Where And How To Pay With Bitcoin In 2021

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Where And How To Pay With Bitcoin In 2021

Bitcoin was primarily created to serve as a payment currency. This may be hard to believe considering the rampant speculative trading surrounding the world’s first cryptocurrency. Yet, Nakamoto’s coin had, and still has, the potential to revolutionise commerce. Whilst much of the world’s attention is on the current price of each coin, more and more retailers are accepting Bitcoin payments alongside traditional alternatives.

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

The Basics of How to Use Bitcoin

Before you learn how to pay with Bitcoin you must first understand how to get hold of the cryptocurrency. In order to do this, you need to be familiar with basic instruments, namely wallets, and exchanges.

Choosing your Bitcoin Wallet

Bitcoin is a digital currency just like the Euros on your debit card. Whilst your bank protects your traditional currency, Bitcoin is kept safe in a specialised wallet. It is important to remember that cryptocurrencies are decentralised, which means that no central authority or bank has control or responsibility for them. It is up to you to securely store your own coins.

The safest way to safeguard Bitcoin is using a hardware wallet, such as those offered by Ledger or Trezor. Sleek and easily portable, these devices are not directly connected to the Internet, so are extremely unlikely to be remotely hacked. You might be asking yourself how to pay with Bitcoin using such wallets, and the answer is simple. These devices connect to your computer or phone, allowing you to send and receive Bitcoin with ease.

Although your safest option, hardware wallets can cost €50 or more. Free alternatives exist and are called software wallets. Available on your phone, computer, or browser, these hot wallets are continually linked to the Internet so are vulnerable to cyberattacks. Please visit our list of cheapest Bitcoin wallets to find the best wallet at a low cost.

Opening an Account with a Cryptocurrency Exchange

Cryptocurrency exchanges offer the most convenient and safe way to convert your fiat currency into Bitcoin or Altcoins. There are thousands of platforms available on the Internet, but you should be aware of scams and platforms with unreliable or expensive services.

If you’re looking to buy small amounts of Bitcoin and would like a good choice of affordable payment options, you should consider Coinbase or eToro. These platforms offer a user-friendly interface and let you buy Bitcoin in seconds. They also provide free, in-built hot wallets where you can store your coins. You should be aware that these exchanges are not the cheapest way to buy Bitcoin, but provide the best way for beginners to buy Bitcoin.

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This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

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As with any asset, the value of Digital Currencies can go up or down and there can be a substantial risk that you lose money buying, selling, holding, or investing in digital currencies.

What Can You Buy with Bitcoin?

Purchasing with a bitcoin

As the popularity of Bitcoin stores spread across the world, the number of merchants that accept this and other cryptocurrencies has skyrocketed. Today, you can purchase almost any type of goods and services, both online and even offline. Before we explain how to pay with Bitcoin let us show you where to spend Bitcoin.

Software

Several top software developers, as well as smaller companies, have sought to grow their markets by accepting to get paid in Bitcoin. You can purchase games or business software applications instantly using this innovative service.

Food

From fast food stores to grocery chains and niche stalls, Bitcoin Accepted signs are appearing across the food and beverage industry. Companies are using Bitcoin payments are a way to stand out and appeal to a younger, more tech-friendly market.

Retail

If your question is where to spend Bitcoin, then retail therapy is a possible answer. From washing machines to toasters and kettles, you can furnish your entire home using the world’s largest cryptocurrency.

Online Casino

The online casino industry has been quick to adapt to this borderless and relatively anonymous currency. Today some of the best online casinos in the world let you pay with Bitcoin.

Events

Are you looking forward to supporting your favourite team or watching a live concert? An ever-greater number of event organisers, stadiums, and concert halls are accepting Bitcoin payments online.

Travel

Whether you are looking for cheap airfares or hoping to travel to space, you can find a long list of websites where to spend Bitcoin. You can also benefit from exclusive cryptocurrency offers since Bitcoin transactions are often cheaper to manage than ones with traditional currencies.

Gift Cards

You can buy a range of different gift cards for yourself or your loved ones using cryptocurrency. Using Bitcoin on Amazon, eBay, and other online stores is now possible, albeit indirectly.

Everything Else

The list of things you can buy with Bitcoin is neverending and continues to grow daily. Depending on where you live you can pay your telecom bills with cryptocurrencies and even support your favourite charity with donations. Bitcoin is truly becoming the borderless currency it was originally designed to become.

