Depositing and withdrawing with a bitcoin exchange to play online poker is easier than you think
More and more poker rooms are now offering Bitcoin and other cryptocurrencies as payment. Offshore poker sites in particular, where you can play online poker from almost every country, without limits, have focused on cryptocurrencies.
Although the topic is not new and has become an integral part of our society, many people are still reluctant to embrace this modern day, forward-thinking fiscal option and believe that it is very complicated to deposit and withdraw, or that there is a risk involved. This article aims to help you understand how it all works, and that there is no risk at all.
Most of you are probably familiar with the well-known e-wallet providers: Neteller, Skrill and ecoPayz. You have credit on these accounts and can then either spend it with the associated prepaid Mastercard, transfer it to your bank account, or of course deposit it at a poker room, casino or sports betting provider. Additionally, you can also receive payouts from the providers to your e-wallet account.
With a Bitcoin Exchange it is exactly the same principle. You open an account and verify it with a copy of your ID and current proof of address. As soon as the account is verified, you can order a prepaid card directly – as with e-wallets – so that you always have immediate access to your credit.
Which Bitcoin Exchanges are the best, and how do they work?
That’s difficult to answer because it’s now 2022 and there are numerous providers. Bitpanda and Coinbase, Binance and Wirex are among the largest in the world and are also available in different languages.
You can have different real money currencies (fiat) or cryptocurrencies in your account
Many will know from coverage in the press that the price of cryptocurrencies is subject to strong fluctuations, with swings of 10%-20% not at all unusual, and it is exactly these fluctuations that tend to deter people. Let’s take America’s Cardroom from the Winning Poker Network (WPN) as an example. Depending on your country of origin, you can deposit only via BTC, ETH and co. So, you send the desired amount in € or $ from your bank account, credit card or Paypal, for instance, to the Exchanger account. Now let’s say you want to deposit €1,000 at the poker room, which means that we need to convert €1,000 into BTC. This can be done with one click and takes just a few seconds. You now have BTC worth €1,000. Of course, the value can move up or down at any time from this moment on. But that doesn’t matter to us, because we pay directly into the poker room.
Deposits and withdrawals via Bitcoin are a breeze
In the poker room’s Cashier, you select Bitcoin or the desired cryptocurrency and enter the amount you wish to deposit. You now get an address to where the bitcoin needs to go.
Example BTC-Address: 1yETHisdMUqzcJ4WFV8V9GANV5yfyBcxAV
This address looks complex but is nothing more than a kind of IBAN, which you would need to make a bank transfer to another account. So, you copy this address and start the transfer to the poker room. Enter the amount in € or $ that you want to send to the desired address, enter the recipient address and that’s it. It may take a few minutes for the amount to be available in your player account. Wasn’t difficult, was it?
The process is the same if you want to request a withdrawal from your poker account. You go to Cashier and enter the amount you want to withdraw. Let’s say it’s $2,500 – the poker room will ask you for your BTC address because they need to know where to send the money to. You can find this in your Exchange account. Copy again and paste to the poker room. After about 24 hours you have the amount in bitcoins in your account. Note that, again, with BTC or other cryptocurrencies, the value can move in any direction at any time, so if you prefer the risk-free option we recommend that you convert everything directly back into €/$ to avoid price fluctuations. It is up to you whether you leave the money in the account, withdraw it with the card from an ATM, pay in shops or online or transfer it back to your bank account.
FAQs about cryptocurrencies and BTC Exchanges
Is my money safe with the providers?
The providers we have mentioned here – Coinbase, Bitpanda, Binance and Wirex – are among the big players on the market, with official licenses and good reputations that are well-earned. With this in mind, you don’t have to worry about your funds being safe – there is no difference between the aforementioned exchanges and the e-wallets Neteller, Skrill and EcoPayz. Of course, you should be particularly careful with small, unknown providers who lure you with special conditions.
What are the fees for changing real money (fiat) to and from cryptocurrencies?
Of course, the providers also want to earn something, which means that a fee of 1%-2% is usually deducted per transaction. This varies from provider to provider.
Can anyone order a prepaid Mastercard?
Those who reside in Europe and the UK can, yes. The prerequisite is, of course, that the account is verified. Outside of Europe it depends on the licenses of the provider, and you have to clarify this beforehand, depending on where you live, and whether a card is available. There are no credit checks, and if you live in a country where cards are available, you can easily get them.
Can I save taxes this way if I do all transactions with cryptocurrencies?
So far, there is no reporting requirement for transactions with Bitcoin and other cryptocurrencies, but that does not mean that this will remain the case forever; it may well be that this will change in a few years. It is currently the same as with e-wallets, and the crypto exchangers do not report to the Tax Office of your place of residence. Even if the Tax Office does not receive a report from the providers, as a professional player you are still obliged to declare and pay tax on your winnings. Whether you do that is up to you.
Casual players who play only a bit of poker on the side and for whom the game is not their main source of income don’t have to worry about that, of course, since the winnings would be tax-free anyway.
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