Crypto Gambling Security: Avoiding Common Mistakes

The integration of blockchain technology in gambling has pushed the industry towards positive change, prioritizing transparency, security, and fair play.

Despite the leap in innovations, risks such as crypto gambling fraud prevention remain exposing players to fraud, hacking, and financial losses. Even if a player is well-versed in the world of crypto gambling, they are vulnerable to these crypto gambling mistakes by unprepared ignorance or simple oversight.

In this guide, we have compiled the top most common crypto gambling security mistakes and how to avoid them to ensure a safe crypto gambling experience.

Most Common Crypto Gambling Security Mistakes

1. Choosing Unregulated Platforms

Unlike traditional gambling, crypto gambling security often lacks adequate guidelines and regulatory oversight depending on the location. This allows many unlicensed and unverified platforms to operate without restrictions, opening up honey pots with unrealistic welcome bonuses to lure players into making deposits and revealing hidden wagering requirements without any further support withdrawals. Moreover, these platforms lack ethical accountability, posing a serious risk of crypto gambling scams such as vanishing overnight with all deposited funds.

Avoid crypto gambling scams by always choosing casinos with valid and verified gambling licenses, regulated by governing bodies, such as the Malta Gaming Authority (MGA) and the UK Gambling Commission. Doing so ensures that governing organizations continue to provide the necessary oversight to ensure and protect consumers.

In 2021, MGA terminated the license of Evobet Limited for breaching conditions of Article 9 of the Malta Gaming Law’s compliance and enforcement regulations.

2. Ignoring Provably Fair Games

Provably fair games–a cornerstone of blockchain algorithms–are specialized casino games with pre-determined odds and tamper-proof outcomes for absolute fair play. Ignoring a provably fair game means choosing to play a rigged game, where the odds are stacked against them with a ridiculously high house edge, low return-to-player RTP, and mediocre payouts.

When gamblers play casino games like slot games and online slots, without provably fair or without checking the game fairness, there is no way to verify if the results are tampered with. Without such systems in place, the platforms can manipulate game odds with a higher house edge.

Therefore, players should verify cryptographic hashes for clarity and transparency to improve crypto casino security tips.

3. Lack of Security Protection

Protecting accounts and crypto wallets with passwords is not enough, as most users reuse passwords or opt for “simple-to-remember” passwords, in turn making them vulnerable to potential account breaches.

The lack of crypto gambling security will be more damning when scammers get unauthorized access to user accounts through fake casino sites, email phishing, and social media scams with the ultimate goal of stealing funds.

By adopting necessary crypto-gambling security measures like unique password combinations, Two-Factor authentication (2FA), crypto casino security tips, encryptions, and backup codes to keep accounts and deposits safe.

4. Overlooking Crypto Price and Hidden Fees

Betting on the right game with favorable odds seems like a winning strategy: deposit, win, withdraw, and repeat. However, there is a hidden caveat to it, transaction costs and hidden fees. Failing to account for such hidden charges will dramatically affect the overall amount.

As such, winnings or simple withdrawals are subject to platform fees, gas charges, withdrawal charges, and taxation. Moreover, the volatility of crypto prices will further affect the total winning.

Before betting on a game, consider those hidden fees, calculate those extra charges, and monitor crypto prices for accurate and realistic expectations BEFORE depositing funds.

5. Not Understanding Smart Contract Risks

Smart contracts are another cornerstone of crypto gambling, known for their automatic execution after meeting specific terms and conditions without the intermediary need for third-party oversight. It builds trust between gamblers and gambling operators because of its instantaneous and tamper-proof execution with low operational costs.

Unfortunately, the immutability of smart contracts can also be Achille’s heel if players put in blind trust without proper verifications and security audits. If a player unintentionally interacts with a manipulated smart contract without proper verification oversight, they are betting against the odds.

Always use smart contracts on platforms audited by popular blockchain security companies, such as CertiK, Hacken, and Quantstamp for crypto gambling fraud prevention.

6. Ignoring Responsible Gambling

Gambling provides an exhilarating experience, where a player has the potential to win big. The thrill of chasing the next big win is only known to those who have experienced the dopamine hit. However, the process of pursuing such an adrenaline rush carries an unfortunate risk of addiction.

Gambling without limits opens up hell’s gate for chasing losses, creating a perfect recipe for disaster. Even a slight carelessness can result in pouring out entire life savings into gambling.

Therefore, gambling should be done responsibly, putting appropriate safeguards, such as self-exclusion, deposit limits, and session timers into place.

7. Using Unsecured Networks

Public Wi-Fi is a hotbed for hackers looking to steal sensitive information through Man-in-the-Middle (MitM) attacks, packet sniffing, and phishing scams. Using such unsecured networks to play crypto-sensitive games is like leaving open invites for financial risks.

To avoid such risks, play games on a private and secure network and use a VPN connection to keep prying eyes at bay.

