Cryptocurrencies have exploded in popularity over the last decade. What started with Bitcoin in 2009 has now grown into a market with over 10,000 different cryptocurrencies in existence today. As crypto has grown, online gambling sites have started to adopt cryptocurrency payments as well. Some estimates suggest over 2,000 online casinos and sportsbooks now accept Bitcoin payments, with more being added regularly.
While Bitcoin still enjoys first mover dominance, making up nearly half the total cryptocurrency market capitalization, a vibrant ecosystem of alternative “altcoins” has emerged trying to improve upon some of Bitcoin’s limitations or target more specific use cases. For the online gambler looking to use crypto to deposit, play, and withdraw – they now face an expanding menu of cryptocurrency options, each with their own technological strengths and tradeoffs with regards to features like transaction speed, fees, privacy, and more. This article will provide an overview of Bitcoin before exploring some of the most popular altcoin alternatives and directly comparing their utility in the context of online gambling.
Bitcoin
As the original and still most well-known cryptocurrency, Bitcoin enjoys some key advantages for using at online casinos and sportsbooks:
- Brand name recognition and market lead – Roughly $400 billion market capitalization as of February 2023, about half of the total crypto market
- Relative stability – Less volatility than smaller altcoins, trading range between $17k to $69k per Bitcoin over the past year
However, Bitcoin also comes with some disadvantages, particularly related to speed, fees, and privacy:
- Slower transaction times
- Average transaction confirmation takes 10+ minutes
- Can reach hours during times of heavy network usage
- Higher and variable transaction fees
- Recent averages around $1.50 per transaction
- Fees during congestion have spiked over $50 before
- Limited privacy features
- Pseudonymous system but addresses and amounts traceable on public ledger
- Vulnerable to blockchain tracking analytics
| Pros | Cons |
| Strong brand name recognition | Relatively slow transaction confirmations |
| Greater stability versus smaller altcoins | Transaction fees higher than other cryptos |
| Large market lead | Less transaction privacy compared to alternatives |
While no cryptocurrency is immune from price volatility, Bitcoin’s market-leading position also means significant visibility and speculation that has enhanced boom and bust cycles relative to alternatives. After nearing $70k in late 2021, prices fell below $17k by end of 2022.
Ethereum
As the second largest cryptocurrency platform after Bitcoin, Ethereum and its native token Ether (ETH) enable decentralized applications and smart contracts that provide additional functionality for online betting versus simple payments. The Ethereum network sees vastly more daily transactions and activity than Bitcoin – over 1.5 million transactions per day versus Bitcoin’s 300,000.
For gambling uses, Ethereum’s network facilitates faster payments and settlement than Bitcoin with average confirmation times around 6 minutes currently and options for near instant transactions. Ethereum also allows online casinos to program complex smart contract lotteries, wagers, and outcomes all settled automatically on-chain. However, Ethereum’s greater capabilities come at a cost for users. The average Ethereum transaction fee is currently around $2.50, several times higher than average Bitcoin fees. Ethereum also requires some technical understanding to leverage smart contracts, decentralized apps, and manage ERC-20 tokens. This makes it less accessible for casual betting and gambling uses versus simpler payment-focused cryptocurrencies.
Ethereum Pros
- Faster transaction confirmations (~6 mins). Allows for live, in-play betting opportunities that Bitcoin cannot.
- Smart contracts enable innovative betting/gambling mechanisms. Casinos can program fully automated, tamper-proof games and outcomes.
Ethereum Cons
- Significantly higher average transaction fees (~$2.50). Deposits and cashouts incur >10X typical Bitcoin cost.
- More complexity less intuitive for simple payments. Not as easy as using crypto purely for transactional purposes.
Litecoin
Litecoin (LTC) was one of the earliest Bitcoin alternatives, created in 2011 with an aim to build a lighter and faster payments-focused cryptocurrency network. By having faster block generation times (every 2.5 minutes versus 10 minutes) and using a different proof-of-work mining algorithm than Bitcoin, Litecoin is able to offer significantly faster transaction confirmation times, usually less than 3 minutes on average currently. This ability for quick and inexpensive payments and transfers has led to growing adoption of Litecoin among many online merchants and gambling sites. Estimates suggest Litecoin acceptance has grown over 20X from 2020 to 2023 with more than 2,000 online merchants and stores accepting LTC directly.
However, Litecoin suffers from far lower brand recognition and awareness than Bitcoin or Ethereum. Despite being over a decade old itself, Litecoin sometimes still carries perceptions as a “cheap copy” of Bitcoin among less informed cryptocurrency newcomers. While capable for facilitating low cost gambling transactions, Litecoin rarely sees discussion or significant price movement from mainstream financial news coverage like larger cryptos, limiting speculative interest. As of early 2023, Litecoin maintains a market capitalization around $5 billion – compared to Bitcoin and Ethereum’s combined $500 billion dominance.
