How to pay with Bitcoin

Bitcoin is on its way to becoming a part of the global financial system, and even the biggest tech companies are getting involved with it. The BTC payment market has reached $60 billion in valuation and keeps on growing day after day. Many companies have already implemented Bitcoin as a payment tool and are open to receiving payments in other cryptocurrencies.

Using Bitcoin as a payment currency isn't difficult - and definitely worth the effort, since It will make you part of a rapidly growing payment ecosystem.

How to receive Bitcoin?

First and foremost, you will need to create a cryptocurrency wallet to receive Bitcoin. There are many types of cryptocurrency wallets, but most likely, you will need a hot non-custodial cryptocurrency wallet with a constant connection to the blockchain. You can create a cryptocurrency wallet using CoinsPaid or choose any other solution that you wish.

After creating a wallet, you will receive your Bitcoin public address that you will use to receive funds. Cryptocurrency keys come in pairs: private and public. Private keys give you access to the coins stored on the blockchain and should be kept secret, while a public address can be shared with anyone for people to send you BTC.
How to buy Bitcoin
Now let's talk about how and where to buy Bitcoin once you set up your wallet and public address. There are many ways to receive Bitcoin. The most popular ones are:
Using a cryptocurrency exchange that supports fiat payments. A lot of cryptocurrency exchanges have already implemented debit card deposits and withdrawals. To buy Bitcoin, you will need to pass a KYC (identity verification). Once it's done, you can pick any amount of BTC, pay with a card, and receive the coins in your exchange account almost immediately.
Using the closest Bitcoin ATM. Bitcoin ATMs are becoming more widespread in Europe and the US, and for people living in big cities it's a good solution, though the fees are higher than on exchanges. To buy Bitcoins through an ATM, you will need to:
  • find a local Bitcoin ATM (use this map)
  • buy BTC using a debit or credit card - or cash
  • receive Bitcoin to your wallet address
Using an OTC desk. OTC desks are designed for buying large amounts of an asset "over the counter" or, in simple words, without using an exchange. If you decide to do it manually, you will need to find someone you trust and buy Bitcoin directly from them. But there's an easier way to do so by using automated solutions like the CoinsPaid OTC desk. Note that this solution is aimed at large-volume buyers. You can learn more about OTC exchange here.

Congratulations, now you've got your wallet set up, received your first BTC, and you are ready to spend it - which is easier than you think. Modern crypto payment gateways like CoinsPaid allow you to use crypto payments with very few clicks:
Find a shop or a company that accepts BTC payments.
Choose an item that you are willing to buy.
Press the "Pay with Bitcoin" button.
Copy and paste the store's public address to your "send" tab in the wallet - or use the direct payment link - and that's it!
Once the payment gateways process your transaction, you will receive the product that you've just paid for with Bitcoin.

Some online stores and businesses still opt for receiving BTC directly to their wallet without integrating a gateway. In that case, you will have to make a manual transaction to the address that you will receive from the recipient - however, keep in mind that it's always safer to transact in BTC with merchants that work with trusted crypto processors.

FAQ on Bitcoin transactions and cryptocurrency payments:

Can you reverse or cancel Bitcoin transactions?
After you've confirmed the transaction and send Bitcoin to someone, you won't be able to reverse or cancel it. Once your transaction receives the first confirmation on the blockchain, your funds will leave your wallet.
How can I check if the recipient received cryptocurrency funds?
To check if the person received a cryptocurrency transaction, you will need to use a blockchain explorer. After making any transaction, you will receive a transaction ID that you can use to track your funds. Usually, transactions appear immediately on the blockchain, but the recipient can start using and spending it only after receiving around five confirmations on the blockchain.

A Modern cryptocurrency wallet gives you the link to your transaction page with all the information you might need.
How do I figure out how much Bitcoin to transfer?
Bitcoin is a volatile cryptocurrency. It means that the price of 1 BTC can change within a minute. To figure out how much money exactly you need to send, check a website like to see the current price of Bitcoin or any other cryptocurrency. To make it even faster, just use Google that usually gives you the accurate price of Bitcoin that you can use to calculate the fiat value of the Bitcoin you are sending.
How much can I send in one transaction?
There is no designated limit for sending cryptocurrency in one transaction. You can send whatever amount you wish to send. Obviously, you won't be able to send more Bitcoin to an address than you have in your wallet currently. The most important is to double or even triple-check the address that you are sending your money to.
Why are fees so high when I send Bitcoin?
Cryptocurrency transaction fees can sometimes be very high due to the increased network load. Usually, it happens when there are a lot of transactions taking place on the market. If you are not willing to spend a large amount of money on fees, you can wait just a bit when the network load is not that high.

Sometimes paying in BTC might be quite expensive, and that's why people choose to pay with other cryptocurrencies like Ethereum, XRP, or Litecoin.
How to convert Bitcoin to cash?
After you've decided to exchange your cryptocurrency for fiat, you can use the same tools that you've used for buying Bitcoin. An exchange, ATM, or OTC desk can be used for both buying and selling Bitcoin. The easiest way of receiving fiat money will be selling Bitcoin and receiving the money to your credit or debit card.

In conclusion

Paying with Bitcoin sometimes might be more convenient than using fiat money. A lot of companies and online shops are already receiving Bitcoin. If you choose to trade or invest in Bitcoin, you can immediately use funds you've earned without transferring them to fiat and facing additional fees.