6 Things you should know before you start playing Mega Moolah using Bitcoin
The revolutionary nature of bitcoin as a currency for conducting business online makes it easy to get carried away and give the impression that bitcoin is the perfect financial solution for every transaction.
It is easy to promote bitcoin so positively that you forget it has its downsides. Be aware that bitcoin, like every cryptocurrency, is not perfect.
You may decide you want to play Mega Moolah by using bitcoin as your deposit. That's great. But how much do you really know about bitcoin? How much do you know about cryptocurrencies, in general? It would behoove you to take some time to educate yourself before you make that first deposit. We are here to help with this informative post.
Educate yourself about bitcoin
The organisation behind bitcoin itself is a strong proponent of education. They encourage new bitcoin users to learn all the intimate details of the cryptocurrency before they use it. We couldn't agree more. Online gambling is risky no matter what currency you use. It is made riskier if you use bitcoin without understanding how the currency works.
Below are things you should know about bitcoin before you use it to gamble online. These things are meant to be an introduction to bitcoin as a cryptocurrency. There is plenty more information online that you can avail yourself of.
1. Not a legal currency
Bitcoin is not a legal currency in the sense that it is not recognised by any world government as an official means for conducting financial transactions. As such, bitcoin is not backed up by any tangible asset like gold or silver. It is not backed by any government entity.
The value of bitcoin and other cryptocurrencies rests only in the agreement between parties to accept it as a means of conducting business. In other words, bitcoin has value because buyers and sellers agree to that value. This makes bitcoin highly volatile.
Online gamblers should already be used to the idea of not betting more than they can reasonably afford to lose. That's why they are told not to bet money they need to pay their bills; they should only gamble with their disposable income. The same is true for bitcoin.
You have to purchase bitcoin in order to obtain it. Because it is so volatile, you shouldn't invest in bitcoin with funds you need for daily living. Only invest as much money as you can reasonably afford to lose. Otherwise, a significant drop in price could leave you in financial trouble.
2. You'll need a digital wallet
Conducting business with cryptocurrency requires you to have a digital wallet. What does a digital wallet do? It creates digital addresses for which you receive a bitcoin transfer. It also stores information about your transactions so that you can keep track of all the bitcoin you own.
The thing to understand about digital wallets is that not all are created equally. The biggest difference between them is the amount of money wallet providers charge for transactions. Digital wallet charges are used to pay Bitcoin Miners, the people who use computers to authenticate bitcoin payments as being genuine.
It pays to look around for a wallet provider with a good reputation and some history behind it. At the very least, do not settle for the first wallet you come across. Do some research into at least a few wallet services with the goal of finding the best one that works for you.
I can recommend Blockchain.com wallet having used them for a few years now.
3. Your wallet should be secure
Bitcoin developers have built a couple of features into the platform in order to ensure security. One is the inability to reverse a transaction once it has been validated. Another is an extremely limited ability to recover lost password and digital keys. These two features make it essential that you always secure your digital wallet.
Experts recommend only using a wallet that allows you to encrypt your transactions, your addresses, and your keys. That's a start, but you also need to create and save multiple backups of your wallet. Those backups need to be stored on secured media in offline locations. Multiple encrypted flash drive copies stored in different locations works.
If you are not sure why securing your wallet is important, consider reports of one bitcoin investor who lost millions of dollars' worth of bitcoin after he discarded a hard drive that contained the only copy of his transaction keys. Without those keys, it was impossible for the man to access his bitcoin. He lost it all!
4. Addresses should only be used once
Whether you are depositing money to play Mega Moolah or attempting to purchase goods or services, the process by which bitcoin is transferred never changes. Your move to send bitcoin to another wallet requires that you use an address of your own combined with an address provided by the receiver.
Both of those addresses are encrypted and represented by digital tokens. All the information, including the tokens, is added to the bitcoin blockchain at the time the transaction takes place. Bitcoin miners scattered around the world decrypt the information in order to verify its validity. Only when all the miners have completed the process is the transaction considered official.
We say all of this to let you know that bitcoin is only anonymous up to a certain point. The casino you are choosing to gamble on may not know your name and physical address, but they do have to know the bitcoin address you used to make your deposit.
The point here is that experts recommend using an address only once. Allowing your digital wallet to generate a new address with every new transaction makes it much more difficult for, say, a hacker to try to access bitcoin addresses. So use it once or a couple of times, and get in the habit of generating new addresses, which is easy to do in the Blockchain.com dashboard.
5. Your bitcoin is where your wallet is
All this talk of a digital wallet leads to the question of where your bitcoin actually exists. Remember, bitcoin is not a hard currency represented by bills and cash. It is a digital currency only. Therefore, you are not storing your bitcoin in a bank vault. So where is it? Your bitcoin is wherever your wallet is.
If you have a digital wallet on your smartphone, all the bitcoin you obtained through that wallet resides on your smartphone as a digital record. If you also have a wallet on your computer, you have bitcoin there as well.
The most secure way to keep track is through what is known as 'cold storage'. In a cold storage scenario, your wallet and all the records it contains resides on a non-network device. This would mean a computer not connected to the internet or some sort of removable media like a flash drive or DVD.
An added benefit of cold storage is that it allows you to divide your bitcoin holdings into several small groups rather than keeping all of it in a single wallet. You could create three or four wallets to handle most of the cold storage, then create a fifth wallet you use to conduct transactions. This allows you to keep small amounts of bitcoin in that fifth wallet while not exposing the rest of your wallets online.
6. Bitcoin is experimental
The last thing you need to know before you start gambling online using bitcoin is arguably the most important principle to understand. Here it is: Bitcoin is still experimental at this stage.
Bitcoin developers have learned a lot about cryptocurrency since their platform was first launched. However, there is still a lot about cryptocurrencies no one really knows. "Crypto" is a field that is still being developed even as people are using bitcoin to buy and sell.
Understand that gambling with bitcoin always presents some level of risk. The system is always subject to glitches that could cause headaches. And unlike fiat currency, bitcoin is decentralised. There is nowhere to turn if a system glitch negatively impacts you. Just be prepared for the fact that bitcoin transactions do not always go smoothly.
Just give it a try, you might have a knack for it
If you are still hoping to play Mega Moolah with bitcoin after reading this post, then go ahead and give it a try at the Bitcoin Casino. We recommend starting out small. Allow yourself ample time to get used to how the bitcoin system works before you start making large deposits. That way, you will not risk a ton if something goes wrong.
Bitcoin, or another cryptocurrency, represents the future of money. You can already use it to buy, sell, and even gamble online. Who knows what the crypto-industry will look like 10 or 20 years from now... This much we do know, however: Cryptocurrencies and their ledgers, the blockchains, are here to stay.
If you regularly transact business online and you are looking for a new way to do things, bitcoin might be the solution. It is proving to be a viable solution for online casinos, retailers, investors, and others who want to conduct business without fiat cash. Just remember this: education is the key to using bitcoin safely.
Byline: This article was published by Mega Moolah expert Henry. Media and other enquiries.