As more and more people trade online, it has become clear that digital currencies make for better trading and payment options than their traditional counterparts. With these enhanced features, combined with the popularity of Bitcoin as an accepted currency by businesses of all sizes, it is fair to say that we are living in the age of the cryptocurrency and Bitcoin. Whether you mine your Bitcoin or purchase it through one of the many cryptocurrency exchanges available online, eventually you’ll need to know how to use it to make and receive payments. This applies equally for both businesses and individuals alike. The process, though, is easy and straightforward.
In a market bustling with various payment methods, Bitcoin offers many advantages that make it a consumer favorite. One of those advantages has to be the low transaction fees. Compared to credit cards, paying with Bitcoin costs only a few cents per purchase. This saves money for both the vendor and the consumer. Added to that since there’s no third-party financial institution acting as a middleman, Bitcoin transactions are processed much faster.
Bitcoin also has improved security that makes it easier for consumers to buy online without the risk of being hacked. When you use Bitcoin to pay for a purchase online you don’t need to enter any sensitive information that becomes automatically attached to the transaction as with credit cards. It’s just funds being transferred from one digital wallet to another. This feature eliminates the need for chargebacks saving you money in the long run.
And because it’s traded on all major online exchanges, Bitcoin is one of the best currencies to transfer, trade, swap for other assets, and turn into cash. You can practically use it anywhere online including on crypto casino and gambling sites where the secure currency guarantees both the safety and anonymity of the players.
Making And Receiving Payments The Easy Way
In order to start using Bitcoin to make and receive payments, there are a few things to consider. Here’s an easy-to-follow guide of where to start and what you will need:
1- Digital Wallet: Much like the wallet you keep your cash in, a digital wallet holds your Bitcoins and allows you to receive and spend your digital currency. But that’s as far as the analogy goes. Because Bitcoin wallets don’t hold actual currency; just the information related to your digital funds. This information includes a public key and a private key. You have to keep the private key safe because anybody with access to it can claim ownership of your funds.
Bitcoin wallets come in three varieties: A) online wallets which get a full copy of the blockchain making it faster to verify your transactions. B) online lite wallets that don’t have a copy of the whole blockchain; just your transactions. C) offline wallets that are not connected to the internet. Each type of wallet has its advantages with offline wallets being the most secure albeit less convenient to pay or send funds than the online ones.
2- Deposit Bitcoin In Your Wallet: Your Bitcoin wallet is empty until you transfer funds into it. You can do this through digital exchanges which allow you to convert traditional currency such as US dollars and euros into Bitcoin and back. Once you have some Bitcoins in your wallet you’re ready to transfer coins and pay online at any merchant that accepts Bitcoin.
3- Receiving Payment: Depending on the wallet you choose, when you want to receive Bitcoins you’ll need an address. Log in your wallet then look for the section that says “Receive” and click on it to generate an address. The generated address can be a long string of character or it can be a QR code. Select an address and send it to the person who will transfer the Bitcoins to you. It is recommended that you generate a new address for every transaction and use addresses only once.
4- Making Payment: When sending Bitcoins as payment you need to find the “Send” section of your wallet. You can either scan the QR code you received from the vendor or enter the invoice URL directly in the wallet. Make sure everything is OK then press the Send button. No sensitive information is attached to the transaction and no third parties or middlemen are involved.
Using Bitcoin to make and receive payments online has a lot of advantages over using traditional methods such as credit cards. It is safe, convenient, fast, and much cheaper in comparison. But as with everything digital, there are precautions you need to take to make sure you don’t get defrauded of your funds. So spend some time knowing about the different types of wallets to choose the one that best suits you. Also remember to keep your private key in a safe place such as a flash drive, a piece of paper or, better yet, inside your head.