The Pros and Cons of Gambling with Ethereum

There are a lot of benefits to using cryptocurrencies for online activity. Cryptocurrencies are secured using state of the art Blockchain technology, so there’s a reduced risk of fraud, as well as a built-in system to keep your information anonymous online.

The most famous cryptocurrency is Bitcoin, and you can find our guides to gambling with Bitcoin and choosing the best Bitcoin casinos here and here. Bitcoin works just like a regular currency, but with the advantages of the blockchain – i.e. security and anonymity.

Like any new technology, there’s competition. A lot of other cryptocurrencies have tried to compete for the market alongside Bitcoin, and the current 2nd biggest is a currency platform known as Ethereum (or Ether, for short).

Cryptocurrencies are designed to replicate the financial markets of the offline world. Speculation, investment, risk and an expectation of growth. These features, as well as the key unique selling points that differentiate Ethereum from Bitcoin are also some of the features that make gambling with Ethereum such a good way to get into using cryptocurrencies for online casino games.

Gambling with Ethereum

When you’re gambling with Ethereum, there are 2 distinct ways that you can put the cryptocurrency up as a stake.

The first is the simple, everyday way that we use so-called ‘fiat’ currencies (USD, GBP, EUR etc) or Bitcoin. Just pay the amount that you want to play with into the casino’s account. This will show up on your profile as cash to be staked on games, and from then onwards gambling with Ethereum is the same as gambling with anything else! Plus all the security, anonymity and feeling cool about using futuristic ‘Ether’ money.

The second way to gamble with Ethereum is less common at the moment. But it takes advantage of one of Ethereum’s unique features – the ‘smart contract’. This is a mechanism where a decentralised, secure ‘contract’ is created between yourself and the casino (or really, anybody else who is gambling with Ethereum). Money is paid into it from both sides, and the gambling itself can even be built into the Ethereum contract.

Once the outcome of the wager is known, the smart contract calculates how much each person is owed, and automatically pays that amount of Ethereum back to the parties involved. In this way gambling with Ethereum is like a more secure, anonymous way of making sports bets with your friends. Money is thrown into the pot, and once the game is over, it gets split according to who made the best predictions. No hassle!

Pros of Gambling with Ethereum 

• Security

Just like Bitcoin, Ethereum is secured using Blockchain. Gambling with Ethereum on casino sites that allow it means not having to worry about any of your credit cards or bank accounts getting hacked by disreputable sites.

• Speed

If you decide that the smart contracts aspect of gambling with Ethereum is for you, one of the great pros of it is the speed of both buying in and paying out. The contract itself acts as the wallet and the stakes. There are just fewer steps of administration once you’re up and running as an Ethereum gambler.

• Anonymity

Gambling, let alone gambling with Ethereum or other cryptocurrencies, is frowned on in many places around the world – and I’m not just talking about governments! There are many many reasons that you might want to protect your identity online, and especially when it comes to sensitive information like payment details, gambling habits etc. Ethereum takes all of that worry out of the equation.

Cons of Gambling with Ethereum

• Less user friendly

It’s true that the Smart Contracts do eliminate many of the traditional admin steps associated with setting up an account to use an online casino using traditional currencies. Most of the benefits of gambling with Ethereum rather than Bitcoin come down to Ethereum’s unique features. The fact that Ethereum has such unique features means that there is a bit more complexity to the platform than Bitcoin.    

• Difficult to find places that accept Ethereum

To start gambling with Ethereum, you’ve got to find a place that will let you gamble with Ethereum! Not all online casinos will accept cryptocurrencies for stakes, and even then, most of those casinos will only accept Bitcoin. One of the great benefits of online casinos is their variety, and gambling with Ethereum will drastically narrow your options!

Having said that, here are a few casinos that do allow you to gamble with Ethereum.

Conclusion

Ethereum is a very exciting new force in the world of online gambling. It combines the strengths of Bitcoin with a new speed and has the potential to revolutionize how bets are placed on the Internet. If you can see the right casino for you in our list of casinos that allow gambling with Ethereum, and you’re the kind of player who is always at the cutting edge, looking for advantages and new technologies, gambling with Ethereum could be the perfect fit for you! Even if you don’t find your interest piqued just yet, remember to watch this space – Ethereum is here and will be for quite some time!