Litecoin Pros:
- Fast payments – confirmation times <3 mins
- Low average transaction fees ($0.05 currently)
Litecoin Cons:
- Much lower level of merchant adoption than Bitcoin
- Lacks brand awareness of leading cryptocurrencies
Altcoin Comparison
While Bitcoin has first mover dominance and Ethereum brings advanced functionality, a variety of other alternative cryptocurrencies excel in areas like privacy, speed, low fees, or wider adoption that may appeal to different gamblers.
- Bitcoin Cash – Forks off the original Bitcoin codebase but allows much larger blocks and faster transactions for a few cents fee along with strong adoption. Over 10 online gambling sites specifically accept Bitcoin Cash deposits.
- Ripple (XRP) – Built for fast global bank transactions so excels for speed with average confirmations in 3-5 seconds and negligible fees. Drawbacks are heavy company control rather than true decentralization.
- Monero (XMR) – Prioritizes complete user privacy and anonymity with obfuscated addresses and amounts. No ability to view sender, receiver or transaction details unlike transparent blockchains. Use requires some technical know-how.
- Stellar Lumen (XLM) – Focuses as an open network for storing/trading assets. Effective for cheap transactions costing a small fraction of a penny but more limited casino adoption presently.
- Dogecoin (DOGE) – Derived as a joke but now has strong brand recognition and community. Volatile asset but low fees make it viable for transacting.
- Cardano (ADA) – Developing advanced smart contract capabilities but remains in earlier stages. Gambling dApps are starting to build on the network.
Each alternative coin makes specific design tradeoffs around speed, fees, transparency, governance, and other factors that impact their utility. No option is ideal across all areas so analyzing their strengths and weaknesses matters.
Finding the Best Cryptocurrency Fit
With so many crypto options now available, those looking to use cryptocurrency for online gambling should weigh several key factors when deciding on the optimal coin selection based on their needs and priorities:
Transaction Fees
Depending on betting amounts and volume, the fees levied on blockchain payments may play a significant role in profitability over time. Seeking out cryptos with average fees of just pennies or even less per transaction helps reduce costs.
| Cryptocurrency | Average Fee |
| Litecoin | $0.05 |
| XRP | $0.0001 |
| Stellar (XLM) | $0.00001 |
| Ethereum | $2.50 |
| Bitcoin | $1.50 |
Confirmation Speed
For time-sensitive betting lines or fast-paced casino games, the wait time for transactions to confirm on the blockchain matters greatly. Choosing faster cryptos means minutes instead of hours waiting on that big payout.
| Cryptocurrency | Average Confirmation Time |
| XRP | 3-5 seconds |
| Bitcoin Cash | 10 minutes |
| Monero | ~ 2 minutes |
| Bitcoin | 10+ minutes |
Privacy Level
Some gamblers including pros may prioritize anonymity and concealment for their activity/transactions from transparency on public block explorers.Analyzing fee costs, desired speed, and privacy against both cryptocurrency capabilities and personal preferences allows gamblers to determine the optimal digital asset.
| Cryptocurrency | Privacy Level |
| Monero | High |
| Zcash | High |
| Dash | Medium |
| Bitcoin | Low |
| Ethereum | Low |
| Litecoin | Low |
Closing Remarks
In the few short years since cryptocurrencies emerged on the scene, they have rapidly gained adoption and integration across the online gambling industry. As acceptance continues growing, crypto users now enjoy a buffet of digital currency options to use at casinos and sportsbooks – each with unique strengths, weaknesses, and specialization. No longer just a story of Bitcoin domination, the average player can now wield privacy-centric Monero, speedy Ripple, stable Litecoin or smart contract powered Ethereum among nearly a dozen other popular altcoin assets. Their variety translates to more power of choice.
Yet the space remains early. As blockchain platforms evolve in speed, scalability, functionality and more through coming upgrades, the cryptocurrency landscape enabling online betting shapes up for further expansion. The next waves of innovation may come from wider mobile integration to enhance accessibility or sidechains that help connect layer-2 protocols with base blockchains for greater interoperability. And further adoption continues as more jurisdictions provide regulatory clarity too. As online gambling itself grows, the seamless use of cryptocurrency payments stands positioned right alongside for the ride.
Key Takeaways
- Numerous cryptocurrency options now with unique advantages
- Matching coin features to personal gambling priorities
- Ongoing innovations to enhance speed, scalability, privacy