Bitcoin as a Payment Method: Confirmations, Fees and Conversion
Bitcoin is the best-known cryptocurrency, and where a cashier accepts crypto it is usually on the list. For a player whose account runs in euros, though, bitcoin is more of a complication than an advantage. This page explains why, and what to do if you use it anyway. The general risks of crypto are on the Crypto page.
Network confirmations
A bitcoin transaction is written into blocks, and the operator usually credits it only after a number of confirmations. Timing depends on network congestion and on the fee you choose when sending. With a low fee on a busy network, a transaction can wait longer. The number of confirmations required is set by the operator.
Network fees on small amounts
The network fee doesn't depend on the amount but on transaction size and congestion. On a €20 deposit it can be a noticeable share of the payment; on larger amounts its share is smaller. For a bettor making small deposits, that is a reason why a fiat method is cheaper. Check the fee in your wallet before sending.
Converting twice
| Step | What happens | Risk |
|---|---|---|
| Buying bitcoin | currency into bitcoin, exchange fee | buy/sell spread |
| Deposit | bitcoin into account currency | rate at the moment of crediting |
| Withdrawal | account currency into bitcoin | rate at the moment of withdrawal |
| Selling bitcoin | bitcoin into currency, exchange fee | price change between withdrawal and sale |
Every step brings a fee or a rate difference. On small amounts they add up to a figure comparable to the margin on several bets.
Withdrawing in bitcoin
If the operator allows bitcoin withdrawals, you enter your wallet address. Copy it, never retype it, and check the first and last characters. A sent withdrawal can't be reversed. Before your first withdrawal it is sensible to make a small test withdrawal if the cashier allows it.
Winnings in bitcoin and tax
If you withdraw in bitcoin and keep it in your wallet, its value keeps moving, and selling it later is a separate transaction. How that is treated for tax depends on where you live and is not a betting question; this site does not give tax advice. If you want a clean record, withdraw in your account currency and ask your tax authority or an adviser when in doubt.
When not to use bitcoin
- When you play in a fiat currency and have an ordinary bank account or card.
- When your deposits are small and the network fee would be a large share of them.
- When you have no experience with crypto wallets and addresses.
- When someone recommends bitcoin as a way to play without identity checks.
Checking the operator's licence applies to bitcoin as much as to any other method. Methods are compared on the Payments page.
A method name here describes what to look for in a cashier, not a confirmed offer from any operator. Which methods you can use, and the limits, fees and timings, are set by the operator for your account type — check them in the cashier.