Most Australian online casinos accept cryptocurrencies as a payment method, and among the various cryptos, you’re also likely to find some stablecoins. But what exactly are these coins and why is it beneficial to use them when gambling online, instead of other cryptos? Read on as we explore stablecoins and their usage at online casinos.

Characteristics of Stablecoins

If you’re not familiar with stablecoins, what they are, how they work, and what distinguishes them compared to other cryptocurrencies, you’ll soon find out. We’ve looked at the two most important characteristics you need to know about, and how they affect you when you use them for payments at online casinos.

Pegged to Stable Assets

Stablecoins, unlike other cryptocurrencies, are pegged to other types of assets. Their value is not dependent on the supply and demand of the particular crypto, but rather on their pegged asset. The asset can in reality be anything, but most stablecoins have their value tied to the US Dollar. This is the case for stablecoins like USD Coin, Tether, and DAI.

This is the big difference compared to other cryptocurrencies, like for example Bitcoin, that are valued completely independently of any other currency or asset. Due to this, it’s harder to know exactly what one crypto, like for example Bitcoin or Ethereum is worth.

This again makes it cumbersome when you deposit funds into your account. The amount of Bitcoin deposited one day can be worth much less than the same amount deposited another day. This makes it tricky to keep your gambling budget in check. Because stablecoins are much less volatile, these issues are basically non-existent for this kind of cryptocurrency.

Low Volatility

Cryptocurrencies that are independent of any other asset or currency can be highly volatile, which you probably know. The value can go both up and down rapidly, and they are typically much more volatile than any fiat currency. Stablecoins, on the other hand, are not impacted by the fluctuation in the crypto market, making them much more stable in value.

How stable a stablecoin is depends on the asset it’s pegged to, but since it’s typically the US Dollar, its volatility will be low compared to most other currencies, like the Australian Dollar. It might change a bit from time to time, but it won’t double in price or lose half its value in a matter of weeks or months.

This is a benefit while playing at online casinos. As mentioned above, knowing at least the approximate value of a stablecoin makes it easier for you to not exceed your gambling budget, as you’ll always know what a stablecoin is worth.

The Disadvantages of Cryptocurrency When Withdrawing

Most people who trade in cryptocurrency keep a close eye on the value of the crypto throughout the day, and they tend to be ready to sell, or buy, at a moment’s notice when they see the currency is volatile. This is key if you want to avoid losing a large part of your funds if you hold a lot of cryptos.

To do this, you need to have access to the cryptos so that a quick transaction can be performed, and this is not the case if you have cryptos in a casino account. You won’t always be able to withdraw your funds and sell your cryptos quickly.

If you have deposited cryptocurrency in your casino account the only way to get the funds out again is by requesting a withdrawal. Before a withdrawal can be processed, you need to wager through your deposit a given number of times, usually between one and three times, depending on the casino’s withdrawal policies. Then, you need to request the withdrawal and wait for the casino to process it.

All of this can take time, as some casinos can have a processing time on withdrawals of several days. This all makes it possible for you to get your cryptos paid out to your crypto wallet at a less-than-optimal time.

Advantages of Stablecoins in Online Casinos

The main advantage of using a stablecoin when playing at an online casino is the low volatility. This means that the value of the crypto is most likely pretty much the same when you deposit as when you withdraw funds. This makes it fairly risk-free to hold stablecoins in your casino account if you’re one of the many players who prefer to always have a balance at your favourite casino.

And, although we all want fast withdrawals, you’re not likely to lose out on a lot of funds even if the withdrawal takes a couple of days to complete. After all, the value of US Dollars compared to Australian Dollars is quite stable.

Another advantage is that when you know that, for example, one Tether is worth one USD, you can easily keep track of how much money you are actually gambling for. It’s easy to calculate how much you deposit and withdraw, and you can see how much you bet.

In games where you bet with the cryptocurrency you deposited, you can quickly lose track of how much you’re betting per spin on a slot or per hand when playing blackjack. Keeping track of how much 1 USD is compared to AUD is easier than remembering how much 0.00002 BTC is. If you’re not careful, it’s far too easy to bet much more than you intended when you play with a cryptocurrency. This is something you don’t have to worry so much about when playing at a casino using a stablecoin, making it one of the greatest advantages.

Conclusion

As long as you use cryptocurrency for gambling, it’s always beneficial to use a stablecoin. The volatility is the most important aspect, but the ease of knowing how much you bet is also something you should consider. Not least does stablecoins make it easier to know how much you’ve won, so that you can cash out when you’re up.

Just the fact that the numbers are comparative to Australian Dollars makes it easier to keep track of the monetary value, as many other cryptocurrencies have lots of decimals which makes it hard to know how much money your crypto bankroll is actually worth.

If you use another cryptocurrency than a stablecoin at an online casino, we highly recommend that you choose a casino where the account balance and the in-game currency are shown in Australian Dollars. This will make your gambling experience much better, as you’ll avoid getting confused about the values you bet, win, and lose.

Eve Luneborg

Sub-editor & Casino Content Maestro

Eve Luneborg has been a dynamic presence in the online casino industry since 2014, starting at a burgeoning casino in Malta that has now become a leading gambling site. Initially a support agent, she progressed to handling payments and training new staff on processing withdrawals and KYC documents.

In 2016, Eve transitioned from casino operations to become a writer in the iGaming industry.

Casino of the Month

Bizzo Casino

Casino of the Month

BONUS
$5,000 + 150 Free Spins

Rated 4.85/5 stars.

Subscribe To Our Newsletter!

Join our newsletter and get the lowdown on the latest pokies, top bonuses, and new casinos – no bluffing! It’s like hitting a jackpot every time you check your email. Aussie casino fans, sign up now!