Main Considerations When Using Bitcoin for iGaming

The payment ecosystem changes constantly, and the online gambling industry manages to keep up at every turn. So, it’s not a surprise when cryptocurrencies became viable transaction options, gambling websites were among the biggest adapters. Bitcoin is almost a standard offering at crypto casinos in New Zealand.

The first recorded digital currency, Bitcoin provides unique advantages that make it a top selection at internet casinos. Gambling with Bitcoin saves you time and money, not to mention the privacy of blockchain payments. Besides players, operators enjoy some benefits too, like no chargebacks.

For these reasons, and more, you won’t have trouble finding the best Bitcoin casino sites for Kiwis. Whatever your gaming interests, the New Zealand gambling market offers enough alternatives. However, a rewarding Bitcoin gambling experience takes more than the right casino. Despite Bitcoin’s prominence on the crypto scene, it remains an unfamiliar payment method for many users. Without adequate knowledge about the coin, you risk making costly mistakes. Hence, you should learn a few things about virtual currency if you plan to use it to wager on casino games.

The Current Price

You must know the value of the coin at all times to be sure how much you are holding. Cryptocurrency suffers high price volatility, and Bitcoin is no exception. The currency went from having little value when it first launched to record highs of more than $68,000 in 2021. At the time of writing, Bitcoin is worth $24,000. This price could rise or fall in hours depending on various market conditions. The biggest downside of gambling with Bitcoin is that you could lose half or more of your budget in minutes due to price fluctuations.

Therefore, you should always be up to date with Bitcoin’s market trends when gaming. This information tells you how much your coins are worth and if they meet your gambling needs. Some Bitcoin casinos convert cryptocurrency to fiat immediately after a deposit to protect customers against price drops. In such an instance, you get a nice cushion for your bankroll. However, you must still consider Bitcoin’s price when cashing out winnings. Note that the coin exchange you select influences the buying and selling rate.

Fees Applicable

Bitcoin and other digital coins are marketed as cheaper than fiat. It’s not to say, though, that you don’t pay anything. Transaction fees apply when using Bitcoin. These charges are the difference between the funds sent and those received. It’s why you should know how much you will pay when gambling with Bitcoin. As with fiat payments, crypto fees can eat into your bankroll. Bitcoin is among the most expensive coins to transact with. In 2020, transaction fees shot up to $25.

These fees change over time, meaning you have to keep an eye on them just like the price. Currently, Bitcoin transactions cost $2.4. If a casino converts crypto to fiat before wagering, it might impose fees, which you should know about. Find out about any other charges involved when gambling with Bitcoin and add them up. The cost will help you decide if the virtual currency is worth it.

Which is the Best Wallet?

If you look up guides on using Bitcoin for payments, you will realise that a wallet is a must-have. It’s how you store your coins. Technically, a crypto wallet holds the private keys used to approve transactions. Kiwis have many wallet choices but settling on one can be daunting. Firstly, you must know how different storage solutions work to pick the most suitable one. For example, web wallets, available on crypto exchanges, are ideal for online gambling.

With an online wallet, you can link to your preferred casino effortlessly and approve transactions. However, this storage might not be the most secure if you have large holdings. Coin exchanges are prime cyber-attack targets. So, a desktop wallet might be more appropriate. The point is to define your requirements and find a Bitcoin wallet that aligns with them.

Are Holdings Taxable?

Not many cryptocurrency holders think about the taxes that apply. In New Zealand, cryptocurrency is not legal tender. However, for tax purposes, it is considered property on which you must pay income tax. Since the country doesn’t have capital gains tax, income from digital currency, whether from earnings or disposals, is bundled together and taxed using the same rate. Winnings from Bitcoin gambling count as earnings that might be taxable.

One misconception most people have about Bitcoin is that transactions are anonymous, meaning the government has no way of knowing about your assets. The Internal Revenue Authority has the power to ask for customer details from crypto exchanges and has done it before. Additionally, the blockchain is a public network that shows the activities of various addresses. It’s not difficult for a tax agency to find tax cheats. Hence, factor in your tax obligations when gambling with Bitcoin to avoid trouble.

Now you know a bit more about Bitcoin as an online gambling payment method. Cryptocurrency can seem complicated, but you only need to learn the fundamentals. Gambling with Bitcoin opens up new options in iGaming with provably fair games and the metaverse. However, before jumping into the deep end, get comfortable depositing and withdrawing Bitcoin at online casinos, and the above tips should help.

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Sarah Wurfel
Sarah Wurfel

Sarah Wurfel works as a social media editor for CaptainAltcoin and specializes in the production of videos and video reports. She studied media and communication informatics. Sarah has been a big fan of the revolutionary potential of crypto currencies for years and accordingly also concentrated on the areas of IT security and cryptography in her studies.

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