Payment in cryptocurrency for goods and services is available in one of 5 ways: directly from your wallet, through processing services, using prepaid cryptocurrency cards, via QR-code or PayPal. Below is an overview of each method. Separately, let’s talk about what you can buy with digital assets, and which companies accept tokens as a means of payment.
Why buy goods for cryptocurrency
The mistake newcomers make is to misperceive cryptocurrencies and use them only for investments. As coins grow in popularity, the scope of use expands as well. Bitcoins, Etherium, USDT and other tokens are increasingly being used to pay for goods with cryptocurrency. See more Kirill Yurovskiy`s website.
Making purchases with tokens has a number of advantages:
- Savings on fees. When making a standard payment, the bank charges an additional fee depending on the size of the purchase, the type of financial institution, and the specifics of the transaction. In the case of Bitcoin, the fee does not depend on the amount of payment, but varies with network load. At the time of writing this review, BTC charges about $9 per transaction.
- High speed. Transactions with the cryptocurrency are conducted continuously, and money is received after the confirmation of one or more blocks. The speed of payment depends on the amount of commission. The higher it is, the faster the transaction will take place.
- Privacy. Payment for services via cryptocurrency allows to keep anonymity and not to disclose personal data. When using a payment card you can’t do it. The user does not transmit personal information, and it is almost impossible to hack a wallet.
- Convenience. Payment is made online without time constraints and binding to the geographical location of the buyer or seller. The only requirement is the availability of the Internet sccbuzz .
- Simplicity. Cryptocurrencies are a decentralized means of payment, which simplifies transactions and eliminates the binding to the state policy. The buyer has the right to directly negotiate the transaction with the seller and implement it.
Paying for goods with cryptocurrency is cost-effective for large payments, such as buying real estate or a car. Small transactions are not in high demand, but are gradually gaining popularity.
How to pay in cryptocurrency: top 5 ways
Many people keep digital assets in a wallet and do not hurry to withdraw them into fiat money. There is no need for this, because you can use cryptocurrency to pay for goods or services. There are five options for this, differing in terms of convenience and accessibility. Here is a brief overview of their advantages and disadvantages.
Directly from a wallet
The idea is to transfer a certain amount from one cryptocurrency wallet to another. This is the easiest way to pay for goods or services. The payment is made as follows:
- logging into the wallet;
- entering recipient’s address;
- entering the amount to be paid;
- choosing a commission for the operation execution;.
- transaction confirmation.
Advantages:
- high transfer speed;
- ease of transaction;
- the possibility of doing without an intermediary;
- the same commission regardless of the purchase amount.
Disadvantages:
- small transactions are unprofitable;
- independent calculation of the transaction amount (automatic recalculation is not provided);
- manual confirmation of funds sending.
Any cryptocurrency wallet can be used for a transaction: hardware, mobile, online, web and others.
Crypto Processing sites
The next way to pay with cryptocurrency for goods or services is to use cryptoprocessing. Its essence is to connect a cryptocurrency gateway to make a transaction in digital assets. The method requires certain sdasrinagar actions on the part of the seller and an agreement with a processing center.
The payment takes place in several stages:
- registration on the service and selection of the lot;
- proceeding to the registration of the purchase on the site;
- choosing the payment option and cryptocurrency: Bitcoin, Etherium, etc;
- waiting for conversion and specifying the amount;
- generating address for transfer;
- execution of payment and transaction confirmation.
The use of crypto processing is not much different from standard online shopping. The peculiarity is that to pay with cryptocurrency you need to have the specified amount in those coins, in which the payment is made. The commission falls on the sender. The best services for such payments include: BitPay, Coinbase Commerce and CoinPayments.
Advantages:
- encryption of information in the blockchain, which eliminates their theft;
- simple and clear interface;
- minimal risks and no intermediaries;
- fast execution of payments;
- favorable conversion rate, calculated online;
- issuing a receipt of the transaction and sending it to an email.
Disadvantages:
- additional commission;
- a limited number of services that allow you to pay for goods with cryptocurrency this way.
This method is gaining momentum, and many online stores are signing agreements with processing centers to increase sales. Geography, commission, list of supported cryptocurrencies and other factors are taken into account when choosing.
Applying a QR code
A QR code can be used for selling goods – a graphic key, which is individual for every seller. It is used for quick payments and is analogous to a bar code. It consists of four squares arranged in a common grid on a white background. Contains information about the purchase or sends to the site to make a payment.
