Home Finance What to look for when you want to pay with cryptocurrency

What to look for when you want to pay with cryptocurrency

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pay with cryptocurrency

The use of cryptocurrency is diverse. You can pay with crypto for virtually anything quickly and efficiently now that many businesses offer cryptocurrency payment options. When it comes to hosting, many providers prioritize crypto payments, for example, Bitcoin VPS payment, because it provides both parties with more security, and anonymity, independently of the area of residence.

In this article, we will explore the details of the crypto transaction, how to avoid getting scammed, how to make cryptocurrency payments, and everything in between.

Let’s jump right into it.

What you should know about cryptocurrency payments

Conventional payment methods allow you to transfer funds between accounts. However, crypto payments imply transferring data to blockchain addresses. Each transaction and its records “exist” within the blockchain database.

Usually, to make a crypto payment, you need to have a crypto wallet (with which you are assigned an address) and a receiver’s address linked to a specific wallet. Most platforms offer a QR code that can be scanned to initiate a transaction.

Advantages of paying with cryptocurrency

  • Speed and security. Crypto transactions are processed and withdrawn quickly compared to alternative payment methods and are secured by cryptography technology.
  • Anonymity and independence. Specific crypto transactions have a high level of anonymity to them, while all of them are processed independently from any legal entity, ultimately making crypto payments more secure.
  • With cryptocurrency, you can make payments from any location to any country or individual, no matter the nature of the transaction.
  • Low transaction fees. Crypto platforms don’t use intermediaries for processing payments; therefore, they offer significantly lower transaction fees than bank transfers.

Another thing you should know about cryptocurrency transactions is that they are irreversible. You cannot cancel the transaction or issue a return payment with cryptocurrency.

Common cryptocurrency scams and how to avoid them

Crypto scams are, unfortunately, a thing. There are different methods scammers use to get money from you. However, every scam has something in common: pressure to take action.

It may look like offering to invest in unheard or “new” crypto coin (usually a variation of altcoin), promoting fake crypto platforms, products, or jobs in trading (or mimicking the real ones), up to full-blown requests to send money.

Common crypto scams

Here’s a list of actions you might be pressured to take in a scam:

  1. Transfer money to or through an offered platform.
  2. Download unknown and not publicly represented apps or software.
  3. Pay a fee to access your account.
  4. Transfer money to personal bank accounts or pay an individual.

How to avoid crypto scams

Here’s how to avoid cryptocurrency scams:

  • Use well-known and widely used cryptocurrencies like Bitcoin, Tether, and Ethereum. Scams mostly revolve around unknown cryptocurrency types.
  • Choose an exchange platform with a good reputation. The more time a platform has been on the market – the better; the more users it has – the better.
  • Avoid “once-in-a-lifetime” opportunities like 100% returns on investment. If a new crypto endeavor seems too promising or too good to be true, it probably is.
  • Ensure the security of your crypto wallet. Different platforms offer different security methods for your account and wallet; ensure you utilize any security measure available.

How to pay for goods or services with crypto

Paying with cryptocurrency is not as complicated as it may seem.

Here are some simple steps you need to take to issue a crypto payment.

  • Step 1: Purchase cryptocurrency supported by the platform you want to buy from. For this, you need to deposit funds you can further purchase cryptocurrency with first.
  • Step 2: Transfer the crypto you bought to your wallet.
  • Step 3: Add the subject of your purpose to a shopping cart.
  • Step 4: Pay with cryptocurrency at the checkout.

How to send crypto to another wallet

Here’s how you send crypto to another wallet:

  • Step 1: Select a wallet and cryptocurrency. If you don’t have any crypto funds available in your wallet, you first need to buy some.
  • Step 2: Enter the wallet address you’d like to send funds to. This can be done through saved addresses and contact info, a QR code, or simple copy-pasting.
  • Step 3: Indicate the amount you’d like to send. Usually, you can input the amount, whether in crypto or fiat currency.
  • Step 4: Check the payment details. Here, check for applicable transaction fees.
  • Step 5: Confirm and send the transaction. Once you send funds, the transaction must be confirmed and processed through the blockchain; the processing time here will vary.

And you’re all set!

Conclusion

Many businesses or individuals use cryptocurrency payments for various reasons.

Businesses turn to cryptocurrency to expand their target audience and transfer money faster with lower transaction fees. Individuals choose crypto payments for their security, global outreach, and financial autonomy.

Crypto payments are an excellent way to overcome restrictions you may face using conventional payment methods. Thus, we hope you now feel confident enough to pay with cryptocurrency for your convenience.