The story of NFT gambling is tied to the story of cryptocurrency gambling. The technological breakthroughs and the social trends that made cryptocurrency prominent are the same trends that made NFT gambling an exciting and unforgettable gambling genre. But what is NFT gambling? How can you partake in it today? And how do you make the most of it?

Why NFTs in Gambling?

The most basic question that punters pose while considering NFTs is based on how NFTs compare with cryptocurrencies. Cryptocurrencies are, after all, slightly more natural as their usage is close to that of fiat currencies. The best way to explain why NFTs are superb for gambling is by looking at their components:

• Ownership and value – NFTs are based around true ownership of digital assets. These assets can appreciate in value over time, with the assets themselves often being investments that interest a broader audience. This is especially true because of their artistic nature.
• Transparency and Security – Blockchain technology ensures transparency and security. Every single transaction, and subsequently wager, is recorded on a public ledger, which in turn reduces the risk of fraud and ensures fairness.
• Innovative Gameplay – Games based around NFTs like to incorporate them into the visuals, which makes for unique gaming experience and items. The engagement that results from this is second to none.
• Community and Exclusivity – Certain NFTs give you access to special communities and events, which adds a social dimension to your gambling.
• Cross-platform Use – You can use NFTs across various platforms and games, which removes the need to convert from one fiat or crypto currency to another.
• Provably Fair Gaming – The majority of NFT gambling platforms use smart contracts to execute bets and payouts. You can, therefore, use provably fair gaming solutions to see exactly how each of your bets did.

The Components of NFT Gambling

NFT gambling is a combination of traditional gambling paradigms and blockchain technology. The core components that have made it possible are:

• NFT Casinos – These online platforms accept NFTs as classic betting tokens or prizes. You can either stake your NFTs or receive them as rewards for your gambling endeavors. Wagering NFTs on poker, blackjack, roulette, or NFT-specific games is as simple as pie.
• NFT Lottery and Raffles – You can buy tickets to enter raffles or lotteries that reward you with NFTs or other cryptocurrencies.
• NFT-based Fantasy Sports – You can assemble your team of athletes and compete in fantasy sports leagues. The performance of your athletes determines your NFT wins. Some sites even let you stake your NFTs on sports events.

Risks and Challenges

As with every other medium, there are issues with NFT gambling despite its many benefits. The most prominent risks and challenges that you might run into are:

• Regulatory Uncertainty – Governments around the world are tackling the question of regulating and taxing NFTs along with cryptocurrencies. However, the market is overall very unregulated and it is a matter of time before laws are introduced. Follow our news to keep up with the latest developments.
• Volatility – NFTs can be very volatile, as their prices change dramatically based on speculations and social media trends. This type of volatility is familiar to fans of cryptocurrencies, so it is not a deal breaker.
• Security Concerns – The blockchain is as safe as possible. However, platforms themselves can be vulnerable to hacks. This is where keeping your NFTs stored separately from your gaming accounts comes into play. Always make sure that your NFTs are stored safely and securely, not on various gaming sites.
• Liquidity Issues – Casino chips can be converted into fiat currency without major issues. Moreover, casinos that operate in cash and then pay you actual money also have no issues. However, selling NFTs can be very difficult since it is the same as selling a conventional painting. Moreover, your NFT’s value can fluctuate greatly, and there are very few market mechanisms to evaluate it.
• Addiction and Responsible Gambling – We cannot stress this enough. Gambling is a fun hobby, nothing else. The moment that you feel an addiction coming on or crave another NFT wager, take a break and consider self-exclusion.

The Future of NFT Gambling

The online gaming market is growing around the world. There is nothing that can possibly stop the industry’s constant hunger for innovation and gaming breakthroughs. While there are some who hate the idea of NFT gambling, it is here to stay. It is impossible for us to say exactly what the future of NFT gambling will be like, but we can definitely expect stricter regulations, more game developers, new exciting NFT titles, and a level of legitimacy that only long-term operating can bring. It is, without a doubt, a very interesting future, and we will gladly keep you posted about it!