Gambling industry embracing Bitcoin and eWallets

Online security has become big business in recent years, with technology developments massively changing the way people make purchases over the internet.

The online gambling industry has embraced these technologies, introducing a wide range of new payment methods designed to improve security for players.

Debit/credit cards and bank transfers have historically been the most popular payment options, but there has been a boom in the use of Bitcoin and electronic wallets (eWallets) over the past few years.

Read on for our introduction to the latest developments to impact on online security.

Bitcoin

The virtual currency was introduced in 2009 and uses decentralised technology for online financial transactions that doesn’t require people’s names or banks.

The system operates on a public ledger blockchain which keeps a record of all transactions that is accessible by everyone on the network.

Users generate blocks on the network to create Bitcoins which are produced cryptographically by harnessing users’ computer power. These are then added to the blockchain, allowing people to earn Bitcoins by keeping the network running.

Established exchange services like Bitstamp, BTC-e, or Kraken sell Bitcoins, charging a commission that is much lower than those applied to eWallets.

Many online casinos now accept Bitcoin payments, with the transaction generally taking less than an hour to be confirmed by the blockchain.

eWallets

eWallets have changed people’s online experience of financial transactions massively in recent years.

Effectively an electronic purse, an eWallet allows you to make online payments by using an email attached to your account without sharing your personal details.

Numerous online gambling companies offer players payment methods like PayPal, NETeller and Skrill to fund their accounts.

The eWallet acts as a buffer between your casino account and your bank, giving players an additional level of security.

Online purchases can be funded from an eWallet, with the money held there rather than in your bank account.

Having this extra level of security gives players additional peace of mind when they visit online gambling sites.

eWallets also offer people the opportunity to manage their finances more effectively, with players at online casinos often using them to set aside a specific bankroll for their gambling activities.

Conclusion

Payments by debit/credit cards or bank transfers can be risky at some online gambling sites, especially where it’s unclear whether a particular brand is a legitimate operator.

The use of Bitcoin and eWallets has grown tremendously in recent times and that seems sure to continue moving forward.

Both methods offer increased levels of security, although the instant nature of eWallet payments means their use is likely to prove more popular for users of online casinos.

Hey, I’m Rory and I am the ultimate accidental geek.
Born in London I was never interested in technologies until I started a part-time job at Apple and now I can’t get enough. Join me as a help you navigate the world of tech with some of my fellow geeks.

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