Crypto payments are digital payment methods used for cryptocurrencies such as Bitcoin(BTC) and several altcoins. In today’s digital world, cryptocurrency has started being used by people instead of traditional currencies.
Cryptocurrency is a coded and digital currency that is free from any fluctuation on the stock exchange. This decentralized method enables people to transfer a value anonymously from an online wallet to another online wallet in exchange for any service or tangible good. The system uses blockchain technology which is not under government or bank control.
Therefore, people prefer to use cryptocurrencies to send and receive their payments.
Since it is a little bit complex at the beginning, those who want to use the transaction method with cryptocurrency properly should understand a few concepts such as wallet, wallet digital address, blockchain, and transaction. The value of a cryptocurrency is based on supply and demand equilibrium.
Can Cryptocurrency Be Used as Payment?
In 2010, the world started to use cryptocurrency as a payment method for pizza. The value of the pizza was 10,000 BTC. It means they determine the value of bitcoin which is a digital currency.
Cryptocurrency is a kind of digital payment method in which you can send and receive crypto instead of cash like you are sending an email. The payment can be made via a website or an application. You don’t have to open an account with a bank, institution, or company to send and receive your payments.
You can make your payments by using a cryptocurrency wallet. This digital wallet can be downloaded on any technological device like a computer or telephone. Several providers offer digital wallets with different features.
When you are using a crypto payment method, there is no need to deposit in your wallet, but you should have a private key to access your property in the wallet. If you want to make a payment, you should enter the recipient’s QR code or digital wallet address.
How Do You Make a Transaction with Cryptocurrency?
Since transactions with cryptocurrency don’t involve a real money transaction between accounts, in cryptocurrency transactions the data is switched in a blockchain system. This system records every activity and keeps the asset in the real address.
Bitcoins are sent like messages in the Bitcoin network system with a digital sign. After the sender initiates a transaction, the data goes to the network system for verification. The blockchain system holds all the information accessible to the public.
It is generally claimed that crypto payment runs in three steps; creating, broadcasting, and confirmation phases with a few intermediate steps. Before initiating a transaction, you need to set up a wallet that enables you to take action on specific cryptocurrencies. If you don’t want to face security problems, the wallet should be secured by strong passwords, face ID, or alternative security precautions.
To initiate a transaction, you need to have the sender’s address and the receiver's wallet address which is a public key. When you have the address, you will open the wallet. Find and click a button which means sending money. On the second page, you will enter the amount of BTC you will send and your receiver’s address. Then a digital signature will be created for the confirmation of the sender’s identity.
The broadcasting phase involves a system where there is a network pool accepting and holding the transactions, filtering the actions, and confirming. Before the confirmation, transactions are waited in a pool for a short time.
Mostly, you will pay a transaction fee for this process. You can track your transactions from the app. The last step is confirmation that after it is completed the receiver will have the funds.
Where Can Crypto Payments Be Used?
In 2023, many large companies, retailers, and stores started to accept crypto payments. According to Deloitte 2022 research, Because crypto payments increased in popularity, some companies 75% of the US retailers plan to accept crypto payments in two years. These developments bring about new business in cryptocurrency payments. Some companies make businesses open to receive crypto payments by offering a cryptocurrency gateway.
They use a crypto payment gateway to make their business clients accept and receive crypto payments integrated with their businesses.
Using Crypto Payments in Business
Businesses that use crypto payments get several benefits. First, bitcoin transactions are not controlled by any national government. Receiving crypto payments increases the financial liquidity of the businesses. The customers of the business can have alternative payment methods rather than traditional methods.
Crypto payments are also global, not depending on a traditional bank therefore global customers can benefit from their global transactions with lower fees. Because of the high-security nature of crypto transactions, the risk of fraud is very low. The receivers don’t have to have a bank account or any bank existence.
What Transactions Use Cryptocurrency?
In the world, crypto payments are getting more and more popular, and many individuals and sectors are available to send and receive crypto. You can make transactions from person to person with no need for any other facilitator. Several online retailers and platforms accept crypto payments. You can make your global transactions easily without tackling any traditional borders.
Cryptocurrency can be used as an investment because of the probability of price increases. For donation payments, crypto payment would be a more transparent method. In many industries like gaming, hotel, and travel companies started to accept cryptocurrencies.
Transaction with Crypto Payment Online
Making an online crypto transaction includes some stages we mentioned above. To send and accept crypto payments, you should have a crypto payment wallet. If you have a wallet, you should have enough funds to make the payment. Then choose the best payment method for you with the preferred cryptocurrency.
Enter the receiver’s wallet address and the amount of cryptocurrency you want to send. Confirm the transaction with an extra security step. There will be a short waiting period where you can also check the status of the transaction. Lastly, you will receive a notification announcing the payment is successful.
Best Crypto Payment Gateway
Since crypto payments offer lots of advantages like anonymity, availability from everywhere to anyone, and lower fees it is commonly used by many people. Many companies and businesses have started to research how to accept crypto payments as a business. Businesses should research before they choose a crypto banking platform.
The supported cryptocurrencies, transaction fees, and security options should be considered before the selection. The availability of the integration process is crucial for businesses with their website.
Jetonbank offers crypto payment methods for businesses. To get more information, you can visit their updated website or call their customer support service.
