Do Crypto Casinos Provide Better Online Security?

Since Bitcoin first appeared in 2009, cryptocurrencies have revolutionized world trade. It might be hard to believe, but there are almost 26,000 cryptos in existence today. Although most of these are unknown, others have been accepted as a viable form of currency in many industries.

One industry that was quick to accept crypto was online gambling, with the first ever crypto casino launching in 2012. Since then, many more have launched, and even fiat currency casinos have begun to accept cryptocurrencies.

One of the main questions asked by gamblers is if the casinos that deal exclusively in crypto are safer than traditional online casinos. Below, we'll look into how these casinos work and see if they offer any security benefits that conventional online casinos don't.

Standard Encryption

One of the primary things that makes an online casino safe for players is its data encryption and standard network security. These are the bare minimum requirements for a casino and, in some cases, are a lawful requirement for the casino to operate.

From ensuring that each connection to the casino is tunneled through TSL (Transport Layer Security) or SSL (Secure Socket Layer) to maintaining impenetrable firewalls to safeguard server information, encryption helps keep a casino's systems safe while ensuring that player data doesn't fall into the wrong hands.

For crypto casinos, this is no different. Every crypto casino has extensive cyber security that is constantly under attack. As such, these sites work tirelessly to improve, update, and maintain these systems so that their players can gamble confidently.

Payment Processors

The next area that online casinos pay special attention to in terms of security is the processing of payments-both deposits (to player accounts) and withdrawals (when cashing out). Security breaches in this area can lead to extensive damages that a casino would be liable for.

For fiat currency sites, these payment processes are commonly handled by third parties. Processors such as Visa, Mastercard, and PayPal complete all transactions and feed the results back to the website.

While these providers' security systems make the best possible effort to ensure all transactions are secure, the actual casino using their services has little control over this. Crypto casinos, however, operate very differently.

Crypto casinos utilize blockchain technology-the backbone of any cryptocurrency-to handle all transactions. This means that no third-party provider is involved and that all transactions are completed by the decentralized ledger.

Blockchain is one of the most secure technologies in existence when it comes to payments. Because each block (or transaction) is written directly into the chain, it cannot be reversed or intercepted once confirmed.

This technology makes processing payments or withdrawals on crypto casinos exceedingly more secure than traditional casinos. As such, it offers a heightened level of security overall to players.

In addition, blockchain payments are often instantaneous and offer lower fees than other payment methods. As a result, players can begin playing their favorite games faster and have more money to play with.

It should be noted, however, that although some traditional fiat currency casinos also offer crypto as a supported payment method, this doesn't automatically grant the same security benefits. In many cases, these casinos use facilities to convert crypto into fiat currency when you make a deposit.
Because of this additional step, payment from your crypto wallet goes to this facilitator first and then to the casino second. As such, the security of the blockchain is lost between the casino and the conversion facilitator.

Regulation

One of the biggest concerns international governments have regarding cryptocurrencies is the lack of regulation they operate under. Although laws have been passed to combat this in recent years, crypto has managed to sidestep regulation and has incredible levels of anonymity.

Many crypto casinos also operate in this space and have no formal regulation or licensing from governing bodies like those that commonly license fiat currency casinos. The UK Gambling Commission, the Government of Gibraltar, and the Curacao Gaming Control Board are the most popular among these bodies.

Since they are unregulated, these casinos can operate independently and don't need to adhere as strictly to the laws required by traditional sites. Among the most prominent areas these casinos choose not to comply with is enforcing KYC (know your customer) policies.

The argument has long been held that failure on the casino's part to identify players and the avoidance of some other regulation makes these casinos unsafe. It also means that players have no concrete way to know whether a crypto casino is legitimate or not.

While these arguments do have some substance, casinos that operate in this way are often transparent in the reasons why. Generally, they do this to allow players to gamble anonymously-which is one of the main benefits of crypto gambling.

In these instances, it does not necessarily mean that a casino is any less safe than a regulated and licensed casino. In fact, to protect players' wallet details and anonymity, these casinos often are even more serious about their security-meaning, in some ways, they are actually safer to play on.

Conclusion

Crypto casinos are among the most popular ways to gamble among many players. In 2022, almost $6.3 billion was spent by gamblers in these types of casinos-showing that many enjoy taking advantage of the quick transaction times, provably fair games, extensive game libraries (including favorites like video poker, roulette, free blackjack, and slots), anonymity, low transaction fees, and security.

Though many say that crypto casinos should be avoided and cannot be trusted because they are unregulated, this is not entirely accurate. While scam crypto websites certainly exist (as do scam fiat currency casinos), crypto casinos overall offer increased security and are a fantastic way to enjoy playing casino games online.