How to Use Cryptocurrency for Online Purchases by Sarah Kutu

Bitcoin, Ethereum, and other cryptocurrencies are known for their investment gains and their role in helping users store value. However, they’ve taken it a step further by transforming how online payments and purchases work. 

When Bitcoin was created, one of its primary purposes was anonymous payments, and other digital assets after it followed in its footsteps. Today, you may be unable to predict what a coin’s price will be in the next second, but you can be sure that you can use any crypto asset for seamless online payments. 

But how exactly can you pay for things online with crypto? Read on as we break it down. 

Why Use Bitcoin for Online Purchases? 

Bitcoin and other cryptocurrencies are slowly becoming top choices for online transactions. Thousands of merchants and businesses in over 140 countries support the payment option in exchange for their goods and services. 

Some of the reasons merchants and consumers choose cryptocurrencies over traditional payments include:

Lower Fees 

Unlike traditional payment methods like credit and debit cards, cryptocurrency payments attract little to no charges. That way, you can eliminate the big fees that come with using a credit card or direct bank transfer when you choose a reliable crypto card or wallet to spend money online. 

At the same time, businesses accepting Bitcoin payments can save costs by processing transactions without regular fees like chargebacks, account maintenance fees, and other charges. 

This is because you don’t need intermediaries like banks and other financial institutions. All you need is a reputable crypto processor to convert your crypto assets to fiat. 

Instant Transactions 

Another reason people prefer crypto payments for online transactions is because of the fast transaction speed. Cryptocurrencies operate using blockchain technology, so they are capable of executing near-instant transactions. 

For instance, the Bitcoin Lightning Network can process as many as 1 million transactions per second. So, a BTC payment using the network will be settled in under a minute. That means vendors don’t have to wait for up to 3 business days to receive funds in their merchant accounts, and customers can also make payments without hassles. 

Borderless Payments 

Transacting online with fiat currencies can be challenging because of their limitations. Usually, different countries have regulations around the use of their currencies. Similarly, some countries restrict the currencies merchants can accept in exchange for goods and services 

So, you may be unable to buy and sell products with currencies like USD and EUR in some parts of the world. Cryptocurrencies eliminate this limitation by offering borderless transactions. Since they are decentralized, cryptocurrencies have no regulatory restrictions, making them the most accessible option for online purchases. 

As an entrepreneur, you can accept payments from your global customers. They can also make seamless payments, regardless of their locations. 

Enhanced Security

Another perk of accepting crypto payments for businesses and patronizing merchants with the payment option is because of its robust security. Due to the structure of blockchain technology, cryptocurrency transactions are very secure. 

Transactions are confirmed by miners or smart contracts, making it difficult for hackers or other cybercriminals to access. Additionally, the networks’ cryptography secures transactions to prevent fake payments or double spending, which are prevalent in the traditional payment space. 

From an individual perspective, Bitcoin makes it possible to make anonymous payments. So, you don’t need to provide sensitive information that hackers may steal or use against you. These include data like your credit card details, social security number (SSN), and address. 

Convenience  

The average online consumer wants to make payments without hassles. However, traditional payments come with issues like bank network failure, lots of paperwork, and regulatory concerns. With cryptocurrencies, you can pay online conveniently without worrying about such issues. 

For instance, you can integrate your cryptocurrency wallet, virtual card, or trading app on your mobile device or computer to send from anywhere. A merchant can also conveniently convert received crypto funds to their local currency in one place, provided their payment software is integrated with a crypto processing tool offering direct conversions. 

How to Pay Online Using Crypto

Now that you know some of the benefits of accepting crypto payments for your business or making Bitcoin payments for purchases, let’s get into the details of how to make crypto payments online. 

Step 1: Get a crypto wallet 

When thinking of how to pay with Bitcoin online, a crypto wallet is an essential requirement. Wallets allow you to manage, store, send and receive crypto easily. So, you need one to make a crypto payment at your favorite online store. 

There are numerous wallets on the market to choose from. If you prefer a hot wallet, you can opt for reputable options like  Zypto App, Trust Wallet and Meta Mask. Conversely, you can choose Ledger or Trezor wallets if you fancy the cold wallet option. 

These wallets support thousands of cryptocurrencies, so you can store, send, and receive numerous coins in one place. 

Step 2: Purchase Bitcoin or other cryptocurrencies

After setting up a wallet for Bitcoin self-custody, head to a trusted cryptocurrency exchange to buy Bitcoin or other digital assets. Popular exchanges include Binance, Coinbase, and eToro. 

After creating a trading account on an exchange of choice, deposit funds using your credit/debit card or crypto. Afterward, navigate to the market and purchase crypto. 

Step 3: Transfer crypto to your wallet 

After successfully purchasing the coin(s), transfer it to your wallet. This is similar to storing your fiat money in a physical wallet. Only that this wallet stores your private keys (or passwords)  and leaves your coins on its blockchain instead of directly keeping the money for you. 

To make the transfer, generate a wallet address or QR code to accept crypto and transfer the amount of coins you want to spend to the address. The funds should arrive in your wallet in no time. 

Step 4: Choose a store accepting BTC 

Find a store that sells your favorite products and accepts cryptocurrency payments. These cut across different product categories that you’ll find on e-commerce websites, including gadgets/electronics, clothing items, smartphones, food, etc. 

Add the products you want to your cart and proceed to checkout. Here, you’ll see the supported crypto payment methods and coins to choose from. 

Step 5: Pay for products with crypto 

After selecting your preferred payment option, the merchant will display a compatible wallet address to transfer the crypto funds into. For instance, if you select BTC as your payment option, the e-commerce website will create a unique BTC address instantly. If it is an altcoin like ETH, it’ll do the same. 

However, pay attention to the receiving wallet’s network and select the same on your Bitcoin wallet. For example, if the merchant has a USDT-TRON wallet address, you must select that option on your wallet before sending funds to avoid losing your assets in transit. 

Afterward, enter the amount of crypto to pay and complete the transfer. 

Things to Consider When Making Online Crypto Payments 

There are numerous benefits to using BTC and other assets for online purchases. However, there are significant downsides to consider, whether you’re a merchant accepting crypto or a consumer making crypto payments. 

First, the crypto market is volatile, so coin prices fluctuate from time to time. That means the value of the funds you receive or what’s in your wallet may decline sharply within minutes. 

Similarly, you can lose your coins whether you use a hardware wallet or software wallet. For instance, if your hot wallet gets hacked, you lose your private keys, or your hardware wallet goes missing, you may be unable to retrieve your coins. 

So, it’s imperative you use reputable Bitcoin wallets to store your assets and keep your private keys safe. 

Finally, you may run into regulatory issues if you don’t file your crypto taxes appropriately. That means you must understand what the crypto laws are in your jurisdiction and act accordingly. 

Final Thoughts 

Blockchain technology and cryptocurrencies have revolutionized online payments for e-commerce businesses. With various assets, such as Bitcoin and Ethereum, you can conveniently pay for a product or service online. 

Whether you’re a business owner accepting crypto or a consumer who wants to pay for online purchases or bills, Zypto App is making cryptocurrency easy for everyone. Check out our range of products and services catering to all kinds of crypto users – from physical and virtual crypto cards to cryptocurrency wallets, and asset custody.

Have you ever tried using Bitcoin or any other cryptocurrency for online purchases? What was the experience like? Tell us all about it in the comment section below.

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