Buy and Deposit with Ethereum at an Online Casino: the Easiest Way (Without a Wallet)
Using any cryptocurrency as a payment method on the internet implies that you have to have a separate wallet for each cryptocurrency you possess. Setting up the wallet properly is a crucial thing because otherwise, you could lose all your crypto funds sending them to the wrong destination or doing it in a wrong way.
Fortunately, there is a method of how to send/receive Ethereum payments without any wallets being involved. This approach will allow you to pay with Ethereum on the internet without limitations and with super low fees.
For whom this article may be helpful?
You don’t possess any Ethereum so far
You don’t know how to buy Ethereum with low fees (0.55% for bank transfer and 5.5% for bank cards). For bank cards, you’d better follow this tutorial, because fees will be 3.5% instead of 5.5% (everything is the same, but just buy Ethereum instead of Bitcoin)
You are afraid of using crypto wallets since they never forgive missteps
In order to successfully complete this tutorial you're going to need:
a bank account (preferably in EUR or USD) or debit/credit card
an email address
Jumping forward, the whole process consists of three phases:
open an account with Bitstamp crypto exchange
deposit fiat currency to Bitstamp and trade it to Ethereum
transfer Ethereum from Bitstamp to any online casino that accepts Ethereum
Top online casino sites with Ethereum accounts available
(Players from United States are welcome)
Why Ethereum is super cool for online casino players?
Privacy. Until you decide to reveal your Ethereum account address there is no way to tell who owns a particular Ethereum account, because no KYC (know your customer) is needed to open an Ethereum account.
Fast payouts. It takes less than a few minutes to process an Ethereum transaction so that your balance will be credited into your account faster than with e-wallets, not to mention bank accounts.
Super low fees. Bitstamp will charge you only 0.001 ETH per transaction (around 0.2 EUR). Does not matter if even you decide to transfer Ethereum worth of millions of euro, the fee stays the same.
Better bonuses and promotions. Online casinos struggle with ridiculously high fees at e-wallets. Hence they have to suffer unnecessary losses which they could have spent on bonuses for their players instead. Ethereum is rather free for online casinos, and you will find far more generous bonuses if you use it as a deposit method at an online casino.
Higher withdrawal limits. For the same reason, online casinos set far more liberal policy regarding withdrawal limits.
How does Ethereum work?
I believe it is going to be very beneficial for you to learn at least a little how Ethereum works in general.
Think of Ethereum as an e-wallet or internet bank account, since it also has:
account number or username (Ethereum public key)
password (Ethereum private key)
an ability to send/receive money (Ethereum transactions)
But the huge difference between e-wallet and Ethereum is that in Ethereum network there is no third-party which is in control of your account and transactions. You don’t need any permission to open an account with Ethereum and nobody can repeal your transactions or anyhow control them.
Why crypto wallet is not necessary for the majority of casino players?
The individual who controls Ethereum private key (password analogue) controls all funds in this Ethereum account. It is the beauty of Ethereum and the only disadvantage at the same time.
It is great because:
nobody (including any government) can confiscate or freeze your balance
nobody can access your transactions history until you share your Ethereum account number (public key)
But it could cause huge problems as well:
If you lose your Ethereum password (private key), your account cannot be restored and all balance is forever gone. You cannot ask support to reset the password, because nobody have access to this data except you.
If you send Ethereum to the wrong recipient, then such transactions cannot be reversed, and all funds are gone as well.
If a hacker somehow steals your Ethereum password (private key), then, as you may guess, all funds is going to be stolen. You cannot visit an office and ask to reverse stolen money as you would do in case with a bank account or e-wallets.
All that has been said above is true only if you are using a full-fledged Ethereum wallet. Being a crypto enthusiast, I have found much more beginner-friendly way to pay with Ethereum online, which I offer to my less experienced in crypto field friends all the time.
Thus, I encourage all crypto beginners to store their assets at crypto exchanges until they get comfortable with Ethereum network.
Using a reliable crypto exchange as third-party allows to avoid all above-mentioned downsides of Ethereum, but at the same time, it preserves all advantages of Ethereum as a payment method.
Open an account with Bitstamp crypto exchange
I have used tens of crypto exchanges so far and can tell that there are few reliable exchanges on the market that allow buying crypto with fiat money: Binance, Coinbase, Bitstamp, Kraken.
In this tutorial, I will stick with Bitstamp. However, I have a tutorial on how to buy Bitcoin with Binance. You can use it to buy Ethereum as well.
Step 1. Open an account with Bitstamp as you would do with any other service on the internet. You are supposed to confirm an email address which you used during the registration (check the spam box if the confirmation email has not been received).
Step 2. Enable 2FA (two-factor authentication). You are going to be asked to do so after your email address has been confirmed. Just follow the instructions and enable 2FA either through SMS or mobile App.
Step 3. Pass KYC (know your customer) procedure. After the previous step, you will be prompted to document download section. Here you need to download (or take a lifetime photo) one of those documents: ID, passport or driving license.
Normally, you will be navigated through all of these three phases automatically.
