If you want to launch a sportsbook then you can do so with bitcoin and it is relatively straightforward to do.
Sportsbooks using bitcoin as a payment method are also growing in popularity as betting shifts from traditional approaches to more decentralized forms of sports betting platforms.
Essentially, a bitcoin sportsbook uses the crypto-currency as a means of payment but also uses more updated sports betting software to comply with the advanced security.
The format also proves to be a great way of using cryptocurrencies and using the improved technology that comes with it.
In this beginner’s guide, we will show you how to launch a bitcoin sportsbook.
Sign Up With Your Preferred Sportsbook
As so many betting sites now accept bitcoin, it should not be too difficult to sign up with a compatible one and create your own account.
Once your account is up and running, choose bitcoin in your deposit options. Instead of more traditional payment methods, when you decide on bitcoin you should get an address in the form of a long string of text along with a QR code you can scan.
Once you’ve purchased your bitcoin, you can use the QR code and the address to make transactions.
Set Up A Crypto Wallet
The next step involves creating a crypto wallet to store your bitcoin so you can use them on the account with your favorite betting site.
There are several to choose from and one of the most renowned is Exodus which is really simple to install.
Once you have a crypto wallet, just like any wallet, it should be secure so you should receive a long string of text and a QR code that acts as verification for your own account. Now it is time to throw some bitcoin into your wallet.
Purchase Bitcoin At An Exchange Account
With a crypto wallet, you need to make it useful with some bitcoin. This is easily done once you have successfully installed your crypto wallet.
Find a bitcoin exchange first, which appears much like a specific stock market for cryptocurrencies. Coinbase is such an example and, just like Exodus, you can download the app and then click ‘Sign Up’.
Follow the steps, verify your email address, along with your personal information, phone number, and address, and you are all set.
These verification steps are typical of any cryptocurrency site and the exchange platforms want to make sure you are who you say you are.
With a crypto wallet and an exchange account ready to go, you can buy bitcoin. Log into your bitcoin exchange account, under ‘Accounts’ choose ‘BTC wallet’, and then click ‘Buy Bitcoin’.
That all sounds exceedingly straightforward, and it is, just treat it like any other online payment only with a few more security details.
Provide the verification information and you will need your ID handy like your passport or driver’s license followed by your payment information and the proposed amount you wish to purchase.
Check and verify your transaction first by clicking ‘Preview Buy’ just as a final step before you do purchase your bitcoin.
If you are still happy, click ‘Buy Now’ and you should get a notification that the bitcoin is now available and ready to be sent to your crypto wallet.
Send And Deposit Bitcoin To Your Crypto Wallet
So far, you have bought bitcoin but you cannot use them until you have sent them to your crypto wallet. Your crypto wallet is the place where your bitcoin will be kept safe so you can move it for funds on a sportsbook or simply to keep it in one place.
Once you are ready to make a few bets, you will want to move the bitcoin. Return to your crypto wallet, like the one at Exodus, and choose your BTC Wallet so it is ready to accept your bitcoin.
There should be a ‘Send’ icon at the top of your screen for your exchange which may look like a paper airplane. Click on it and you should be allowed to send the bitcoin to wherever you want.
That could be a merchant or a dear friend, or to make bets you will need to send them to your crypto wallet first before moving them to your chosen sportsbook. Input the amount of bitcoin you wish to deposit and click ‘Next’.
Remember that long string of text that you received when you opened your crypto wallet account? Paste it into the ‘To’ field though you can scan the QR code, both details are unique to your account so you can enjoy that security.
To formally send over the bitcoin, click ‘Confirm Send’ and the bitcoin should pop up in your crypto wallet. Once that transaction is nicely confirmed, return to your crypto BTC wallet just to check that it is there so you can deposit the bitcoin in your betting account.
Depositing The Bitcoin From Your Crypto Wallet To Your Sportsbook Account
So you have bitcoin in your crypto wallet, now it is time to make a deposit in your sportsbook account. The process is just as simple as initially making a deposit of your bitcoin in your crypto wallet.
You will still have a QR code or a long string of text to use for security purposes and there is little difference in the process between sportsbooks and betting sites. Input the bitcoin crypto wallet address in your sportsbook and the bitcoin will be transferred.
Why You Should Use A Bitcoin Sportsbook
Using bitcoin does come with its own verification so you can rest assured that your funds are safe and secure.
The payment method does offer more flexibility as the process of depositing and withdrawing your funds can be incredibly fast.
Bitcoin can also be used as a digital currency while avoiding exchanging risks and any down payments. There is also the bonus of better security, increased anonymity, and how you have more control over your financial transactions.
Final Thoughts
Even PayPal has gotten up to speed to allow individuals to exchange bitcoin through individual accounts. You can even use bitcoin to place a few bets in a sportsbook and more betting sites are realizing that they are missing a trick by not getting on board.
If you do want to launch a bitcoin sportsbook, you should revel in the anonymity, the secure payments, and how private it all is. Transactions are faster and you can treat your winnings as bitcoin or exchange them back into US dollars.
Frequently Asked Questions
Do You Have To Pay Your Taxes On Bitcoin Gambling?
If you enjoy any winnings, these should be reported as ‘other income’ for tax purposes. This is specifically reported on Schedule 1 Form 1040 which is important to know when you are doing your taxes.
Also, when you trade or sell the winnings from your bitcoin gambling for another coin, you should report this and then pay crypto capital gains taxes on the increases in its value.
How Big An Amount Of Bitcoin Can You Manage To Sell Without Having To Pay Taxes?
There are some rules and regulations about how much bitcoin you can sell, without paying taxes. Should you earn less than $78,750 in your annual income then you will not pay any taxes on your bitcoin and crypto gain.
However, those who have an annual income of more than $78,750 are bound to pay the tax rate of 15% for a single filer. That’s on an annual income of between $78,750 and $434,550.
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