How To Bet With Bitcoin
Are you interested in learning how to bet with Bitcoin? How do you create a Bitcoin wallet and fund it? How do you deposit funds into a Bitcoin bookmaker account? This detailed guide to Bitcoin betting will answer those questions and many more, teaching you how to buy Bitcoins, how to bet with Bitcoin and how to withdraw your winnings.
Bitcoin Betting: The New Way To Bet
The rapid rise of Bitcoin technology has lead to significant changes in many online services. Bitcoin betting is one of them. The low fees, the anonymity and the opportunity to move funds almost instantly are among the main reasons Bitcoin betting is becoming so popular as the number of bettors ready to bet with Bitcoin increases.
Bitcoin Betting Guide
In this article we will cover everything you need to know to start to bet with Bitcoin online.
- Best Bitcoin Sportsbook
- How To Create Bitcoin Wallet
- How To Complete Your Bitcoin Wallet Details
- Fund Your Bitcoin Account
- How To Bet With A Bitcoin Sportsbook
- How To Withdraw Funds From Your Bitcoin Sportsbook
There are a number of Bitcoin bookmakers currently offering a wide range of betting markets. If you prefer betting with Bitcoin a simple Google search will provide you with a healthy list of options.
Bitcoin Betting Exchange
There are two key components to understand when thinking about using a Bitcoin betting exchange for your betting. The first is an understanding of Bitcoin and the second is an understanding of betting exchanges.
What is a Bitcoin Betting Exchange?
Simply put a Bitcoin betting exchange operates as any other betting exchange except that the currency used is Bitcoin. That all seems obvious enough. But you may be asking, what makes a Bitcoin betting exchange different to a traditional bookmaker?
A Bitcoin betting exchange operates as any other betting exchange, where users of the exchange place bets between one another. On a betting exchange users can both back odds offered by other users, or offer odds for other users to back. This is known as 'laying odds' and allows the user of the exchange to essentially act as any bookmaker would.
The fundamental difference between a Bitcoin betting exchange and a standard betting exchange such as Betfair or Matchbook, is, as stated earlier, the currency, in this case, Bitcoin.
You may be wondering how a betting exchange makes its money. Well, it depends on the betting exchange, but essentially you will pay commission on your betting activity. This commission is how the bettign exchange makes its money and will differ from exchange to exchange.
To learn more about betting exchanges, read our detailed guide to betting on betting exchanges. If you're keen to bet with Bitcoin and are tired of the traditional format of a bookmaker, we thoroughly recommend you consider betting with a Bitcoin betting exchange.
The first step is to create the so-called “Bitcoin wallet”. It functions as your bank account in the world of the cryptocurrency. You can use it to buy and sell Bitcoins, pay for services and even trade currencies on exchanges. In this case, you will use it to bitcoin deposit.
Step 1: Choosing a Bitcoin Wallet
There are various types of Bitcoin wallets. Some of them require the installation of a desktop client, others can work directly on the web. The most popular and trusted options can be found here. We’ve chosen the service of Coinbase for the purpose of this article. It is one of the best out there and was declared “Best Bitcoin Wallet of 2016” on several popular websites. It is easy to use, as it doesn’t require additional software. However, the process of getting a wallet and funding it is similar for most other web-based services out there.
Step 2: Opening an Account
To start the registration, go to the Coinbase website and click on the “Sign Up” button in the top right corner as shown in the picture below:
This will open a short registration form. You need to fill in some details such as names, e-mail and a password. We recommend you to use a strong password with a combination of letters, numbers and special symbols such as “$”,”@” or similar since security is very important. The Coinbase software shows how strong it is and it should, at least, reach the “Good” level. After you’re done, tick the “Terms and Conditions” checkbox and click on the “Create account” button in the bottom part of the form as shown below:
Step 3: Activating Your Bitcoin Wallet
In order to activate your account, you now have to verify your email address. Coinbase will send you a link to the e-mail you used in the registration form. Just wait a few minutes for the message to arrive and click on the link. You should see the screen below and it means your Bitcoin wallet is now active and ready to use.
