Over the last few years, cryptocurrency has become an increasingly valuable asset class, with more and more investors flocking to it each day to diversify their portfolios.
Cryptocurrency has skyrocketed in value in recent years, and many early investors have found themselves sitting on small fortunes — but how do you turn that wealth into actual cash? Here’s how to pay your bills using cryptocurrency.
How to Pay Your Bills Using Cryptocurrency
Identify which of your bills accepts cryptocurrency
To pay your bills using cryptocurrency, you’ll need to find a company that accepts cryptocurrency as payment. This can be harder than it sounds! Some companies that accept crypto, like Overstock and Expedia, only accept a small number of cryptocurrencies, like Bitcoin and Ether.
If you want to pay your rent or utilities with cryptocurrency, you may not have many options. You could talk with your landlord or apartment office about accepting crypto—this has become more common in recent years—but ultimately it will be up to them whether they agree or not.
Once you’ve decided which of your bills you want to pay with cryptocurrency, you’ll need to identify which wallets and exchanges accept that currency. You can use websites like CryptoCompare, CoinMarketCap, and CoinCheckup for help in figuring out which crypto is accepted by each exchange or wallet.
It’s also important to make sure that your cryptocurrency account has enough crypto in it so that you can actually afford your payments—you don’t want a zero balance preventing you from paying!
The process for paying a bill will vary depending on whether your bill accepts crypto directly or if it needs an intermediary. If it only accepts Bitcoin, for example, then you’ll simply send some Bitcoin from your wallet to theirs.
If your bill needs an intermediary, you’ll need to identify which exchanges and wallets accept that crypto. Then you’ll need to fund those accounts with enough of your chosen currency for your bill.
For example, if you need USD for payment and it’s only accepted on exchanges that only accept Ether, then you’ll have to send some Ether from an exchange that accepts Ether to one that accepts USD.
Choose an exchange where you can use fiat currency to purchase crypto
Some exchanges, like Coinbase and Kraken, let you buy cryptocurrencies using your bank account or credit card, while others, like Gemini and Bittrex, let you trade in fiat. You can then use one of many online wallet platforms to store your coins securely.
Just remember: If you’re not careful about how you set up your account, you could end up losing all your money. Additionally, if an exchange is hacked (like Mt. Gox was), you’ll lose everything in that account because there are no third-party insurance services for cryptocurrency exchanges.
If you’re just getting started, it can be difficult to choose an exchange. `, one of the more well-known exchanges, has nearly $10 billion in assets. Gemini, a digital currency exchange founded by Tyler and Cameron Winklevoss (of Facebook fame),
only handles bitcoin trades but accounts for more than half a billion dollars worth of transactions. Finally, some exchanges like Bitfinex and Bittrex let you trade with advanced features like margin trading or stop-loss orders.
If you’re planning on purchasing a large amount of cryptocurrency, I’d recommend using an exchange that has lower transaction fees. Coinbase charges a 1.49% fee for bank purchases, and Bitstamp charges just 0.25%. Gemini and Bittrex are also good options, charging only 0.25% or less in trading fees.
Transfer the crypto from your exchange account to your wallet
To transfer crypto from your exchange account to your wallet, make sure you have a secure connection (see Set up Two-Factor Authentication below) and visit your wallets’ deposit page. Choose how much you want to send and click Deposit.
At that point, select an address from which you want to send it (be careful: unless you’re using a hardware wallet, any address will work!) and hit Next. If you don’t know which address belongs to your hardware wallet, click on Your Address. If everything is in order and looks good, hit Confirm at the bottom of your screen.
It usually takes some time for transactions to be approved on cryptocurrency exchanges. However, if your transaction is unconfirmed for too long, there’s a chance that it might never go through.
If you want your crypto transferred from your exchange account immediately—or if you just don’t want to wait—you can always use a blockchain-based payment processor such as CoinPayments. If you’re not sure which service is best for you, read our guide on how to pay bills using cryptocurrency.
CoinPayments is a cryptocurrency payment processor that enables you to pay your bills with cryptocurrencies. How does it work? First, you have to sign up for a CoinPayments account by entering your email address and creating a strong password. Then, select Bitcoin as your preferred currency and click Continue.
Use your crypto to pay off your bills
Although cryptocurrency is a hot topic in 2018, it’s still pretty new. So if you want to get paid for your services in crypto, it might take some time for clients and employers to wrap their heads around how it works. But as long as you’re patient and knowledgeable about both crypto and traditional currencies, you’ll be able to pay your bills using cryptocurrency (or altcoins) instead of fiat currency by no later than 2019.
It just takes one person willing to be a trailblazer and soon enough more companies will follow suit. If that sounds like something you want to do, start familiarizing yourself with Bitcoin or Ethereum right now—you can even mine a few coins on your own computer while simultaneously learning more about digital money.
Once you have your first Bitcoin, Ethereum, or another cryptocurrency in hand, you can use it just like traditional money. For example, many online vendors now accept cryptocurrency as payment for products and services. All you need is a crypto wallet (more on those below) and either a phone number or an email address—whatever information is required by your payment method of choice.
And while some businesses are enthusiastic about accepting cryptocurrencies, others remain wary because they’re new and still untested.
Don’t worry if you have trouble finding a business that accepts cryptocurrency—there are still plenty that takes traditional currency but might be willing to change their minds in the future if enough customers demand it.
If you’re not comfortable with cryptocurrency, you can still pay your bills using digital money.
One option is crypto-backed loans, which are designed specifically for people who want to spend their Bitcoin (or other altcoins) but don’t know how or can’t afford to convert it into fiat currency.
Also Read: How to tell if it is a Cryptocurrency scam
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