Cryptocurrency has swept the world off its feet with its digitalized form. A lot of industries are slowly subscribing to using it as a mode of payment. Casinos are not left out of this advancement. Nowadays, we see crypto casinos slowly rising to the surface, gradually disposing of the old ways of gambling. Instead, they adopt the new norms of technology and embrace the advancement.
However, as advantageous as crypto betting might seem, there are also many dangers attached to it. The most common is fraud. If players are not careful, they might fall for the wrong scheme and lose a lot, if not all, of their cryptocurrency.
Here, we shall examine common scams and fraud associated with crypto gambling. This knowledge is to prevent you from falling victim to fraudsters and also to choose legit Bitcoin Betting Sites on CryptoBetting.
Gambling and betting with cryptocurrency
A few years ago, players used only the traditional means of gambling. This method usually requires you to reveal a lot of personal information like your card details. As such, it was more difficult for players to retain an image of anonymity.
While the traditional means of gambling still stands, a better method has risen: crypto betting.
Just as the name implies, crypto betting is the use of digital currency to gamble. Though it is still on the rise, several casinos have inculcated this betting mode into their scheme. With a long list of advantages, it is not surprising that crypto casinos are hotcakes. Some of these advantages are:
- Ability to remain anonymous
- Easy and convenient means of gambling
- Secures a player’s information
- Removes certain restrictions
- Reduced risk of bank fraud
- ‘Faster transactions
- More security and validation
Still, despite these advantages, staking your cryptocurrencies comes with a list of disadvantages. The most common being scams and fraud.
Scam and fraud of crypto gambling
Bitcoin opened the door for the use of other cryptocurrencies. However, as these technologies evolve, so does how fraudsters operate. These days, these people go a long way to get money from people. To make things more complicated, they are difficult to trace as they vanish into the internet.
These hackers use several methods to get access to your account and siphon digital currencies. These methods are listed below.
Fake crypto gambling site
It is a known fact that gambling is quite risky, but this is also part of the excitement. Nonetheless, it becomes disturbing when certain groups take advantage of it. The online gambling platform is the easiest way to achieve their means. If you want to get players, why not use a gambling site?
Therefore, they create websites that imitate a crypto betting site. Unfortunately, unlike regular betting sites, you have zero chance of winning. Even if you are lucky to be a winner, you’d not be lucky enough to be able to withdraw your winnings.
These fake sites usually operate like every normal betting site making it difficult to notice at first. Even worse, when players detect and report these activities, the server vanishes from the internet.
The promise of higher bonuses
Offering bonuses are easy ways for any site to get the attention of players. As such, fake sites offer a lot of bonuses, posing as regular betting sites. However, the promise of getting higher bonuses is only a poly, as you do not get to receive any of these bonuses they offer.
Insecure crypto wallet
It is very crucial to create strong passkeys for your crypto wallet. Aside from this, it would be best if you kept them a secret. Some hacks, passing as normal betting sites, might request personal information that could give a hint of your password. If yours is not a strong one, it will be easier for them to access your wallet.
Special offers often tempt players. Some of these offers are presented in a way that’ll require you to click on certain links to access them. Often, these links are not genuine. If it is a hacker’s link, once clicked will give them the complete information that they’ll need to access your wallet.
How to avoid being these scams and frauds
One of the ways to avoid being a victim of fraud is the use of blockchain. Blockchain is a decentralized network protected by cryptographic algorithms. The algorithm stores data on various computers and makes it available to users who wish to access it. Using blockchain technology, you can eliminate intermediaries from data and money transfers while also maintaining high transparency.
The advantages of using blockchain include:
Inability to change records
There is no way to lose, copy, or erase any of the data in the chain. Casinos that send RNG and RTP data to blockchain are unable to alter the numbers. Furthermore, blockchain-based casinos are unable to charge additional fees behind the backs of their customers.
There is no need for sensitive information
A gambler only needs to submit the wallet’s public address to gamble on gambling sites. It is even better when the websites support the use of blockchain Cheats, and scammers cannot steal anything from casinos because they do not handle personal information. The private key for gaining access to funds is kept confidential, and only the owner has access to it.
Smart contracts, which are used in casinos for payouts, removing the possibility of manipulating money transactions
Blockchain technology can be an effective tool in the fight against gambling fraud. The fact that the systems cannot reverse transactions means that they can protect both casinos and players. The more people know of this technology, the more likely it is that blockchain-based casinos will replace traditional casinos.
Use trusted online betting sites
Before gambling, ensure that you use trustworthy sites. Make a research on the best transparent online betting sites that have a secured platform.
Do not click on unknown betting links
Avoid tapping on links that do not come from a known source. No matter how appealing they might seem, it might be a trap to get personal details.
With the high rise of using crypto to gamble, many hackers are thinking of new methods to rob people. With the knowledge above, you now have an insight into how you can avoid being a victim of scammers.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.