Buy Ethereum on Bitstamp with bank transfer or bank card
Here we are going to transfer fiat money to our Bitstamp account, and then, exchange them to Ethereum.
There are three methods of how to transfer fiat money to your Bitstamp account:
SEPA bank transfer (deposit is free, 3 EUR for withdrawal plus commissions from your bank’s side) takes 1-3 days
international bank transfer (0.05% for deposit, 0.1% for withdrawal plus commissions from your bank’s side) takes 3-5 days
bank cards (VISA, Mastercard, Maestro) payment (5% fee) is close to being instant
Needless to emphasize, that SEPA or international bank transfer is far cheaper than bank cards. However, if bank transfers are not available for you than you’d better buy Ethereum with bank cards on Binance, because commission is 3.5% there (the lowest rate for bank cards on the market).
Step 1. Get bank transfer details. Click on “deposit” section on the top of the Bitstamp website and choose “bank transfer” on the left side. Here you are supposed to notify Bitstamp that you are going to deposit fiat money. Bitstamp will provide you with all necessary bank details for your bank transfer.
Step 2. Transfer money from your online bank account to Bitstamp. You can do it through your online banking with any bank that allows SEPA or WIRE transfers. Enter all details and don’t forget to include code from yellow background warning message in your bank transfer (it is usually named something like “leave a comment for your bank transfer”).
Step 3. Use this money to buy Ethereum. Once the money has been credited to your Bitstamp account, you can buy Ethereum with them. Click on “markets” on the top of the website and then choose one of those Ethereum trading pairs (depends on which currency you have deposited): ETH/USD, ETH/EUR or ETH/GBP.
In front of “order type” choose a limit and then enter the amount of Ethereum you are willing to buy in “amount to buy” column. Also, set the maximum price of Ethereum that you are going to pay in “buy price” column (set it a little bit higher than the current market price. Bitstamp will buy Ethereum for the best available price anyway).
Press the “buy” button and that’s it. Now you have Ethereum crypto and can use it on the internet as you wish.
How to deposit with Ethereum at an online casino
Step 1. Visit the casino’s website and choose Ethereum as a deposit option. Here you will be provided with Ethereum public address (long alphanumeric sequence). Then copy this address. You will use it a few moments later.
Step 2. Navigate on “Withdrawal” on the top of Bitstamp and click on “Cryptocurrency” on the left side.
Step 3. Choose Ethereum in the first field. Then carefully enter Ethereum address that you copied on casino’s website (If you send Ethereum to the wrong address that the funds are gone) in the second field. After that, in the third field enter any amount of Ethereum (check out the casino’s minimum deposit requirement first) you are willing to deposit at the casino.
Once you have carefully filled all “red” fields, press “authenticate and withdraw”. Bitstamp is going to verify your credentials, and your withdrawal will be processed right after that (usually takes a few minutes).
Ethereum will be credited to your online casino account in a matter of minutes. Each transaction costs only 0.001 ETH (around 0.2 EUR at the moment), doesn’t matter how big it is.
How to withdraw Ethereum from an online casino
Now you basically have an Ethereum address of your own with the only difference that it is on Bitstamp platform and Bitstamp is doing all legwork for you (setting up Ethereum transaction details correctly). Not only you can send Ethereum from it to any merchant on the internet, but receive Ethereum from anywhere as well.
Click on “deposit” (instead of “withdrawal” as we did in previous chapter), then click on “cryptocurrency” and, finally, choose Ethereum.
You will be provided with your personal Ethereum address, to which you can receive Ethereum (only Ethereum, other currencies will be lost) from any online casino.
The last major vulnerable spot of your account on Bitstamp is your email address. If a hacker gets access to your email, he/she can do some harm to you. To avoid it from happening, you’d better enable 2FA (two-factor authentication) for your email account as well. All modern email services allow to do so.
Some other questions you may ask
If I lose my Bitstamp account password, what happens with my personal Ethereum address on Bitstamp? Just restore the password and enjoy Bitstamp services again. All your funds stay intact in such scenario (in the case with “true” wallet, they would have been permanently lost).
What happens if I send Ethereum from Bitstamp to the wrong address? If you were not quick enough to cancel such transaction on Bitstamp then this funds is irredeemable. Bitstamp ensures all transactions from your account to be safe, but it cannot reverse any processed transactions. That’s how crypto works in general.
Is Bitstamp exchange safe? Yes, being licensed in the UK, it has got top security measures in place. However, I would not recommend storing big amounts of money at any crypto exchange as a rule of thumb.
Does Bitstamp ensure privacy? Bitstamp does not disclose info about its customers until they are known criminals.
Can I pay with Bitstamp Ethereum address on other websites? Yes, without any limitations, as you would do with “true” Ethereum wallet.
Can I switch from Bitstamp wallet to “true” Ethereum wallet? At any moment you wish. Simply transfer your Bitstamp assets to any other Ethereum wallet you possess.
Summing up, I would say that storing Ethereum on Bitstamp exchange is a great option for beginners to start their journey in the crypto world. Because it allows storing (receive and send as well) Ethereum on the full-fledged wallet without unnecessary headache.
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