How to Make the crypto Payments in 2023
January 16, 2023
Satoshi Nakamoto invented the crypto, the first decentralised system of money. Satoshi’s endeavour was evident in the crypto’s whitepaper; enabling a peer-to-peer (P2P) form of currency that requires no intermediary. It is like exchanging hard cash, except you can do it with any the crypto address in the world without any regard for national boundaries. Each transaction on the crypto blockchain is permanent, anonymous and unchangeable.
Owning the crypto is quite a rage over the past few years in light of institutions keeping the crypto on their balance sheets officially, and more retail entering the space. A monthly $100 saved in the crypto since its 2017 peak would have yielded a gain of roughly $19,000 with your principal being $6,000. At the time of writing, the crypto has fallen by 75% from its all-time high and many are expecting good returns at current prices. Well, the Miami mayor is, because he is accepting the crypto paychecks! If you want to hop on the bandwagon too, here’s how to pay with the crypto and accept cryptocurrency payments.
Did you know: There are many crypto tax friendly countries that are looking to embrace the upcoming wave of cryptocurrencies and web3.
How to pay with the crypto?
- First things first, the crypto has to be in possession of the payer, stored in a wallet or an exchange. There are 3 types of crypto wallets:
- Online wallet – funds are held on a wallet that does not require any software and is accessible by a password or seed phrase. This is not the safest option, and large funds should not be held.
- Offline wallets – also known as ‘hot wallets’, are software that can be downloaded on the device and provide better security than online wallets.
- Hardware wallets – also known as ‘cold wallets’, are tangible devices that can be purchased from approved vendors. These wallets are the most secure method to hold crypto.
If held on an exchange, the custody of your asset is with the exchange, and you can access it by logging into your account.
- A prerequisite for sending the crypto is that the receiver must also have a wallet or an exchange account to hold the cryptos. Each of these wallets/accounts will have a unique identifier associated with it. The identity, known as the public address, will resemble an alphanumeric string, something like mkpamBSMbJp35ccbKJu3NHyArPsxQweatb.
- Think of the public wallet address as similar to a checking account number. If you were doing a bank transfer, you’d need the account number to transfer the money to, and the crypto is no different. This public address is the only information, along with the transfer amount required to make the transaction. Usually, that’s all you need—you don’t have to know the person’s name, address, or other identifying information.
- Unlike many payment applications, it is not necessary that the sender and receiver be using the same wallet or exchange for this transaction. Every public address belongs to the person with the private key and not the wallet service provider. These wallets can be accessed on any device with a reasonable interface and internet connection.
- Regardless of the type of wallet you’re using, it’ll have a similar user interface with a menu that lists options for managing your crypto. The send feature typically has boxes for you to enter the public wallet address of the person you’re sending the crypto to and then the specific amount of the crypto you want to send.
- Cross-check the address you’re sending the crypto to and complete the transaction. It will attract a transaction fee upon paying, the blockchain will update your transaction in 8-10 minutes which is the average block time for the crypto. The funds are now credited to your receiver’s address! They can withdraw it to an exchange, if not already there to cash out in other currencies, crypto or fiat.
A Better Alternative – Binamite
Remember how we talked about how the sender must own a wallet, exchange account and some crypto? And the receiver must have a wallet to receive funds in along with a common network between the payer and payee?
These constraints don’t exist for users on Binamite. Making cryptocurrency payments is a one-stop job at Binamite with a cryptocurrency payroll management system that provides end-to-end solutions for sending and receiving payments in any combination of fiat or crypto.
The payer need not have a crypto wallet or even crypto to send a transaction. Payment can be made using credit cards, bank transfers, or any other crypto. For payment on Binamite, the receiver can create cryptocurrency invoices denominated in a combination of crypto and fiat like the crypto, Ethereum and/or local currency that they would like to receive. Regardless of what the unit of exchange is, the payer can checkout using fiat/crypto and the receiver choice of crypto-fiat mix will be credited as stipulated in the invoice.
Any crypto/fiat that is received on Binamite is withdrawable into any wallet or bank account at all times. You can use Binamite to take your personal finance up a notch. A well-diversified holding will protect you against the volatility in crypto prices. Until the next bull market dawns upon us, you can strategically cater to your daily needs in fiat and keep stacking crypto simultaneously.