcoin being used more and often is online gambling casinos — the huge popularity of Bitcoin casinos is partially due to its anonymity for the players and safe transactions using Bitcoin. It’s plain to see how BTC currency is likely to continue rising and remain a stable source of alternative currency around the world.

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How is Bitcoin Anonymous?

The Bitcoin protocol has an anonymous environment (through a P2P, or peer-to-peer exchange network) — this means that Bitcoin transactions and the Bitcoins themselves are never tied to any form of identity, unlike hard (fiat) currency like USD, EUR, GBP, and others. Bitcoins can be bought and stored anonymously in e-Wallets, which do not have any personal information either — nor are they tracked in any way by any agency (such as the government, regulatory agencies, the IRS, banks, etc.).

Bitcoin wallets have also become more and more secure the last few years. While some people may be concerned with the safety of their Bitcoins within their e-Wallets, you really shouldn’t be. There have been some occurrences in the past where there have been large-scale thefts (example: Mt. Gox in 2014), but if you properly secure your e-Wallet and private key, your BTC are safe.

So, let’s take a look now at the security behind Bitcoin itself and how Bitcoin casino and other gambling websites take precautionary measures to keep your BTC safe.

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Security and Encryption with Bitcoin

As you may already know, Bitcoin is the leading cryptocurrency available around the world — because of the nature of digital currencies, cryptography is a key element. The Bitcoin protocol has an incredibly anonymous and secure environment that makes it perfectly accessible to anyone and doesn’t require any personal information at all.

The encryption is called “Proof of Work,” or POW, and this system uses an SHA-256-encryption, which is used throughout the entire verification system. The transaction blockchain is also extraordinarily secure due to its decentralized structure. Decentralized structures have become all the rage in digital currencies these days due to its incredible structure of complete anonymity and the fact that nobody has control over the currency (such as a government).

This is one reason why Ethereum (in which the “coins’ are called Ether) has become so incredibly popular as well — it’s decentralized, completely transparent, not under anyone’s control, and is completely anonymous.

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Bitcoin Gambling Sites

When you are a Bitcoin gambler (or even someone who simply wishes to invest in Bitcoin and keep it as the value rises), this method of gambling is ideal. Especially if you live in the U.S., Australia, the U.K., or other countries where gambling online is restricted using traditional currency — Bitcoin (BTC) offers a way around the law. Bitcoin is not considered a currency because no government owns it — the value is established and rises and falls, but it is not a hard currency, therefore it is a gray area in terms of regulation. This means you are free to sign up and gamble via Bitcoin on most Bitcoin casinos without fear.

Additionally, Bitcoin doesn’t go through your traditional bank, so you don’t have to worry about your money being declined, your credit suffering, your bank knowing your personal information regarding gambling habits, or anyone else knowing. Bitcoin is stored in your e-Wallet and you can deposit and withdrawal funds from a casino using your unique e-Wallet address. Your funds are also offered and accepted instantaneously, which is even better – no waiting time or processing. And everything is completely anonymous.

Be aware, however, that while your Bitcoin is always anonymous, the online Bitcoin casino you sign up with may request personal information — it is up to you whether to give them that or find a Bitcoin casino that is completely anonymous (and there are great options out there for the latter).

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Bitcoin Gambling Sites — BTC Security

In order to retain security within the Bitcoin environment, the trustworthy and reputable Bitcoin casinos websites will help to protect their customers’ anonymity — some casinos can still be trustworthy, but are regulated and licensed and thus, require personal information.

However, the best Bitcoin casinos that offer complete anonymity will allow you to sign up without providing any personal information (for example, simple enter any email address, username, and password you wish). Some Bitcoin casinos even forego the registration process and allow you to gamble using a unique digital address they will give you so you can deposit BTC, gamble, and withdrawal any time.

The entire process at a Bitcoin casino is similar and shows that this cryptocurrency can change the online gambling landscape by offering a truly anonymous and secure environment for players to gamble in. If you have no personal information stored on the online site and you use Bitcoin, which also store no personal information (and is very secure), then you have little-to-no risk of becoming a victim of identity fraud through hacking.

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Wallet Storing

If you want to keep your Bitcoin secure, you must also manage your Bitcoin wallet properly. There are different ways that people store their cryptocurrency, and this will have an influence on how safe your funds are.

Essentially, there are three ways to store your Bitcoin wallets:

  • Print your wallet and store it offline; with both a private and public key printed onto the paper wallet (for obvious reasons, this is not the most commonly used method of securing Bitcoin wallets — if you lose the information, the Bitcoins stored in the wallet will be lost forever)

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  • Hardware wallets are a more concrete form of securing your wallet and is the most secure. If you have invested in a lot of BTC and worry about keeping your investment safe, this is a common way of doing so. The information is kept completely offline in hardware and all of your key data will be stored in a protected area of a microcontroller. That protected area is immune to software and viruses, which means it cannot be stolen. However, again, if your hardware is lost or destroyed (like in a fire), you may not be able to recover your funds.

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  • Finally, Bitcoin wallets are stored online — this is the most popular method of storing Bitcoin around the world. Much in the way PayPal wallets work, an online e-Wallet is convenient, can be accessed quickly and easily, is extremely secure, is not at risk of being lost or damaged, and can be used instantly without having to look for your information on a piece of paper or an offline hard drive.

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The security behind Bitcoin casinos aren’t perfect — some can have substandard security, some are blacklisted for not paying customers, and some are simply dishonest and rig their games. Thankfully, we and a host of other review sites and organizations find these casinos before they can do too much damage. If you check around and pick a well-respected and trustworthy Bitcoin casino, you will have a great time gambling, a secure account, and be protected with complete anonymity.

While Bitcoin is still in its infancy, we do know that as it has developed and increased in popularity worldwide, the better the security levels have increased on online gambling websites.

 

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