Cryptocurrencies were designed to be used as anonymous payments, yet this use is often forgotten in the midst of media frenzy surrounding cryptocurrency prices. While price changes are important, it is more critical to understand how to use cryptocurrency for payments. After all, cryptocurrencies are becoming increasingly popular and accepted methods of payment.
Although cryptocurrency may be confusing, using it as a form of payment is not. Read on to find out how and where you can use your crypto coins.
The procedure of sending and receiving cryptocurrency used to be much more difficult. Sending a currency used to entail diving into the command line on your computer and building a transaction. The complicated procedure of sending and receiving crypto has now been made considerably easier, just like using an app to send or receive money to or from your bank account. How you start the payment depends on the application you choose, but in general, here’s how it works.
To acquire a cryptocurrency, you don’t need an account with a bank, exchange, firm, or other organization. Setting up a wallet and sending or receiving crypto is one of the simplest and more secure ways to obtain cryptocurrency unless you’re familiar with it.
A regulated cryptocurrency exchange will let you trade fiat money for bitcoin. It will also provide you with additional features if required, such as storing your private keys or assisting you with technical difficulties. When you first create an account and fund it for your crypto purchases, a reliable one like Coinbase, Binance.US, Kraken, or Gemini can get you started.
Before you can make a payment using cryptocurrency, you must install a wallet application on your computer or mobile device. This will act as an interface between you and your crypto.
Your wallet doesn’t actually hold crypto; instead, it keeps the keys you’ll need to access them—your private keys. In transactions, your wallet has a public key that works like an email address; it’s used to send and receive payments.
With the hundreds of different wallets on the market, it is important to choose one that will work well for you. Some are compatible with many cryptocurrencies, while others can only be used with a select few.
Many cryptocurrency exchanges offer a wallet to their users that allows for the transferring of funds to other exchange users or Touchless payments using NFC-enabled devices. Some wallets can even use your camera phone to scan QR codes and create unique addresses.
Cryptocurrency is still in its early stages, but the number of locations you can use it to pay for things and services is rapidly expanding. Most businesses that take cryptocurrency payments employ cryptocurrency payment gateways, which are payment service providers that usually guarantee crypto-to-fiat conversion at the time of the transaction so there is no price slippage.
The following businesses either accept crypto as payment or through a service provider:
Several brick-and-mortar businesses and merchants are also starting to accept bitcoin. Those that do will generally use point-of-sale hardware connected to one of the payment service providers. Signs on the doors, windows, or at the cash register indicating which cryptocurrency is accepted are commonly seen.
You can now use your cryptocurrency wallets to shop at a number of online and offline stores.
Many wallets are able to hold more than one kind of cryptocurrency, which makes it easy to use your preferred coin no matter where you are.
Payment service gateways and providers enable online merchants and some brick-and-mortar businesses to take crypto payments. Newegg, Overstock, Starbucks, and Twitch are well-known retailers.