How to Pay With Bitcoin

Paying with Bitcoin is a very simple process which you will feel confident doing right after your very first experience. With sufficient Bitcoin in your wallet follow these steps to learn how to use Bitcoin to shop.

  1. Visit a seller who accepts cryptocurrency.
  2. Choose the items you wish to buy and go to the checkout.
  3. Select Bitcoin payment and click to view the seller’s Bitcoin wallet address.
  4. Open your wallet and select the option to send funds.
  5. When prompted to enter the wallet address either paste the seller’s address or activate the QR code scanner.
  6. Enter the precise amount of Bitcoin you need to send and confirm the transaction.

Once submitted, the transaction should be completed in a few seconds. It is important to ensure that you enter the correct value of the purchase since chargebacks are not supported. We also recommend using the QR code scanner to copy the seller’s wallet address rather than copying it manually, since a minor error can send funds to a completely different wallet. Ensure that both your wallet and the seller’s wallet support Bitcoin and not another coin.

How to Pay With Bitcoin Without a Website

Some sellers might not have an online store where you can pay using cryptocurrency. This is not a problem, and you can still send Bitcoin to them very easily. The only difference in such cases is that the seller would need to provide the wallet address via messaging app, email, or in person. Here too we recommend using a QR code scanner as it reduces the risk of any mistakes.

How to Accept a Bitcoin Payment

If you’re the owner of a business you might want to consider accepting Bitcoin payments. In addition to being cheaper and in some cases faster than traditional payment options, accepting Bitcoin positions your business as a forward-thinking and modern enterprise. As you’ve seen in the how to pay with Bitcoin section above, the process is fairly straightforward for both buyer and seller.

If you would like to accept Bitcoin payments, all you need to do is:

  1. Choose a Bitcoin wallet where to store your payments.
  2. Share your wallet address on your website or business social media page.
  3. Advertise the fact that you accept Bitcoin and encourage users to choose this payment option.
  4. Once you receive Bitcoin in your wallet decide whether to keep it stored there, transfer it to a more secure wallet or convert it to another currency.

There are several Bitcoin payment facilitators which provide eCommerce integrations for cryptocurrency payments. Similar to traditional card and PayPal payment gateways, these provide a seamless way for buyers to complete their online purchase using Bitcoin. Very often these services come at a cost, yet they provide a professional and secure way to accept cryptocurrencies online or in-store.

Disadvantages of Paying with Bitcoin

Buying products and services with Bitcoin provides numerous benefits, but there are cons you need to be aware of. Due to the high volatility of the cryptocurrency, the value is constantly fluctuating. A moment after you complete a purchase, Bitcoin’s price might drop and you would have overpaid for an item. However, the opposite is also possible.

When you buy using cryptocurrencies you do not enjoy the same buyer protection which is available when using cards or PayPal. There are no Bitcoin chargebacks, so the only way to get a refund is for the seller to agree to it. Before making any payment you must always be sure that the seller is genuine and the wallet address is correct.

Big Brands that Accept Bitcoin

We’ve already covered how to pay with Bitcoin to buy everything you might need to furnish your house, go on holiday, and be entertained. It is now time to look at some of the best-known brands which let you pay using Bitcoin.

  • Microsoft – The tech giant has had a love/hate relationship with Bitcoin but has resumed its acceptance of payments for games and other apps.
  • CheapAir – You can book your next low-cost plane ticket using one of the world’s largest aggregator sites.
  • Bitcoin.Travel – Book your entire holiday, including flights, accommodation, and rentals using your favourite cryptocurrency.
  • eGifter – Starting buying on Amazon, eBay, and other supported online marketplaces using cryptocurrency gift cards.
  • ExpressVPN – Gain global access to geo-restricted websites whilst protecting your data, all the while paying through subscription using Bitcoin.
  • Rakuten – Access a massive online eCommerce store and pay using Bitcoin or any other supported cryptocurrency.
  • Re/Max London – Cover fees and, in certain cases, purchase property securely using Bitcoin.
  • Save The Children – Support a global charity without losing a chunk of your donation to expensive payment processors.
  • Shopify – Access thousands of online stores by sellers located around the world without worrying about currency conversion of FX fees.
  • Wild Tornado Casino – Play your favourite online slots and table games whilst funding your account using cryptocurrencies.

