How And Where To Pay With Bitcoin & Other Crypto

Cryptocurrencies are considered one of the ways of generating passive income, but not everyone knows that they were originally created to make payments anonymously. Crypto is a quite young phenomenon, so few people trust it due to their unwillingness to take risks. Nevertheless, there are a number of fields and companies where you can pay with Bitcoin and other cryptocurrencies, and in this article, we tell you about them in detail.

What Do You Need To Pay With Crypto?

First of all, you need to take care of getting crypto. Before making any purchases, it should be stored in a crypto wallet that you can further use to manage your funds. Let’s look deeper at the processes of getting the crypto and storing it.

Acquiring The Crypto

You can get cryptocurrency in several ways: buy it for cash at special ATMs, earn it for completing tasks for some companies, or buy it on crypto exchanges. The last method is the most reliable and popular among users, as the platforms are encrypted as a rule and protected from fraud. What is more, there are a large number of exchanges, so you will definitely choose the most suitable one for you.

For example, Cryptomus offers the most popular and sought-after cryptocurrencies for purchase, including Bitcoin, Ethereum, USDT and others directly with debit & credit cards. You can also buy crypto on the Cryptomus P2P exchange, where you will have the opportunity to choose a suitable offer among the many ads. Moreover, you can use a converter if you want to exchange your purchased crypto to another one, and see their exchange rates in real time.

Managing Cryptocurrency Through The Wallet

Many exchanges provide their users with a crypto wallet automatically, so you can make payments using them. Another option is to install a wallet app on your phone, as it stores a personal key to your wallet and acts as an interface to access your funds. And then, when you have a wallet, you can make payments, such as direct transfers, to other people. To do it, you will need their wallet address. And if you want to pay for purchases in various stores, which accept crypto, you will have to additionally link payment services such as PayPal, Cash App, or Venmo to your wallet.

Ways To Pay With Crypto

When talking about cryptocurrency payments, it's important to discuss the ways you can pay as well. There are four main options for paying with Bitcoin and other crypto: direct transfers, checkouts, crypto debit cards and gift cards. Let's take a closer look:

1. Direct transfers. People can transfer cryptocurrency directly to each other from one wallet to another. It can also be done using payment apps.

2. Checkouts. When placing an order, you have the opportunity to select cryptocurrency as your payment method. In this case, the seller displays the wallet address or QR code where you will have to transfer the crypto.

3. Crypto debit cards. Just like usual bank cards, there are also cryptocurrency ones. They can be used wherever Visa or Mastercard payment systems are accepted. That is the way you can pay with Bitcoin and other crypto without even having a wallet.

4. Gift cards. You can use a gift card purchased with Bitcoins to buy goods or services. Some large companies in many spheres offer this option.

A Guide On How To Pay With Cryptocurrencies Using Different Methods

As you can see, there are several ways to pay with Bitcoin and other crypto. Let’s go deeper into the topic to learn how it can be done in each case. Here is a step-by-step algorithm on how crypto payments should be made in each of the methods we explained above.

Direct Transfers

The method means sending funds from your crypto wallet to the recipient's one. Here are the steps of this process:

• Step 1: Ask the recipient for his crypto wallet address or its QR code.

• Step 2: Log into your crypto wallet app or a wallet account and go to the transfers section.

• Step 3: Enter the recipient's wallet address in the special field.

• Step 4: Enter the amount of cryptocurrency you want to send and the necessary network. Take into account the commissions charged by the platform for transfers.

• Step 5: Double-check all the details again and confirm the transaction. You and the recipient will receive notifications about the successful transfer.

Checkouts

You can also pay for goods at the checkout. Remember that not all companies accept cryptocurrency as a payment method. We will present a list of crypto-friendly companies later in this article.

Follow the steps to do everything right when you pay with crypto during checkouts:

• Step 1: After assembling your shopping cart, go to the checkout page.

• Step 2: Specify the delivery information and select cryptocurrency as your payment method. Then click on the coin that you plan to pay with (for example, Bitcoin).

• Step 3: The platform will generate a wallet address for payment or provide you with a QR code. Save it.

• Step 4: Log in to your crypto wallet, then go to the transfers section.

• Step 5: Enter the wallet address given to you by the seller in the special field, and specify the amount of crypto for transfer.

• Step 6: Double-check the information and confirm the transaction. Then wait for a confirmation from the seller about the received funds.

As you can see, this method is similar in algorithm to direct transfers. The only difference is the additional platforms involved in the process (for example, an online store), as well as additional protection measures against scammers from the platform’s side.

