Guide on How to Spend Cryptocurrency. Like physical currency, cryptocurrency has become much easier to use than ever before due to its rise in adoption.
However, unlike regular currencies backed by governments and regulated by Central Banks, cryptocurrencies are decentralized, which means they’re not owned by any government nor controlled by anyone. This makes cryptocurrencies much different from traditional currencies that have been around for decades or centuries.
Here’s How You Can Use Cryptocurrencies To Buy Everyday Things Too:
So, how do you spend cryptocurrency to buy everyday items? You’ll need a wallet, a bank account, and an intermediary service.
Once you have these three things set up, here’s how you can start using them:
1. Get A Cryptocurrency Wallet
When it comes to using cryptocurrency, you’ll need a digital wallet. The wallet is where your coins will be stored and the only place you can use to send or receive cryptocurrencies. Cryptocurrencies have a unique address that looks like a long series of numbers and letters, known as your public key.
It’s what you’d share with others when sending them money, just like an e-mail address. On the other hand, your private key is what gives access to your funds and should never be shared unless necessary because if someone has access to your private key, they can easily withdraw all of your funds from your wallet.
With this, make sure you have a secure backup of it somewhere else in case something happens. There are several types of wallets available such as Hardware, Desktop, Mobile & Web wallets.
2. Fund Your Wallet With Fiat Currency
Once you have your wallet set up, the next thing is to fund it using fiat currency. You can do this by sending some cash from your checking account through an intermediary service to your wallet address.
Keep in mind that you’re not required to send all of your money at once, so feel free to do partial transfers, but each time you send some cash over, expect it to take about five business days for everything to clear out, depending on where you live and which kinds of services you use.
Here’s a tip: While many cryptocurrency exchanges allow people with US bank accounts to deposit their cash directly to it, I don’t recommend doing so. Why? Because many cryptocurrency exchanges have been hacked over the years, and millions of dollars worth of people’s fiat currency have been stolen from them.
If you’d like to take an alternate route instead, which is safer and more secure than using your bank account, you can use intermediary services and send money through that instead.
3. Choose Which Cryptocurrencies You Want To Use
If you want to use cryptocurrencies for everyday purchases, you’ll need a wallet that provides support for at least one or several cryptocurrencies that are known as “fiat gateway tokens” such as Bitcoin (BTC), Ethereum (ETH), etc.
These wallets will allow users to deposit USD like they would send it through PayPal, but unlike PayPal, the money is sent directly to your wallet address instead. Keep in mind that some wallets may not support all cryptocurrencies, so you’ll have to do a bit of research before choosing one.
4. Spend Your Cryptocurrencies Using A Debit Card Or Credit Card
Once your cryptocurrency is deposited into your wallet, you can spend it at any retailer or merchant that accepts debit cards or credit cards as a form of payment.
Over the years, people have started using crypto-debit cards more often because they allow you to deposit cryptocurrencies from your wallet into them and use them like regular debit cards for making purchases without having to convert your coins into fiat currency first.
5. Get Cryptocurrency Discounts At Transactions
If you don’t want to spend your cryptocurrencies on transactions or prefer to keep them stored in your wallet for investment purposes, there are some retailers out there who might be willing to offer cryptocurrency discounts if you pay with them instead.
The primary purpose of doing so is to create demand for cryptocurrencies and get more people to use them. You can also do this if you’re trying to save money on everyday purchases but make sure that your chosen retailer accepts payment through cryptocurrency networks such as Bitcoin (BTC), Ethereum (ETH), etc. first.