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Cryptocurrency is a hot topic among various communities around the world including lawmakers, investors, and crypto traders. Gambling with blockchain-based currencies is also increasing in popularity although it is far from taking the lead against traditional fiat-currency wagers. Of the most debated coins in the crypto collection, are stablecoins and world financial leaders can’t seem to agree on how to deal with them. The primary motivation behind the creation of stablecoins is to provide a less volatile cryptocurrency for exchange. How are these coins faring at providing stable currency and is it a good choice for bets, compared to fiat-based gambling? Let’s explore what stablecoin gambling offers and compare how it stacks up against fiat wagers. Fiat Currency vs Stablecoins We all know what fiat currency is because that is how we transact and purchase goods daily. Fiat has been around for ages, but how does it work and where does it get its worth from? On the flip side, we ask the same questions about stablecoins and attempt to answer these too. The Emergence of Fiat Currency The first government-issued money originated from China in the 10th century, but fiat money as we know it today gradually developed over some time and it wasn’t until the 1970s that it became a global norm. US president, Richard Nixon, decoupled the dollar from gold in 1971 and launched government-backed currency to replace commodity-backed currency. The word ‘fiat’ originates from Latin and means ‘it shall be’ or ‘let it be done’ and all modern fiat money depends on the word of the government that backs it. Fiat currency has no more worth than the paper they print it on, but if the originating country considers it legal tender, fiat is worth whatever the central bank says it is. Money or commodities were a means of storing wealth and transacting for trade or debt and when the gold standard disappeared in the late 20th century, fiat money became the most widely accepted legal tender for transacting. Apart from the availability and acceptance of fiat, governments also gained the advantage of meeting the demands of their citizens by printing more money. Features to Keep in Mind Because a country’s central bank governs fiat money, there is a sense of stability in times of economic turbulence. Storage and management and accessibility of fiat money are fairly straightforward. Thanks to its capacity to store buying power, people easily decide on growth and investment with fiat currency. It is a globally accepted means of trade, and we can buy just about anything with fiat money. Cryptocurrency: A Decentralised Opponent Bitcoin arrived as the first cryptocurrency and decentralised money option with much push-back from the traditional finance sector. Shortly after, more blockchain-based coins arrived on the scene and soon there was a trading market for the sector. Unfortunately, because of the volatile nature of cryptocurrencies, there are few willing to accept them. The reason some adopt digital currencies is that there is no single entity that controls them like traditional financial systems. Decentralised finance (Defi) is attractive to people who want to cut out the middleman, and the costs involved with financial institutions handling their money. Another advantage of cryptocurrency is the blockchain features that make transactions highly secure and swift. Stablecoins Blockchain experts recognised the gap in the market and introduced stablecoins in response to the unfavourable volatile coins rejected by many. The original cryptocurrencies like Bitcoin and Ethereum share a common trait with fiat, nothing backs the value of the currencies. Instead, these coins and their value depends on the basic principle of economics - supply and demand. Stablecoins, on the other hand, resemble money from earlier eras because it has collateral backing. The value of stablecoins depends on what they pegged the specific coin to. External references like commodities or algorithms that determine supply levels, allow these coins to be much less volatile than standard cryptocurrency. They can peg these digital assets to fiat currency, foreign exchange-traded commodities, and precious or industrial metals also referred to as traditional financial investment tools. Sometimes, the stablecoin might have other cryptocurrency backing or non-collateral backing. Features to Keep in Mind Stablecoins are available 24 hours a day via the internet, almost anywhere in the world. Transactions are super-efficient, and the lack of a middleman drops costs substantially. Stablecoins are native online currencies and very adaptable. Transactions only require crypto wallets in the peer-to-peer network. Different Stablecoins In order to stabilise the value of these crypto coins, they maintain a reserve of a commodity as collateral. Four types of stablecoins exist with different collateral to stabilise their value. Fiat-Backed Stablecoins Fiat-collateralised stablecoins are pegged to one, or more, fiat currencies, with the US dollar being the most popular fiat collateral. This category of stablecoins maintains a steady value according to its pegged currency and this should make it much less volatile than the original cryptocurrency. The most popular fiat-backed stablecoin is Tether, and it has the largest market capitalisation, making it the most liquid. Although the coin experienced a big drop in the value of approximately 1% in May this year, it remains the best stablecoin. A major advantage of Tether is that almost all crypto exchanges around the world use it. Other