Online gambling might be illegal in many parts of the world, but that has not stopped new virtual casinos from popping up on the internet daily.
Unlike traditional casinos, these websites allow people to use digital currency for gambling. Bitcoin (BTC) is by far the most popular cryptocurrency for online gambling. However, Litecoin (LTC) is now making a name for itself in this rapidly expanding sector.
This short review will examine LTC’s pros and cons as a gambling tool. We’ll also consider the advantages of crypto casinos compared to fiat ones.
What is Litecoin?
Litecoin has been described as the silver to Bitcoin’s gold. It emerged a couple of years after the advent of BTC. Its creator intended for it to complement BTC rather than compete with it, but faster transaction speeds and lower fees have made LTC a more attractive payment option than BTC.
This combination of high transaction speed, low fees, and the ability to be cashed out for fiat at numerous crypto exchanges is why Litecoin can also be used for online gambling.
Advantages of Using LTC in Online Gambling
1. High Transaction Speed
Charlie Lee built Litecoin for speed. The coin is a lighter version of BTC, meaning it can process transactions much faster and avoid payment delays.
Bitcoin payments are generally processed in about nine or ten minutes, which may be too long, especially when it comes to online gambling. In contrast, LTC processes transactions at a rate of 54 per second.
The faster transaction speed means that online gambling sites no longer need to be frustrated by Bitcoin’s lengthy settlement time. Instead, they can accept Litecoin and settle payments at speeds comparable to other digital payment methods.
However, it still requires at least six confirmations to make the transaction irreversible.
2. Low Transaction Fees
Not only is LTC faster than the more popular BTC, but it is also cheaper. At the time of writing, Bitcoin transaction fees averaged around 3.92%, compared to Litecoin transaction fees of around 0.06%.
By default, the LTC blockchain is highly transparent. This means all the details of a transaction, including the sender, receiver, and amount, can be viewed by anyone.
However, in 2019, Litecoin introduced an optional privacy upgrade known as MimbleWimble, which allows LTC users to move their coins into so-called “extension blocks.”
The addresses and sums involved in any transaction made within these blocks are hidden from everyone but the parties involved, giving users greater transaction privacy than they could obtain on the main blockchain.
With online gambling frowned upon in some jurisdictions, this privacy-focused feature should make LTC popular among crypto bettors.
4. Easy Conversion to Fiat
As stated earlier, another great advantage of LTC in online gambling is that players can easily convert their winnings into cash without using a bank.
This means transaction costs are eliminated, and once more, no one is keeping an eye on you.
Drawbacks to Using LTC in Online Gambling
1. Cost of Transaction
While LTC is decidedly cheaper than BTC, the $2.00 or so it costs to make a transaction is much higher than what newer cryptocurrencies charge.
2. Transaction Speed
Transaction speeds can be problematic if the casino requires more confirmations before accepting an LTC deposit. Generally, more confirmations make a transaction more secure, but they also make it slower.
Games Available at Crypto Casinos
Crypto gambling sites offer the same variety of online slots and table games as those found in fiat casinos, including blackjack, baccarat, poker, and random number generators (RNG). These games also have the same odds and playability as those on fiat gambling websites.
Advantages of Crypto Casinos Over Fiat Casinos
1. Pseudonymous Play
Litecoin’s privacy-preserving technology ensures that players remain anonymous. These features may come in handy in jurisdictions that frown upon online gambling. Fiat gambling sites have no such safeguards. If anything, they leave a clear paper trail pointing to a gambler’s real-life identity.
2. Increased Limits
Most crypto casinos usually allow gamblers to place much higher wagers than they would in a fiat casino. While this might be considered risky, it’s an opportunity to make a bigger killing for some.
Unlike fiat currency, whose smallest units are pennies and cents, cryptocurrency like LTC can be broken down into tiny amounts like $0.01. This enables players to place micro bets, which would be impossible on fiat gambling sites.
4. Easy Withdrawals
Some fiat casinos often make players wait before they can access their funds. On the other hand, crypto casinos allow players to cash out almost instantaneously. Here, players can either keep their winnings in crypto or quickly convert them into cash.
5. Reduced Anti-Money Laundering Measures
Fiat casinos are notorious for their stringent anti-money laundering (AML) and Know Your Customer (KYC) regulations.
These casinos must register in each jurisdiction they operate in and are often required to verify the details of their customers, including physical location.
Fiat casinos also take deposits through bank transfers or credit cards to keep in line with anti-money laundering laws.
On the other hand, crypto casinos may only require an email address for registration. Additionally, they accept payment in digital currency, which makes government oversight challenging.
While KYC and AML regulations may be essential deterrents against financial crimes, some people find them too invasive. Crypto casinos offer a more anonymous and less invasive option for players wary of government surveillance.
Crypto gambling is rising. Many crypto casinos increasingly offer high-quality games and numerous opportunities to win big. With LTC now being accepted almost everywhere, the options for gambling with Litecoin will only expand and improve.