Review Crypto Casino

Cryptocurrency in the modern casino gaming world

Before proceeding to consider cryptocurrency as a phenomenon of the modern economy and a convenient way to make deposits in online casinos, you should analyze the name itself.

The name was first used in an analytical article by Forbes magazine. The prefix “crypto” in the name is an abbreviation for “cryptographic”, that is, encoded. Thus, a cryptocurrency represents a series of interconnected encoded signatures that are the result of solving the equations of cryptography. Encryption determines the uniqueness of each coin, and signatures are analogous to the serial numbers displayed on banknotes.

The emergence of the currently most famous cryptocurrency Bitcoin, which is very popular in Crypto Casino, was preceded by attempts to create virtual money, and programs were developed to ensure the security of electronic payments through cryptography.

 

What is cryptocurrency in plain language?

Cryptocurrency is a special payment instrument, the main difference from the national currency of which is the absence of real expression and existence exclusively in the Internet space.

Cryptocurrency refers to digital money with a high degree of security, settlements for which are carried out using blockchain technology. The cryptocurrency is ideal for deposits and withdrawals of winnings in crypto casinos because all transactions will not be visible to the tax service.

After all, data storage is carried out on a large number of computers, each of which is a separate network node. To carry out any operations in the system, they must be registered and confirmed by each node.

The generation of virtual money is carried out in the process of cryptographic operations (deposits and payments in crypto casinos), which makes it impossible to counterfeit. In some countries, this category of money is equated to financial instruments of the national level, calculating the exchange rate relative to traditional currencies. Various cryptocurrencies, after payments from crypto casinos, are easily exchanged for fiat currencies through special platforms.

Technical component

The main characteristic and attractiveness of cryptocurrencies for use in crypto casinos lie in their decentralization, that is, the absence of a financial institution exercising external control and management. Recently, attempts have been made to create it, which may be the first step towards equating virtual money to fiat currencies.

Cryptocurrencies are stored in a distributed ledger system created by blockchain technology. The user can get data on the transactions carried out, as well as on the state of the wallet. The block also contains information about transaction fees and other service information.

Mining is the creation of each new block, in which a user can take part in possession of powerful equipment and a stable Internet connection. However, setting up the production of virtual money requires special skills to work with a specific crypto network through the use of remote access.

 Security measures

The guarantor of the protection of cryptocurrency when used in a crypto casino is a special code, most blockchain systems use a “proof of work” code, which does not allow an operation to be performed without confirmation from various nodes.

Generation of new nodes is carried out at a certain interval, which is set by the program code of the system. New blocks are linked into a single interconnected chain, while the correctness of the hash signature is confirmed by each of the network nodes. Blocks in which errors are detected are immediately rejected by the system and do not negatively affect its functionality.

A hash chain and a special digital signature ensure that transactions are highly secure and that each one is unique.

Types of cryptocurrencies used in crypto casinos

According to statistics, as of September 2020, the number of cryptocurrencies exceeded 5,500, and their market capitalization was almost $ 300 billion. At the same time, 20% of the most famous cryptocurrencies used in crypto casinos account for more than 70% of the amount.
This is because a significant number of virtual currencies are used exclusively for settlements within a certain network and are not traded on exchanges, and, accordingly, they are not of interest from an investment standpoint.

There are the following types of cryptocurrencies:

