Paying With Cryptocurrencies – A Short Guide
Although cryptocurrencies are becoming more accepted as a payment method in our society, not everyone knows what they are and how one can use them. Nevertheless, there is no need to worry about it! Wrapping your head around paying with Bitcoin and other digital currencies can be a challenging task.
To help you out a little, we have prepared this short guide. Below, you will find information on what cryptocurrencies are, how cryptocurrency payment services work, and what companies accept crypto as payments. Let’s get right to it.
What Are Cryptocurrencies?
Cryptocurrencies are a form of digital money. Cryptocurrencies are peer-to-peer, decentralized, and many of them are secure. What makes them different from regular fiat currencies is that they are not controlled by any central authority – they are not issued by a government, nor backed by physical assets.
Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) are the most popular cryptocurrencies. However, there are hundreds more. Each cryptocurrency has its own way of working and its own community. Bitcoin, the first cryptocurrency, was created in 2009 by a person or group of people operating under the pseudonym Satoshi Nakamoto.
There are a growing number of businesses and individuals using Bitcoin. This includes brick-and-mortar businesses like restaurants, apartments, law firms, and popular online services such as Namecheap, WordPress, and Reddit. You can also find Ethereum slots if you want to have some fun. While Bitcoin remains a relatively new phenomenon, it is growing rapidly.
How Do You Use Cryptocurrencies?
To use a cryptocurrency, you need a digital wallet. A cryptocurrency wallet is a software or hardware tool which allows you to store your private and public keys. This means that when you make transactions using cryptocurrency, you can do so without having to provide your personal information to your counterparty. This makes the process of making purchases and receiving payments anonymous.
After you get a digital wallet, you will need to buy Bitcoin from an exchange — for example, Binance, Huobi Global, or Kraken. You might also want to mine cryptocurrencies, but this process will take quite a while.
Moreover, if you want to receive payments in Bitcoin, you will need to create a Bitcoin address. An address is a code that looks like this: 1NEwGxqR8rQ5K4h2uTjJf6vbXFzPV3G7vB. To generate an address, you can use a wallet — for example, Blockchain or Coinomi — or a service provider such as coinbase.com or bitpay.com.
There are also other ways of storing your crypto funds. For example, you can use hardware wallets — Ledger Nano S being the most popular one.
How Do Crypto Payment Services Work?
Now that we have gone over what cryptocurrencies are, and how one can store and use them, let’s talk about how to pay with them. Crypto payment services. allow you to exchange your crypto coins for fiat money whenever you need it. What’s more, some of these services even allow you to spend your crypto coins directly as a payment method.
To give you an example (using Bitcoin as an example again), if you want to pay for something using Bitcoin, all that is required from your side is to enter the recipient’s address (or scan their QR code) and the amount of BTC needed for the payment. The company then takes care of the conversion process itself and sends it back to the receiver’s wallet in return for fiat money (USD). As simple as that! There are several companies that offer such services – including Bitpay and Coinify, among others.
Which Companies Accept Crypto Payments?
As you might have guessed already, there are some companies which accept Bitcoin and other cryptocurrencies as payments for their goods and services. You can find a list of the most known brands that accept crypto payments here. All that is required from a business owner is to download a crypto payment app (there are special apps for different cryptocurrencies) and install it on their POS system. After that, they can easily start accepting crypto as payments for the products or services their company offers!
Get to Know More About Crypto Payments
Even though initially, people used cryptocurrencies primarily to pay for things that were banned in their countries, increasingly more and more companies accept crypto payments. Because of that, Bitcoin, Lithium, Ethereum, Litecoin, and other popular cryptocurrencies become more useful for users.
In this article, we have covered the most important points about cryptocurrencies and crypto payments. However, there is still a lot to know about these two topics, and we would like to encourage you to expand your knowledge base on this subject by reading other articles published on our website. Cryptocurrencies are here to stay, and their importance is expected to grow, which is why learning more about them is definitely a good idea.