The world of crypto is relatively new but already gaining popularity among online gamblers. The pioneer cryptocurrency, Bitcoin, has been at the forefront of most online casinos. However, typical of cryptocurrencies, volatility has been a major concern amongst online gamblers.
Stablecoins are the latest entrants into the crypto market, trying to afford the market new legitimacy that will handle the volatility. It is not common to find gambling enthusiasts in a Stablecoin Crypto Casino. Stablecoins are designed to attach themselves to a stable asset that will make them relatively stable compared to other cryptocurrencies.
What are Stablecoins and how do they work?
At the basic level, stablecoins are cryptocurrencies that are backed or attached to a stable asset. Most stablecoins are attached to a fiat currency. It is the fiat currency that regulates the market price of the stablecoin.
Therefore, with such stability of the fiat currency, stablecoins reduce their volatility. However, there are some stablecoins that are backed with commodities.
Understanding the types of stablecoins
Now that you have an overview understanding of this new trend in the crypto market, it is equally important to understand the various types before you consider investing in a Stable Crypto Casino. Here are the varied types of stablecoins that you should know.
These are the most popular stablecoins in the market. They are backed by the value of traditional currencies. In essence, the value of the stablecoin is always reflective of the value of the fiat currency.
A good example is Tether (USDT), which is attached to the US dollar. This means that 1 USDT is equal to 1 Us dollar. Therefore, gamblers in USDT Casino don’t have to worry about the volatility of the crypto market because the value of the US dollar is what guarantees the value of the digital coin.
Other examples of fiat-backed stablecoins include the Gemini dollar and USD Coin.
This is a type of stablecoin that is pegged to the price of a physical commodity like gold and oil. Just like fiat-backed, commodity-backed stablecoins find their value in the commodities they are attached to. For example, if the price of oil changes, the digital coin will have the same value as the oil price.
The most common example of commodity-backed stablecoin is PAX Gold (PAXG).
These are stablecoins that whose value are pegged on cryptocurrencies. It means that the digital coin is decentralized, removing the authority of any central command to control the digital coin’s price.
Dai is one of the most popular cryptocurrency-backed stablecoins. It is one that you can easily find in a Crypto Casino. This digital coin is attached to the price of the US dollar though it is not backed by the fiat currency.
Cryptocurrency-backed stablecoins are protected from the volatility of the market by over-collateralization. However, this approach has never been foolproof from volatility since the crypto market is often unpredictable.
These are basically cryptocurrencies except the fact that they use mathematical formulas to stabilize instead of a collateralized asset. It is a relatively newer technology that relies on thorough mathematical calculations to derive and stabilize the value of stablecoins.
You have to ask the Stablecoin Crypto Casino if they have this kind of digital coin if you want to try it out. It is not as popular as USDC Casino or USDT Casino.
Which are the best stablecoins for Crypto Casinos?
Now that you have an in-depth understanding of the varied types of stablecoins, you can now compare the top options that you have for your entry into a Stablecoin Crypto Casino.
US TETHER (USDT)
This is one of the best stablecoins currently. It was launched in 2014. As earlier mentioned, it attaches its value to the US dollar. It is tied to a ratio of 1:1 to the USD. Tether claims to have enough reserve USD to back every Tether in the USDT Casino, making it one of the safest digital coins.
USD Coin (USDC)
It was launched in 2018 by Coinbase and Circle. Just like Tether, USDC is tied to the value of the US dollar. It also enjoys a ratio of 1:1 to the USD. It also claims to have enough reserve USD to back every USDC in a USDC Casino.
Binance USD (BUSD)
Binance, the largest crypto exchange, launched their stablecoin (BUSD) that is tied to the US dollar. Just like the rest, BUSD claims to have enough reserve to back the stablecoin used in a Stablecoin Crypto Casino.
Unlike the stablecoins backed with fiat currencies, DAI is backed by ether tokens. However, it is still tied to the USD. It was introduced in 2017 and is currently enjoying a market capitalization of over $6.8.
Neutrino USD (USDN)
USDN is an algorithmic stablecoin that was originally known as Waves Blockchain when it was launched in 2019. It enjoys a relatively stable value which is normally at US$1 for 1 USDN.
PAX Gold (PAXG)
It is a commodity-backed stablecoin that derives its value from the value of gold. It was launched in 2019. To protect users of this digital coin, there is one troy ounce representing every token in their London Good Delivery gold bar.
Summary of the best stablecoins for crypto casinos
There are many stablecoins that you can use in a Stablecoin Crypto Casino. However, the most popular options that are mostly used are USDC and USDT. It is worth researching the digital coin that you want to use in a Crypto casino.
Why should you use stablecoins?
There is always an option to use cryptocurrencies in a crypto casino. However, there is an increased popularity of stablecoins. So, why should you prefer them to gamble on normal cryptocurrencies?
Cryptocurrencies in casinos
The top reason why a gambler would enjoy the use of a stablecoin in a crypto casino is that it has reduced volatility. Take the example of Bitcoin as a normal cryptocurrency. Today, the value of 0.5 BTC can be $8,000 and the following day it can be as low as $6,000.
The high volatility in regular cryptocurrencies can lead to unforeseen losses. Things are quite different when using stablecoins. Take the example of a gambler in the USDT Casino; the value of 1 USDT will always be $1. This means that you can enjoy price stability.
Initially, the idea of decentralization of cryptocurrencies was a good idea – it still could be a good idea for investors who enjoy high volatility. However, after cryptocurrencies gained much popularity, people wanted them to be somewhat controlled to regulate extreme price movements.
Stablecoins have changed this crypto narrative with centralization measures put in place to regulate the price movements. All the stablecoins are controlled and attached to an asset that has a stable price value. For example, in USDT Casinos, the value of Tether is determined by the value of the US dollar.
Summary of benefits of stablecoins
Stablecoins are in between fiat currencies and cryptocurrencies. This means that they enjoy the benefits of both sides. On the fiat side, stablecoins enjoy the stability of price movements. On the other side, they enjoy the benefits of fast transactions at low fees.
Summarily, you will enjoy instant transfers and low fees in a casino without risking volatility.
How to get started with stablecoins
Stablecoins are not any different from other forms of payment in online casinos. You just need to follow the steps below:
Set up a wallet: Always use a recommended crypto wallet that is safe and secure. You should also find one that has an easy interface to use. You should also ensure that the wallet allows online gambling.
Deposit fiat: Once you have an account, you should proceed to deposit fiat currency to buy stablecoin. There should be a couple of stablecoins in an exchange. Choose your preferred, mostly from the list we have provided above because they are widely used.
Transfer to a casino: The next step is to transfer your stablecoins to a Crypto Casino of your choice to start gambling.
The choice of the Stablecoin Casino Crypto Casino should be influenced by the reputation of the casino. The games available should also inform you if you want to join or not.
As the world advances to digital currencies, it is equally important to protect your investments online. The best way to do this is to keep up with the pace of stablecoins that provide price stability while still giving you great transaction value.
Stablecoins are less risky and worth exploring for use in online casinos. You should always start with USDT and USDC, which are perfect for gambling.