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How to safely pay with cryptocurrency

Published: 28 мая 2023
5 min

How to safely pay with cryptocurrency How to safely pay with cryptocurrency

History of the emergence of cryptocurrency payment

More recently, the cryptocurrency community celebrated an anniversary, 10 years ago, programmer Laszlo Heinitz paid 10 thousand BTC for two Papa Johns pizzas. At the time, that amount was $25.

In 2013, it was already possible to pay for a product or service using cryptocurrency. To make the transaction, the two crypto-enthusiasts exchanged their cryptocurrency wallet addresses, as well as agreed on the method of transportation and receipt of the goods. Thus, the history of using cryptocurrency as a means of payment began.

History knows of other big purchases and sales:

  • multimillionaire Oliver Janssens ordered a plane ticket from Brussels to Nice and paid in bitcoins;
  • an anonymous buyer bought a Porsche Cayman S from a Texas family for 300 bitcoins;
  • a Dutch miner, sold his own house with all his possessions for 85 bitcoins in the fall of 2017.

However, in conservative circles, the prejudice that cryptocurrency has no value and that platforms that provide transactions with digital assets are fraudulent is still strong. This opinion was formed after exchanges like Mt. Gox and FTX left their clients without assets.

To be fair, it may be noted that in the financial sector there are as many fraudsters, just think of Sergei Mavrodi's MMM, which was revived 4 times in Russia, each crash left millions of people without savings.

In all these crashes, the culprits were people who were overcome by greed and stupidity, rather than advanced technology and tools. But still, how to make cryptocurrency payments as safe and convenient as possible?

How to safely pay with cryptocurrency How to safely pay with cryptocurrency

Photo:freepik

When it's not suitable to pay by card or in cash

Payment through the bank is accompanied by the risk of blocking the transaction, if the amount exceeds 50100 thousand rubles. The bank may suspect you of fraudulent activity if you suddenly decide to buy an iPhone off hand and pay by transfer from your card. You may need to call the support service or go to the office. And what to do if the office is far away, and today is a day off?

Cash in this case is a great option, but with large amounts of payment, the process, transportation, recalculation, payment causes difficulties, especially if you need to pay in another country. By the way, transfers to other countries are now also complicated by bank restrictions and sanctions.

You have to remember that when you pay with bank cards, the money is often stolen. A bag with money can simply be snatched and run away in an unknown direction.

Why use cryptocurrencies

Cryptocurrency is a new generation of world money. Unlike fiat currencies, cryptocurrencies are electronic and decentralized, not controlled by the government or private entities. They provide the ability to make payments for goods and services without intermediaries such as banks.

How to safely pay with cryptocurrency How to safely pay with cryptocurrency

Photo:freepik

Due to their global accessibility, low fees and anonymity, cryptocurrencies are used in various fields of activity. One of the main advantages of using cryptocurrencies is the ability to make purchases directly for digital assets. Here are some examples of goods and services that can be purchased with cryptocurrencies:

  • Apps, games and digital subscriptions, such as those from Microsoft;
  • Mobile communications in Canada and the United States;
  • Fast-food restaurants, such as McDonald's;
  • Tax payments;
  • Tourist trips;
  • Real estate in various countries such as Thailand, Turkey, Montenegro, Georgia and the UAE;
  • Remuneration for remote workers;
  • Buying goods and services in hyperinflationary countries such as Venezuela and Argentina.

There are already crypto-accounting services for businesses that can be used to make payments on completed contracts, such as MFPay.

What can happen when making a payment

However, there are some risks to be aware of when using cryptocurrency:

  • Mistakes when sending funds, wrong wallet address, which can lead to loss of funds.
  • The possibility of getting into fake sites or hacked accounts, where scammers can get your money.
  • The risk of receiving "dirty" cryptocurrencies or transferring funds from unscrupulous senders when buying from unverified sites.
  • Poor e-wallet services that can make transactions difficult.

What should be done to secure payment

How to safely pay with cryptocurrency How to safely pay with cryptocurrency

Photo:freepik

To be safe when paying with cryptocurrency, you should take precautions:

  • Carefully check all details and choose the right blockchain network at every step of the transaction;
  • When using cryptocurrency for the first time, it is recommended to make a test payment or split a large amount into several payments;
  • Use complex passwords and store them in safe places, such as an encrypted file or password manager;
  • Verify counterparties through multiple sources of communication, such as email, Telegram, or a profile on an official website;
  • Be aware of the reviews of the services and platforms where you plan to conduct cryptocurrency transactions;
  • Pay attention to the level of commissions and limits on the selected services, and make sure you have enough money in your wallet;
  • Use antivirus software and update it regularly.

If you have difficulties or don't have enough time to figure out the process of paying with cryptocurrency, there is no need to worry. There are specialized services that ensure payment security and transparency, as well as provide support. For example, the AWEX service enforces AML / KYC policies, protecting customers from risks. Experienced operators can help to understand the application process, payment and receipt methods. All you need to do is register, read the instructions, or contact support via live chat.

Сonclusion

Cryptocurrencies represent a new generation of money that has a number of advantages, such as global availability, low fees and anonymity. They can be used for direct payments for goods and services, bypassing intermediaries in the form of banks.

The development of cryptocurrency payment infrastructure continues to gain momentum. Some countries already have multifunctional wallet applications that act as banks, debit cards and exchangers. Cryptocurrency ATMs, which allow exchanging cryptocurrency for cash, are also emerging.

It is important to understand that there are always doubts and uncertainties at the beginning of the introduction of new technologies. However, history shows that over time people overcome their fears and adopt new forms of payments and technology. Cars, cell phones, and bank cards were once feared and misunderstood, but now they have become an integral part of our daily lives.

Therefore, with the advances in technology and the benefits that cryptocurrencies offer, today you need to get familiar with digital money and create your first cryptocurrency wallet.

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