Explained: How To Ensure Safety of Crypto Holdings in Online Gambling

Cryptocurrencies are one-of-a-kind digital currencies in the world that have gained astounding prominence. With its decentralised and seamless nature, cryptos have been recognised as one of the best-performing asset classes in the world. Bitcoin, for instance, started its journey in 2009 with a mere value of zero. However, its value increased from $0.10 to $0.20 on Oct. 26, 2010. From thereon, continuing its journey with its ups and downs, Bitcoin attained an all-time high of over $100,000 in 2024.

Notably, cryptos are also used in payment services ranging across e-commerce platforms to online gambling, including no KYC crypto casinos that attract users with their anonymity and convenience. In fact, the revenue made via cryptocurrency in 2023 stood at $222.7 million. However, it should be noted that, though transactions are end-to-end encrypted, cryptocurrencies are always subject to risks and cyber fraud. Over the years, cybercriminals have made deliberate attempts to hack various crypto exchange platforms, and no KYC crypto casinos may present additional risks if not carefully vetted. Therefore, users should keep a hawk eye on their crypto holdings and must take utmost precautions while indulging in online gambling.

Here’s a look at a few ways to ensure the safety of your holdings.

Safety of cryptocurrency in Online Gambling

1. Remember the Name ‘Volatility’

Cryptocurrencies are highly volatile assets that are heavily prone to external factors, meaning they can either leap deep into the sky or crumble in distress, causing deep cracks in the investor’s wealth. Bitcoin, for instance, had its worst nightmare when its value tumbled by 84% between 2017 and 2018. In fact, the whole crypto industry was in the doldrums throughout 2018. However, cut to 2024, the crypto market is again taking centre stage, as Bitcoin touched over $100,000.

The volatility in the crypto market means that a user might make a lot of money in the game but could also lose a substantial part of his wealth before converting it back to fiat currency. Therefore, users should study the associated risks beforehand and must be well prepared for market fluctuations.

2. Use Secured Platforms

In the world of online betting, security is one of the most concerning issues, and it gets even murkier when cryptocurrencies are involved. Investors always keep their cryptocurrencies in digital wallets. However, they have remained vulnerable to cyber frauds as crypto exchanges are not well-protected. Recently, close to 15 million users of WazirX lost $235 million when North Korea’s Lazarus Group allegedly hacked the crypto platform. Therefore, investors should always use those platforms that deploy strong encryption and 2-factor authentications. Additionally, users should use those forums that are well-reputed and secure.

3. Stop Using Unverified Crypto Wallets

Crypto wallets are intermediaries that allow users to store passkeys for cryptocurrency transactions, letting users access their crypto coins. However, not all wallets are created equally, as most are believed to be unreliable, thus making them vulnerable to hacks or fraud. Therefore, users who transact via crypto wallets should always do it through platforms with good reviews and strong backing from industry experts.

4. Don’t Choose Wrong Cryptocurrency

Users often choose the wrong cryptocurrency to handle gambling transactions. Not all of them are meant for such purposes. While Bitcoin and Ethereum emerge as popular choices, they remain expensive for a broad set of users. In such a scenario, users can go ahead with stablecoins, such as USDT, which are less volatile. Therefore, users should always use those cryptocurrencies which are compatible with designated online casinos.

5. Regulatory Measures

Cryptocurrencies have always been a subject of debate since its emergence. While some countries have enacted outright bans on them, several nations have made it legal by even making necessary legislation. However, the issue becomes even trickier when cryptos are used for online gambling. This year, crypto platforms have come under intense scrutiny in regions including the U.S. and the European Union. Moreover, issues related to money laundering have become a cause of concern in these countries. Therefore, players are advised to use those platforms which are licensed and well-regulated in their countries.