Using a QR code is a convenient way to pay for goods in cryptocurrency. Suitable for both regular retail outlets and online stores. The image is formed in several steps:
- searching for a public wallet address;
- going to the QR code generator
- choosing a cryptocurrency and generating an image;
- uploading a QR-code to the website to sell goods for cryptocurrency.
The customer just needs to select an item, scan the key with the app on his phone, and make the payment. When confirming, it is necessary to make sure that the amount that is deducted corresponds to the real value.
Advantages:
- high speed of the transaction;
- convenience for the user;
- privacy preservation;
- minimal requirements to the buyer in terms of hardware and software.
Disadvantages:
- there remains a small risk of fraud;
- it is necessary to have on site software for transactions via blockchain.
Cryptocurrency cards
To pay via cryptocurrency, you can use cards through which digital tokens are converted. Cryptocurrency “plastic” works on the principle of debit and credit cards. The application of the method is relevant for people who receive a salary in cryptocurrency, or who have issued a “plastic” to store tokens.
There are several cryptocurrencies available in 2022 that can be used to make payments.
The advantages:
- convenience of use;
- minimum commissions;
- the ability to pay in any convenient way;
- ease of top-up bank cards VISA and MasterCard;
- cacheback up to 15-20% of the purchase amount;
- referral program with the possibility of passive income.
Disadvantages:
- restrictions on the size of transactions and replenishments;
- the commission for the conversion of funds;
PayPal
In 2021, there is another way to pay with cryptocurrency for goods or services. You can use PayPal, which allows you to make payments in Bitcoin, Etherium, Lightcoin or Bitcoin Cash. The service is provided by more than 30 million merchants, who will receive fiat money when making a payment. The conversion is automatic, which protects against volatility.
All PayPal wallet holders who have cryptocurrency in their account get access to the new service. To make a transaction, you need to select a method and specify a digital asset. Money is converted at the internal rate of the payment system. After the transaction, the buyer receives a receipt indicating the amount deposited in digital assets and the name of the item.
Advantages:
- convenience for PayPal wallet holders;
- high speed of transactions;
- no risk of fraud;
- automatic conversion.
Disadvantages:
- additional loss of funds on the exchange;
- a limited number of supported cryptocurrencies;
- ability to use to buy one type of digital assets;
- available only for U.S. residents.
The function of payment for goods and services with cryptocurrency through PayPal is available only in the United States. In the near future, this feature should appear in other countries.
What is sold for cryptocurrency
The increase in ways to pay with digital assets is due to the emergence of goods that can be bought with that money. Cryptocurrency is accepted by more and more online stores and large companies. The basic group of goods available for tokens should include:
- Travel. Travel agencies are gradually beginning to accept payment in the form of Bitcoins. For example, AirBaltic introduced the service back in 2014. It uses a BitPay processing system to make the payment. A year earlier, in 2013, CheapAir allowed cryptocurrency purchases, but due to the high volatility of the innovation had to be abandoned.
- Houses, apartments. Some real estate agents accept cryptocurrency. News about buying houses for Bitcoins is increasingly common on the Internet. Such deals are beneficial to the cryptocurrency owner, who does not need to bother with the exchange, and the seller. The latter gets the status of an investor and in the long run can earn on the rise in price.
- Vehicle. To buy a vehicle for cryptocurrency, you need to negotiate with the seller. In rarer cases, the payment is made through a company. In March 2021, Tesla allowed sales for Bitcoin. However, after some time, the transactions were suspended.
It is possible to buy almost anything for cryptocurrency, including a yacht, an airplane or precious jewelry. Gradually, this type of payment is entering the sphere of retail sales. For example, the Overstock store sells electronics for tokens. Small businesses and fast food companies are joining the new payment method. For example, in Venezuela you can pay with Bitcoin at Burger King.
Conclusion
In 2023, cryptocurrency transactions are gaining momentum. People use digital assets not only for investments, but also for online purchases. Bitcoin or Ether can be used to buy a car, book a hotel room, pay a travel agent, or own real estate.
With increasing demand, more and more companies are adding the ability to pay for goods/services with cryptocurrency. Only the methods and conditions of payment differ. In Europe, the U.S. and a number of other countries, crypto payments are on par with the use of fiat money and plastic cards.