With the COVID-19 pandemic sweeping the world, people are looking for ways to spend their time. One option is sports betting, which has seen a huge rise in popularity because of the ability to place bets at any time 24/7 and the ease of finding a place to bet. If you’ve recently found yourself thinking about trying your hand at sports betting, then this article is for you. We will discuss three ways you can use bitcoin to bet on sports more easily.
Accepting Payments In Crypto
One of the biggest struggles that bettors face is trying to convert their winnings back into fiat currency (usually USD or GBP). It’s not uncommon for bookmakers to ‘chop’ or ‘scratch’ off huge sums of money, often meaning that the average person doesn’t see any of the profits from their bets. While this may be frustrating, it’s not necessarily the bookmakers’ fault. The truth is that cryptocurrencies like bitcoin are often not accepted as a form of payment at places of amusement. This is largely because there is no central authority overseeing the issuance of cryptocurrency and ensuring that it’s always accepted for payments. This can create extra friction for the end user if they don’t have access to the right wallets or processors that handle their preferred cryptocurrency. Despite the challenges that acceptance raises, the popularity of cryptocurrencies means that more places of amusement will start taking them as a form of payment over time.
Getting Your Winnings In Crypto
Another area that can cause issues is when trying to withdraw funds from your account. More often than not, casinos and other places of amusement that accept bitcoin as a form of payment will only allow you to do so in exchange for another form of cryptocurrency. Again, this can be a source of friction for the average user, who does not want to spend hours converting their money into a format that the place they are betting with accepts. To reduce this friction, it is beneficial to research the best methods for getting your money out of the casino without being crippled by fees. One option is to use a cryptocurrency exchange service like Bitpanda. When you deposit fiat currency (usually USD or GBP) into your account, you will usually be offered the choice of withdrawing in either BTC or ETH. Of course, you can always choose to have your winnings in fiat currency, but you should expect to pay a small fee for doing so. By having your money in a format that the place you are betting with accepts, you can avoid all of this hassle. After all, if it’s good to pay with crypto, why not apply this payment method to all of your bets?
Using Bitcoins To Avoidance Of Tax
Last but not least, let’s not forget about the possible tax liability that comes with cryptocurrency wins. Although it is not necessarily the case, often times a win in cryptocurrency will be considered as a taxable event. This can create a massive legal headache for anyone who does not know how to navigate these waters safely. To avoid this, it’s important to keep in mind a couple of things. First, any income earned from cryptocurrency trades is considered ‘long-term capital gain’ and thus is taxable. Second, you should ensure that you report all of your cryptocurrency winnings on your tax returns. This will help protect you from potential tax enforcement actions. Lastly, if you are a high-net-worth individual, you may want to consider setting up a Private Limited Company in order to take advantage of the lower corporation tax rates that this kind of setup offers. More information on this can be found on our Corporate Advice page.
Three Ways To Use Bitcoin To Bet On Sports
With the growing acceptance of cryptocurrencies across the world, more and more places of amusement are starting to see value in this emerging technology. This is leading to an increase in the number of options that one can use to place a bet. Here are three ways that you can use bitcoin to bet on sports.
Through An Online Broker
The first and probably the most popular way of using bitcoin to place a bet is through online brokers. These are platforms that allow you to place wagers on a variety of sporting events, all from the comfort of your home. The best part about these types of places is that they allow you to use a credit card to make a deposit, meaning that you can get funds immediately for your bets. Another benefit is that they often provide detailed account analysis so that you can track your winnings and losses. Even more so, because they operate online, you can access their platform from any computer or mobile device, which means that you can place your wagers from almost anywhere. This makes online brokers perfect for people who spend a lot of time traveling or working remotely during the day. The downside is that because they operate in the online sphere, there is always the possibility that your account can be hacked. To avoid this, it’s paramount to ensure that you remain vigilant about the security of your personal information and that you always use a strong password for your account. Also, make sure to log off of the site when you log off of your computer or mobile device. This will help protect you from any unnecessary exposure to hackers.
Through A Bookmaker
Another option for you to use bitcoin to bet on sports is through a bookmaker. A bookmaker is essentially a middleman that executes a wager for you. This means that they take the financial risk of your wager. The best part about bookmakers is that they usually offer a very low rate of return. The downside is that they require you to have a sizeable deposit up front, which is not practical for those who are just starting out. The good thing is that you can usually get your winnings in cryptocurrency, allowing you to avoid the issues of acceptance that online brokers face. The last thing that you want is to have a problem getting your money out of the casino. This is where the hassle lies. To avoid this, it’s best to use a bookmaker that handles the majority of its operations over the phone. This allows you to get your winnings in cash, avoiding the need for a lengthy exchange process.
Some bookmakers will even give you some betting credit (typically in the form of a bonus) when you make your first deposit. This way you can literally get started off with a bang and be sure to place some strong bets. Another benefit to using a bookmaker is that they usually provide an in-house team of people that can help you with any issue that you may face. This can prove invaluable if you’re trying to place a bet for the first time and need some guidance or if something goes wrong and you want to speak to someone directly. In the event of a problem, you can also look forward to getting your money back, with no questions asked. The downside to this option is that you are at the mercy of the bookmaker, who may or may not honor their side of the agreement. To be on the safe side, it’s always recommendable to read reviews online before you place any kind of bet. This will help inform you of any possible cons that you might encounter.
A final option that you have is to use a different cryptocurrency to bet with. There are dozens of digital currencies that can be used for this purpose, with many offering decent exchange rates and relatively high volatility. This makes them attractive to those who want to make quick and easy bets. One of the best options for this is Litecoin, which is a smaller version of the famous Bitcoin cryptocurrency. The main difference between the two is that while Bitcoin is a store of value and attracts a growing number of people as an investment vehicle, Litecoin was designed to be easier to use and more geared towards payments. Therefore, if you’re looking to use a cryptocurrency as a platform for betting, Litecoin is the perfect choice. It has the added bonus of being able to be mined with consumer-grade hardware, making it more accessible for everyone.