popular choices in the fiat-backed category include two more dollar-pegged coins - USD coin and Binance USD, as well as the Euro-pegged coin – EUROS – which is the largest Euro-backed coin. Regardless of the relationship these coins have with different fiat currencies, some countries prohibit the use of cryptocurrencies and regulators continue to push for Defi regulations. Crypto-collateralised Stablecoins It may sound counterintuitive, but some stablecoins have cryptocurrencies as collateral. When they peg its value to a crypto reserve, the stablecoin is over-collateralised. This means that the value of the pegged cryptocurrency must always exceed the value of the stablecoins issued. An example of this is a coin valued at 1 million will have a cryptocurrency worth 2 million backing it. The insurance against a 50% drop in the value of the pegged cryptocurrency allows for lower volatility while keeping the coin purely blockchain-based. MakerDAO’s DAI is a crypto-backed stablecoin and although it is pegged to the US dollar, Ethereum and other cryptocurrencies worth 150% of the DAI stablecoin in circulation back it. Commodity-backed Stablecoins The third type of stablecoin has its value pegged to physical commodities like precious metals and oil. Collateralised by the values of gold, silver, oil, and sometimes real estate, these stablecoins hold the values of the real-world assets backing them. Preferred by investors with an interest in these commodities, gold and oil-backed coins allows people to easily invest in highly sought-after commodities, without worrying about how they will sell the materials when needed. Examples of these coins are Paxos Gold and Tether Gold. Algorithmic-backed Stablecoins These stablecoins may or may not hold physical reserve assets as collateral. Instead, they differ from normal cryptocurrencies because algorithms control their stability by limiting supply. Essentially, the algorithms and computers that run the formulas play the same role as a reserve bank do with fiat currency. The only challenge with this type of stablecoins is the lack of physical collateral, as felt by the investors of TerraUSD (UST) on 11 May, when its pegged token Luna slumped more than 80% overnight and dragged UST values down by 60%. Online Gambling: Stablecoin or Fiat Wagers? With the convenience, speed, and low cost involved with blockchain currencies, the emergence of crypto casinos was inevitable. Now that stablecoins present a less volatile choice to gamblers, the natural question is whether a crypto casino is better than one that only accepts fiat currencies. Let’s do a quick comparison of stablecoins and fiat to help us conclude: Stablecoins This category of cryptocurrency presents us with a more reliable source of tradable currency making it a highly liquid option. The pegged feature allows for quick conversion from crypto to fiat. Stablecoins present two advantages: the decentralised feature of blockchain technology, plus greater stability from solid collateral. Although stablecoins are better equipped to be a reliable means of trade, few accept it. However, many online casinos that accept cryptocurrency have stablecoin options. Fiat Currency Fiat money is available anywhere and when gambling online, players only need the right type of currency for their region to enjoy a wide variety of casino options. It is a highly reliable currency. The value is determined by central issuers, and this causes stability. They accept fiat currency anywhere and can pay for or purchase almost anything. What’s the Verdict? Depending on the player, both fiat and crypto gambling with stablecoins present advantages. The lower volatility of stablecoins makes it a far more attractive choice in the crypto space and this drives its popularity, specifically fiat-pegged coins. A punter’s preferences determine the verdict here because both options have significant advantages. For the best online casinos, visit our casino guide or check out our bitcoin casino list for the top crypto gambling options.
In the history of mankind, there are those groundbreaking new innovations that spur us on to bigger and better things. These major inventions include harnessing electricity, the telephone, the motorcar, the internet and now the blockchain. Love it or hate it the development of cryptocurrencies on the blockchain has revolutionised how we view digital assets, our thinking around finance and how the world will transact for the foreseeable future. The Types of Cryptocurrencies While we have all heard of Bitcoin, Ethereum, Dogecoin and other well know crypto coins there is often some confusion when it comes to terms like decentralised cryptos, stable coins and alt coins. Here are some easy introductions to these terms: ✓True/Decentralised Cryptocurrencies When Satoshi Nakamoto first conceptualised Bitcoin his intent was to create a digital currency that would not reside on a single server but was spread across the Blockchain. This would ensure that no single country, corporation, or person could ever own it or control it. Crypto coins like Bitcoin, Ethereum, Dogecoin and others which follow this decentralised tradition by residing on the Blockchain and do not have a single controlling owner are considered by industry pundits to be “true” cryptos. ✓Alt Coins As the name denotes Alt-Coins are “alternatives to” an existing cryptocurrency. Due to the fact that blockchain and cryptocurrency code is open source, it allows anyone with the appropriate skill level to develop their own coin. Generally, an altcoin improves on one or more aspects of its original code. An example of this