• Currencies Coin. This type of cryptocurrency is mainly used as a means of payment in online crypto casinos and as an investment. The main characteristic of this type of virtual money is the absence of centralized management, absolute anonymity of transactions, and simple use. The most famous cryptocurrency of this type is Bitcoin.
• Platforms Coins. This type of cryptocurrency is a special financial instrument, without which it is impossible to use the network, the main purpose of this cryptocurrency is to create and execute smart contracts. They are a special program that automatically monitors the transfer of assets between more than two parties to a contract concluded under certain conditions. Currently, the most famous cryptocurrency in this category is Ethereum. Also, this virtual coin can be used in the same way as bitcoin. The main motivation for investing in Etherium is the desire to leverage capital in the development of project infrastructure. But Ethereum is also very popular among players for making deposits and paying out winnings at online crypto casinos.
• Cryptocurrency Exchanges. Large exchanges where cryptocurrencies are traded very often issue their types of virtual money. This allows you to increase the speed of circulation of funds and increases the liquidity of unknown assets on the exchange. Exchange users can at any time convert the cryptocurrency to the exchange token by paying a small commission, which increases the attractiveness of investing in startups. The main difference between this type of cryptocurrency lies in their centralization, that is, in the presence of a governing body. They are also characterized by high liquidity, which, however, directly depends on the success of the development of the exchange – the issuer. The most popular exchange tokens are Binancecoin and Exmocoin.
• Utility Tokens, also sometimes called App Coins. This category of cryptocurrency is issued in the amount necessary for carrying out operations to attract ICO investments. Attempts have been made to promote Utility Tokens as investment tokens after the completion of the collection for blockchain projects. However, due to strict control by the securities commissions, a high level of knowledge is required to carry out successful investment activities.
• Security Tokens. Distribution is carried out among investors, which provides additional protection for capital investments. They represent an analog of a marker by which dividends are paid, while the virtual money itself can be invested in other blockchain projects. The right to receive profit in case of its appearance is registered in a smart contract, and the tokens themselves can be sold on the exchange. This type of cryptocurrency is characterized by the presence of some centralization since its turnover is regulated by government services for the securities and financial markets of some countries.
• Crypto Commodities. A generalizing concept of an asset, which can be both real and virtual, where obtaining is associated with the use of a blockchain network and special digital tokens. This category of virtual money is used to pay for various goods and services within a certain platform. For example, through the use of blockchain tokens – the Aeron network, it is possible to access the air travel security database. The security of transactions carried out with this type of cryptocurrency is ensured using a special program code in a smart contract. Unlike some types of tokens, Crypto Commodities cannot be used outside the blockchain project to carry out settlements.
• Stable Coins. This type of cryptocurrency is characterized by the lowest volatility, which is due to its linking to a physical asset. The main condition for the imitation of this type of cryptocurrency by the company is the placement of funds in the accounts of the reserve fund of the amount in fiat currencies, which provides coverage of their cost. The most famous virtual currency in this category is Tether, but others are backed by dollars and euros. For example, El Petro is the first cryptocurrency of the stable coin category, the issuer of which is the state. This stable coin is issued by the government of Venezuela, and various resources of the country act as collateral. The PRC and the Russian Federation are also currently working on the release of stable coins. However, there is some contradiction between the nature of cryptocurrencies, which consists in the absence of centralized management, and a mechanism for maintaining the exchange rate on the part of the state – the issuer of stable coins.

Pros and Cons of Using CryptoCurrency

Pros of CryptoCurrency

1. Lack of a single governing body;
2.  Anonymity;
3. Permanente;
4. Transparency of transactions;
5. Reliability of the blockchain system;
6. Ease of use.

Cons of CryptoCurrencies

1. Lack of collateral for most cryptocurrencies. Even though the value of a virtual coin is also calculated based on the ratio of supply and demand, the liquidity of cryptocurrencies depends on many factors, in contrast to fiat, the liquidity of which is provided by the government and the Central Bank.
2. High volatility of virtual money, which is confirmed by sharp and significant fluctuations in their value on exchanges.
3. The private key cannot be recovered. If the lost key falls into the hands of intruders, then they can withdraw funds to another wallet, and if it is simply lost, it will be impossible to get virtual coins.
4. The high value of crypto coins is limited by the system, which is its issuer. If the blockchain project is not popular or loses some value, then all virtual coins will turn into worthless digital code. In this case, miners can start mining different types of digital currencies, then investors will lose their invested funds.
5. If countries with developed economic systems make a unanimous decision to control or ban cryptocurrencies, the situation will change dramatically. Virtual money will become a means of payment in the shadow sector of the Internet, which will entail negative consequences for both miners and investors.
   The least difficult to solve are technical problems, as well as a large number of fraudsters who, under various pretexts, steal virtual coins from the wallets of their owners. The problem of expanding the scope of the use of cryptocurrencies will certainly be solved soon, and the security of funds in wallets can be increased by their owners themselves, observing certain precautions.