Paying someone with Bitcoin or other crypto has become an increasingly popular practice within the crypto community. In fact, the more businesses and merchants accept crypto, the more people also use them as a payment method. Some individuals even use them for regular transactions with friends, such as splitting bills, sending remittances, sending a gift, and more.
If you’re a new user, today we’ll discuss the pros and cons of paying with crypto as well as how you can pay someone with Bitcoin (BTC) using an easy-to-use crypto app for beginners.
What Does Sending and Receiving Bitcoin Payments Mean?
Sending and receiving BTC are digital processes that involve transferring virtual tokens from one digital wallet to another. Unlike traditional methods of transferring money, crypto transactions don’t rely on a centralized authority, such as a bank or a government.
Instead, these transactions are made on a decentralized network called a blockchain, where every transaction is verified by multiple nodes in the network, making it highly secure and transparent.
What Are the Pros and Cons of Paying with Crypto?
Crypto payments have advantages and disadvantages, such as the following:
The Pros
1. They’re secure.
Crypto transactions are highly secure and protected by advanced encryption techniques, making them virtually impossible for hackers or unauthorized third parties to access the user's funds.
This level of security is especially important in a world where cybercrime is on the rise, and users need to be confident that their financial transactions are safe and secure.
2. They’re quick
Unlike traditional banking systems that can take days to process international transfers, crypto payments can be completed within minutes, if not seconds. This means you can send cryptocurrency and receive it quickly and easily.
Crypto makes it ideal for users who need to make urgent payments or those who are looking for a more efficient way to transfer funds.
3. They’re good for anonymity.
Cryptocurrency transactions are pseudonymous, which means that your personal information is not required to complete the transaction. This is important to users who value their privacy.
Unlike traditional banking systems, where transactions can be easily traced back to the user, crypto payments are much more difficult to trace, making them a popular choice for users who wish to keep their financial transactions private.
4. They usually require low transaction fees.
Sending crypto usually requires low fees, which can be significantly lower than traditional payment methods.
5. You can complete a transaction at any time.
Cryptocurrencies are accessible to anyone with an internet connection, regardless of their location. They don’t have geographic restrictions unlike traditional banks, which often require you to have a physical location and meet certain criteria to open an account.
The Cons
1. Cryptocurrencies are volatile.
Many cryptocurrencies are highly volatile, and their value can fluctuate rapidly, which can make it difficult to predict how much your cryptocurrency is worth. However, if you want to use crypto daily, you may opt for stablecoins like Tether (USDT) and USD Coin (USDC) to avoid huge fluctuations in price.
Here’s how to swap BTC for USDT easily.
2. Cryptocurrencies are not yet accepted everywhere.
While the number of businesses and merchants accepting cryptocurrency is growing, it is still relatively limited. But the good thing is, the worldwide acceptance of cryptocurrency hit a record high in the second quarter of 2021. The third quarter of 2021 saw a decline in adoption, which coincided with the drop in crypto prices, whereas the adoption rebounded in the fourth quarter, along with the surge of prices to new all-time highs.
Experts believe that global crypto adoption is inevitable and is not a matter of if but when. This could make crypto payments more common globally.
3. They’re irreversible
Crypto transactions are irreversible, which means that once a transaction is completed, it cannot be reversed or cancelled.
4. There are potential risks if you’re not using a secure platform.
While crypto transactions are secure, there is still a risk of hacking or other security breaches, especially if the platform you’re using does not take appropriate security measures.
Where Can You Pay with Crypto?
Nowadays, many businesses and merchants accept cryptocurrency as a payment method. Some of the popular ones where you can pay with crypto include:
1. Food delivery services
Food delivery services such as PizzaForCoins and EatBCH allow you to order food using cryptocurrency.
2. Physical retailers
Some physical retailers, such as Whole Foods and Nordstrom, are also beginning to accept crypto payments.
3. Online retailers
A lot of online retailers, including Shopify, Microsoft, and Overstock, accept cryptocurrencies like BTC as a payment method.
4. Travel booking websites
Sites like Expedia and CheapAir allow you to book flights and hotels using crypto such as BTC and Ethereum (ETH).
5. Gaming platforms
Many online gaming platforms, including Steam, Twitch, and Xbox, allow you to purchase games and other items using crypto.
6. Charities
Some charities, such as the Red Cross and Save the Children, accept cryptocurrency donations.
How About Sending Crypto to Another Person?
As mentioned, sending crypto to another person is also common in the crypto realm. They’re also become much easier in recent years, due to the rise of crypto payment apps and other crypto payment platforms like Ka.app.
How to Make a Payment with Cryptocurrency
If you're looking to send Bitcoin faster, Ka.app offers two different ways of sending BTC and other cryptos in just a few seconds. Here are the step-by-step instructions on how to send Bitcoin in the Ka.app:
1. To another Ka.app user:
- First, sign in to your Ka.app account.
- Tap on the Send icon on the home screen.
- You can either scan or upload the recipient's QR code. or enter their mobile number.
- Next, tap on Bitcoin.
- Enter the amount of BTC that you wish to send.
- Enter your pin code to confirm the transaction.
- That's it! The assets will reflect in the recipient's Ka.app wallet.
2. To someone who doesn’t use Ka.app
- Sign in to your Ka.app account
- Scroll down to see the list of assets and tap on BTC.
- Tap on the Withdraw icon.
- Paste the wallet address of the recipient or scan their QR code.
- Enter the amount of BTC that you wish to send.
- Enter your pin code to confirm the transfer.
Final thoughts
Paying someone with Bitcoin or other crypto could be a convenient and efficient way to transfer funds, especially if you prefer to use digital assets instead of traditional payment methods. And while there are certain advantages and disadvantages to facilitating crypto payments, the benefits such as faster transactions, lower fees, and increased security make them an attractive option for many.
Scan to download the app
FAQ
How much time does it take to send crypto in Ka.app?
Crypto payments are usually processed within a few seconds, although actual transfer times may still vary depending on the specific coin or token you use.
How much are swap fees (a.k.a. transaction fees) in Ka.app?
Ka.app offers a cost-effective way to send crypto. You can send crypto for free to another user if the receiver accepts it in the same form it was sent. For example, if a user sends BTC to another Ka.app user, and it's received in BTC, no fees will be charged. However, if the recipient receives the payment in a different currency via the Easy Swap Engine (e.g., sent in BTC and received in ETH) swap fees will be charged.
Swap fee rates differ depending on whether the user has locked up KASTA tokens in the app or not. Users who have locked up tokens can benefit from reduced swap fees as low as 0.376%.