You already have an activated Bitcoin wallet, but there are few more steps before being able to actually get some coins. It might seem a bit annoying, but it’s for your own safety. Security is important, so here’s what you need to do next:
Step 1: Linking Your Phone
Click on the “Next” button from the previous screen and you’ll see a form where to fill in your phone. This step is required for the so-called “2-facto authentication”. It protects your account in case your login details get stolen. The form looks like this, just complete the fields and press “Next”
You will receive a text message with a 7-digit code. Use the form shown below to enter it and click “Verify Phone Number” to complete the procedure:
Step 2: Completing Your Profile
After your phone is already linked, the next step is to complete your profile with some personal details. This includes confirming your legal name, adding a date of birth, an address, city and postal code. You will see what the form looks like at the picture below. After you’re done with all the data, click on the “Next” button to continue.
Step 3: Verifying Your Identity
You need to verify your identity next. This requires a valid ID and the process might take some time. Prepare the document before you start.
When you’re ready, press the “Start Verification” button. You will be asked to choose a document type. The options available depend on your country, but an ID and a driving license are almost always among them. After picking one, you will be required to use your webcam to take a picture of the two sides of the document. Just follow the instructions and shoot the front and the back with the camera on your computer. Make sure to make clear pictures or you’ll have to repeat the process. After submitting the ID, you will have to wait a few minutes, so the system verifies it. This is the last step before funding your account and buying bitcoins.
You are very close to getting Bitcoins now. Here’s what you still need to do:
Step 1: Registering a Payment Method
You have a few options for this step that vary between the different wallets. Also, your country also impacts what’s available, but credit/debit cards and bank transfers are the most common options. We recommend you to use a direct bank transfer since most Bitcoin wallets do not support withdrawals to credit/debit cards. This means you’ll have to register a bank account eventually. For Coinbase, choose the “Deposit” option from the screen below:
On the next screen, you will see a form with the details of the bank account you need to transfer the money to. The list includes IBAN, SWIFT/BIC code, Bank name and others. Write those down and the send a tiny amount from your own bank account to verify it. The money should arrive in 1-2 business days. Make sure to include the reference number at the end.
Step 2: Buying Bitcoins
Now you have your wallet and you have registered a payment method. It is time to buy your first Bitcoin! You will see a purchase screen that contains two fields. One of them is for the amount you wish to get and you have two options here: you can either enter Bitcoin amount or the sum in your currency. In both cases, the other tab will be automatically adjusted by the current rate. Beneath is the Payment method screen, just select the one you have registered. At the bottom of the page, you will see the total amount you will be charged as there is 3% fee for credit/debit cards. When you complete everything and you are ready to continue, just click on the Buy button below:
You will see a Confirmation screen that contains all the information. If everything is ok, just click on Complete Buy. Of course, if something’s wrong, you could go back and change it. Once again, the process is very similar in other wallets such as Coinbase.
If everything goes well, you will see the confirmation button. Great, you now have some Bitcoins! Let’s see how to bet with them.
Now that you have some Bitcoins, it is time to find a bookmaker and start betting. There are plenty of options available, but some of them are not safe enough. Here is a list with the 5 biggest and most respectable Bitcoin sportsbooks out there and a glance on their main advantages:
Cloudbet – great odds, generous first deposit bonus and good loyalty program;
Nitrogen – the best odds available, great variety of markets and full anonymity;
Betcoin – good odds and some of the highest limits out there;
mBit – lots of markets, many bonuses and good limits;
Directbet – no account required, just bet by sending money to Bitcoin address and the profit is returned to you, high odds.
We’ve decided to use Cloudbet for this article, but any other bookmaker from the list is a viable choice.
