This isn’t something new. In fact, crypto betting has been around for a couple of years now. But bettors are now realizing the benefits of crypto betting, which is why they are ditching the old traditional betting system with FIAT and transitioning to cryptocurrencies.
The idea is quite simple. Instead of using USD or EUR, people buy cryptocurrencies like Bitcoin, Ethereum, and even Dogecoin from a crypto exchange, and they are transferring their crypto to a sports betting platform. Then they place bets with crypto instead of FIAT.
But why? Well, this isn’t just a trend that will die off quickly. Crypto betting comes with many advantages and this process fixed many of the problems that the traditional betting system had for years.
So, there are plenty of ways to bet on the Kentucky Derby, you just have to choose whether you go with crypto or traditional betting.
Let’s dive a bit deeper into this new chapter of horse racing betting.
What Is Crypto Betting, Anyway?
If you’ve been living under a rock and somehow still don’t know how cryptocurrencies work, especially in the world of betting, let’s break it down.
Crypto betting is exactly what it sounds like – the use of cryptocurrencies to place bets on sports like horse racing.
Cryptocurrencies work on a blockchain technology which is a decentralized ledger capable of processing and storing every single transaction. The process is public, secured, and in most cases with lower fees than traditional banks.
But the reason why crypto betting is so popular at the moment has to do with the poor processing times that traditional banks have. In other words, if you go over to withdraw your funds from a traditional sports betting platform, it will take a couple of days for you to get your money in your bank account.
With crypto betting, the process takes a few minutes and in some cases (depending on the cryptocurrency you use) it is instantaneous.
Why People Are Switching to Crypto Betting?
But are faster transactions the main reason why people are ditching FIAT currencies and switching to crypto?
Not exactly. Crypto betting also comes with other benefits, such as:
Anonymity – All crypto transactions are pseudonymous, which means that you don’t have to share any personal details with the platform. Have you tried to register on a regular betting platform recently? They are asking for your ID, address, and tons of other requirements, whereas crypto betting platforms require you to connect your crypto wallet, and you are good to go.
Global Access – Even though horse racing betting has been around as long as the sport itself, not all places allow horse racing betting. In fact, we are talking about a niche sport that is mainly situated in a few countries while the rest of the world doesn’t have access to it.
Well, this isn’t the case anymore since crypto betting allows people to place wagers on international platforms even from regions where horse racing betting is prohibited.
Lower Fees – This is a big one. Traditional betting platforms have high fees, but mainly because there is a middleman – the bank. They are taking a cut from each and every transaction, which can eventually eat away your profits.
On the other hand, crypto transactions depend on “network busyness” but in most cases, it is far more cost effective than traditional money withdrawal.
How Does It Work?
Alright, let’s get technical—but not too technical. Here’s a step-by-step guide to crypto betting in horse racing:
1. Choose a Crypto Betting Platform: Look for platforms that accept cryptocurrencies and offer horse racing markets, but make sure you check out their reputation. There are a lot of scammers out there.
2. Get Some Crypto: If you don’t already own cryptocurrency, you’ll need to buy some. Platforms like Coinbase or Binance make it easy to purchase Bitcoin, Ethereum, or other coins.
3. Deposit Crypto into Your Betting Account: Transfer your crypto from your wallet to the betting platform. This usually involves scanning a QR code or copying a wallet address.
4. Place Your Bet: Browse the horse racing markets, pick your horse, and place your bet. It’s as simple as that.
5. Withdraw Your Winnings: If Lady Luck is on your side, you can withdraw your winnings back to your crypto wallet. From there, you can either hold onto your crypto or convert it back to fiat currency.
Is Crypto Betting Safe?
This is the million-dollar question—or should I say the million-bitcoin question. The short answer is it depends. Crypto betting comes with its own set of risks and rewards.
The Pros:
● Transparency: Blockchain technology ensures that all transactions are recorded and can’t be tampered with.
● Security: Crypto wallets use advanced encryption, making them harder to hack than traditional bank accounts.
The Cons:
● Volatility: Cryptocurrencies are notoriously volatile. The value of your winnings could skyrocket—or plummet—overnight.
● Regulation: Crypto betting exists in a legal gray area in many countries. Make sure you’re not breaking any laws before you start.
So, crypto betting is designed as a safer, cheaper, and faster alternative than traditional betting, and one that doesn’t need a middleman. It opens up a new chapter for the sport, and a chapter that will allow horse racing to grow even more.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
