5 Common Bitcoin Online Gambling Scams
There are many people out there that believe Bitcoin and other cryptocurrencies are scams. While crypto isn’t a scam, there are many scams that are perpetrated through crypto. Common scams are run through online gambling sites. Today, we will give you a heads-up on some of the most common Bitcoin gambling scams out there. Pay attention to these potential scams so you know what to look for when gambling with Bitcoin.
Website Specific Cryptos
There are some Bitcoin online casinos that will offer you the option to play using a site-specific cryptocurrency. The currency cannot be used anywhere but on the site and the currency often cannot be cashed out. You can convert it to another crypto based on an exchange rate set up by the website. In some cases, you can only convert it once you have acquired an arbitrary amount of the currency.
These scams are somewhat easy to spot. Just look the crypto up to see if it is being traded anywhere or has any real-world value. Usually, it does not.
Note that some sites offer site-specific cryptos as a demo or free play coin. These are not scams, but just a way to get you used to playing with crypto. The key here is that you cannot buy any of the coins.
Anonymous Bitcoin Gambling
Bitcoin and cryptocurrency became popular because of privacy. Before crypto regulation, a lot of purchases were done anonymously. Some still are. However, the anonymous nature of cryptocurrency also increases the probability of scams.
Gambling scams are most often perpetrated through anonymous online gambling sites. You might be able to play blackjack, roulette, or other dice games anonymously, but this also gives the casino the ability to cheat you out of your money anonymously. If the site shuts down or takes your money, what can you do? You’ll never find the person running the site because the site is anonymous.
Proprietary Bitcoin Casino Games
Going hand-in-hand with anonymous Bitcoin games are sites that offer proprietary crypto gaming. These games are often developed from lesser-known or no-name companies, or completely developed by the site itself.
You never know what you’re dealing with whenever you play with proprietary games. Are they provably fair? Is the RNG legit? How are you going to prove this short of decompiling the program and evaluating the source code?
Your best option is to play with sites that operate on established platforms. SoftSwiss is a popular Bitcoin gambling platform and many companies like Microgaming now offer Bitcoin gambling games. Make the smart choice and pick games from established providers.
Bitcoin Faucet Gambling
Always be wary of online gambling sites that let you start and try to spin up your bankroll using Bitcoin faucets. Often, the amount of money you have to win is insanely high and not realistically achievable using faucets or gambling with faucets.
In other instances, once you get to the point where you can cash out, the casino comes up with a bogus reason to ban your account and keep your crypto. Occasionally, you may be able to even attempt a cashout but you’re never paid.
Investing or Staking the Casino
Some online casinos will offer you the “opportunity” to invest in the casino either by depositing crypto to be used as the casino bankroll or by staking your crypto with the casino. The purpose is to earn either a portion of the rake via investing or extra crypto through staking.
What can happen is that the casino either never pays you any money for your staking or investing efforts or your money gets locked up to where you never get it back. Sometimes the casino will ban you with some claim of fraud and keep your money. If a casino wants you to stake or invest, play elsewhere.