Before starting crypto online gambling, you should consider a few things that could influence your overall experience. While crypto brings you the benefits of anonymity, speed, and lower fees, it also comes with certain risks. Some of those include high volatility, regulations, and potential scams. That’s why understanding how to buy crypto for gambling and the associated fees and exchange rates is crucial for a safe and efficient gambling adventure.
If you're new to the space, make sure to check out our beginner's guide to cryptocurrency to build a solid foundation before placing your first bets.
Buying crypto for gambling: Where & how to do it
Today, there are various ways to buy cryptocurrency, each with its own set of advantages and disadvantages. It doesn’t matter if you are a newbie or a crypto veteran; choosing the method that suits your needs can bring you many benefits.
Crypto exchanges
Crypto exchanges are the top places to buy digital currencies. They offer many payment methods and competitive exchange rates.
Pros
- Lower fees. Third-party exchanges offer lower fees compared to gambling platforms with built-in exchanges.
- Better exchange rates. You can find more favorable exchange rates, especially when using advanced features.
- Multiple payment methods. Credit cards, bank transfers, PayPal, and other payment options are available.
Cons
- KYC requirements. Most exchanges require users to undergo Know-Your-Customer verification, which can take time.
- Withdrawal waits. Deposits are fast, but withdrawing crypto can take time depending on the platform and which cryptocurrency you use.
- Complexity. For beginners, exchanges can be overwhelming due to the many advanced features and options.
Check out the following table for a better overview of platforms, which methods you can use, fees, and supported cryptos.
| Exchange Platform | Payment Methods | Approximate Fees | Supported Cryptos |
|---|---|---|---|
| Binance | Credit card, Bank transfer, PayPal | 0.1% - 0.5% | BTC, ETH, LTC, XRP, etc. |
| Coinbase | Credit card, Bank transfer | 1.49% - 3.99% | BTC, ETH, LTC, BCH, etc. |
| Kraken | Credit card, Bank transfer | 0.16% - 0.26% | BTC, ETH, LTC, ADA, etc. |
| Bybit | Credit card, Bank transfer | 0.1% - 0.2% | BTC, ETH, XRP, DOGE, etc. |
Gambling platforms with built-in exchange
Some gambling sites have integrated exchange systems, where you can buy crypto directly on the platform. This can be a smoother experience for those who want to deposit quickly and start gambling right away.
Pros
- Simplicity. You don’t need to go through an external exchange. The process is simplified and integrated within the gambling site.
- Instant deposits. The crypto is instantly credited to your gambling account, allowing for quick gameplay.
- No external transfer needed. Since the exchange is built into the platform, you don’t have to worry about transferring funds from one site to another.
Cons
- Higher fees. These platforms often have higher fees than crypto exchanges; they usually charge extra premiums for convenience.
- Limited crypto options. The range of cryptocurrencies available to buy directly on the platform may be limited.
- Potentially worse exchange rates. The exchange rates may not be as favorable as those on dedicated crypto exchanges.
More details about which popular gambling sites offer built-in exchanges in our table below.
| Casino | Is Crypto Purchase Available? | Details |
|---|---|---|
| BitStarz | ✅ Yes | You can buy crypto on the site via a third-party provider (KYC required). |
| Stake | ✅ Yes | Connected to MoonPay. |
| BC.Game | ❌ No | No built-in crypto purchase option. |
Peer-to-Peer (P2P) & Other Methods
If you prefer to avoid banks tracking your transactions or simply want to use cash, P2P platforms and crypto ATMs are viable alternatives. These methods allow direct user transactions, often with fewer restrictions and more anonymity.
Pros
- Avoid bank scrutiny. Ideal for users in regions where banks restrict crypto transactions.
- Cash-friendly. P2P platforms and crypto ATMs allow cash purchases, making them accessible to those without bank accounts.
- Flexible payment methods. P2P platforms support various payment options, including bank transfers, digital wallets, and cash.
Cons
- Scam risk. Direct transactions between users can expose individuals to fraud. Using escrow services on P2P platforms can help mitigate this risk.
