How to Use Bitcoin For Online Payments
- 1 The benefits of cryptocurrencies are undeniable
- 1.1 1. Unparalleled Security
- 1.2 2. Favorable Fees
- 1.3 3. Available worldwide
- 1.4 4. Simplicity Redefined
- 1.5 5. The Power of a Decentralized Network
- 2 Amassing Precious Bitcoin
- 2.1 Select the proper wallet:
- 2.2 Make the exchange:
- 2.3 Buying Bitcoin and Crypto:
- 2.4 Sending it to your wallet:
- 3 Making that Bitcoin Payment
When Bitcoin was first introduced in 2009, it wasn’t easy to find merchants who were willing to embrace cryptocurrency as a means of payment. With the exception of a few pizza places, the only option available was to transfer crypto from one wallet to another.
But today, the rise in the acceptance of digital currency has resulted in a surge of merchants and businesses willing to incorporate Bitcoin and other cryptocurrencies into their payment systems. Today, there are more than 2,350 establishments in the United States that accept cryptocurrency for transactions, excluding Bitcoin ATMs.
This figure is expected to rise further, reflecting the increasing confidence and interest in cryptocurrencies as a viable medium of exchange. As the adoption of digital currencies becomes more widespread, the number of businesses embracing this form of payment is expected to grow even further.
What are the methods of utilizing cryptocurrency to pay for goods and services? Read on and see.
The benefits of cryptocurrencies are undeniable
In order to make an informed decision about whether or not to use Bitcoin as a payment method, it is imperative to grasp the advantages that come with this type of payment when conducting transactions.
1. Unparalleled Security
With the help of the blockchain, a public ledger keeps a secure record of all transactions, and crypto payments undergo verification. This process ensures complete transparency, as every transaction is documented. In contrast to conventional payment methods, Bitcoin transactions are pseudonymous, as they are connected to your crypto wallet address rather than your personal information. This characteristic enhances privacy and security, setting it apart from traditional payment systems and causing it to become a staple payment source for e-commerce sites and video games.
2. Favorable Fees
By opting to pay with cryptocurrency, you can effectively minimize the transaction fees linked to traditional payment methods. In comparison to credit card processing fees, crypto transactions tend to be significantly lower, making digital currency and Bitcoin payments an enticing choice for online transactions.
3. Available worldwide
Bitcoin transactions are swiftly executed, facilitating seamless cross-border transfers without currency conversions or intermediaries, such as money transfer service providers.
4. Simplicity Redefined
By utilizing an internet connection, Bitcoin becomes accessible to anyone, thereby offering opportunities to individuals who are unable to access traditional banking services.
5. The Power of a Decentralized Network
By operating on a decentralized network, Bitcoin remains independent of any single entity or government control. This distinctive feature safeguards it against the repercussions of political and economic volatility while simultaneously incentivizing merchants to accept cryptocurrencies alongside traditional fiat money.
Amassing Precious Bitcoin
Prior to making a payment using Bitcoin, it is essential to obtain a certain amount of the digital currency.
Here are the initial steps to commence the acquisition process:
Select the proper wallet:
To acquire Bitcoin, you must possess a digital wallet to store your coins securely. There are several types of crypto wallets, including custodial and non-custodial, mobile, hardware, paper, and others. Each type offers unique advantages and security features, catering to the specific requirements of individual users.
Make the exchange:
Acquiring Bitcoin is typically done through a reliable cryptocurrency exchange, such as Binance. Begin by creating an account, undergoing the necessary KYC (Know Your Customer) verifications, and associating your chosen payment method, whether it be a credit card or bank account.
Buying Bitcoin and Crypto:
After successfully setting up your exchange account, you can purchase Bitcoin using your preferred payment method in your local fiat currency.
Sending it to your wallet:
If you wish, you have the option to keep your Bitcoin on the exchange where you bought it. However, you are strongly advised to transfer your newly acquired Bitcoin to a non-custodial wallet for increased security. Although centralized exchanges provide a convenient way to purchase cryptocurrencies, they have custody over users’ deposits.
Making that Bitcoin Payment
After successfully acquiring Bitcoin and ensuring its safe storage in your wallet, it is time to delve into the numerous payment options available for transacting in cryptocurrencies.
A merchant that supports digital currencies follow these outlined steps:
Choose crypto in checkout:
When completing your purchase on the merchant’s website, choose Bitcoin or any other cryptocurrency, such as Ethereum, as the payment option in the checkout process.
Digitizing your address:
The merchant will supply a distinctive Bitcoin wallet address or a QR code. It is at this specific address that you should make your Bitcoin payment.
Making the payment:
Within your wallet, navigate to the “Send Bitcoin” feature and proceed by entering the designated wallet address along with the desired payment amount. It is paramount to review the provided wallet details to ensure their accuracy, as any funds sent to an incorrect address will be irretrievable.
Confirming payment:
Following the confirmation of the transaction, the Bitcoin network will commence its processing. The duration of this process can span from a few minutes to an hour, depending on the level of network traffic and activity. The paid product will then be processed.
For peer-2-peer payments, which means paying someone upfront without an intermediary with Bitcoin or crypto, can follow these basic steps:
The address:
Request the Bitcoin wallet address from the recipient to whom you intend to pay. Generally, this address comprises a series of alphanumeric characters that can be easily copied or shared using a QR code.
Make the payment:
Politely ask the person you are transferring funds to for their Bitcoin wallet address. Typically, this address is a lengthy sequence of letters and numbers that can be effortlessly copied or shared via a QR code.
Confirm everything:
Ensure that you verify the transaction particulars to ensure that the intended recipient’s address is accurate. Proceed with the payment confirmation to initiate the transfer of Bitcoin.
