How to Use Ethereum as an Online Casino Payment Method

Gambling and crypto are claimed to be a match made in digital heaven. Savvy players often lean toward using cryptocurrency instead of regular methods to top up their online casino accounts since it may offer lower transaction fees, higher transaction speed, and is decentralized.

Ethereum ranks 2nd globally by the overall market cap among popular crypto assets, behind only Bitcoin, and has gained almost equal fame among online gamblers as its rival.

We've created a complete guide on using Ethereum as a payment method in an online casino to shed more light on how ETH works in our domain.

Table of contents

Step-by-step guide to paying with Ethereum in an online casino

You might be surprised, but dealing with Ethereum while gambling online is simpler than opening your bank account. Let's explain each step of wallet creation and discover how to use Ethereum in an online casino.

Step 1: How to pick the right Ethereum wallet for online gambling

Before you purchase your coins, the first thing to do is to choose an Ethereum wallet. Here you will store your private keys to access your funds. Modern crypto wallets come in two types: hardware and online.

Hardware Ethereum wallets are portable devices that can be connected to the PC when you want to use your crypto. Well-known examples of hardware wallets are Ledger Nano S and Trezor. Being stand-alone devices, they provide robust security so that you can use them to use your private keys to make payment, even on a hacked PC.

Online Ethereum wallets are "mobile banking apps" of the crypto world. Your keys are stored on the cloud service and protected by two-factor authentication. They are less secure than hardware ones but more accessible. Let's review a couple of the most popular ones.

1. Metamask

   A sleek ETH wallet that works as both a browser extension and a mobile app. It has a super intuitive UI for starters and provides access to decentralized apps built on Ethereum. Also, it's possible to integrate Metamask with hardware wallets.

2. Atomic Wallet
   A handy desktop/mobile app for crypto storage, purchase, and management. 300+ types of coins can be stored or bought through the app. It's known for its cross-platform support and crypto swapping with 1% cashback.
3. Guarda
   It's a non-custodial wallet where you are the only one who controls your private keys. It's a hybrid solution between hardware and custodial software wallets. Guarda offers encrypted backups and multi-signature as an extra layer of security.

How to choose an Ethereum wallet? A reliable app should meet the following criteria:

• Offer two-factor authentication and a backup option.
• Have a good reputation and doesn't have any history of data breaches.
• Have an intuitive user interface and cross-platform support (mobile, web, desktop).
• Support all the coins you want to include in your portfolio and offer exchange/swap/tracking functionalities.
• Charge relatively low deposit fees & provide timely customer support.
• Have a strong reputation and positive user reviews on independent websites.

Step 2: How to create the wallet account and purchase Ethereum

Let's look at how you can create a new Ethereum wallet, using Metamask wallet for Chrome as an example.

1. Go to Metamask website and click to download the Chrome browser application.
2. Install and add the extension to your Chrome browser.
3. Choose "create a wallet" out of two options.
4. Create a reliable password you'll use to log in the application.
5. Reveal and save your secret recovery phrase (or backup master keys). We recommend writing it down on paper or storing it in a reliable password manager.
6. Confirm your secret recovery phrase.
7. Now all is set. You will see the following screen where your ETH assets and transactions will be displayed in the future.
8. Now you can deposit the Ethereum wallet with available top-up options. The delivery time varies but usually is less than 30 minutes.

Step 3: How to deposit Ethereum to your casino account

To start gambling with Ethereum, choose a reputable crypto casino. We've written an extensive guide to help you out. Even though it's focused more on regular casinos, choosing an Ethereum casino is not that different.

You can also go to our top crypto casinos list, filter out sites that accept Ethereum, and pick any option. Websites marked as "recommended" are handpicked by our casino quality specialists and always have a good or better reputation.

How to start gambling with Ethereum? Here's another step-by-step instruction:

1. Sign up for a chosen casino, go to your account, and select Ethereum as your deposit option.
2. Copy the unique blockchain address, which you will see displayed on the screen.
3. Go to your Ethereum wallet and start a transfer. Define how much ETH you want to deposit.
4. Paste the casino blockchain address you copied earlier into the designated field and confirm the transaction.
5. Wait for transaction confirmation. ETH should arrive at your casino account in a few minutes max.
6. Use Ethereum to play and make bets on your favorite online casino games.

