Crypto markets have been a speculative craze for years, but the past year has proven that there’s more than meets the eye when it comes to cryptocurrency and while the technology is still relatively new, it’s already being used for nefarious purposes; the problem is that most people don’t understand how crypto gambling works, which games are connected with the most risk, or how it compares to fiat currencies in terms of risk and returns.
What is crypto gambling?
Crypto gambling is making use of the highly volatile nature of cryptocurrencies to offer players a chance at profit, however, unlike regular gambling, the potential returns from crypto are significantly higher due to the nature of the industry’s innovation — blockchain technology, because of its decentralized nature, no two players can hold a stake in common and all bets are done based on individual blockchain entries.
The Problem with Crypto Gambling
While many have seen the potential of blockchain technology, it has also been used for nefarious purposes; for example, ransomware operators have used the technology to demand millions in ransoms, and other developers are finding new uses for blockchain in the gambling sector.
How Crypto Gambling Works
Most online gambling services will allow you to trade cryptocurrencies on a regulated exchange, where your chosen currency goes through a complex process before being sent to you, as with most new technologies, with that said, most online gambling services are currently very conservative with their risk assessment, and while some casinos will take higher risk bets, most have very low limits.
Even so, you should exercise caution because cryptocurrencies are still relatively new, there is little information about the trading risks involved, and while a cryptocurrency with a high trading price has more value in theory than one with a lower price, there is no guarantee that trading will increase your returns.
How to Spot a Crypto Gambling Scam
It’s no secret that online fraud and scamming are major challenges in the online gambling industry, that said, fraudulent online gambling games are all too common and that is why you should use caution when dealing with websites that offer you crypto gambling; first, check the website for certain signs of a scam- a sketchy site with no product or services listed, lots of spamming responses, and a high betting limit are all red flags and if you notice any of these symptoms, consider yourself warned and move on.
How to Avoid Crypto Gambling
There are several strategies to prevent being a victim of cryptocurrency gaming scams, to begin, you should confirm the identity of any new player you encounter- you should also use caution while dealing with strangers, and be aware of websites with extremely low limitations- while some casinos accept larger risk wagers, the majority have extremely low limits.