Bitcoin, or BTC for short, is a currency exchanged by users in a so-called peer-to-peer system, i.e. a decentralized computer network. Using cryptocurrency currently carries a risk of a total loss, since no one can predict the stability of the payment method.
Where and how to pay with bitcoin? Depending on whether the Bitcoin price rises or falls, the topic is more or less popular. Moreover, there are serious disputes on whether Bitcoin is a means of payment or is more suitable for storing value.
Regardless of what you think of it, you can pay with Bitcoin. While there is no universal acceptance, one can find a number of stores that accept Bitcoin. Anyone who wants to try it can buy bitcoins and use them to pay. Today, we’re about to consider how it works. Let’s get started!
How to Pay Using Bitcoin: A Step-by-Step Tutorial
If you want to know how to pay using bitcoin, then you should take into account the following steps.
Open an Account
First, a user loads the Bitcoin client from the network and installed it on his/her computer. Personal data doesn’t have to be provided. When opened for the first time, the software downloads the network’s shared database — a directory of all payments in the Bitcoin network.
Downloading may take several hours, depending on your internet connection. The database ensures that nobody can transfer fake money — it assigns each Bitcoin to a Bitcoin address and thus to a user. A user automatically gets his/her own Bitcoin address, a cryptic letter code, when installing the software.
For example, it can look like this: 1Lu3nfXbD3UP76NMAgvTAGdUzWdvvB3zCP. This code is specified in the program above under the ‘Your Bitcoin address’ point. The software also saves a file called wallet.dat on a computer. It contains cryptographic keys.
If you’re about to pay using bitcoin, then you should think about buying coins first. There are different ways to get bitcoins:
- Free bitcoins. If you don’t want to take a risk as a new user, you can request free bitcoins on the Bitcoin Faucet website. To do this, you must have a Google account and provide your Google email address.
- Cash exchange. Individuals offer Bitcoins for cash. Bitcoin dealers, their place of residence, as well as their phone numbers or email addresses are listed on the Bitcoin local page.
- Exchange trading. Internet platforms such as Mt Gox or BitMarket offer Bitcoin against dollars or other currencies. In order to make an exchange, a user has to register once and send the amount of money to a stock exchange, for example by bank transfer or payment systems such as Dwolla. Bitcoin buy orders can then be placed on a stock exchange. An exchange then sends bitcoins to a user’s bitcoin address. An exchange is also the place to convert bitcoins back into dollars.
- Bitcoin mining. Bitcoin users can also get new bitcoins themselves. This process is called mining as well as requires powerful computers and isn’t recommended for newbies.
To prevent the loss of a virtual Bitcoin wallet, for example by damaging a hard drive, the wallet.dat file should be copied — for example to a USB stick. Since hackers can access a computer via the Internet and steal the file, it should also be encrypted using a special program.
Bitcoins for Smartphones
If you still wonder how to pay for something with bitcoin, then make sure to check our last step. Those who access the Internet on their phones can download Android apps, such as Bitcoin. They turn a smartphone into a Bitcoin wallet.
To pay via bitcoin, a recipient’s software generates an account in the form of a QR code. As soon as a sender scans this code with his/her phone camera, the software sends the money to a recipient’s Bitcoin address.
How to Pay Someone with Bitcoin: What Should You Know?
Bitcoin is now almost twelve years old and has experienced some price increases and decreases recently. Bitcoin is a virtual currency that experiences many ups and downs. It isn’t a stable currency, but its growth has been enormous over the years.
How to pay someone with bitcoin? This is a rather popular question nowadays! If someone has bought bitcoins on a stock exchange, the corresponding amount is listed in his/her Bitcoin client. To transfer a sum of money, all you have to do is enter the sum and a recipient’s address in the software. After about ten minutes, the money has reached a recipient. And you’re done!
Pay with Bitcoin: What Are the Most Popular Services?
Once you have found out how to pay someone with bitcoin, let’s consider the most popular online shops & websites which accept bitcoin payments.
Probably the most expensive pizza in the world was bought for 10,000 bitcoins. Hopefully, no one will be able to break this record in Bitcoin anymore, as the equivalent was around $20.
Depending on how much it will be worth in the future, it could turn out to be painful if you exchange your crypto assets for fast food.
Many analysts see Bitcoin as a means of protecting themselves against an impending devaluation of money. Accordingly, they see Bitcoin as digital gold. At Bitgild you can also exchange this digital gold for real coins and bars.
Bitgild Werbung offers a wide range of products made of precious metals. Whether gold or silver, at Bitgild you can pay for precious metals directly with bitcoins. All common coins, such as Krugerrand or Maple Leaf, can be found. Gold bars of various sizes and weights are also available for sale.
Since transactions are processed via coin payments, other cryptocurrencies are also available. A total of 93 different cryptocurrencies are accepted. These include Bitcoin, the Bitcoin Lightning Network, Monero, Zcash, and Litecoin. Alternatively, you can do without the service and pay Bitgild directly with Bitcoin as the provider uses the corresponding BTCPay software, which is considered a good standard.
On Bitrefill you can buy vouchers for shopping. Large platforms like Amazon, Ikea, Zalando, and Steam are just a few offered. Of course, this service is localized, so a customer can choose in which country a voucher should be applied.
In addition to Bitcoin, Litecoin, Dogecoin, Dash, and Ethereum are also accepted. In addition, you can also pay directly from your Coinbase account. Payments are processed directly on the platform.
What other ways to pay with bitcoins do you know? Just share your opinion in the comments!