How to pay with the help of cryptocurrencies

Here, we explore how payment can be made with cryptocurrencies through payment providers, or brokers.

Back in the day, barter trade was the only means of exchange. People would exchange goods for other goods or services. Later gold became the medium of exchange due to some of the inconveniences of barter trade. However, with the high value of a gold, paper currency was introduced and has been used ever since. With the increase of insecurity of having paper money, new technologies have helped the creation of new ways of storing and having money. This new way is called the cashless economy. A cashless economy depicts an economy where physical banknotes and coins are not used for conducting financial transactions. Instead, payment is done through the transfer of digital information, that is, an electronic representation of money. Due to the increase of technology, creation of digital currency has evolved. This digital currency is also known as cryptocurrency.

Common info about cryptocurrencies

Cryptocurrency can be defined as an asset used as a medium of exchange and can be transferred from a person to another person through the internet. However, it can also be defined as a universal term referring to all encrypted decentralised digital currency. Moreover, these digital currencies are obtained through a process called mining. Additionally, to secure transactions and to control the creation of more currency units, cryptography is used. The rise of cryptocurrencies has threatened paper money which may become extinct in the years to come as many people are starting to trust these digital currencies. The first decentralised cryptocurrency was launched in 2009 and was called Bitcoin. Over the years many digital currencies have been created and are now used for transactions. With the complexity of the digital currencies, many participants are the youths and many of them are students. Therefore, these cryptocurrencies can be used as a means of payment to a professional assignment maker whenever you don’t have enough time to work on your term papers and still prepare for your exam. They will do an amazing work for you and you’ll have enough time to read for your finals.

Why cryptocurrencies are so popular right now

Cryptocurrency has become popular in 2017-2018. This is because various macroeconomic trends have fuelled their growth. However, there are other aspects that have led individuals to know and talk about the digital currencies. These aspects include financial markets, technology, and psychology. Cryptocurrencies have crept their way to financial markets where they can be traded against other currencies. People around the world participate in the financial market and the entry of digital currency in the markets has led to the popularity of the cryptocurrencies.

Moreover, the revolution of cryptography has attracted many people who have the natural ability to recognise technology. Thus, technology has also played a great role in making the currency popular. Lastly, psychology has also contributed to making the digital currencies prevalent. There are many individuals who scorn the control of the government and large corporations. Thus, they advocate the use of cryptocurrency since no authority has control over it. Additionally, privacy issues have attracted many people since nobody gets to know how much money you have. Some of these cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Ripple.

How to pay with the help of cryptocurrencies

There are various ways of how to pay with the help of cryptocurrencies through payment providers also known as brokers. These payment providers include Coinbase commerce, Bitpay, GoCoin, and CoinPayments Beta. They facilitate the payment of goods and services using cryptocurrencies. Their main work is to facilitate the conversion of cryptocurrencies to paper money when a person needs to purchase anything online. Payment conversion is done using two main currencies such as the US dollar and the Canadian dollar. There are various steps to follow when an individual wants to pay using cryptocurrency. Find the steps below.

1. Ensure you have a web wallet

This web wallet is simply a wallet that is related to the type of cryptocurrency you have. The different currencies have different wallets where the digital assets are deposited. The same way there are different banks is the same way there are different wallet types.

2. Buying cryptocurrency

Go to the local websites where the digital currencies are sold and bought. Buy your choice of cryptocurrency to be deposited in your wallet. Ensure that you find a legit site to avoid fraudsters who take advantage of people and steal from them. However, not all businesses take digital currencies as a means of payment for goods and services. Therefore, you should be cautious with the amount of digital currencies you buy and ensure you do research if the product you want the retailers accept the exchange.

3. Enabling a payment method that supports cryptocurrencies

You can enable a payment method by registering with one of the payment providers that were mentioned above. After you enable a payment method you can now deposit the digital currencies in your wallet and use them for online purchases. However, you should know that not all businesses accept digital currencies as a means of payment for goods and services.

The use of cryptocurrencies provides various advantages including fast transactions, local and international transactions, payment conversions, low processing fees and no chargebacks. The use of digital currencies when carrying out transactions is usually very fast. The transactions are fast because a transaction is done between two people where a person only needs to press a button to transfer funds. Other means of payment are slower since there is need of authenticity of money. In short, there are no fake cryptocurrencies thus making transactions fast. Furthermore, the transactions are done over the internet which is fast unlike when done by hand.

Secondly, cryptocurrencies are used worldwide thus easy to use when transacting both locally and internationally. Moreover, governments have started to use digital currencies to conduct businesses with other governments. Another advantage is easy payment conversion. It is easy to convert the digital currencies to paper money. Moreover, when paying for goods and services the processing fees charged are very low thus, saving you money. Lastly, digital currencies do not demand chargebacks from retailers after a fraudulent transaction thus enabling retailers to avoid unnecessary losses.

Ben Lobel

Delphine Hintz

Ben Lobel was the editor of from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

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