How to Pay With Cryptocurrency — Pros and Cons

If you want to know where and how to pay with cryptocurrency, we got you covered.

Crypto payments offer numerous benefits, from fast and anonymous transactions to low fees. Likewise, many online businesses accept cryptocurrency payments, meaning you can use BTC or other altcoins to cover your travel expenses, pay for goods and services, and even play at online casinos.

In this guide, we’ll talk about crypto wallets, P2P payments, and crypto debit cards. You’ll also learn how to buy and send crypto gift cards and what are the main disadvantages of this type of payment.

How to Pay With Cryptocurrency

Once you buy a cryptocurrency of your choice, you can use it to make payments via wallets, P2P platforms, crypto debit cards, and gift cards. Here’s how.

Wallet  

A crypto wallet is a tool that stores information about crypto assets and enables transactions.

The best crypto wallets use private and public keys. The former serves to approve crypto transactions and prove ownership, while the latter allows receiving cryptocurrencies.

There are several types of crypto wallets. Some are connected to the internet (hot wallets), while others are not (cold wallets).

To make a payment with crypto wallets, you’ll have to:

• Open the wallet app
• Enter the amount you wish to send
• Enter the wallet address or QR code of the recipient
• Tap Send

P2P Payment 

Peer-to-peer payments indicate direct transactions between two users without intermediaries. You can use P2P transactions to pay for services, purchase goods, or trade crypto. This payment method involves sending funds via QR code, e-mail, or recipient’s phone number, depending on the platform used.

Here’s how to use cryptocurrency for P2P transactions:

• Create an account on a P2P platform
• Deposit your funds
• Place an order if you sell cryptocurrencies
• Browse through listings if you buy cryptocurrencies
• Select a seller or a buyer and initiate a trade
• Confirm the transaction

Crypto Debit Card  

Crypto debit cards work like standard fiat cards. That is, you can use them for online shopping and for withdrawing money through an ATM. Crypto cards don’t require users to convert their crypto coins to fiat. This process happens automatically during payment.

Here’s how to use crypto debit cards:

• Connect your card with your crypto wallet
• Send your crypto coins from your wallet to a centralized exchange
• Wait for the transaction to complete
• Transfer the funds to your account

Buy Gift Cards With Crypto

Crypto gift cards contain a certain amount of crypto coins that can be sent to someone as a gift. Crypto gift cards can be obtained through online retailers or crypto exchanges, and their biggest benefit is that they are not taxable.

To purchase a crypto gift card, you must:

• Choose a platform that sells them and create an account
• Select the gift card you want to buy
• Enter your email and make a purchase by sending your crypto coins to the displayed address
• The gift card will be sent to your email with instructions on how to use it

Pros of Paying with Crypto

Now that you know how to pay with crypto, let’s find out what are the main advantages of using crypto coins:

• Anonymity — Crypto transactions are anonymous, which makes them safer than traditional transactions, as they reduce the risk of identity theft
• Lower fees — Since crypto transactions don’t require an intermediary, they have lower fees
• Availability — Anyone can send or receive a Bitcoin payment, as long as they have an e-wallet and an internet connection
• Speed — Crypto transactions are much faster than fiat transactions. On that note, sending BTC can take between one and 60 minutes

Cons of Paying with Crypto

A payment with crypto coins can also come with a few disadvantages:

• Volatility — The price of cryptocurrencies is highly volatile. This means that there is a possibility that their value may change during the platform’s process of approving your transaction.
• Regulatory issues — Cryptocurrencies are not regulated by the federal government. This means that if someone manages to steal your coins, you won’t be able to trace them or get them back.
• Irreversibility — Crypto transactions are irreversible — they cannot be reversed once exchanged.

Where Can You Pay With Cryptocurrency

You can pay with crypto at the following merchants:

• Microsoft
• Starbucks
• AMC Theatres
• Shopify
• Rakuten
• Paypal
• Overstock
• AT&T
• Twitch

Conclusion

A crypto or a bitcoin payment method brings many benefits to users. First of all, it offers anonymity, lower fees, speed, and security. Moreover, anyone who has an e-wallet and the internet can send or receive cryptocurrency from anywhere in the world.

And let’s not forget about crypto debit cards that will automatically convert cryptocurrencies to fiat during payments, as well as the possibility of sending crypto coins via gift cards.

The only drawbacks of crypto transactions are regulatory issues, cryptocurrency volatility, and irreversible payments.

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