The recent surge in the popularity of cryptocurrencies has made them practically mainstream. As a result, the interest in them as a payment method and means of exchange enhanced as well. So, naturally, cryptocurrency couldn’t just go by today’s digital entertainment industry. Crypto casinos started appearing one after another. But, are they really legit? Some of them require anonymity, some of them ask for KYC procedure when you need to send them your personal document. Additionally, since most of them don’t use fiat money as a payment method, they don’t have any license from financial regulatory authorities. As you can imagine, the chances of being scammed in such circumstances rise in an exponential proportion. So, how can you spot the crypto gambling scam, and most importantly, how can you avoid it?
The real crypto casino
Before diving deep into the realms of all kinds of scams, let’s decide on what it means to come across a real crypto casino. The whole point of organizing such a thing is having an online casino that operates on a blockchain. What’s good about it is that it doesn’t really need regulators and complicated twenty-page terms and conditions documents that no one can understand. Running a casino on a blockchain means that every player can see the digital ledger that’s being written each time when the transaction occurs. So, let’s say if you’re on a losing streak or you withdrew your winnings and want to see the current status of the transfer, all you have to do is go and see it for yourself. You will be able to trace every crypto transfer – where it went and what happened to it. So, the idea is that a legitimate crypto casino is super-honest and it can’t be rigged or take away your money just like that even theoretically since it runs on a blockchain. Most commonly, such casinos will also have their own token. Check the price chart on the trusted website to see market cap the token has, its daily trading volume, and price in pairs similar to Dash to USD. If yes – then the crypto casino that owns it is legit.
Types of crypto scams
Now let’s explore all types of scam creativity. Of course, it’s sad that so many people in the world know the tech side of crypto gaming but use it for being bad guys. However, you need to know them before you embark on online gambling for cryptocurrencies.
Email and phishing scams
Some scammers might trick you into sharing your sensitive information with them by sending an email pretending that they are from some exchange or casino where you registered. They will ask you for your credentials in a very professional way. Once you follow the link and enter your data, something might go wrong and the page won’t download. You might think something happened to your Internet connectivity but they already got what they wanted – your data. That’s called identity theft. Later on, they can log into your account using that data and steal your money. Or they can create multiple accounts on your behalf and try to cheat the other websites. The typical phishing website has a little different from the original website. The difference can be even one letter so you may not even notice it. Always be careful when opening the emails and following the links inside those letters.
Let’s be honest – in our day and age, anyone can make up a professionally looking site, connect some gaming API and start marketing it as a casino. They might even ask you for identity verification. But do they really have a right to do that? Note, that only licensed casinos should ask you for your personal data and photos of documents, utility bills, etc.
As we mentioned before, since many crypto casinos don’t use fiat at all, they think they don’t need to obtain a license from the regulatory body. However, that statement is arguable. Cryptocurrencies are already defined as an asset by many countries in the world. Hence, when you’re sending your crypto to the casino, it’s still a transaction. The problem is, such transactions are more difficult to trace, that’s why it’s difficult to spot the scam. So we have to rely on our own intelligence. Conclusion – if the casino asks for crypto as a deposit but they don’t support fiat, be extremely cautious. They might just take your crypto away, let you play a few games, and that’s it. You might deal with unexpected conditions like having to play some bonuses or anything else like that. Also, they might just disappear in the end.
Another type of scam is rigged games. You can play and win in a demo mode but once you start playing with your real crypto, things will change exactly the opposite. You might win small a few times and then just blow away all your bankroll. Sometimes, those games might be similar to a trusted software that’s being used in famous and approved casinos. But little bugs or pixel glitches might give the copy away. You might play the copy software without even realizing that you’re being cheated all along. Another scam type could occur with proprietary games. They won’t look advanced but promise you huge wins. They usually have a hidden source code, so you can never guess what happens under the hood of such software. Yet, the result will be just one – you will lose all your crypto.
Some scammers also demand to deposit your crypto in the first place, especially expensive ones in comparison to the US dollar, like bitcoin. They might say that you need to deposit bitcoin to verify your account. Stay away from those casinos. Because once you give them your BTC, you’ll never see them again in your wallet.
The most common thing that you’ll see with crypto casino scams is unrealistically high promises. They will “give away” thousands of dollars or big chunks of bitcoin for nothing, shower you with hundreds of free chips and spins. But don’t let them buy you with those promises. Always do your research before registering and playing with a crypto casino.