This list of brands which accept Bitcoin payments is far from exhaustive and continues to grow with each passing day. Although it is not currently accepting cryptocurrency payments, electrical car maker, Tesla Motors is expected to start supporting Bitcoin in the near future. It’s founder, Elon Musk confirmed this soon after the company purchased $1.5 billion worth of Bitcoin in February 2021.

How to Pay with Bitcoin Safely

When you’re paying somebody with Bitcoin it is important to remember that no authority or entity is carrying out any due diligence on the seller. Unlike cards and, to a certain extent, PayPal, accepting Bitcoin payments does not require sellers to register or provide any KYC documents. On the one hand, this allows for faster, easier, and cheaper sales, but, on the other, it opens up buyers to certain scams.

The following are ways you can protect yourself when using Bitcoin.

  • Watch out for scams – Crypto scams come in all shapes and sizes, but a good rule of thumb to remember is if it sounds too good to be true, it’s probably a trap.
  • Use reliable websites – It’s always best to use reputable websites and brands to buy with Bitcoin, especially if you plan to spend a significant amount.
  • Visit shops in your area – If you’re looking to make a purchase from a small, unknown store, consider visiting it and paying directly using QR codes.
  • Read user reviews – Check out any user reviews or experiences of the sellers to understand if they are legit or a possible scam.

How to Spend Altcoins

Cryptos and fiat currency

Although Bitcoin was the first cryptocurrency to be accepted by merchants online, it is far from the only one. In fact, a variety and growing number of Altcoins are accepted. Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH) are just a few examples of such coins.

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

Tether (USDT) is another Altcoin that is a popular currency for payments. Known as a stablecoin, Tether’s value is far less volatile than that of other cryptocurrencies and this has helped it become a popular payment option. In most cases, the value of Tether is equal to the value of the US dollar, which means that $1 would buy you approximately 1 USDT. Check out our guide on what stablecoins are used for to get a better understanding.

Some popular brands which let you spend Altcoins include:

BrandType of BusinessSupported Altcoins
MelBet CasinoOnline casino and sportsbook.Over 30 Altcoins, including Litecoin (LTC), Dogecoin (DOGE), and Monero (XMR).
BitrefillGift cards for over 1,600 services.Over 10 Altcoins, including Ethereum (ETH), Litecoin (LTC), and DASH.
HostingerDomain and hosting services.Over 8 Altcoins, including Bitcoin Cash (BCH), MaidSafeCoin (MAID), and Tether (USDT).
OpenBazaarP2P ecommerce platform with escrow service.Bitcoin Cash (BCH), Litecoin (LTC), and Zcash (ZEC).
TravelbyBitOnline travel and accommodation booking engine.Binance Coin (BNB), Ethereum (ETH), and Litecoin (LTC).

Just as you learnt how to pay with Bitcoin for goods and services, you can pay using your favourite Altcoin. The process is exactly the same, but you need to ensure that you use the wallet addresses which support the particular coin you are using. If, for example, you were to send Bitcoin Cash (BCH) to a Bitcoin wallet address the funds will not arrive and may be lost.

Questions Regarding How to Purchase With Bitcoin

By now you should have a good understanding about where and how to pay with Bitcoin and Altcoins. Nevertheless, you might still have some topic you might be uncertain about, so we’ve provided answers to common questions.

Who is using Bitcoin?

Whilst it can be difficult to estimate accurately the number of Bitcoin users, a Cambridge University study estimated around 6 million in 2017. The number is likely significantly higher today, in part thanks to the coin’s skyrocketing price.

Do banks accept Bitcoin?

It might surprise you to know that there are some banks which have embraced cryptocurrencies and let you pay with Bitcoin. USAA is one such example, letting users check their Coinbase balance directly from its own mobile app.

Does Amazon accept Bitcoin?

Currently, Amazon does not directly accept Bitcoin or any other cryptocurrency payment. However, you can purchase Amazon gift cards on third party sites using Bitcoin and then spend the funds on the online marketplace.

Is buying with Bitcoin safe and legal?

Bitcoin is legal in most countries around the world so you can use it to buy products and services without being concerned about breaking the law. If you are accepting Bitcoin payments, you would need to declare these sales and pay taxes on them just like any other currency.

Who uses Bitcoin the most?

The United States is home to the largest number of Bitcoin holders, with around 8% of the global cryptocurrency market based there. Romania, China, and Spain represent the next largest markets.

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