Bitcoin is the world’s most dominant digital asset and it gets the most attention in the media and from cryptocurrency traders – nobody can dispute that. It acts as a focal point for the rest of the industry and often pulls the price of the rest of the market up or down; its influence on the broader market is undeniable.
Initially, cryptocurrency casinos would only transact with Bitcoin. Many platforms making the first moves in the industry didn’t know what the consumer appetite would be. They tested the waters to see whether playing casino games with Bitcoin was viable for those intrigued by the industry and investing and trading in assets. Once they had a good sample to measure the activity, they could roll this out to other crypto projects.
The initial success of Bitcoin casinos soon opened the door for the industry to explore other options. With dozens of other cryptocurrencies having multibillion-dollar market caps, providers quickly raced to try and find a niche and carve out some of this growing market for themselves.
Altcoins used on crypto casino platforms
Once Bitcoin emerged as a suitable alternate payment method for online casino gamers, altcoins were next in line. While they might not have the same market caps and overall public awareness as Bitcoin’s figurehead asset, it quickly became apparent that altcoins were another payment method that gamblers were keen to explore.
Altcoin is another term for any cryptocurrency that isn’t Bitcoin. Ethereum is considered the primary altcoin, and many other alts, such as XRP, Solana and Litecoin, make up the top ten. For those casino gamers looking to play with Litecoin, the casino games operate just as they do at a traditional online casino, and the withdrawal and deposit methods do not differ from any other type of cryptocurrency payment to a gambling platform.
Obviously, the first step is to have Litecoin in a cryptocurrency wallet and then connect to the provider. The deposit goes directly to the cryptocurrency casino’s wallet, which can bypass some of the issues traditional casinos have with typical bank payments.
Although most transactions are completed within a few minutes, some banks can take up to two hours to process fiat payments, and with alternate payment methods, this can sometimes take longer. With a crypto casino, once the deposit is made, it is validated on the blockchain and available within a few seconds.
The reason behind more crypto options
Simply put, the industry recognized a market for crypto payments and understood that people weren’t keen on using only Bitcoin for gambling. As Bitcoin made significant gains in early 2024, more companies were looking for ways to facilitate payments – and it’s not just cryptocurrency casinos included in this bracket. While the positive price action and the new, all-time high from earlier this year have helped crypto providers, crypto casinos also made waves during the last bull run in 2021.
As merchants looked to use cryptocurrency and blockchain technology, and several niche gaming areas championing the use of NFTs and other crypto-specific options started to emerge, it became clear that there was a growing market for people to use their crypto. Some have even floated the idea of using Bitcoin for rental payments. Since it is now legal tender in El Salvador, the possibilities continue to grow for real use cases and mass adoption, but it is a gradual process.
It was the next natural step for cryptocurrency casinos. As we touched on earlier, they soon rolled out options to use Ethereum, the second-largest crypto by market cap. Within a few months, the floodgates had opened and multiple platforms were offering facilities to use dozens of different altcoins.
A different type of security
Cryptocurrency casinos wouldn’t be a viable alternative if the market wasn’t there. Ideas and designs follow consumer patterns, as customer preference dictates the direction and trajectory of the market.
The casino industry had pioneered and facilitated this before, such as online platforms in the 1990s – primarily with desktop gambling – and into the latter stages of the 2000s when mobile apps became a prominent fixture in the iGaming world. Due to the speed of the growth it fueled, casino platforms have worked tirelessly to find the next genuine innovation that will continue to add possibilities to casino gaming, and it feels as though cryptocurrency providers are those exhibiting the most promise.
It all depends on the type of casino gamer; some will opt for more traditional methods but millions will seek an alternative way to play if it is deemed more convenient or secure. Now, there’s no knocking the security of traditional casinos – many of them use either 128-bit or 256-bit SSL encryption to secure data.
However, in the rare instances when a cybercriminal breaches a traditional casino, the valuable data they look to obtain is personal information, verification documents, card numbers etc. With a cryptocurrency casino, the main target is the casino’s wallet. While this is obviously bad news for the provider if they are subject to a hack, that is usually the primary target for hacking groups.
Convenience
Online casinos have made up a lot of ground in the traditional sector because they allow people to play casino games from home. Cryptocurrency casinos don’t add another dimension of convenience in the same way that digital casinos did at the beginning of this century.
Still, they are convenient if you invest in digital assets and enjoy playing casino games. Instead of off-ramping your cryptocurrency into fiat currency to play at a traditional provider, you can withdraw your chosen asset into your wallet and deposit it directly to the casino.
While not all traditional casinos will have you jumping through hoops and performing extensive KYC to withdraw your funds, verifying with them is crucial. Sometimes, this can be simple, and occasionally, it can take a few weeks. It depends on which platform you use. Casino gamers do not encounter these same issues at crypto casinos; all transactions are logged and immutable on the blockchain, which adds convenience for both the provider and the gamer using the site.
Conclusion
The growth of cryptocurrency casinos ultimately stems from several factors we touched on today, and includes a different type of security and convenience. As more people invest in crypto and grow their understanding of how altcoins operate, common use cases that millions can recognize are just one stepping stone that, in the long run, could eventually lead to mass adoption – but we’re still in the early stages.
