Maybe you want to bet with Bitcoin so you can access one of the great Bitcoin bookmakers and place your bets anonymously. Or, maybe, you simply like the idea of using Bitcoin as a currency or as an investment asset.
In any case, here is a Bitcoin FAQ where you can get basic answers about the world’s leading cryptocurrency.
What is Bitcoin?
Bitcoin is a cryptocurrency – also referred to as a digital currency. It came out in 2009 and has become incredibly popular and widely used. Bitcoin is used as an investment object, as a store of value, as a payment method, and, naturally, also for sports betting.
Since Bitcoin, a lot of other cryptocurrencies have entered the market. The most famous ones are Litecoin, Ethereum and Dash. Then there are the Bitcoin forks, such as Bitcoin Cash and Bitcoin SV.
Who can use Bitcoin?
Anyone – it doesn’t discriminate. Regardless of age, gender, orientation, nationality, political status, or whatever – you can use Bitcoin.
How can I get Bitcoin?
There are many ways you can get Bitcoin. You can exchange your normal currency and get Bitcoin instead. You can also earn Bitcoin if someone is willing to pay it to you as a salary.
If you want to buy Bitcoin – that means trading in your dollars, euros, whichever currency you are using in exchange for Bitcoin – you have several options:
- Use a cryptocurrency exchange
- Trade with a friend who owns Bitcoin
- Buy from a website that sells it
- Use a private exchange, like LocalBitcoins or similar
The best cryptocurrency exchanges are Kraken and Coinbase. Kraken has a fee of 0.26% when you make your first trades, so that is arguably the exchange where you get the best conditions. Coinbase is the easiest to navigate, though.
Binance can be used if you need to exchange Bitcoin for another cryptocurrency.
Bitcoin websites and private traders usually take a much higher fee than the exchanges.
Do I have to get at least one Bitcoin?
No. This is a common misconception by people who are just getting introduced to Bitcoin.
Just like a dollar has cents, a Bitcoin can also be split into parts. In other words, you can buy 0.5 Bitcoin if that is what you need. And you can send 0.0003 Bitcoin or even less if you need to do that. The lowest amount you can use at the moment is 0.00000001 Bitcoin, also known as a “Satoshi”. In the future, we expect that Bitcoin can be split into even smaller parts than a Satoshi.
So don’t worry about it – even fractions of Bitcoin can be used, so you don’t need to be super-wealthy to get started with it. Anyone can get in on it, even for very small amounts.
Do I need to open an account?
Bitcoin is completely unaffiliated with banks. This is one of the main benefits. Instead of an account, you simply need a personal wallet. It is a digital wallet where you can store your Bitcoin and your other cryptocurrencies. Bitcoin wallets exist for PC, Mac, Android phones and tablets, iOS phones and tablets, and many other devices. The majority of digital Bitcoin wallets are free – we recommend using Exodus and BRD – although you can buy physical Bitcoin wallets if you want to be extra safe. These are known as cold wallets and are perfect for long-term storage. Ledger and Trezor produce the most popular physical cryptocurrency wallets.
If you want a normal digital wallet: It is very easy to install and start using a wallet on your computer or phone. It takes less than 5 minutes. But remember to write down your private keys: If you lose access to your account, you need to have a code that allows you to re-access it!
Is it free to send Bitcoin?
No, you pay a small fee every time you send Bitcoin to another address. The fee depends on how busy the network is and how fast you want. Many Bitcoin wallets let you set your own fee. If you choose a fee of 50 cents, it might take between 1 and 24 hours before the transfer gets completed. If you choose a fee of 2 dollars, it might only take a few minutes.
Bitcoin does have higher fees than other cryptocurrencies. That is the reason why Bitcoin Cash and Ethereum are popular for actual use while Bitcoin is more of value storage. If you send with Bitcoin Cash, for instance, the fee might only be 1 cent.
Which bookmakers accept Bitcoin?
We have reviewed several Bitcoin bookmakers and we have an article covering all the best of them. At the moment, we like Cloudbet and Nitrogen the most! We recommend you to read our reviews on each of these bookies to find the one that suits you the best.
Cloudbet and Nitrogen are not the only ones. We have a full list of all the best Bitcoin sportsbooks here.
Can the government see what I’m doing?
Contrary to what many people believe, Bitcoin is not fully anonymous. There’s no name or personal information. But: There is a public ledger, so transfers can actually be tracked.
Let’s say you buy Bitcoin with an exchange such as Coinbase that actually shares information with the tax authorities. In that case, the authorities will be able to track the Bitcoin as you use it, so if they want to, they will be able to see it.
However, they cannot do anything to stop it. Bitcoin is completely decentralized.
We advise you to look into the local laws and rules of your country so you don’t get into trouble. If either gambling winnings or cryptocurrency gains are taxed, be sure to file your report with the tax authorities to avoid any trouble.
Is it safe to bet with Bitcoin?
It depends on the bookmaker you’re using. There are some great sportsbooks that are very safe to use – and there are some dodgy ones. Do your homework and always read some reviews before signing up. The good news is that most Bitcoin bookies don’t have any KYC and you don’t need to share any credit card information since you’re using crypto. That means you won’t have to share any sensitive personal information which is great, so in some ways, betting with Bitcoin actually feels safer than betting with traditional currencies at the normal bookies.
Any other questions?
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