Join us as we explore the difference between centralised stablecoins and decentralised tokens. Identifying which cryptocurrency is best for online casino games and sports betting.
The online gaming industry comes with great innovations, games and a fine selection of payment methods. Whether you’re a traditionalist or a modern experimentalist, you can bank and play your way.
Crypto casinos have gone from being a blip on the radar to quickly growing and gaining popularity. Today you will find casinos providing players with a big selection of cryptocurrencies. Even when crypto gambling, there are differences in how to fund your account.
You can opt for decentralised tokens or perform transactions using the latest stablecoins.
If you’re unfamiliar with the world of cryptocurrency or have a basic understanding of crypto but not stablecoins, don’t worry, we’re here to put it into perspective.
Cryptocurrency might be gaining ground in terms of popularity, but it is still quite new. Many benefits come from using crypto, including additional security, anonymity and added value. Unfortunately, the majority of decentralised crypto tokens all have one drawback in common. They are highly volatile, meaning the coin’s value can drop as quickly as it can rise.
This is where Stablecoins come in. If you’re looking for the perks of decentralised coins minus the drawback of volatility, then stablecoins are a great alternative. These cryptocurrencies have been built specifically to address the volatility of other tokens.
What makes them less volatile? It’s due to their value being tied to another asset, such as the US dollar. This means you can use these stablecoins to fund your gaming and other daily transactions with peace of mind. Stablecoins are the cryptocurrency you use if you want to avoid the volatility of unexpected price swings.
Their value remains the same, allowing you to make bets without the fear of losing money due to the coin’s volatility. It’s the stability the coin provides that makes it ideal for online casino players.
Wondering what options there are available to choose from? Here is a quick look at some of the top cryptocurrencies and stablecoins available in crypto casinos today.
Bitcoin (BTC): Bitcoin was inspired by the anonymous creator Satoshi Nakamoto and launched in 2009. Today it is still the top cryptocurrency in the world, with a market cap of $458.08 billion. It was the first of its kind and is available in most cryptocurrency-friendly online casinos.
Ethereum (ETH): Ethereum is firmly taking the second spot, and many believe it will take over first place from Bitcoin in the future. It has a market cap of $193,00 billion, and its platform is considered the developer’s playground, as many other cryptocurrencies are built on it. Ethereum’s network went live in 2015 under the guidance of Vitalik Buterin, a Russian-Canadian programmer. Like Bitcoin, Ethereum is accessible in most crypto-friendly online casinos.
Dogecoin (DOGE): Then there is the beloved Dogecoin, originally started as a joke based on the internet meme of the Shiba Inu dog. The founder, Billy Markus, states that the cryptocurrency was created in two hours, and today, it is one of the most popular meme coins. DOGE has a market cap of $11.58 billion and is available at many popular crypto casinos.
Tether (USDT): This coin got its name because it tethers itself to the value of the US dollar. It is one of the most common stablecoins in the industry, with traditional currency, cash equivalents and gold backing it. It is secure and available on most crypto and fiat gaming platforms. It matches the US dollar 1:1.
DAI (Formerly SAI): This is a stablecoin created on the Ethereum blockchain, which makes it the most well-known stablecoin backed by a cryptocurrency. Maker Dao created it, and its price is fixed on the US Dollar price. It has one of the highest market caps, and at the beginning of 2023, it had a spot behind the top 10 cryptocurrencies.
Binance USD (BUSD): The BUSD is the Binance USD which was released by the crypto exchange. This is another stablecoin that is valued at 1:1 to the US Dollar. It’s on the Binance Smart Chain (BSC) network and a great alternative to Ethereum.
No matter what type of cryptocurrency you choose to use, you will have a wide range of benefits to take advantage of. When it comes to online casino gameplay, cryptocurrency volatility isn’t always a major issue. However, if there is one thing casino players value above all else, it is trust. And it can become difficult to build trust in a currency with a value dropping and rising daily.
If you’re using traditional cryptocurrencies when you’re gambling, you may be gambling with the price of your coin value.
Here’s an example: Consider that at the time of the bet, 1 BTC can be valued at $10,000. You win your bet, and that leaves you with double your money. But by the time you withdraw, there is a sudden 50% drop in Bitcoin value, which leaves you with a payout of less than your original bet.
Similarly, the value of your bet and winnings can increase within the blink of an eye. With traditional cryptocurrency, the volatility makes it possible for the outcome to go either way. It can either be in your favour or against you. It’s a risky game to play.
Stablecoins, on the other hand, are a lot like betting with traditional currency. You have that trust knowing that the currency will remain at its value, enabling you to keep your focus on the game. However, that stability means you miss out on a possible increase in value.
At the end of the day, the choice will vary from one person to the next. Traditional cryptocurrency is ideal if you’re not afraid of volatility and ready to risk your bets in hopes of bigger rewards. If you want a cryptocurrency that is a little more stable and trustworthy, then it is recommended to opt for stablecoins. Both decentralised tokens and stablecoins have plenty of benefits and some drawbacks that either make them ideal or not suitable, depending on the experience you’re after.
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