Disclaimer: The text below is a sponsored article that was not written by Cryptonews.com.
If you’re interested in dealing with cryptocurrency then you’ll naturally have quite a few questions to keep yourself well and truly in the ‘know how’. In this article we explore the whole concept of how it works and also, how it can enhance playing online – for example, through casino roulette games and so on. But first, the basics!
What exactly ‘is’ cryptocurrency?
Put simply, cryptocurrency (otherwise known as cryptoassets) encompass the likes of Bitcoin, Lietcoin, Etherum and Ripple. It’s an internet-based medium of exchange which relies on cryptographical functions in order to conduct financial transactions across the globe whilst gaining decentralisation, transparency and immutability.
What does the word actually mean?!
The word ‘crypto’ actually means ‘hidden’ or ‘secret’, thus hinting at the secure technology which is used to record who owns what – and for making payments as between different users.
‘Currency’, of course, simply means a type of cash – in this instance, electronic. However, unlike the type of cash we might carry in person, cryptocurrencies aren’t regulated by a bank to step in if things go wrong – hence the importance of knowing exactly what you’re doing!
So, can I go shopping with cryptocurrency?
Not at the moment. Whilst there are certain recommendations in the pipeline to make cryptocurrency easier to use, it’s not currently accepted in high store stores and let’s not forget it’s not regulated. This means that you can’t claim a refund should things go wrong and you’re still exposed to significant risk. Here’s an example:
Between 2014 and the beginning of 2018, oil prices didn’t change by more than 10% in any one day. The Bitcoin, on the other hand, rose by 65% in one day and then fell by 25% on another. It’s a highly unpredictable market and certainly shouldn’t be used without care (and a great deal of knowledge!)
That said, increasingly more merchants are now looking to incorporate cryptocurrency into their offering and Apple are said to have authorized at least 10 different types of cryptocurrencies as a viable form of payment on their App store.
Are there any benefits of cryptocurrency?
In essence, yes. Cryptocurrency is certainly capable of acting like a ‘large property rights database’ i.e. it can be used to execute and enforce two-party contracts for things such as real estate and vehicles whilst eliminating expensive brokerage and legal fees. It can also be used on gambling sites, which we’ll explore a little later on.
Other users of cryptocurrencies believe they’re the hottest investment opportunity currently on the market, with Bitcoin currently being the most dominant. Indeed, numerous investors have made fortunes by mining Bitcoins although this also means having to invest in an industrial-grade mining hardware… and it perhaps goes without saying these incur huge electricity bills, not to mention the price of buying the necessary equipment. It really is a case of ‘buyer beware’ if you’re going to make a huge success of it.
What are the key disadvantages of cryptocurrency?
The main downside of cryptocurrency is the exposure to risk. As we’ve already demonstrated, values can rise and fall within (quite literally) a matter of hours. This, in turn, can also make it difficult for both users and merchants to accept and use this type of currency – not to mention, of course, the way in which the currency gets accepted.
How does cryptocurrency work alongside gambling sites and playing online?
Many cryptocurrency investors choose to use it for online gambling, playing casino roulette games (try playing online), slots, poker and so on. Once you’ve decided to go down this route, then you’ll need to determine which type of gambling site is best for your needs and priorities. There are basically two options:
1. Cryptocurrency only sites
As the name suggests, this type of gambling site will only ever deal in cryptocurrency, so they won’t accept deposits using any other type of currency – and naturally, any winnings are paid out in cryptocurrency too.
Unfortunately, these types of sites can be subject to scams and fraud so it’s crucial to do your homework before using one and remember, a cryptocurrency only site could be there one day and quite literally gone the next. That said, because they only deal in cryptocurrency it makes the whole process much more streamlined and is often seen as a faster option; thus adding that little added appeal about it.
2. Established sites with cryptocurrency options
Established sites can give an added sense of security since they’re typically already established but have merely added cryptocurrency as an added option for payments/payouts. That said, they might not offer as many types of cryptocurrency so you might need to purchase something more mainstream if you want to gamble online.
In essence, if you’re offered the choice between this type of site and a cryptocurrency only site, this type of site is generally the safer to use; although that’s certainly not to suggest you shouldn’t do your research before investing.