The bitcoin cryptocurrency appeared in 2008 as an alternative to traditional payment systems and transfer methods. Its creators intended it to entirely replace or at least compete with credit cards and interbank transfers. In our opinion, this mission has been partially fulfilled, as bitcoin’s popularity is constantly rising. Consequently, more and more people are wondering how to pay with bitcoin – new users and those who are still undecided. Before making any transactions in any cryptocurrency, you should make sure your money is secure and you are well educated. We will discuss this in more detail further on.
How do you use bitcoin and not lose any money?
Bitcoin allows you to make fast transfers without limits as to their size or the distance between buyer and seller. Moreover, the transfers are irreversible. That’s why you should choose very carefully the places where you pay with bitcoin, the stocks and cryptocurrency exchange offices. It’s best if the platforms offer a two-stage authentication. You should keep large bitcoin sums in offline wallets and store your private key in a secure place.
Remember – if you send the seller a sum too large or your cryptocurrency gets sent to an incorrect address, the transaction cannot be reversed. However, your contractor may return the cryptocurrency you mistakenly sent them. As you can see, there’s very good reasoning behind why you should carefully choose the places where you pay with bitcoins. Fortunately, the network detects typos and it’s impossible to send any resources to a random address.
Another important aspect is how to use bitcoin and protect your privacy while doing it. Well, contrary to popular belief, bitcoin is not entirely anonymous. All transactions are saved in a public, easily accessible database, where anyone can check the addresses and transaction balances. Even though the exact details of the sender and the recipient of the transfer are not publicly known, you should still use a new address for every transaction. Also, remember not to share any of your data with complete strangers.
How to pay with bitcoin? Technical information about the payment process
Bitcoin payments are quite similar to the traditional ones – funds flow from one wallet to another. However, that’s pretty much it for the similarities. Cryptocurrency transfers are usually performed immediately or within just a few minutes. The geographical location of either party and the transfer size don’t matter. In the case of BTC payments, there is also no central intermediary institution such as banks, which is a big convenience for many users.
Stocks and exchange offices – before using bitcoin, you have to buy it
Before you learn how to use bitcoin, you need to have a wallet with some cryptocurrency. You can buy bitcoin with traditional money in many on-line exchange offices or on cryptocurrency stock markets. Here are some such examples:
Where can you use bitcoin when you’re not buying – cryptocurrency wallets
When you pay for the cryptocurrency on a stock market or in an exchange office, your acquired bitcoins will be saved in your wallet. You will have to enter its address when ordering a purchase transaction on the BTC seller’s website. The cryptocurrency wallet is a program installed on a computer or mobile device. There are also online and hardware wallets. The exact instructions as to how to pay with bitcoin using various wallets can be obtained from sellers and distributors of applications and devices.
Below you will find some software and hardware wallets which work with bitcoin:
- computer and smartphone wallet Electrum;
- the Exodus multi wallet;
- the Ledger electronic wallet;
- the Trezor electronic wallet.
How can you pay with bitcoin?
When you have your own bitcoin wallet, you can try to buy something with the currency. You can do it in many different online shops. Here is a brief step-by-step guide on how to use bitcoin in shops:
- when placing your order, choose the bitcoin payment method;
- you should see the payment processing window with the bitcoin exchange rate, BTC sum and the seller’s wallet address;
- copy the bitcoin amount and the seller’s address into your wallet;
- set the transaction fee in your wallet;
- accept the transfer and wait for its confirmation from the shop.
Remember to set the right fee – when it’s too low, it might result in a significant transfer delay. There can also be a change in the BTC exchange rate within this time which might result in payment rejection. You should check the shop’s terms and conditions to see how to pay with bitcoin in this particular store.
Where can I use bitcoin? What can you buy with bitcoin?
This might come as a surprise, but you can buy basically anything with bitcoin – even cars. Until recently, the American Tesla car manufacturer offered their electric vehicles for BTC. Later, they cancelled this option, but rumour has it that bitcoin payments for Tesla cars might return.
Where else can you buy with bitcoin? Take for instance such global technological giants as Microsoft and Dell or many mobile operators from around the globe. You can even pay with bitcoin for medical services in some hospitals. Using bitcoin in clubs, coffee shops and restaurants is becoming more and more popular. Many bookstores, gyms and electronic shops also accept BTC payments. You will find information on how to use bitcoin with different sellers on their individual websites.
You can also research this on your own, using free internet search engines. You can even find maps with the locations of stores from all around the world which allow using bitcoin. One website which gives this information is e.g., coinmap.org.
All fans of modern technology and those who value their privacy during shopping certainly enjoy the popularity of bitcoin as a functioning digital currency. When operating with this cryptocurrency, you should know not only what you can buy with bitcoin, but also how to use bitcoin safely. It’s extremely important to protect your money during digital transactions and maintain constant vigilance.