Anyone who has decided to use crypto payment has to think about two things in the first step:
- How and where do I come into possession of cryptocurrency?
- Where do I store the crypto I have acquired?
The good news is that it has never been easier than today to buy crypto such as Bitcoin, Litecoin and Ethereum, to name just three of the best-known. There are now countless companies that make it easy for customers to deposit money and exchange it for digital assets within minutes – and vice versa, of course.
Crypto exchanges are primarily suitable for holding and trading crypto. With bitcoin and some other coins, however, there is a second possibility: so-called mining. You practically mine the digital coins using your own computing power, similar to gold, but virtually instead of manually.
When it comes to depositing with cryptocurrencies in the casino, direct purchase is probably the simplest solution. This requires an account with the preferred wallet, a deposit in real money and the decision as to which coin is to be purchased for the credit. Of course, coins earned in the casino can also be stored on the wallet without any problems.
Crypto trading exchanges in comparison
Bitcoin and other cryptocurrencies first became successful because they could be mined. This opened up new sources of income for many people. Although it took what felt like an eternity to mine a single BTC, this option was obviously very interesting as a secondary source of income. Today, most investors prefer to buy coins, which is possible at any time on so-called crypto exchanges or trading exchanges.
Trading with coins is also lucrative. This is allowed on the large exchanges as a second option in addition to buying and selling blockchain currencies. The trading platform can usually be found under the suffix “Pro” of the respective main name.
What is a crypto wallet?
Wallet is the English word for wallet or purse. A crypto wallet is nothing other than a digital wallet for Bitcoin, Ethereum, Bitcoin Cash and numerous other digital assets. The coins are not real coins, but only available virtually. While you put hard coins in your wallet, the assets are transported to the digital wallet.
Therefore, in order to exchange real money into BTC & Co. the crypto wallet is essential. There, customers are shown all the rates and the exchange can take place in real time.
In summary: A crypto wallet is a virtual wallet with which coins of all kinds can be managed, issued, exchanged and – in the Pro version – sometimes even traded as on a classic stock exchange.
Hot and cold wallets – the differences
The common exchanges always speak of hot or cold wallets. The latter are insured on Coinbase, for example. But what do these two terms actually mean and how do the wallet forms differ from each other?
- Hot wallet refers to centrally stored coins, i.e., cryptocurrencies that are managed online. Anyone who sets up a customer account at Bitpanda, Binance and the like and purchases coins saves them on the hot wallet. “Hot” describes it quite well here, because the danger of an attack by hackers is basically many times higher than with the cold wallet.
After all, there is a direct connection to the internet, and it is precisely this that creates a massive deposit risk – even though the major exchanges now take numerous security measures to protect hot wallet accounts. The last major attack on Binance was not that long ago and cost both the company and investors several billion euros.
- More secure is the cold wallet, a decentralized alternative to the example mentioned. Cold wallet refers to all storage options that are not connected to the internet. Providers of such “cold wallets” are, for example, Exodus or also Ledger. Purchased coins are stored directly on a USB stick or hard drive. The investor is responsible for backing up this hardware.
- Paper wallets are the third “cold” option. In fact, it is possible to print out digital assets on paper. You then hold a kind of certificate in your hand that contains the price as well as the number and type of coins.
How does the purchase of cryptocurrencies work?
Basically, as a registered user, you can “shop online” at the well-known exchanges in the usual way. The basic requirement is to make a deposit with real money. For this purpose, various classic payment methods are usually accepted, including credit cards, instant bank transfer and various alternatives. After logging in, the deposited amount is automatically allocated.
The entire credit balance can be easily exchanged on the exchange. All you have to do is set an amount and decide which coin to buy.
An advantage is the usually good overview of the current prices for all common and numerous other digital assets. The exchange itself should be completed within a few seconds. Coins can often also be exchanged for alternative cryptocurrencies. The exchange fees, which can vary significantly depending on the wallet, must always be taken into account.
The biggest & best crypto exchanges
So, what should a good crypto exchange entail? The most important thing is ease of use, because this is the only way that even beginners can get started without any effort and have the possibility to manage their coins easily.
The Pro version, which hides the trading, is of course also useful, but does not play too big a role for depositing and withdrawing in the crypto casino – unless you want to increase your credit at high risk.
1st place: Bitpanda: The fact that Bitpanda is so popular is certainly due to its Austrian roots and the strict monitoring of the wallet.
Eric Demuth, Christian Trummer and Paul Klantschek opened Bitpanda in 2014 and have made over 50 cryptocurrencies available for purchase to date. Trading with blockchain is also possible here for advanced traders.
Bitpanda is also very accommodating for beginners. Those with little experience benefit from extensive lessons on the e-learning platform.
2nd place: Coinbase: For the cost-conscious, Coinbase is clearly one of the best alternatives to Bitpanda and Binance.
In terms of transaction fees, the company, which was founded in 2012 by Brian Armstrong and Fred Ehrsam in the USA, can hardly be beaten. However, favourable conditions are only one of many advantages.
In addition, there are more than 40 coins for purchase, a separate Coinbase Pro trading platform for experienced users, and the simple basic version, which is perfect for anyone who only wants to purchase coins for deposits in online casinos.
3rd place: Binance: Binance Holding Ltd. was founded in 2017 by Changpeng Zhao and has its headquarters in Malta.
Today, the wallet including the Binance Pro trading platform is available in 27 languages. In addition, more than 180 different cryptocurrencies are already available or tradable. Customers can deposit in more than 50 real money currencies.
A major advantage is the exchange at daily updated prices. Binance is particularly suitable for beginners due to its well-thought-out structure. However, the exchange fees should not be underestimated.
How reputable are the crypto exchanges?
The top 3 trading exchanges for blockchain can be classified as very reputable. They are all subject to strict controls, although cryptocurrencies, as already noted, are not tied to the classic financial market.
Coinbase in particular should be highlighted. A large part of the deposits of all customers is insured here – namely the part that is stored as a cold wallet.
Conclusion
For those who only want to play with cryptocurrencies in the online casino, a simple wallet is sufficient. The three described are both reliable and versatile, because both BTC and numerous other coins can be bought there at daily updated rates.
The option of using associated trading exchanges, on the other hand, is recommended for experienced customers. Those who have little knowledge of digital currencies can not only make good money here, but in the worst case they can also lose a lot.
Wallets that offer their users fair conditions and thus the lowest possible fees are ideal. As a rule, you cannot avoid certain costs, but there are sometimes significant differences between the providers. And the less you invest in fees, the more coins you have left to play in your favorite crypto casino.
