Are you an experienced bettor looking to extend your reach to crypto casinos, or a crypto enthusiast, who had mined crypto before and is now trying to increase its amount in the gambling world? Perhaps you already know much about crypto casinos and you want to choose the best possible coin for your deposits.
When starting off with crypto casinos, choosing the right coin for your first deposit is essential. This article will look into two of the more prominent stablecoins on the market: Tether (USDT) and US Dollar Coin (USDC), and compare them in terms of their effectiveness for online gambling casinos. It will also provide background knowledge on the basics of crypto gambling, and the use of stablecoins for gambling purposes.
What Is a Crypto Casino?
Crypto casinos have been a reality for a long time, offering players game-changing conditions such as zero transaction fees, instant cash out, and great-looking bonuses. Basically, they are casinos where deposits and withdrawals are made in cryptocurrency.
There are several advantages of turning to crypto in gambling. All transactions are anonymous because they are based on blockchain, and most casinos ask for little to no personal information. Most players also trust the gambling software and the algorithm behind the games more, because everything happens on the blockchain, and manipulation and foul play are nearly impossible. Of course, for this to be true, the casino itself must be trustworthy. This is where we suggest you focus most of your research before putting your money on the line.
Stablecoins were designed to be less volatile than regular cryptocurrencies, by being attached either to a stable fiat currency (e.g., USD), or some type of commodity such as gold. In simple terms, they are guaranteed to remain stable regardless of what happens to the prices of other coins, because they are backed by non-crypto, “real-world” assets.
People turn to stablecoins when they want to reduce the risks of certain crypto investments, or when they want to stop speculating on a certain coin, while at the same time remaining in the crypto world. It is also used as a medium for exchanging cryptocurrencies and “real-world” currencies because conversions through stablecoins tend to be faster and cheaper.
Are Stablecoins Actually Stable?
The short answer is – yes. This is, of course, true only as long as the asset the stablecoin relies on holds value, (US Dollar, gold, etc.). This is surely enough to distinguish stablecoins from “regular” cryptocurrencies, whose value can fluctuate up or down by as high as 30% in a matter of days. Sites such as tradecrypto.com can help you keep up with the times, whether you want to learn more about regular coins or start your stablecoin journey.
You want to earn money in your favorite casino game without waking up the next day and realizing you lost a significant amount of your bankroll because the crypto you use just lost a lot of its value overnight. This is where stablecoins enter the scene.
They have fixed value and should save you a lot of headaches, otherwise caused by frequent price fluctuations. In practice, this means you should only worry about your bets in a casino game, just like with a real casino, while your depositing currency remains safe and sound.
USDT or Tether is a stablecoin tied to the American Dollar (USD). It is the first and most widely used fiat currency-backed stablecoin, launched back in 2014. It was created by a trio of well-known men in the crypto world.
Each token is said to be backed with a US Dollar held in reserves, which guarantees its value. When a transaction is completed, the USDT token is destroyed and a dollar is given to the user. This system of circulation control keeps the price stable. It is also popular in the trading market because it is worth exactly $1, which rarely ever changes, and when it does the effect is negligible – 1/1000 of a cent or even less.
USDT Gambling – Pros and Cons
As we already know, if you choose USDT, you get a stable currency and you don’t have to worry about gambling in the crypto market. Also, the transactions happen almost instantly and the fees are insignificant. Furthermore, USDT is one of the most represented stablecoins in the crypto casino market, so you shouldn’t have trouble finding a good value casino with Tether. The fact that it is supported both on the Bitcoin and Ethereum blockchains may play a significant role in its prominence in the gaming industry in the future.
On the other hand, far more casinos still offer regular coins such as Bitcoin and not Tether. It is also not decentralized in the strict sense of the word, and the stability of your funds largely depends on the company behind Tether. Of course, this can’t be avoided with any type of crypto gambling.
USD Coin is a stablecoin that is also connected to the US Dollar at a rate of 1:1, although it is slightly more stable than Tether. Its backing functions similarly to Tether.
It was created in 2018 by Coinbase, a well-known exchange platform, and Circle, a peer-to-peer payment company. The idea was to provide an alternative to established stablecoins such as Tether. USDC is still in development, and 2020 brought announcements about updates that will help spread its use for everyday payments and peer-to-peer transactions.
USDC Gambling – Pros and Cons
USDC is based on the Ethereum blockchain, with all users being able to track their transactions precisely. USDC can be stored on any supported wallet.
The general benefits are similar to Tether’s, with the difference of USDC being more regulated and more frequently tested for flaws. This can be a double-edged sword, because regulation may mean safer conditions, but it also means more centralized control and less anonymity. You can learn more about the difference between USDC and USDT.
While traders may thrive on fluctuating crypto prices, for bettors, stablecoins are the way to go. Which of the two described coins you should choose is a matter of preference, because the defining traits are similar for both coins, and they differ only in certain aspects. If you want more regulated conditions, less fluctuation than Tether, and a newer, faster-developing project, go for USDC. And if you want more choices in casinos and games, and more anonymity, go with Tether.