8. Falling for Unrealistic Bonuses

Crypto gambling platforms have great welcome bonuses to help new players get their hands wet without any financial risks. While most trusted platforms are upfront about their terms and conditions, few casinos use it as bait with hidden restrictions to entice players, only to pull out the rug after deposit.

Welcome bonuses can be used as an advantage, only when one comprehensively understands the bonus wagering requirements. Avoid crypto gambling scams by doing appropriate research, and diving deep into wagering requirements and researching the casino’s terms and conditions thoroughly.

Reliable crypto gambling sites like Wild.io, BetFury, Winz.io, and FortuneJack offer realistic welcome bonuses while being upfront about wagering requirements and term conditions.

How to Avoid Crypto Gambling Mistakes?

The above eight points are the most common crypto gambling mistakes, so make sure to be aware of them, and practice necessary precautions, for a pleasant and fruitful gambling experience.

To help you further, here is a quick Crypto Gambling Security checklist you can follow to gamble safely with crypto while minimizing risks.

1. Choose Legitimate Casinos

Before getting started, always choose legitimate casinos with valid gambling licenses from respectable gambling regulatory bodies. Ensure that the games have a provably fair system in place with verified cryptographic hashes.

Moreover, Be sure to read online user reviews and check out platform reviews from different social media sites.

2. Secure Your Crypto & Wallets

Passwords should have different alphanumeric values, without opting for “easy-to-remember” phrases, to create a combination of strong and unique passwords.

Your accounts are your bread and butter, so take the necessary steps to maintain absolute security by implementing 2FA, using hardware-based crypto wallets, and depositing minimal funds on the platform.

3. Avoid Scams & Phishing Attacks

Verified crypto casino platforms have large followings and are active on social channels. Double-check if you are using the right URL before signing up, and always be aware of platforms that promise unrealistic signup bonuses.

Popular casino sites have appropriate security and HTTPS protocols in place. Perform necessary checks, reconfirming that you are not in a scammy-cloned site, before entering private keys or sensitive information.

4. Monitor Your Transactions

Deposits and payouts have a minimum threshold limit that varies by individual gambling sites with term-specific withdrawal fees, network gas prices, and platform charges. And simply avoid casino sites with vague withdrawal policies. Maintain realistic expectations by factoring in those hidden fees.

Opt for low-fee networks like Bitcoin Lightning or Layer 2 Ethereum.

5. Understand Smart Contract Risks

Smart contracts are prone to vulnerabilities, and should never be blindly trusted. Any hacker with ill intentions can manipulate automated contracts to set odds against the players.

However, such risks can avoided by choosing to play on online casinos that respectable third-party auditors have audited.

6. Engage in Responsible Gambling

Before you begin gambling, establish a fair spending and time limit. Use tools like deposit caps and self-exclusion to practice responsible gaming

Avoid taking unnecessary chances and always bet within your means.

7. Safeguard Your Privacy

Play in a controlled environment using secured networks for total privacy. Stay clear of gambling on public Wi-Fi, but if you must, always use a VPN to protect your privacy and data.

To improve security, change your passwords frequently and review security features like private keys and two-factor authentication.

Crypto Gambling Security: Common Mistakes and Solutions

Category	Common Mistakes	Solutions
Casino	Playing in unlicensed or unregulated casinos	Verify licenses Read reviews Check for provably fair games
Account Security	Using weak passwords without any 2FA authentication	Unique and strong passwords 2FA Authentication Minimal Deposits
Hidden Costs	Ignoring withdrawal limits, gas fees, and platform charges	Read the terms and conditions Choose low withdrawal limit sites Low-fee blockchain network
Smart Contract Risks	Using unaudited gambling platforms	Choose casinos audited by trustworthy third-party auditors
Responsible Gambling	Setting no budget or time limits and chasing losses	Set deposit and time limits Use self-exclusion tools Play within means
Privacy & Security	Gambling on public Wi-Fi without VPN	Use a VPN Avoid public Wi-Fi Regularly update security settings

Check out other informative resources like this at Crypto-Gambling.ca.

Some common questions

How do I protect my crypto while gambling?

You can protect your crypto using hardware wallets, enabling 2FA, and avoiding public Wi-Fi when gambling.

What are common crypto gambling mistakes?

Choosing unregulated platforms, negating account protections, overlooking hidden charges, and failing to gamble responsibly are some of the common crypto-gambling mistakes.

How do I avoid crypto gambling mistakes?

You can avoid crypto gambling mistakes by choosing licensed casinos, verifying website authenticity, and avoiding suspicious bonus offers.

Is cryptocurrency considered a security or a commodity?

Cryptocurrency like Bitcoin is widely regarded as a commodity, whereas some altcoins, particularly those launched through ICOs can be classified as securities.

Is cryptocurrency more secure than traditional banks?

A. Yes, crypto transactions are secured through blockchain technology. However, these lack fraud protection measures because of its decentralized nature.