While a full-scale adoption of digital assets is still a dream, people have become more interested in online Bitcoin payments in the last few years. Thanks to innovations in the e-commerce sector and broadminded merchants, now crypto lovers can buy their favorite items using Bitcoin. The increase of online payments with Bitcoin can show an appealing future for the crypto space.
Cryptocurrencies have numerous advantages: they have low fees, allow cross-border transactions and are very accessible, as you can buy Bitcoin with credit card. Bitcoin is the first digital crypto ever created, which has gathered plenty of attention lately, even becoming a legal tender in El Salvador. Bitcoin payments are very popular nowadays, encouraging several e-commerce platforms to consider them.
In this article, we will present to you the basic functionality of Bitcoin and the best ways to safely make an online payment with it. Let’s begin!
Understanding cryptocurrency and Bitcoin
Bitcoin is a decentralized digital currency not controlled by a central authority like a government or a bank. So, when users want to send Bitcoin, they make a transaction and broadcast it to the platform. Then, the transaction is verified by miners or validators on nodes, who confirm that the transaction is valid if the user has enough Bitcoin to complete it. Once verified, the transaction is added to the network and becomes a permanent part of the blockchain.
Cryptocurrencies, including Bitcoin, are created with the help of complex cryptographic algorithms that ensure a secure transaction without the need that a central authority will verify it.
The advantages of Bitcoin for online payments
Bitcoin adds plenty of benefits to the world of online payments by addressing all the inefficacies and issues associated with traditional payment options. Because Bitcoin is a decentralized digital asset, it eliminates the need for intermediaries, thus giving users greater control over their investments. Additionally, the global accessibility of Bitcoin is a feature that makes this digital asset a valuable alternative for international transactions.
Moreover, Bitcoin transactions often have lower fees than the traditional options, particularly if we are talking about cross-border transfers. Bitcoin payments are faster than usual bank transfers, which can take many days and even weeks to complete. But Bitcoin transactions are usually confirmed in a couple of minutes, depending on the network congestion.
Security is another great advantage of Bitcoin payment, as crypto transactions are safer than those with fiat money. Not to mention that Bitcoin transactions don’t require people to disclose their personal information, thus providing greater anonymity.
However, despite all these advantages, Bitcoin still faces some challenges, including regulatory considerations, price volatility, and the responsibility of safely keeping private keys. This is why companies and individuals need to carefully evaluate their risk tolerance when choosing Bitcoin for online payments.
How to choose a wallet to keep your digital coins?
To transact Bitcoin, you will need to have a crypto wallet. Here are the steps you must remember when selecting a crypto wallet.
Choose the right crypto wallet
The first step when you want to make online payments is to set up a crypto wallet to store your Bitcoins. You can opt from many Bitcoin wallets, including hardware, software-based, and online wallets. However, it is essential to research beforehand to choose a reputable and secure one that will suit your needs.
Secure your wallet
Once you have chosen your crypto wallet, now is time to secure it with a password and a two-factor authentication. You need to be careful with your wallet so that no one can access it except you. You should also back up your private key in case your device is stolen or gets lost.
Fund your wallet
You can fund your Bitcoin wallet in various ways, including buying digital assets from a crypto exchange, mining Bitcoin by yourself or receiving digital coins for services or goods. When you fund your wallets, you need to consider transactional fees or other charges associated with online payment. Also, be aware of duplicate websites and phishing scams to avoid losing your investments.
How can you make online payments with Bitcoin?
Find merchants that accept Bitcoin
Although not all merchants accept Bitcoin payments, the number has increased lately. Because cryptocurrencies have begun to be more popular all around the world, people are constantly looking for businesses that accept crypto payments.
After you have found a website that accepts Bitcoin payments, you need to verify the platform to ensure it is safe and accurate. If it is, then you can select the product you want to purchase.
Make payment
When you make an online payment with Bitcoin, you will send the digital coin to the given crypto wallet address. This process can be done using your Bitcoin wallet software, but some merchants can also require you to consider a specific service or gateway. You can pay by entering the wallet details manually by yourself or by scanning a QR code.
Processing time and transaction fees
When you make online payments with Bitcoin, you will also need to consider some transaction fees. You can also reduce transaction processing time if you choose to pay higher fees.
The bottom line
Bitcoin brings many advantages, so it will be a win-win situation for online platforms and customers to integrate crypto payments. With the help of virtual coins, affiliated platforms can make their network more transparent and reduce the involvement of centralized authorities. At the same time, users can benefit from more secure, faster and cost-effective solutions.
Although people need further education and awareness to build trust in Bitcoin payments, it looks like crypto payments are increasing in popularity. Several e-commerce platforms and payment gateways are working in the direction of integrating more online payment options and welcoming new Bitcoin users onboard. Although the crypto space still faces some challenges, including volatility and the lack of regulations, Bitcoin can solve the challenges associated with fiat money.