When you hear the term “cryptocurrency”, do you get the sense you’ve entered into some other intergalactic dimension?
Well, it’s not quite that, but if you are using cryptocurrencies, you have joined the millions of users exchanging cash in the virtual world known as crypto space. Bitcoin is just one of the hundreds of forms of digital cash out there.
Learning how to pay with cryptocurrency can be tricky, as you first need to learn what cryptocurrencies are and how they work. In this article, we’ll try to explain that.
What Are Cryptocurrencies?
Cryptocurrency is digital cash. You can’t see it, can’t touch it, but it’s very real. Crypto (for short) can be used to buy goods and services, or traded for profit. To buy crypto, you have to exchange real currency for it. Companies then issue tokens in exchange for cryptocurrency to make purchases.
You may be hearing a lot more about it now, but crypto has been around since the late 80s. However, at that time, people didn’t understand what it was and thought it was too risky. It wasn’t until 2009 that it blew up into something significant with the invention of Bitcoin.
Investors have gravitated toward cryptocurrency to trade for profit. Some interesting uses of cryptocurrency include:
- Money transfers, especially internationally
- Earning interest through liquidity mining
- Investing in start-ups
- Job income from companies paying with crypto
Bitcoin is definitely the most popular of the cryptocurrencies, considered crypto “gold”. You can go here to find out more about BTC and common misconceptions people have about it.
Bitcoin is the oldest form of crypto, but there are others that have drawn the attention of users in recent times.
One such cryptocurrency is Ethereum, or Ether, for short. Ethereum is a digital platform and is the most actively used blockchain. Ether is considered one of the most popular forms of crypto, but Ethereum was not designed solely for currency exchange.
Users can develop digital apps, not only for trading digital cash but for matters like creating sales contracts or launching a fundraising site, via secure algorithms.
Litecoin, Dogecoin, Cardano, Polkadot… these are some of the many types of crypto that you’ll find on the market.
How to Pay With Cryptocurrency
The first step in paying with crypto is setting up your digital wallet. A wallet stores all your private keys for digitally signing cryptocurrency transactions.
There are many types of crypto wallets, from desktop versions to virtual, paper, mobile, and more. Cryptocurrency wallet apps can be installed on your smartphone.
Once you’ve logged in to your wallet, you can send digital cash. When it comes to crypto, like-coin transactions are acceptable. You can’t send Bitcoin to Ether or vice versa.
To make a payment, add the public wallet address of the recipient and enter how much you want to pay. Sounds easy, right? Once you understand the ins and outs of cryptocurrency, sending and receiving crypto will become a less daunting process.
Become a Crypto Pro
Cryptocurrency transactions can be complex, and there are many terms and functions you’ll want to learn before getting started. Learning how to pay with cryptocurrency is simply one function of several more.
To learn more about cryptocurrency and the virtual world of crypto space, visit the rest of our site.