But why are cryptocurrencies actually useful for gaming operators? What advantages can platforms get if they allow visitors to deposit and withdraw using Bitcoin and other types of digital money?
Let’s find out.
Cryptocurrencies Offer Borderless Transactions
One of the biggest problems that operators face is sending and receiving money across the border. Plenty of payment methods are only available in certain countries and charge enormous fees for sending money to people in other parts of the world.
That’s not the issue with cryptocurrencies, as you can send and receive money from anyone in the world, as long as they have a cryptocurrency wallet. All these transactions are almost instant and have affordable fees.
There Are No Chargebacks for Cryptos
Chargebacks have been bothering online merchants for a really long time, causing plenty of problems with their bank and merchant accounts.
However, chargebacks aren’t possible with cryptocurrencies. Crypto transactions are immutable, meaning they cannot be removed or edited. Once payment has been made, it’s done, and there’s no way to turn it around.
You Control Payment Limits
The best thing about cryptos is that no third parties have the permission to set limits on the amount of money that can be sent or received. As an operator, this allows you to choose the maximum and minimum deposits and withdrawals yourself.
You can set the limits as you see fit, which gives you more freedom to improve your business model.
No Middlemen Involved
When customers use credit cards or e-wallets, intermediaries (banks, for example) have to jump in to help with the transaction. They are necessary for the majority of payment methods, but they also come at a cost.
That’s not the case with cryptocurrencies.
All crypto transactions are peer-to-peer. It means that customers send cryptos directly from their wallet to yours, using the wallet address system. No third party is included in that process.
Therefore, cryptocurrencies can offer much better fees and faster transactions. Moreover, the security of crypto deposits and withdrawals is pretty tight, as nobody can tamper with them.
Even though regulations are mostly necessary, in some cases, they can also be an obstacle to progress.
At the moment, the cryptocurrency market is not regulated. Many online gambling operators find this useful, as they don’t have to waste time on red tape, which is a must with other payment options.
Disadvantages of Using Cryptocurrencies
Although they are one of the most convenient options for operators right now, cryptocurrencies still come with a couple of disadvantages. To be precise, there are two downsides that we’d like to point out — volatility and mass adoption.
The majority of cryptocurrencies, including Bitcoin, are pretty volatile, meaning their value often fluctuates. Volatility is a double-edged sword. One day, a unit of BTC might be worth $12k. Soon after, it could jump to $13k. Unfortunately, this can go the other way too, as the price can plummet significantly. So you could end up having more money in the end or losing plenty of it if the value drops.
The other problem is mass adoption. Many cryptocurrencies, except Bitcoin, are still struggling to make it to the list of payment methods on online gambling platforms. The good news is that this is rapidly changing, as operators are slowly realising the potential of digital currencies. Therefore, it shouldn’t come as a surprise if all online gaming sites start to offer numerous cryptocurrencies as deposit and withdrawal methods.