is Ethereum which improved on the transactional aspect of Bitcoin, allowing it to process blocks of transactions in two and a half minutes compared to Bitcoin’s much slower ten minutes per block. ✓Stable Coins Stable Coins are the type of crypto token which is the farthest removed from Satoshi’s vision for his invention for three reasons: They reside on a single server or closed series of servers They are owned and operated by single entities Its value is dictated by a fiat currency or precious metal While stable coins exist on the blockchain and offer all of its speed, security and low cost benefits they are simply the digital-only equivalents of our existing country-based currencies. Most governments around the world are in the process of developing stable coin versions of their currencies with the hopes of one day doing away with costly and short-lived paper and metal money. Visit our full guide to stablecoins for more on this interesting spin off of cryptocurrency technology. Why Crypto Gambling Is Popular With the unique way in which the blockchain stores and shares data it is the most hacker-proof system on the planet. Rather than store information in a single central location, which once cracked, gives the would-be thief full access to the data the blockchain splits it into thousands of tiny data packets. These packets of data are then spread across all the connected nodes on the internet and are each individually secured. In addition to this mind-blowing level of security the fact that it is only moving tiny bits of data around means that it can pass large volumes of information at incredibly high speeds. When applied to lightweight products like a casino deposit this means near-instant banking. Finally, the blockchain does not require you to give confirmable information to access and use it other than a personalised username and an email. It is not perfectly anonymous as there is the issue of using your internet connection (which can be addressed by the information we supplied in our guide to using a VPN for cyber security) and that purchasing Bitcoin is done via a crypto exchange like Security, speedy transactions and high levels of anonymity are some of the reasons that more players are making the move to gambling at crypto casinos. The Top 10 Cryptocurrencies To ensure that we do not fall into the trap of thinking about cryptocurrencies in a limited way we looked to CoinMarketCap to see which digital tokens are the most popular outside of our industry. Much to our delight, the online casino industry has adopted cryptos with open arms. The proof of this is that ten of the fifteen highest rated crypto coins are already in wide use by the best crypto casinos. If you are interested in gambling with Bitcoin and other leading cryptos here is a brief overview of the top 10 casino cryptos and an idea of where you can play with them: 1. Bitcoin – First Decentralised Coin As the first truly decentralised cryptocurrency Bitcoin captured the imagination of the world with its mysterious creator and incredible value growth. It not only drew attention to the potential of digital currencies but also the potential of the blockchain which has seen many industries begin to develop new and exciting innovations, tools and products that have changed the world. The first decentralised crypto coin Incredibly valuable digital asset One of the most secure currencies in the world If you would like to try your hand at playing your favourite online slots and tables games with Bitcoin, we recommend visiting Bitcoin Games casino and 22Bet casino. 2. Ethereum – Decentralised/Altcoin Ethereum is only second in terms of industry awareness and usability to Bitcoin. As a Bitcoin altcoin, Ethereum offers users the same safety and security with vastly superior processing times. Ethereum has set itself up as the “everyday driver” of cryptocurrencies processing up to 1 million transactions each day while Bitcoin only processes up to 250,000. Same secure framework as Bitcoin Ability to process up to 1,000,000 transactions per day One of the cheapest cryptos to use Ethereum’s processing power makes it incredibly popular with online casinos that offer digital token gambling. We recommend visiting Green Spin casino and Bitstarz casino to try it out for yourself. 3. Bitcoin Cash – Decentralised/Altcoin Bitcoin Cash is another Bitcoin altcoin, in this case, it was developed in 2017 from a fork of the original crypto. The benefits of Bitcoin Cash lie in its larger block size which means it is faster than BTC while capping its supply which gives it a similar asset value proposition to its progenitor. Follows the same digital asset mentality as Bitcoin Offers superior processing times as the original coin Very low fee structure If you’re looking to gamble with a cryptocurrency that is incredibly like Bitcoin but offers faster transactions, lower costs and a lower price per coin then Bitcoin Cash could be for you. Try it out today at Kosmonaut casino and 1xBit casino. 4. Cardano – Decentralised/Altcoin Cardano is the ledger that supports the independent cryptocurrency ADA. The digital coin is considered one of the leading alt-coins on the market due to its reasonable cost, widespread adoption by online businesses and incredibly cheap processing fees. Still available at a low price Uses a bespoke low-cost fee structure Widespread use by online shops and gambling sites If you are new to cryptos and want to test the waters with a usable and fairly cheap option, then you should consider buying some Cardano. You can play with it online at Fairspin casino and TrueFlip casino. 