Step 4: How to withdraw winnings to the Ethereum wallet

If you're lucky enough to win some money in an online casino, you'll want to cash it out. Withdrawing Ethereum to your crypto wallet is just as simple as depositing.

Copy and paste your blockchain address into your online casino's "withdrawals" section and specify the sum you want to withdraw. Then, confirm the transaction and wait until the funds arrive in your wallet. The withdrawal usually takes several minutes but depends on the network load.

What Ethereum is, and why use it as a payment method

Ethereum's initial definition is an open-source blockchain technology with smart contracts functionality and a native crypto coin called Ether or ETH. The project was launched in 2015 by Vitalik Buterin. The founder launched the project to expand the scope of real-life crypto applications, as he found Bitcoin to have limited functionality.

Like Bitcoin, Ethereum enables fast, transparent, surveillance-free, and autonomous transactions. Those who use ETH as a payment method exchange money without any bank's or other authority's approval. The result of each Ethereum transaction is publicly available on the blockchain.

Aside from being a peer-to-peer payment system to make deposits in online casinos and beyond, Ethereum is also programmable and can be used for building decentralized apps and NFTs based on its platform.

How do Ethereum payments work?

Ethereum users buy ETH with fiat currencies like dollars, euros, etc., or use other cryptos to make a swap. Then, Ethereum owners may freely use their coins as a regular currency and pay for goods and services via a direct peer-to-peer exchange with businesses that accept cryptocurrency.

Ethereum coins are de-facto stored on the blockchain. The newly appeared owner uses "keys" to access their digital funds. You may store keys in the crypto exchange account, but we recommend setting up a personal Ethereum wallet to store keys, which is generally more secure and convenient.

To make the payment, the user copies and pastes the unique blockchain link provided by the business and sends them funds via the Ethereum wallet. As discussed above, they can use Ether assets to deposit in an online casino.

How Ethereum benefits online casino users

If at this point, you are still not sure about why to use Ethereum in an online casino, then it's time to talk about the Ethereum benefits and drawbacks for casino users.

Ethereum advantage #1: less authority surveillance

Unlike wire and card transfers, Ethereum casino transactions don't require any personal data to happen. As a result, an online casino will not be able to identify the user's persona unless it requires entering personal details during the registration. Neither the banks associated with the gambler will know about their casino deposits.

However, some wallets and exchanges may also require users to go through the Know Your Customer (KYC) process, making the transaction no longer anonymous. Public data can find links between transactions done by the same wallet.

Ethereum advantage #2: transaction speed

Both Ethereum deposits and withdrawals are generally faster than payment methods based on fiat currencies. Deposits are usually instant, while withdrawals are nearly instant, taking several minutes to 24 hours. Banking usually payout takes 1-3 days, for comparison.

Ethereum advantage #3: no data exchange with the casino

Paying in Ethereum also enhances data security, as no essential details have been exchanged with the casino. Not all casinos are as reliable as the casinos on our top list, so making your first deposit with ETH spares you from potential risks.

It's said that Ethereum smart contracts run with predefined conditions, so the casino won't be able to tweak the payout or charge you any hidden fee. But not all casino transactions are based on smart contracts; most are regular transactions where the only difference between ETH and regular payment is the choice of the currency.

Ethereum advantage #4: lower average transaction fees

Both banks and online casinos may charge fees every time you make a deposit or withdraw winnings. Using Ethereum in the casino, you spare yourself from paying at least banking fees.

Yet, the Ethereum network charges a user so-called "gas fees," which are dynamic and rely on the overall activity on the blockchain. These fees compensate for the computing energy used to validate transactions on the blockchain.

The average ETH transaction fee is usually lower than regular bank fees and comprises 1-2 dollars per transaction. You can check out today's value here.

Ethereum weaknesses compared to other payment methods

Ethereum drawbacks are associated with crypto's high volatility and low adoption compared to regular money. Here are the stumbling blocks:

• Ethereum's price may drastically change in a short period, making it less reliable in terms of steady winning payouts.
• Volatile gas price. Sometimes, we observe drastic spikes in transaction fees, which can reach hundreds of dollars due to network overload.
• Complete anonymity may be out of reach since some wallets require the user to pass through a KYC process.
• Fewer casinos accept Ethereum than fiat currencies and regular e-wallets.
• ETH payments may be complicated for less tech-savvy players.