With the surging popularity of sweepstakes casinos, understanding the various aspects of these platforms has become increasingly important, especially the non–conventional mode of transactions – digital currency. Though most sweepstakes offer free-to-play games, they may request a minimum deposit as well as certain transactions for gameplay.
While you have traditional currency to address these needs, many sweepstakes have also introduced cryptocurrency to take security, transparency, and gaming experience to the next level.
Never dealt with using crypto before? With our guide, understand the use of traditional currency and cryptocurrency while exploring the difference between the two.
Understanding Traditional Currency and Cryptocurrency
Traditional currency, referred to as federal currency, is a physical or digital medium of exchange regulated by a country’s central bank or government. It is a form of centralized currency produced and monitored by these authorities.
Cryptocurrency, on the other hand, is a digital currency based on encryption and blockchain technology that regulates currency generation and verifies the transfer of funds. They utilize decentralized networks – networks that are not within the control of government authorities and financial institutions. The transactions are recorded securely and transparently.
The Key Differences Between Cryptocurrency and Traditional Currency in Sweepstakes Casinos
Here are some of the differences between traditional and cryptocurrency in sweepstakes casinos:
1. Anonymity
Cryptocurrency is the better choice if you’re an online player who prefers to participate in betting games anonymously. When you make withdrawals and deposits in cryptocurrencies, no information of yours is shared with the online sweepstakes casino.
However, the information can be traced back if you decide to complete your transaction on sweepstakes using traditional currency, such as with a credit or debit card.
2. Withdrawing Winnings
Transactions completed with crypto are much quicker as these are decentralized, taking place on a blockchain. As such, withdrawing your winnings in the form of cryptocurrencies will be faster compared to traditional methods. Financial institutions have holding periods, procedures, and policies that delay withdrawing winnings into the bank account.
3. Security
Regarding security, cryptocurrency and traditional currency both support enhanced protection. There’s no chance of your personal and financial information listed on sweepstakes getting into the hands of the prying eyes of hackers.
Bitcoin, the most well-known cryptocurrency, has never faced a hack and is considered the safest currency. Even better – the transactions conducted with cryptocurrencies are recorded on the public blockchain. This creates a tamper-proof and transparent ledger for enhanced security.
4. Provably Fair Games
Another essential difference between sweepstakes casinos using cryptocurrency instead of traditional currency is that the former is fairest in their casino games. Crypto sweepstakes use algorithms featuring low house edges, making it simpler for players to win. Plus, their games can’t be changed or manipulated. Players can verify the fairness of every bet.
5. Legality
Sweepstakes casinos operating with traditional currencies are legal in most parts of the United States, except Washington. Reputable sweepstakes are licensed and regulated by a recognized authority such as the Malta Gaming Commission.
However, the legality and regulation of sweepstakes casinos with cryptocurrency vary widely by jurisdiction. Some places have welcomed the technology, laying out frameworks to monitor and license crypto gambling operations. Others have not yet defined clear rules concerning cryptocurrencies within online betting, resulting in a legal gray area.
Final Verdict
There are significant differences between sweepstakes casinos using traditional money and cryptocurrencies. Sure, you could expect enhanced safety, anonymity, and faster transactions with crypto – but it’s still a gray area not much acceptable in most places.
Traditional currency, however, ticks off all marks of security, privacy, and legality except being a little short on anonymity and quick transactions. Whatever method you decide will ultimately influence your gaming experience. So, be informed about the sweepstakes and crypto laws in your judication before deciding to roll the dice.