Crypto Debit Card

If you don't have a crypto debit card yet, you need to get one. Paying with it is a simple process if you follow the instructions:

• Step 1: Choose a provider (like BitPay or Wirex), create an account on the chosen platform, pass the verification, and order a crypto debit card.

• Step 2: When you have received your card by mail, you need to activate it. The instructions are provided on the platform’s website you used, so you should only follow them.

• Step 3: Top up your card by transferring funds from a crypto wallet you already have, or by buying the crypto on an exchange.

• Step 4: Pay with your card at sale points by swiping, or make online purchases by entering your card details.

• Step 5: Check your card balance regularly and top it up if necessary.

Gift Card

Cryptocurrency payment using gift cards involves purchasing it also with crypto. Therefore, we will take a detailed look at the process of getting a card.

So, if you want to treat yourself or your friends with a gift card to their favorite store, follow these steps to buy it with crypto:

• Step 1: Select a platform that offers the purchase of gift cards with crypto, for example, eGifter.

• Step 2: Create an account on the chosen platform and confirm your email address.

• Step 3: Learn the list of stores and other companies that offer crypto gift cards and select the one you would like to purchase.

• Step 4: Proceed to checkout. Copy the wallet address given to you by the platform.

• Step 5: Go to your wallet and select the transfers page. There you have to paste the recipient's address, specify the cryptocurrency and its amount for sending. Then confirm the transaction.

• Step 6: Check your email, because the platform will send the gift card code there.

• Step 7: Use your gift card in-store or online by presenting the code to the seller or entering it during checkout.

Pros And Cons Of Paying With Cryptocurrency

So, paying with crypto can be as simple and convenient as paying with a familiar fiat currency. However, it is a young payment method in comparison with fiat, so before you start using it, you need to know its pros and cons.

Advantages Of Paying With Cryptocurrency

The advantages of using crypto as a payment method are related to its technological capabilities and profitability. Let's look in more detail:

• Innovativeness. Some cryptocurrencies, such as Ethereum, operate on smart contracts that automate the realization of complicated transactions.

• Fast transactions. All crypto operations are processed using blockchain technology. It prevents delays, so each transfer occurs within just a few minutes.

• Decentralization. Cryptocurrencies are not controlled by a certain entity, such as a bank or government, so users have full control over their funds and transactions.

• Globality. Due to the absence of intermediaries and thanks to working on the blockchain, cryptocurrencies can be sent anywhere in the world.

• Low transaction fees. Crypto transfers can boast low commissions, including international payments. It is also associated with transactions being realized directly.

• Security. Crypto operations are anonymous compared to traditional payment methods, so it reduces the risk of fraud. Moreover, here the cryptography technology is used, which prevents transactions from being altered or forged.

Disadvantages Of Paying With Cryptocurrency

Despite all the benefits of paying with cryptocurrency in everyday life, this method also has obstacles that you should consider. They are as follows:

• Regulatory uncertainty. Cryptocurrencies are not allowed in some countries, so you may face difficulties with some legislation. Moreover, the regulatory framework regarding crypto is still forming, so changes about its use can occur periodically.

• Limited acceptance. Although the number of companies and individual traders accepting crypto is growing, it is still quite small. That is because a lot of people prefer traditional currencies due to their familiarity and wide spread.

• Market volatility. The crypto market is subject to significant price volatility, which may cause fluctuations in transaction costs. A sharp price fall due to volatility is another reason for crypto not to be accepted by many traders.

• Scalability problems. Due to large amounts of transactions within networks, there may be congestion, and in turn, it can lead to speed restrictions and increased commissions.

• Transactions’ irreversibility. If you make erroneous transactions (for example, when entering the wrong wallet address), they cannot be canceled. In this case, funds are lost.

• Technical knowledge required. To interact with cryptocurrency effectively, users have to understand the working principles of blockchain technology, and the features of a crypto wallet and key management. For beginners, it can be a difficult topic to understand.

Where Is Crypto Accepted As A Payment?

Cryptocurrencies are most often used as payment for high-value transactions, but digital technology has made it a convenient way to pay for any purchase, including retail. Companies began to add different payment options, including cryptocurrency, so consumers could not only transfer crypto from wallet to wallet but also pay with a crypto card or QR code.

Among the companies that actively implement crypto policies are businesses of different fields and sizes. Let's look at the examples:

1. Online stores: Overstock, Etsy, Newegg.

2. Restaurants and groceries: Starbucks, Pizzaforcoins, Walmart.

3. Electronics and technology: Microsoft, Dell, AT&T.

4. Financial services: PayPal, Uphold, Square.

5. Entertainment: AMS Theatres, Twitch.

6. Travel: Travala, CheapAir, Expedia.

7. Gift cards: Gyft, Bitrefill.

8. Charities: Red Cross, The Water Project, Save the Children.

9. Luxury brands: Hublot, BitDials.

That is not the entire list of companies accepting cryptocurrency as a payment method. The number of organizations is expanding day by day. And you can read more about items which is possible to buy with cryptocurrency in our article.

