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Everything You Need to Know About Alternative Tokens in iGaming
Public Group active 1 month, 1 week agoIn the world of iGaming the use of traditional currency is being reformed by a wave of alternative tokens. Players alongside online gaming platforms have been researching options for dollars, euros, and other fiat currencies that will give them faster processing times, lower fees and bigger rewards. The answer was found in cryptocurrencies, tokens, stablecoins, altcoins and even NFTs.
What is the difference between those alternative coins and how do they compare?
Cryptocurrencies: Speed and Decentralization
For most people hearing the phrase “alternative tokens” means cryptocurrencies. These digital coins are based on blockchain, meaning they are decentralized and don’t need banks and other payment institutions to process payments which is why crypto transfers move around the globe so quickly.
Accepting cryptos brought many benefits for gamers and platforms alike. By adopting cryptocurrencies, players can move their coins almost instantly. Deposits and withdrawals happen in minutes, depending on the traffic, without having to wait for days for bank transfers or going through complex verification processes. This increases UX, especially for players in regions with unreliable banking systems.
Speed and global access of cryptos are unmatched. However, there is a downside, volatility. The crypto market, even though it’s not affected by local governments’ regulations, is unpredictable. The value of Bitcoin can significantly change in a matter of minutes, so if you deposited $100, for instance, by the time you start playing, the balance on your account can be much lower. To offset this, many players in Solana casino and other crypto gaming platforms, wait until the market swings back, and cash out once their crypto’s value is back in balance. Also, if possible, avoid busy hours of the day when gas fees can skyrocket, especially on the ETH network. Instead, either wait for the traffic to clear, or choose another one, like Solana.
Another issue is regulatory hurdles. Governments across the world still don’t have firm regulations and are trying to figure out how to integrate cryptocurrencies into their existing laws. Taxation is another problem that’s hanging in the balance. Once jurisdictions have regulations in place, it will impact iGaming platforms and how they handle crypto transactions.
Despite all the challenges, cryptocurrencies remain the best alternative token in iGaming.
Stablecoins: A Perfect Blend
Stablecoins are the best of both worlds. It’s a cryptocurrency that’s tethered to fiat currency, like USDT, meaning less volatility. Each token is backed by real money, so 1USDT is always worth $1.
In practice, stablecoins have all the benefits of cryptocurrency with fast and cheap transactions, while maintaining relatively constant value immune to market swings. For gamers, this means that if they deposit 100USDT, they will have the same amount on their account regardless of the crypto market changes. For operators, it simplifies financial accounting and risk management.
Still, there are some drawbacks for people who are not comfortable with digital wallets and crypto exchanges. To have stablecoins, players need to buy tokens on the market and have a safe wallet for storage. Also, lawmakers are heavily scrutinizing stablecoins by paying more attention to their reserves, management and transparency.
However, stablecoins are gaining popularity in iGaming and are still the best option for people looking to reap the benefits of crypto without worrying about volatility on the market.
Loyalty Tokens and In House Credits
Internal tokens are created by operators themselves with the main purpose of giving players credits and loyalty points. These tokens are awarded to players for certain activities within the game, like playing specific games, reaching goals, or taking part in promotions. These can then be redeemed for bonuses, free spins, or sometimes real cash.
The appeal of internal tokens is to engage players for longer while building trust, loyalty and returning users. Players feel rewarded, and operators retain customers more effectively. The upside is that there’s no volatility or fear of regulators.
On the other hand, these tokens are limited to iGaming platforms. Players can’t transfer them to wallets or cash out anywhere else. If the platform changes its terms, devalues the points, or shuts down, players may lose their tokens.
In house tokens are great for players who are loyal to one platform and don’t want the hassle of handling, buying, and selling cryptocurrencies.
NFTs and Tokenized Rewards
The latest trend in iGaming is NFTs, non fungible tokens, that represent unique digital items that can be earned or won in the game, like special skins, badges, access to tournaments and unique weapons.
For players, having an extraordinary skin that only a few players in the world have can be a huge motivator to stay in the game. Operators reward these players with special access to the internal markets where they can trade or sell their assets for real money.
Like other tokens, NFTs also have their own set of issues. Creating and verifying ownership of NFTs requires blockchain to track who owns which item, which for some players can become a hurdle. Also, once again regulations regarding NFTs are spotty and generally part of the grey area of the law.
Comparing the Options: What Fits Best for Whom?
Ultimately, all tokens have their upsides and downsides.
Gamers who are looking for quick and affordable transactions with global access, cryptocurrencies would be the best option. For this to work, players need to be familiar with crypto markets, and possible high volatility. Also, choosing the right network at the right time is the key. Otherwise, players might end up paying high gas fees, and face longer waiting times.
For players who are not comfortable with volatility, stablecoins offer all the perks of cryptocurrencies with practically no volatility. However, these are still cryptos, meaning that gamers need to have safe digital wallets and an account on one of the reputable crypto exchanges.
People who are more focused on the fun part of gaming, in house, internal tokens are the way to go. They are simple and engaging, although connected to the iGaming platform in an internal loop preventing trading and selling on other platforms.
Lastly, for gamers who are looking for unique digital ownership, NFTs let them collect and trade rare, collectible items. However, they still carry a dose of uncertainty for people who are not well versed in blockchain technology.
