Wallets and Exchanges
In this lesson, we’re going to teach you about cryptocurrency wallet and exchanges.
As a bookie, you’re going to need to become familiar with wallets/exchanges. Using them is a lot simpler than many assume and by the end of this lesson, you’ll be comfortable using both.
What Is a Cryptocurrency Wallet?
Essentially, a “wallet” allows you to interact with blockchains.
Cryptocurrencies like Bitcoin (BTC) never leave the blockchain. When you open a new “wallet”, an address (alphanumeric identifier) is randomly generated.
The address is how you receive cryptocurrencies. Anyone can send cryptocurrencies to your unique address and you’re also able to generate as many addresses as you want.
When you open a wallet, public and private keys are also generated.
Anyone can access your cryptocurrencies when they have the private key. Make sure you keep this sensitive information a secret and don’t store the private key anywhere online.
There are several types of cryptocurrency wallets. The two common wallet types are hot (connected to the internet) and cold (not connected to the internet). Since we’re going to be completing a lot of transactions (deposits/payouts), the best wallet type for a bookie is “hot”.
There are software (desktop/mobile) wallets, web wallets and many exchanges even have wallets. The safest type of wallets are called hardware wallets (cold), but they’re meant for storing cryptos.
What Are the Best Cryptocurrency Wallets?
Here are some quick tips for finding the best cryptocurrency wallets:
• Private Keys: You want to use a wallet where you control the private keys. The problem with a lot of web wallets and exchanges is that you don’t actually control your cryptocurrencies.
• Accessibility: Hardware wallets (cold) like the Ledger Nano and Trezor allow you to store your cryptocurrencies offline securely. However, for fast transactions, it’s best to keep some BTC or other cryptos in a hot wallet. While not as secure, you need to move money quickly.
We recommend downloading the Atomic Wallet to your desktop. You can manage 300+ cryptos with a single wallet and you maintain control of the private keys. You can buy cryptos as needed and it’s also possible to exchange cryptos anonymously. Atomic Wallet doesn’t require any KYC documents.
You can send payouts directly to your players using any crypto with Atomic Wallet.
One of the benefits of being able to easily exchange cryptocurrencies is that you can trade any of your more volatile cryptos for coins backed by the US dollar. We discussed Tether in our last lesson.
By holding Tether in your Atomic Wallet, the value won’t fluctuate due to volatility. Now, if someone requests a Dogecoin payout, you can exchange Tether for Dogecoin and then send to the player’s wallet address all from within your wallet. Once you try it, you’ll see how easy it is.
What Is a Cryptocurrency Exchange?
Cryptocurrency exchanges allow anyone to buy, sell or trade cryptos.
The problem with the big cryptocurrency exchanges is that you don’t have access to your private keys. Now, it’s still safe to use exchanges, but be aware of the potential risks.
Since Atomic Wallet allows you to buy/exchange cryptos, the only reasons you really need to use an online cryptocurrency exchange is to convert your cryptos into cash.
The best cryptocurrency exchange will depend upon where you reside.
Keep in mind, the big exchanges require KYC documents. They also don’t allow gambling.
However, there are some methods for converting to cash with an exchange.
If you’re using Atomic Wallet and want to convert some BTC to cash in the USA. You could send the BTC to a fresh blockchain.info wallet address and then transfer it into a Coinbase account.
There are also alternative ways to convert cryptocurrencies to cash. You can do some research on the various methods to see if any may be suitable and meet your requirements.