Other Ways To Use Cryptocurrency

Cryptocurrency can be used not only to pay for products and services. As we’ve already said at the beginning, it is actively used for increasing income. So, we cannot ignore this aspect in our guide, so we explain you in more detail about how it can be done:

• Investments. That is the easiest way to receive passive income from cryptocurrency. It involves storing your assets in the wallet and waiting for the market to rise: then it will be possible to withdraw funds in a larger amount.

• Mining. The method involves a deep analysis of the blockchain network and the development of new blocks. It is a quite difficult process that requires special technical knowledge and the use of powerful equipment, so it is not suitable for everyone. However, if you understand the principles of mining properly, you can make a large profit.

• Staking. This process means contributing your assets to the blockchain network, allowing you to maintain its integrity, and receiving tokens for this contribution. Not all cryptocurrencies can be staked, so they refer to “lending”, when the principle of operation is based on loans. Available tokens for staking include Ethereum, Solana, SUI, etc.

• Trading. This process involves the active buying and selling of crypto on exchanges. These platforms may have different exchange rates, so you can increase your profits greatly by choosing the most profitable one.

These methods are a perfect opportunity to make huge profits with minimal effort. If you are interested in this way of earning passive income, then think not only about the profitability of investments but also about security. A reliable crypto exchange can help you ensure this point.

We hope this guide has helped you understand the features of using cryptocurrency as a payment method, and now you know which way suits you best. We recommend you to learn the answers to frequently asked questions, which may also be useful for you.

FAQ

Is It Safe To Pay With Bitcoin?

Crypto transactions, including Bitcoin, are considered secure because of the blockchain networks’ decentralized nature, on which cryptocurrencies operate. Moreover, Bitcoin transactions are protected by cryptographic encryption technology, and each of them is digitally signed with the sender's private key. Also, while using wallet providers and exchanges, it is possible to enable two-factor authentication to additionally protect your personal data and funds. All of these measures together greatly reduce the likelihood of a leak and make it difficult to hack into accounts.

Can I Pay Bills With Crypto?

Yes, you can pay bills with cryptocurrency, but remember that this option varies depending on your region and bill type. You should ask the provider about each specific case.

If paying bills with crypto is allowed, you can do it through special services that convert your crypto into fiat to make payments. You can also pay using a crypto debit card if your provider accepts this method.

Can I Pay Taxes With Crypto?

Paying taxes using crypto is only allowed in some jurisdictions. For example, such an opportunity exists in the state of Ohio (USA), the municipality of Richmond Hill (Canada), the Zug region (Switzerland), and in some regions of Argentina. You should find out more about your region.

As for the payment method, it can be done using special services that convert crypto to fiat, or you can do it yourself. To do it, you need to sell your crypto on an exchange, withdraw funds to a bank account, and then pay taxes.

How To Pay With Bitcoin On Cash App?

If you use the Cash App application, then you have to know how to pay with Bitcoin within the service. First of all, make sure your bank account is linked to your Cash App’s one. Then go to the app’s main page and click on the “Bitcoin” section. There, you will need to verify your identity by entering your full name, date of birth, and four digits of your Social Insurance number.

After confirming your identity, buy Bitcoin in the application in the “Investments” tab by entering the required amount. Another option is purchasing Bitcoins on a crypto exchange by linking your Cash App account as a payment method. Then you can send your BTC directly inside the Cash App by entering the recipient's wallet address and the amount of coins you want to transfer and confirming the transaction.

How To Pay With Bitcoin On PayPal?

If you are a PayPal user, you should know how to send Bitcoin through this service. Make sure your bank account is linked to PayPal’s one. Then buy Bitcoin: go to the “Cryptocurrencies” section, click on “Buy” and select BTC from the list of available coins. Push on the “Buy” button and enter the number of coins; PayPal will show you the cost, including fees. You can also buy Bitcoins on a crypto exchange by linking your PayPal account to it.

To pay for something with cryptocurrency using PayPal, go to the website of a seller that accepts this payment method. After completing your cart, proceed to checkout, where you should specify PayPal as your payment method and select “Crypto Balance” and “Bitcoin”. PayPal will convert the required number of crypto into fiat currency to complete the purchase. Then you will only need to confirm the payment.