***Updated: August 14, 2019***
Launched on July 30, 2015 by computer programmer Vitalik Buterin, Ethereum or “ETH” was an instant hit among cryptocurrency enthusiasts. It came to fruition through crowd funding efforts in the summer of 2014 and quickly gained international headlines in 2016 after an exploitation of a flaw in the DAO project’s software led to the theft of $50 million of Ether by faceless hackers.
It was then split into two separate blockchains causing the value of ETH to balloon 13,000% to over $1,400 USD each in 2017 before crashing back down to $200 the next year. Both the original and it’s forked brother “Ethereum Classic” continued on the initial chain creating a fierce rivalry, leaving crypto enthusiasts scrambling to figure out which one should be supported. It then forked twice more in the fourth quarter of 2016 in response to other attacks and has now improved its overall security greatly.
Like all high-performing engines, this coin runs on gas, although the fuel in this instance refers to the amount of mining resources required to fulfill a transfer. Specifically, it relates to the usage load the World Computer has to shoulder during the undertaking and also acts as a motivator for miners to use it as they are ultimately paid in this virtual gas.
It’s this computer called the Ethereum Virtual Machine (EVM) which completes the calculations and facilitates the data storage necessary for all of the orders. Everything comes together to ensure that it can be mined by anyone with zero downtime in the network.
How to Deposit at Online Casinos with Ethereum
Using Ethereum follows the exact same process as depositing with Bitcoin and the only difference is the amount of time for completion. It’s necessary to use a 3rd party exchange to transfer money into the wallet and buy the Alt Coins, and then send them to the betting website via an “address”. An address in this situation is simply a long, unique string of numbers and characters that allows the transaction to only be received by the person intended – basically like a password.
Therefore, all that’s needed to start is a valid account at an exchange and the knowledge of how to buy cryptocurrency and the rest easily falls into place. However, before registering for a wallet make sure they accept ETH because some of them don’t, although the best ones obviously do.
As is the case with the majority of virtual currencies, there isn’t a maximum amount on how much can be sent and the minimums are soley dictated by the various recipients. The fees will depend on the amount of mining required to finish the task each time but rest assured that it’s cheaper than an online casino deposit with American Express or any other credit card.
The Pros and Cons of Ethereum
There are many strengths to using Ethereum, with the most important one being that the transactions are anonymous and untraceable, thereby protecting identities and keeping the financial histories private. It’s also anonymous to move coins between personal accounts so it’s possible to send or receive money from friends with no issues whatsoever.
In addition, the procedure is much faster when compared to old school ways that can take hours or even days, like gambling with a wire transfer, enabling sports wagers or poker tournament entires to be finalized in minutes. It’s a totally better way since nothing is more frustrating than not getting in on the action that initially sparked the urge to play.
There are just a few strong negatives about ETH and they are the same as any other Alt Coin. Firstly, there’s the process of setting up a Wallet to buy and sell the crypto which is time consuming in the beginning because it’s necessary to verify the new profile through forms and scans of official IDs. Although, this is only a one-off thing and isn’t requested again once done.
Secondly, the fees for smaller amounts is disproportionally higher than it is for other coins, making them not worth the trouble. A lot of the cost goes towards the actual mining so it’s best for sending a reasonable minimum, like $200 or more.
Also, like all of its competitors, it’s essential to find an ATM that supports the currency being used to ensure that it doesn’t need to be moved into a personal account in order to withdraw it. However, cryptocurrency ATMs are becoming much more popular and easy to locate these days so there shouldn’t be an issue (depending on the region).
Lastly, since it’s purely digital, if login details for the wallet are lost the funds are locked forever, never to be accessed again. Therefore, it’s vital to make sure to write the password down and always know where it is.
Ethereum VS. Bitcoin
When comparing Ethereum to Bitcoin there are only a few main differences that users will notice at the surface level and most of the bigger ones are in the technical details. First and foremost, there are generally lower fees to send ETH but as explained above, these costs are nullified on small amounts due to the mining expenses. This is because they are based on storage requirements and bandwidth usage, while BTC fees are primarily related to block size (with a limit of 1 MB). The former is more accessible as it doesn’t have a “block limit”, which refers to the number of transactions put into a block by miners.
Secondly, things are completed much quicker at an average of 15 seconds VS. 10 minutes. This won’t be an important factor for many people but sports bettors who have a tight window to wager on a specific line will obviously want to choose the fastest option available.
Some experts argue that because ETH has advanced calculating algorithms embedded in it, it is more vulnerable to attacks from hackers. This is still up for debate in the crypto community as new defenses are being launched all the time. The other technical difference is a result of the EVM mentioned above, which allows its blockchain to run the programming code in a decentralized manner, ensuring that it stays truly open source.
Best USA Online Casinos for Ethereum
Since it’s still on the rise around the globe it’s a little difficult to find USA online casinos accepting Ethereum as a deposit method but it is gaining momentum in the industry. There are actually two great websites that currently take it which is a big part of the reason they’re leaders in the industry.
Both operations are run by the same company who’s been delighting hundreds of thousands of Americans with their products for years. Their newer property, Wild, focuses solely on table games, video poker, and slots, while they’re established brands of BetOnline and SportsBetting.ag are first and foremost sportsbooks that offer wagers on every league in the world.
These are the three exclusively recommended ETH gambling sites for now, however, it can be assumed that more will be added to the list soon as it grows in popularity.