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Guide to Opening a Free Crypto Wallet for Online Gambling

01 Feb 2022

The steps for setting up a crypto wallet.

Cryptocurrencies are accessible now more than ever. Pretty much every good online casino on the market accepts and prefers digital currencies. Compared to regular fiat transfers, crypto is faster, cheaper, and decentralized so it’s no wonder gambling with crypto coins is trending among the members of the iGaming community. However, in order to use crypto, you’ll need a crypto wallet. Find out how exactly you can set one up, completely for free.

Why Should Online Gamblers Use Crypto?

bitcoin and casino coins

Switching to cryptocurrencies as an online gambler is one of the most helpful changes you can make. Besides saving you loads of time, crypto will also save you lots of money. Money that would otherwise be lost in expensive transaction fees. Furthermore, crypto has numerous other benefits such as:

  • Privacy - Although the blockchain is open-sourced, meaning everyone can view and verify everything, it is completely private. Creating a wallet doesn’t require any kind of personal information. Unless you decide to tie your wallet to your name yourself, your funds are completely private. 
  • Security - Not only is the blockchain completely transparent but it is also extra secure. All transactions and changes are publicly visible by anyone. As long as you make sure to take all the necessary precautions your safety is guaranteed. Hackers would have a higher chance of winning the Powerball nine times in a row than breaching your wallet funds.
  • Control - Banks love to control and police outgoing transactions. It is very common for them to deny and halt transactions to online casinos in the UK and US. With a crypto wallet, especially a non-custodial one, you’re in charge! 
  • Convenience - Crypto wallets can be extremely convenient. Some of them are just simple apps on your phone and others are convenient browser extensions on your computer.
  • Speed - Like mentioned before, crypto can save you loads of time. Transaction speeds are lightning-fast. Combined with extreme convenience and low fees it’s no wonder most iGamers prefer crypto.


Non-Custodial Wallets vs Hosted Wallets

When it comes to basic types of crypto wallets there are two types: non-custodial and hosted. Non-custodial wallets are the original wallets and each wallet has a unique private key. This private key is essentially the core of the wallet. Whoever has the private key owns the wallet. Even if you were to lose your wallet, you can always recover it with your private key.

Custodial wallets, also known as hosted wallets, are more of a modern evolution of crypto wallets. They are sort of like an online banking account. You don't own a private key but instead an account on an online exchange. This is an easy solution for crypto newcomers as it’s pretty much a standard login, password, and 2FA account that everyone is familiar with.

bitcoin and lather wallet

Their main difference lies in their security. Non-custodial wallets are only as safe as you make them. Since you’re the only person in charge you bear the responsibility. With hosted wallets, you’re putting trust into the security of your bank/exchange.

Non-Custodial Wallet Advantages

  • You’re in control - A non-custodial wallet is the closest thing to decentralization where you’re in complete control. Since hosted wallets are essentially bank accounts, transactions are still to be approved by a third party. If your site has any form of security concern they could halt your account whenever. This would never happen with a non-custodial wallet
  • Highest security potential - Although a bank/exchange might have more security than the average person, non-custodial wallets offer the highest security possible. Hardware or paper non-custodial wallets are completely disconnected from the internet. Making them next to impossible to hack.
  • Anonymity - You can send and receive coins without submitting any kind of identification. In order to open a hosted wallet, you’ll need to complete KYC (know your customer) requirements for security purposes.
  • No limitations - For high rollers, a non-custodial wallet is a must. The wallet isn’t restricted by any kind of limits. Whether it’s a deposit or withdrawal you can freely do so without restrictions. 


Hosted Wallet Advantages

  • Secure for newcomers - The crypto world can be extremely overwhelming for newcomers. For someone whose computer security isn't their strong point, a hosted wallet might be a much more secure option. Since everything is controlled by your exchange you’re less likely to mess up your transaction or fall victim to a scam. 
  • Recovery is possible - With a non-custodial wallet, if you lose your keys you lost your wallet. Without your private key, recovery is impossible. With hosted wallets though, your identity is tied to your funds just like a regular bank account. As long as you can prove that you are yourself, you don’t need to worry about losing your account.
  • Save money on internal fees - Since your funds are already on an exchange, you potentially save on fees. Internal transfers, swaps, or transactions often cost next to nothing, and a lot of times it’s free. With a non-custodial wallet, you’d have to pay a little extra.
  • Disputes are allowed - While normally, transactions on the blockchain are immutable, an exchange is in control of all the funds similar to PayPal, Skrill, etc. In case of a mistake or a peer-to-peer (P2P) fraud, you’re more than likely to get your money back long after you’ve sent it.


How to Open a Hosted Wallet

bitcoin and binance

Opening a hosted wallet is extremely simple but potentially more time-consuming. The process is similar to opening an e-wallet such as Paypal, Venmo, or Skrill.

  • Choose a reliable platform - Binance, Crypto.com, or Kraken are all great. All the big names are viable due to their top-notch security. However, for online gamblers, it is recommended to avoid CoinBase. Although they’re a reputable exchange they’re known for rejecting transactions to crypto casinos. 
  • Create an account - Find their sign-up page and open an account. Make sure to connect a secure email address. Next, add your phone number, and make sure to enable two-factor authentication (2FA) for maximum security. 
  • Complete KYC - In order to tie your identity to your account, you’ll need to complete KYC. Most exchanges will ask you to engage in a multiple-step verification process involving real-time selfies and videos. This verification can take anywhere from a few minutes to multiple days, depending on what site you’re using.


How to Open a Non-Custodial Wallet

Although hardware and paper wallets are the safest type, software wallets are the most convenient for online gambling. They are connected to the internet and make casino deposits/withdrawals seamless. You can find software wallets in the form of mobile apps, desktop apps, or browser extensions. Here’s how to open one:

  • Choose and download a wallet app - For first-timers, it is recommended to stick to known and trustworthy brands such as Exodus, Trust Wallet, Metamask, or Electrum.  
  • Set a passcode - Some apps will ask you to create a password or pin, which you’ll have to enter every time you log in. If your wallet doesn’t require this step you can skip to the next one. 
  • Store your private key - You’ll be shown your private key, which is a string of 12 - 24 random words. Write these words down and make sure to keep them secure. Do not ever give it to someone else!


Transfer Crypto to Your Wallet

The last step before depositing at your favorite crypto casino is to buy some cryptocurrency of course. With a hosted wallet, all you really need is to connect your card or any other fiat payment method on your exchange. Once you buy some crypto for gambling, either deposit directly at your casino or transfer your funds to your non-custodial wallet. You can proceed with your deposits from there.

bitcoin transfer

However, make sure you’re sending the correct coins to the correct network. For example, Bitcoin is available on the Bitcoin Network, Ethereum Network (Wrapped BTC), Binance Smart Chain, etc. When transferring any kind of funds, always make sure both the receiving and sending addresses are on the same chain. Otherwise, you risk losing your funds.

And that’s it! No matter which kind of wallet you choose, as long as you follow these simple steps, you’ll be enjoying crypto gambling in full force.

Cryptocurrencies are accessible now more than ever. Pretty much every good online casino on the market accepts and prefers digital currencies. Compared to regular fiat transfers, crypto is faster, cheaper, and decentralized so it’s no wonder gambling with crypto coins is trending among the members of the iGaming community. However, in order to use crypto, you’ll need a crypto wallet. Find out how exactly you can set one up, completely for free.

// Richard

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