Understanding blockchain confirmations

Who is this for?

This guide is for any crypto bettor who has ever sent a transaction and wondered, «Where is my money?» If you want to understand what’s happening behind the scenes with your crypto deposits and withdrawals, this article will demystify the process of blockchain confirmations and give you the confidence to transact like a pro.

What you’ll learn

• What a blockchain confirmation is in simple terms.
• Why sportsbooks require confirmations for deposits.
• How confirmations affect the speed of your deposits and withdrawals.
• Practical tips to ensure your crypto transactions are smooth and timely.

Introduction: the waiting game

You’ve decided to fund your betting account to jump on some live odds. You grab your wallet, copy the deposit address, and send your Bitcoin. A few minutes pass. Then ten. You check your betting account, but the balance is still zero. A flicker of panic sets in. Is the crypto lost?

This scenario is common for newcomers to crypto betting, and the answer almost always lies in «confirmations.» A transaction isn’t instant the moment you hit «send.» It has to be verified and permanently recorded on the blockchain. This verification process is what we call confirmation, and it’s a crucial security feature of any cryptocurrency network.

Understanding how confirmations work is essential for any bettor using crypto. It removes the anxiety of waiting for a deposit and helps you manage your funds more effectively. Let’s break down what’s happening on the blockchain every time you move your money.

What is a blockchain confirmation?

Think of the blockchain as a public ledger made of «blocks,» where each block is a collection of recent transactions. When you send crypto, your transaction is broadcast to the network and waits to be included in the next block.

• 1 confirmation: Your transaction has been picked up by a miner and included in a newly created block. This is the first official record of your transaction on the blockchain.
• Multiple confirmations: Every time a new block is added to the chain after yours, your transaction gets another «confirmation.» For example, if your transaction is in Block 100, it has two confirmations once Block 101 is added, three once Block 102 is added, and so on.

Each new confirmation makes your transaction more secure and effectively irreversible. The more confirmations, the more certain it is that the transaction is final and cannot be altered or double-spent.

Analogy: Imagine you write a check.

• Sending the transaction is like handing the check to the recipient.
• 1 confirmation is like the bank processing the check and the funds appearing in the recipient’s account.
• Multiple confirmations are like the passing days and statements that make the transaction a permanent part of the bank’s history, impossible to reverse.

Why confirmations matter for bettors

Crypto sportsbooks require a certain number of confirmations before they credit your deposit. This isn’t to slow you down; it’s to protect both you and the platform from fraud.

The primary risk is a «double-spend» attack. In theory, a malicious actor could try to send the same coins to two different addresses simultaneously. By waiting for multiple confirmations, a sportsbook ensures the transaction is irreversible before crediting your account. If they credited your account after zero or one confirmation, a scammer could potentially reverse the transaction after placing bets, leaving the sportsbook out of pocket.

This is why you might see your deposit as «pending» or «unconfirmed» in your account history. The sportsbook has detected the incoming transaction but is waiting for the required number of confirmations on the blockchain to officially credit the funds.

How many confirmations are needed?

The number varies depending on the cryptocurrency and the platform’s security policy.

• Bitcoin (BTC): Due to its slower block time (about 10 minutes), platforms often require anywhere from 1 to 3 confirmations. At Cloudbet, we prioritize security, so we wait for the necessary confirmations to ensure your funds are completely secure upon arrival.
• Ethereum (ETH) & ERC-20 Tokens: Ethereum has much faster block times (around 12-15 seconds), so platforms might require 12, 20, or even more confirmations. Though the number is higher, the total wait time can still be shorter than for a single Bitcoin confirmation.
• Other cryptocurrencies: Faster networks like Solana or BNB Chain often require more confirmations, but the process is usually completed in just a couple of minutes.

How confirmations impact your transaction speed

The speed of your deposit or withdrawal is determined by two main factors:

1. Network congestion: The blockchain network can get busy, just like traffic on a highway. When many people are trying to send transactions at once, miners prioritize those who pay higher transaction fees. If you set your fee too low during a busy period, your transaction might wait longer to get its first confirmation.
2. Number of confirmations required: As explained above, different coins need a different number of confirmations to be considered secure.

This is why a deposit with a fast coin like Litecoin might appear in your account sooner than a Bitcoin deposit, even if the sportsbook requires more confirmations for Litecoin.

Tips for smooth and predictable transactions

As a bettor, you want your funds available when you need them. Here are a few tips to ensure your deposits and withdrawals go smoothly.

1. Use an adequate transaction fee: Most modern crypto wallets suggest a transaction fee based on current network congestion. Using the recommended «medium» or «high» fee will ensure your transaction is picked up by miners quickly. Avoid setting a «low» or custom fee unless you are not in a hurry.
2. Check the network status: Before sending a large or time-sensitive deposit, you can use a blockchain explorer (like blockchain.com for Bitcoin or etherscan.io for Ethereum) to check the network’s status. If you see high congestion and rising fees, you can either wait or be prepared to pay a higher fee.
3. Plan ahead: If you know there’s a big match you want to bet on this weekend, don’t wait until five minutes before kickoff to make your deposit. Sending your crypto to your betting account ahead of time ensures your bankroll is ready to go when opportunity strikes.
4. Understand your chosen crypto: Familiarize yourself with the typical confirmation times for the cryptocurrencies you use. Knowing that a Bitcoin transaction might take 10-30 minutes while a Solana transaction takes under two minutes helps you manage your expectations.
5. Bookmark your transaction: After sending a transaction, your wallet will provide a transaction ID (TxID). You can paste this into a blockchain explorer to watch the confirmations happen in real-time. This gives you full transparency and peace of mind, as you can see exactly where your funds are in the confirmation process.

Conclusion: bet with knowledge and confidence

Blockchain confirmations are a fundamental security feature of the crypto world. While they might seem like an annoying delay when you’re eager to bet, they are working around the clock to keep your funds safe and transactions secure.

By understanding what confirmations are, why they are necessary, and how you can influence transaction speed, you can move from being an anxious waiter to an informed bettor. Plan your deposits, use appropriate fees, and embrace the transparency of the blockchain. This knowledge gives you the power to manage your crypto bankroll effectively and focus on what really matters: finding that next winning bet.