Step 1: Registering a Bitcoin Bookmaker Account
We won’t go into too many details for this step, as it is identical to the registration at traditional bookmakers. Choose the Bitcoin sportsbook you like and sign up. Usually, the information required is very limited: an email address, date of birth and password only. This means you can stay anonymous and players from all over the world can open an account, even restricted countries such as the USA.
Step 2: Funding Your Bitcoin Account
As already explained, the examples below are from Cloudbet. However, the process is identical in all of the other Bitcoin operators. The main point is to get your Bitcoin address from the sportsbook, then go to your wallet and send money to it. In the screenshot below you see how this looks like, it’s the part circled in red. Your own Bitcoin address will be similar. To deposit money, you need to copy it:
After that, you need to go back to your wallet in Coinbase (or other service you’ve chosen). Go to the Coinbase website and log in to your wallet. You will see your account page. You have to click on the Send/Request page highlighted in the picture below:
This will lead you to the page where you can send money. It contains the recipient’s address on top. There you have to paste the Bitcoin address you’ve copied from the bookmaker, in our case the one from Cloudbet. Then choose an amount you wish to deposit and click on “Send Funds”:
After that you will see another confirmation screen, just proceed and send the funds unless there’s a mistake in the details shown. You will see the following message once the transaction is complete:
The transaction is almost instant, so next time you go to your bookmaker the funds will be available for betting!
Step 3: Choosing a Market and Placing a Bet
The good news is that there’s nothing complicated in this step. Bitcoin bookmakers are no different than the traditional online sportsbooks. You will find a list of sports and events on their website. Just choose the one you need and you will see the market and odds available. You can place your bets with just a few clicks.
This is the final and the sweetest part of our guide. Let’s say you made some money betting and you want to withdraw. Here is what you should do:
Step 1: Withdrawing From the Bookmaker to Your Wallet
First you need to move your Bitcoins from the bookmaker to your wallet. Similarly to depositing, you need to use your Bitcoin address. You will find it in a visible place in your Bitcoin wallet. In case you chose Coinbase, just log in and click on “Wallet Address” as shown in the picture below:
This will open a pop-up with your Bitcoin address that will look similarly to this one:
You need to copy it because the bookmaker will use it to send your Bitcoins there. After you’re done, go to the sportsbook’s cashier and choose to withdraw. This will open a simple form you need to fill in. It is similar in most Bitcoin gambling operators and contains a field for your Bitcoin address (the one you copied from your wallet), the amount you wish to cash out and the fee. It looks like that on the Cloudbet website:
Just fill in all the fields and the withdrawal should reach your Bitcoin wallet quickly. It takes less than an hour in most Bitcoin bookies, but there could be exceptions.
Step 2: Withdraw Money from Your Bitcoin Wallet
When the money reaches your wallet, you receive it as Bitcoins. You could use it to buy various stuff online, but most of you would probably like to convert it into traditional currency and withdraw it to your bank accounts.
The first step in this direction is to sell your Bitcoins for USD/EUR or whatever your account currency is. Once again, the process is similar in most wallets out there. There is normally a “Buy/Sell Bitcoin”s button in a visible place that opens a form similar to the one in the picture below (from Coinbase):
Just fill in all the details requested and you will convert your Bitcoins in a currency that can now be withdrawn to the bank account you already registered.
To complete the process, go to the USD/EUR wallet section and there should be a “Withdraw” button there. After clicking it, you will have to choose an amount you wish to transfer to your bank account.
This was the last step of the whole process. It might seem a bit complicated at a glance, but if you are careful you’ll be fine. Also, most of the procedures are completed only once and it will get much easier after the first time.
Bet With Bitcoin - Conclusion
Bitcoin betting may only be in its early stages, but there are many bettors already adopting a crypto current portfolio, with many already making large sums from betting only with bitcoin. Whether you believe in Bitcoin of another crypto currency, there is no doubt that the future landscape of sportsbetting will be vastly different to that of today.