When it comes to fast and convenient operations with online casinos, traditional crypto exchanges are not always the best choice. In this article, we will explore 10 key reasons why exchangers are a more preferred option for those who want to delve into the world of online gaming using cryptocurrencies.
1. Verification and anonymity
Crypto exchanges most require detailed user verification. This includes confirming identity (passport or driver’s license), residence address, and even checking income sources.
Typically, crypto exchanges adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which obligate them to collect and store user data. Therefore, transactions can be traced back to specific users.
Exchangers, on the other hand, offer more flexible verification conditions, or may not even request personal data (or only minimally). They often do not conform to strict regulatory requirements. It is possible to choose an exchanger even without registration. All this makes them a popular choice among online casino players who value confidentiality.
2. Geolocation restrictions
Crypto exchanges usually strictly follow the regulatory norms of the countries in which they operate. This includes compliance with local securities laws, AML, and KYC regulations. Therefore, they often block crypto casino players from countries where cryptocurrency regulation is strict or unclear. Sanctions are especially severe for users from countries under international sanctions.
Exchangers, however, practice a more lenient policy towards users from any country. They do not require detailed verification and, therefore, are accessible to players of reliable online casinos from a wider range of geographic regions.
3. Account blocking
Crypto exchanges readily block player accounts at the slightest suspicion of money laundering, terrorism financing, or other illegal activities, especially when it comes to compliance with sanctions or other international restrictions.
An account on a crypto exchange will be blocked for violating their internal rules, such as attempts to manipulate the market, using prohibited trading strategies, or having multiple accounts.
Exchangers and account blocking are from different worlds. Isolated cases of blocking are most often related to the dishonest use of a referral link by a client, participation in a bonus program, etc.
4. Complexity of cryptocurrency exchange
Crypto exchanges cater to experienced users and traders. Therefore, they are packed with a wide range of tools and features that are never needed by online casino players. The interface of crypto exchanges contains complex charts, analytical tools, and numerous settings that only distract from the simple operation of buying cryptocurrency.
Exchangers, on the other hand, are focused on quick buying/selling of cryptocurrencies for ordinary internet users. Here, the interface is simple and understandable, limited only to the basic exchange functions. Without complex trading options. With responsive customer support.
5. Transaction processing speed
Crypto exchanges are relatively cumbersome during periods of high volatility or increased demand for certain cryptocurrencies. This noticeably slows down the transaction processing speed, which can greatly frustrate online casino players during bonus distribution periods.
Exchangers, especially automated ones, offer very fast transaction processing. For many exchange directions, operations occur almost instantaneously.
6. Charged commissions
Crypto exchanges usually charge a commission for every fund movement (and even for the absence of such). It can be a fixed amount or calculated as a percentage. There are fees for depositing and withdrawing funds, plus hidden charges for account maintenance or temporary balance inactivity.
Exchangers more often include the commission in the exchange rate. This way, the client immediately sees the amount of funds received, making their operation much more transparent. Moreover, exchangers sometimes fix the exchange rate for the duration of the transaction, which is beneficial for online casino players during periods of cryptocurrency market volatility.
7. Individual approach
Crypto exchanges serve a large number of users, which almost anonymizes each client individually. They usually provide solutions in the form of extensive FAQs, guides, and other educational resources. All this requires careful study, more than once.
Exchangers apply a more personalized approach to their clients. They respond more quickly to individual requests and offers. They are usually more accommodating in exchanging non-standard or simply rare currency pairs. Moreover, with the owners of small exchangers, it’s possible to make contact and personally discuss the terms of the deal – from the amount to the location.
8. Purchasing crypto with cash
Crypto exchanges offer trading between cryptocurrencies and fiat currencies, but exclusively through bank transfers, credit/debit cards, and payment systems. It’s impossible to immediately convert crisp banknotes into cryptocurrency to then deposit into a crypto casino.
Exchangers often have their representations in major cities. In such stationary exchange points, you can enter with a simple wallet and quickly convert cash into cryptocurrency. And vice versa – exchange the electronic currency won in an online casino from your crypto wallet into cash.
9. Scandals and hacks
Crypto exchangers meticulously monitor their reputation – it’s their livelihood. A single negative review on an exchanger monitoring platform can shake the entire business. Moreover, unlike crypto exchanges, exchangers do not store their clients’ funds. Therefore, the risk of account hacking here is minimal, as it makes little sense.
Exchanges regularly suffer from financial scandals and accusations at the state level. Successful hacker attacks have a significant impact on the perception of the cryptocurrency market as a whole. Here are just a few astounding examples of the downfall of crypto exchanges’ reputations:
- Mt. Gox (2014). One of the earliest and largest exchanges of its time lost 750,000 BTC, 650,000 of which belonged to users. It is assumed that this was the work of hackers.
- Bitfinex Hack (2016). The Bitfinex exchange was hacked, and about 120,000 bitcoins were stolen. The incident caused the BTC rate to collapse and raised significant doubts about the security of cryptocurrency exchanges in general.
- Coincheck Hack (2018). Hack of the Japanese exchange Coincheck. Hackers withdrew NEM tokens worth ≈ $523 million.
- BitMEX Legal Issues (2020). The leadership of the popular crypto exchange BitMEX was accused of violating American AML laws. It was the first serious blow to exchanges from regulators.
- FTX (2022). The exchange was found to have critical liquidity problems and the use of clients’ funds for its own purposes. Obvious fraud and another undermining of investor trust in the cryptocurrency market.
All these cases undermined faith in the reliability of cryptocurrency exchanges, which turned out to be mythical. Many then lost access to their funds and became “crypto-skeptics” forever. Scandals and hacks of crypto exchange accounts continue to shake the media space today, prompting players to increasingly turn their attention to online exchangers.
10. Prospects of exchangers
The future of crypto exchangers will be determined by their ability to adapt to the conditions of the slot machine and online casino market, as well as to innovations and regulatory requirements. Nevertheless, it is clear that they will continue to strengthen their role in the iGaming industry, as they offer players convenient and accessible ways to exchange cryptocurrencies, as described above.
Conclusions
Crypto exchangers will become a reliable tool for players who value effective management of their crypto assets. In the dynamically evolving world of online casinos, crypto exchangers will undoubtedly continue to adapt and improve to meet market needs.
