Cryptocurrency has been all the rage for the past couple of years. But while you might have seen it break records and reach incredible sums, you might not have known that people usually use it to gamble. Cryptocurrency gambling is really huge, probably because even investing in crypto is a gamble in itself. You never know what might happen and if you’ll get lucky and make more money or lose a big chunk of it overnight.
More and more people use cryptocurrency when trying online betting, no matter if it’s on sports, events or live casino games.
Experts estimate that about 60% of all bitcoin transactions, that amount to about 337 transactions per second, are gambling related. Even more transactions might be gambling related, but there’s no way to know for sure since even in countries in which gambling is illegal people have found ways to bet on the World Cup using crypto and it’s blockchain’s unregulated technology.
While there are no specific betting tips to help you win more with crypto people seem to favour it for the fact that transactions happen way faster than they would with regular payment methods like by credit card or wire transfer and there are also no fees involved.
While most people seem to want to find out how to buy cryptocurrency in UK or other countries in which it’s legal, this is not the thing you should be concerning yourself with. Buying crypto is easy seeing is that you can go online and find all your answers and there are many exchanges everywhere you just need an e-wallet to keep it in.
The thing that’s more interesting and not all people know much about is the taxing. Did you know that you have to report your gambling wins or loses? Even bitcoin users should be aware of the tax liability that’s imposed on their winnings.
No matter what you bet on, that win is taxable by law. No matter if you get prizes, cash, or cryptocurrency, those winning bets create taxable income. Most countries have a 25% tax on gambling winning. Some casinos might withhold these taxes for you, in which case they will provide forms in order to let you know how much you’ve won and how much tax will be withheld. If you don’t get a form, then you are the one who will be responsible for reporting what you’ve won.
Gambling losses can be deducted from your taxable income but for this you will need a specialized accountant. For professional gamblers things are quite different. Since professional gambling incomes are taxed at the effective income tax, no the 25% applied to gambling wins, but to qualify as a professional gambler you need to consult with a tax professional.
Crypto has a lot of benefits when it comes to gambling. The speed of transactions and the lack of feeds, plus the anonymity helps a great deal, but you have to be careful to stay on the safe and legal side and declare everything you’ve won or lost. Gamble responsibly!