5. Tether – Stablecoin Tether is a stable coin that has anchored its value to the US dollar while still offering users the stability, processing speed and security of the blockchain. For banks, businesses, and new crypto enthusiasts it offers the benefits of the blockchain without the fear of massive price fluctuations associated with decentralised coins. Steady and predictable pricing Offers the digital security of the blockchain A popular digital currency for e-commerce We recommend trying out the benefits of cryptocurrency gambling by starting with the market stability offered by Tether. It is available at MyStake casino and Rolletto casino. 6. XRP – Decentralised/Altcoin XRP is the cryptocurrency used by products developed by Ripple Labs on the blockchain. The intent of creating XRP was not to launch the next crypto-asset like Bitcoin but to offer the community a network specifically designed to handle high volumes of digital payments Specifically designed to process high transaction volumes XRP is not mined but rather acquired through trading Ranked as one of the top 10 cryptos worldwide Test out the efficiency and processing power of the XRP network for yourself by using it as your deposit and withdrawal mechanism at both Bet Sensation casino and 1xBit casino today. 7. Dogecoin – Decentralised/Altcoin Developed a commentary on the insane prices that crypto-assets were demanding Dogecoin has positioned itself to be the ‘everyman’ cryptocurrency. Built on the Litecoin framework Dogecoin offers fantastic processing and low costs but has openly stated its supply will be unlimited ensuring none of the price spikes associated with limited-supply coins like Bitcoin. A real-life underdog story Unlimited supply manages price volatility Offers all the benefits of Litecoin Take this playful Shiba-token for a walk today by signing up at either 22Bet casino or Green Spin casino today and playing their selection of online slots, table games and arcade games. 8. USD Coin If you are a fan of innovation and new technology but are sceptical of the crazy price fluctuations of some cryptos then USDCoin could be your perfect solution. This stable coin offers all the processing and security benefits of the blockchain while guaranteeing that each USDCoin will always only cost $1.00. Price per coin will always be the equivalent of US$ 1.00 Enjoy all the benefits of the blockchain Built on the trusted and highly trafficked Ethereum framework USDCoin’s stable pricing anchor makes it the perfect cryptocurrency for players looking to move from fiat currency banking to digital banking without risking their bankroll to currency volatility. Play with it at 1XBit casino and Fairspin casino today. 9. Chainlink Chainlink is considered an Ethereum alt-coin. While it offers users all the expected speed, low costs and security of the blockchain it has the added benefit of integrating transactions that are not based on the blockchain. This is allowing people to seamlessly do business using fiat currencies with blockchain companies. Ethereum-based altcoin Seamless off-blockchain transaction processing Offer tamper-proof cross-blockchain smart contracts Test the high speeds, hack-proof security, and low fee structure of this altcoin for yourself by playing at Casino-Z and 1xSlots casino today. 10. Litecoin – Decentralised/Altcoin Litecoin is one of the early Bitcoin altcoins having been launched in 2011. In addition to offering the same anonymity and security options as its source, the developers behind Litecoin have also engineered the Lightning Network for instant global payments for everything from casino deposits to purchasing a coffee. Hack proof peer-to-peer transaction network Lightning network for instant payments Developers of Atomic Swap for cross crypto trading Try your hand at playing video slots, video poker, blackjack and more using Litecoin to deposit and withdraw at Bet Sensation casino and Green Spin casino today. How To Gamble With Cryptocurrencies Now that you are comfortable with what the differences are between the various types of coins, know a little more about the top 10 cryptos for gambling and have some idea of where to play with each of them let's talk about how to deposit and withdraw with cryptos. Despite being a groundbreaking new technology using them in practice is incredibly simple. To begin gambling with digital currencies all you need to do once you’ve joined your preferred crypto casino is follow the simple steps below: ✓How To Deposit with Crypto To make your first deposit at an online casino with cryptocurrency, plus claim the amazing welcome bonuses on offer, follow these simple steps: Step 1: Click on deposit at the top right of the page. Step 2: Select bitcoin, copy the private depositing address, and enter a relevant promo code. Step 3: Send the bitcoin to the private depositing address from your Bitcoin wallet of choice. With the speed and power of the blockchain, your first crypto deposit will be ready and waiting for you in your account within moments. ✓How To Withdraw with Crypto When it comes to cashing out your winnings the process is even more simple than making your first deposit. Follow these easy steps to withdraw your money: Step 1: Click Profile at top right of page, then click withdrawal. Step 2: Find your Bitcoin wallet address. Step 3: Select Bitcoin, enter your wallet address, the amount to be withdrawn, click withdrawal. For players who are used to waiting up to five business days for a withdrawal crypto-cash out will be mindblowing. At most, you will have to wait 15 minutes before you see your withdrawal become available in your wallet.