Bitcoin is the largest cryptocurrency in the world. Bitcoin’s market cap is equivalent to over fifty percent of the entire cryptocurrency space. Due to its popularity and large market cap, Bitcoin is used in purchasing virtually every cryptocurrency on crypto exchanges.
Cryptocurrencies, especially Bitcoin, have gained popularity amongst merchants and a wide range of them accept it as a means of payment. For this reason, crypto enthusiasts now pay for products and services with Bitcoin on some merchant stores. They pay for the goods and services via exchanges and cryptocurrency wallets. In this guide, we will show you some of the most comfortable and most convenient ways to pay for products and services using BTC.
Cryptocurrencies continue to gain acceptance
The past two years have been impressive for the cryptocurrency sector. Following the Bull Run of 2017, Bitcoin gained attention from more people, regulatory agencies and merchants. As more people venture into the cryptocurrency world, the number of merchants accepting Bitcoin continues to increase. Big companies like Microsoft and Overstock accept Bitcoin as a means of payment.
Asides the e-commerce industry, Bitcoin has gained acceptance from other areas. In the freelance sector, more freelancers are accepting Bitcoin as a means of payment. Cryptocurrency-based freelance platforms are also on the rise, which is an indication of the rising status of Bitcoin in the industry.
Despite the acceptance of Bitcoin by an increasing number of online merchants, people must know how to pay for goods and services using BTC. You can pay for Bitcoin from cryptocurrency exchanges and wallets.
If you possess a large amount of Bitcoin or any other cryptocurrency, it is advisable to keep them in a cold storage wallet. The cold storage wallets are hardware devices that help keep your funds secure, protecting them from hackers.
You can read about cold wallets here and learn about the best hardware wallets currently available in the market.
Buying Bitcoins from crypto exchanges
Cryptocurrency exchanges, OTC desks, and P2P platforms are the best places to purchase Bitcoin. Most cryptocurrency exchanges support the purchase of Bitcoin using fiat currencies. You can buy Bitcoin from the exchanges and other crypto platforms using the accepted debit and credit cards. Some of the platforms also accept other forms of payment, such as wire transfer. After purchasing Bitcoin, your cryptocurrency trading account will be credited. The Bitcoin can be transferred to a wallet or used to pay for goods or services.
We will guide you on how to pay with Bitcoin on some exchanges and crypto platforms.
How to pay with bitcoin on Coinbase
You can send Bitcoin to another wallet from Coinbase. The merchants you are sending funds to have Bitcoin addresses. Thus, you will send funds directly to their Bitcoin wallet. Here is how to send Bitcoin to another wallet on Coinbase.
- After purchasing Bitcoin on Coinbase, navigate to the accounts link on your navigation bar
- Choose the send button for Bitcoin wallet
- On the send dialog, choose wallet address if you are sending to another person’s Bitcoin wallet. You can also insert email address if you are sending funds via mail.
- Insert the amount of Bitcoin you wish to send in the amount field. If you don’t know the amount in Bitcoin, you can insert the amount in your local fiat currency. Keep in mind that the funds will be sent in Bitcoin and not in fiat currency.
- Click on, continue, and confirm the details of the transaction.
- Complete the transaction.
With mobile device: sending funds with a mobile device is a little bit different compared to using web.
- Navigate to your account and choose a Bitcoin wallet.
- Click on the paper airplane icon on the upper right hand of your screen
- Insert the amount you wish to send, either in BTC or in fiat currency
- Enter send
- Insert the email address or wallet address you want to send the funds
- Reviews the details and confirm the transaction
- Alternatively, you can send via QR code.
- Tap the QR code icon in the upper right side of your screen
- Take a picture of the QR code and enter the amount to send
- Review your details and confirm the transaction.
How to pay with cryptocurrency on Binance
Similar to Coinbase, you can purchase Bitcoin and a few other cryptos from Binance. After buying the cryptocurrency, you can send them to a cold storage wallet or use them to pay for goods and services.
- Login to your Binance account at Binance.com
- Click on the wallet and withdraw on the upper right side of your screen
- Choose the cryptocurrency you wish to send by inserting the keyword for the coin. For example, BTC for Bitcoin, ETH for Ethereum, and more.
- Copy the wallet address from the recipient and insert it in the withdrawal address space provided
- Input the amount you wish to send
- Confirm your transaction details and click on submit
- Confirm withdrawal afterward and the funds will be sent to the recipient account.
- You will receive a confirmation email afterward, confirming your withdrawal
QR Code: you can also send funds using QR code from your mobile app.
- Login to your Binance account from your mobile app
- Click on account and scan the QR code
- Insert the amount you wish to send
- Review your transactions and confirm
How to pay with bitcoin on cex.io
CEX.IO is another popular cryptocurrency exchange. You can purchase Bitcoin on this platform and use it to pay for goods and services. Here is how you go about it.
- Login to your CEX.IO account and navigate to the finance page
- Click on the withdraw button and choose Bitcoin as the cryptocurrency you wish to send
- Insert the recipient Bitcoin wallet address and the amount you want to transfer
- Review your transaction details and confirm by clicking the checkmark
- Send the funds. You will receive a payment confirmation email a few seconds later.
How to pay with bitcoin without a wallet
Although the most popular method of paying with Bitcoin is via wallets and exchanges, you can send Bitcoin to others without a wallet. Some cryptocurrency exchanges, such as CEX.IO allow users to deposit fiat currencies and send them as Bitcoin to BTC wallets.
- Register on platforms like CEX.IO or Litebit.eu.
- These platforms accept SEPA bank transfers and a few other lesser-known payment methods.
- Deposit funds into your exchange account using any of the methods mentioned above
- After depositing funds, you can proceed to make the payment and give them the recipient’s Bitcoin address. The funds will be sent to the recipient within a few minutes
How to pay with bitcoin on a phone
Paying with Bitcoin via mobile phone usually happens with point-of-sale or for a face-to-face transaction. Due to the complicated nature of Bitcoin wallet addresses, you can use the QR code to pay for goods and services using Bitcoin.
You can use the mobile app of your wallet or cryptocurrency exchange to pay with Bitcoin using a phone.
- Login to your wallet or exchange account via the mobile app
- Navigate to account and access the send or withdraw button
- Click on scan and scan the QR code of the recipient address
- Once the scan is complete, the Bitcoin address field will be filled with the recipient’s wallet
- Insert the amount you want to transfer and press the send button.
- Review your transaction details and confirm afterward
How to pay someone with LocalBitcoins
LocalBitcoins is one of the most popular peer-to-peer cryptocurrency platforms. They link buyers and sellers of cryptocurrencies. You can purchase Bitcoin and other cryptos from LocalBitcoins and send them to other people. Here is how you go about it.
- Log in to your LocalBitcoins account and access your wallet by clicking on your wallet balance
- Navigate to send Bitcoin section and provide the information required, including the recipient’s address, the number of Bitcoins you wish to send, and description.
- Click on continue and verify the details of your transaction
- Insert your password or 2FA verification code and press the ‘send from wallet’ button.
- The transaction will be approved within seconds. The receiver will receive the funds within 1-3 hours.
Bitcoin continues to gain acceptance amongst online and some offline merchants. As more businesses accept cryptocurrencies as a means of payment, you must learn how to send Bitcoin to other people. You can send Bitcoin via cryptocurrency exchanges and wallets using either their websites or their mobile apps. The methods reviewed in this post are some of the most popular ways of paying with Bitcoin.