NFT Casino vs Crypto Casino: Similarities, Differences, Pros and Cons
For all their incredible benefits and use cases, crypto and NFT are slowly becoming favorites in the casino market - and why not? For over a decade now, crypto has reshaped how we think of finance, with businesses tinkering with their models to accommodate crypto and NFTs as payment options. And for online casinos, crypto and NFTs are long-sought solutions to the need for privacy (and secrecy) in their businesses.
Crypto and NFT casinos unlock a new dimension, adding a new layer of excitement and rewards to the world of gambling. If you want to enjoy the best of both worlds and are probably wondering if there’s any difference between NFT casinos and crypto casinos and the pros and cons of both, come along as we find the answers.
Crypto Casinos and NFT Casinos: What are they?
A crypto casino is an online gambling platform where players use crypto to deposit, wager bets, and withdraw their winnings. The most outstanding feature of crypto casinos is that they replace fiat currency with cryptocurrency. Crypto casinos like Mega Dice Casino US, Lucky Block Casino US, and wild.io have perfected this model and are currently in the business of giving players a unique experience.
Selecting the best crypto casino sounds like a tricky enterprise, but there are reliable pointers to direct your choice. These include the cashback program, specific token support, reward type, win mechanics, and return to player.
Usually, all crypto casinos work in much the same way: you open an account with the online casino, make a deposit of your preferred crypto into a unique deposit address, play games and stake your bet, withdraw your winnings into the crypto address and have it sitting pretty in your account in minutes.
NFT (Non-Fungible Tokens) casinos are remarkably different. They are digital gambling platforms where players win NFTs, rewards, and cash prizes. It is important to note that each NFT is a unique digital identifier stored on a blockchain to certify the authenticity and ownership of the asset to which it's attached. Suppose you find yourself in a casino where they allow you to buy in-game items with NFTs, use NFTs for loyalty programs and VIP memberships, offer you games where you can win an NFT, and have backed-up gambling projects, there's a 99.9% chance you're in an NFT casino.
Similarities and Differences
Although two peas in the same blockchain technology pod, NFT and Crypto Casino converge and diverge in certain areas.
Both crypto and NFT casinos use blockchain technology, which guarantees privacy, security, and authenticity. NFT and crypto casinos leverage an advanced database mechanism that allows transparent information sharing within a peer-to-peer network.
Crypto and NFT casinos use digital assets to pay winnings or rewards against fiat currency. Crypto casinos typically use digital assets as coins paid, staked, and withdrawn into the designated wallet address. NFT casinos embrace a wider species of digital assets in various art forms, sizes, and dimensions.
- Payment Options
In crypto casinos, players register with crypto, stake, and withdraw winnings as cryptocurrencies. However, this is different in NFT casinos, where players either have to register, play, and move up loyalty levels using fiat currency or cryptocurrency, and in some cases using NFTs, but earn rewards or in-game assets strictly as NFTs.
- Use Cases
NFT casinos offer more use cases than crypto casinos. Crypto casinos mainly utilize crypto for registration, payment, and payout. On the contrary, NFTs cover wider use cases such as buying in-game items with NFTs, offering games with NFT rewards, and using NFTs as tickets for joining loyalty programs and memberships.
Nevertheless, NFT and crypto casinos offer specific benefits but face some drawbacks. Let’s check out a few of them.
Crypto Casinos: Pros
Crypto casinos are considered a great option for the following reasons:
1. Guarantees More Privacy
Privacy concerns have rendered traditional casinos unattractive, especially due to third-party access to sensitive data. Meanwhile, crypto casinos guarantee unparalleled anonymity, where players can deposit and withdraw money without a trace.
2. Lower Transaction Costs
Online transactions with fiat currency attract higher costs as the transaction passes through different institutions before finally reaching the casino. This is different in crypto casinos, where the transaction is conducted between your wallet and the casino’s wallet(s), with no need for a third party or intermediary to pile up on the costs.
3. Security and Fraud Prevention
Blockchain technology makes crypto casinos extremely secure, and no one can access accumulated winnings in your crypto wallet without the key. Also, crypto casinos are less exposed to fraud, chargebacks, and other payment-related issues unlike traditional casinos.
Crypto Casinos: Cons
The following are some of the demerits that come with using crypto casinos.
1. Crypto Volatility
High volatility remains a major bane for cryptocurrency, which trickles down to crypto-based businesses like crypto casinos. While this volatility may lead to bigger profits, it can also lead to serious losses.
2. Requires Crypto Knowledge
Using crypto at casinos requires that players are tech-savvy, as crypto platforms are more complex to navigate than regular fiat casinos.
NFT Casinos: Pros
While NFT casinos offer the same positives as crypto casinos, they offer more in the following:
Players who patronize NFTs can buy and sell their in-game digital assets in secondary markets. This means they can make real-world value from in-game assets or collectibles, unlike what is obtained under traditional casinos and crypto casinos.
2. NFT Casinos Offer Personalized Rewards
NFT casinos offer exclusive rewards, perks, and access to special events. This creates a personalized gambling experience for players and enhances player engagement.
NFT Casinos: Cons
In addition to volatility issues and required crypto knowledge, as discussed under crypto casinos, NFT casinos suffer the following drawbacks:
NFT prices rely solely on sentiment
Unlike fiat currencies that have inherent value or cryptocurrencies that create value from their ability to solve real-life problems, NFTs do not have any inherent value but derive them from public sentiment. In the event that the hype wanes around any particular NFT, the player is at risk of huge losses.
Its continued use can be environmentally harmful
The blockchain uses a Proof of Work (PoW) mechanism to verify transactions, which consumes much energy. So, as NFT casinos become more mainstream, they will put more strain on the environment as they consume even more energy.