- Higher fees for ATMs. Crypto ATMs often charge substantial fees, sometimes as high as 15% per transaction.
- Security concerns. Bitcoin ATMs are exposed to risks such as theft or fraud, and you may also discover fake or tampered machines.
Different methods offer different benefits. To determine which one to use for specific purposes, refer to the following table.
| Method | Best For | Approximate Fees | Payment Options |
|---|---|---|---|
| Binance P2P | Avoiding KYC, cash payments | 0% (Binance fee) | Bank transfer, cash, e-wallets |
| Paxful | Diverse payment options | 0-1% | Bank transfer, PayPal, cash |
| Crypto ATMs | Instant cash purchases | 5-15% | Cash |
In addition to these sites, LocalBitcoins has also been a popular platform in the past. However, as of February 2023, LocalBitcoins has stopped offering its services.
Understanding fees & exchange rates
Now that you know where to buy crypto, let’s go deeper into the fees and exchange rates that can impact your transactions.
Exchange fees
Crypto exchanges charge various fees for buying, selling, and withdrawing digital currencies. The most common fees are the following:
| Fee Type | Description |
|---|---|
| Maker Fee | Charged to users who place an order that isn't immediately matched. |
| Taker Fee | Charged to users who match an existing order on the exchange. |
| Withdrawal Fee | A fee for withdrawing crypto from the exchange to your wallet. |
Spread costs
Spread cost is the difference between the buying and selling prices on an exchange. This spread is a hidden fee that can make your transaction more expensive than it initially appears. The spread can vary based on market conditions and the platform you are using.
Blockchain network fees
Different cryptocurrencies have different network fees associated with them. Check out the following examples:
| Cryptocurrency | Approximate Network Fee |
|---|---|
| Bitcoin (BTC) | $1 - $5 |
| Litecoin (LTC) | $0.01 - $0.10 |
| Ethereum (ETH) | $0.50 - $5 |
So, should you buy crypto on gambling websites or external exchanges?
Both options come with their own set of advantages. Here’s when each method makes sense.
When to use gambling site purchases
- Gambling sites with built-in exchanges are ideal if you want a quick and simple process for buying small amounts. The convenience outweighs the higher fees.
- When you want to start gambling quickly, depositing crypto directly into your gambling account can be the fastest way to do that.
When to use third-party exchanges
- Exchanges usually offer better exchange rates and lower fees if you’re planning to make a larger purchase or withdraw a more substantial crypto amount.
- Crypto exchanges offer better exchange rates when dealing with top cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
- External exchanges also support a wider range of cryptocurrencies than gambling platforms tend to.
Tips for safe and cost-effective transactions
Finding the best crypto for gambling is challenging, but these tips should help you navigate the challenges and ensure your crypto transactions are secure and cost-effective.
Choosing the proper exchange for low fees
Look for exchanges with low maker/taker fees and low withdrawal fees. It’s worth comparing a few platforms to find the one that offers the best rates for your chosen crypto.
Using the best withdrawal methods
Choose a cash-out method with the lowest fees. For example, the Lightning Network is a popular low-fee option for Bitcoin transactions. You can also consider using Litecoin, which tends to have lower network fees than Bitcoin.
Avoiding scams & ensuring secure transactions
- It is always best to stick to trusted exchanges and gambling sites that are well-known in the industry; you can find both right here on Crypto Casinos.
- Enable two-factor authentication (2FA) on your accounts to increase security.
- Be cautious on peer-to-peer platforms and only deal with verified users.
Double-check before sending crypto
When sending or receiving crypto, always double-check the public key (wallet address). While most wallets detect obvious typos, pasting the wrong but valid address can still result in irreversible loss of funds.
Understanding gambling platform withdrawal limits & conversion rates
Before making a large deposit, check the gambling platform’s withdrawal limits and conversion rates. Some may offer lower conversion rates for crypto withdrawals, meaning you could lose some value if converting crypto back to fiat.