Cryptocurrency may sound daunting at first. After all, some baseline knowledge is needed before you can even get started holding the currency. For those who don’t know, cryptocurrency is an internet-based currency secured by the technology cryptography. Or in layman’s terms, it is a type of money that exists online. Cryptocurrency platforms secure digital currencies with special codes.
In some cases, cryptocurrency users must convert their coins to fiat to make purchases from leading retailers. The platform’s hesitation in accepting cryptocurrency has created a new opportunity for online businesses and marketplaces to bridge this gap. As a result, many consumers have since turned to a crypto marketplace to facilitate their purchases.
Cryptocurrency isn’t in the same space as fiat currencies. Therefore, rather than buy it at a local bank, users will need to open an account with access to the cryptocurrency market. Currently, the top three cryptocurrencies are Bitcoin, Ethereum, and XRP. Since Bitcoin is the most well-known, it is also one of the most accepted currencies. That said, the price of buying a single bitcoin on April 15, 2021, was 63,095 USD. Most users don’t have 63,000 to purchase a single bitcoin, so how can they make purchases with cryptocurrencies? Like, other currencies you can buy fractions of the coin similar to how you would for a penny, nickel or dime. Due to its high value, users can buy fractions of a bitcoin up to 8 decimal places. The smallest being the Satoshi.
More companies are warming up to the idea of cryptocurrency. Therefore, users may purchase currencies with slightly lower valuations to use in the purchase of goods. Users can buy Bitcoin, Ethereum, XRP and Litecoin from Cryptoexchange. The process is simple and will require the creation of an email and password. After, users can choose to fund the account with a wire transfer, credit or debit card and determine the fiat amount they would like to upload. Next, the cryptocurrency is selected, and the transfer will be completed in a matter of minutes.
Shop online with crypto
There are still a limited number of retailers that take Bitcoin in exchange for goods, including Newegg for electronics and Overstock for home furnishings. The eCommerce platform Shopify also allows small business owners to accept over 300 different types of crypto. On Shopify, users can browse through a variety of handcrafted items. For those looking for one-off or more high-ticket items, a cryptocurrency marketplace will offer the most variety.
A cryptocurrency marketplace is similar to a normal marketplace where users buy and sell goods and sell products such as luxury watches, supercars, domains or real estate. CryptoExchange is one of these platforms and is known for being a digital currency exchange and crypto marketplace. The platform’s multi-use and user-friendly design make it ideal for beginners.
Alternatively, a user may find a product or service offering on a non-crypto currency marketplace. Conducting a crypto transaction is still possible if both the buyer and seller agree to exchange it. However, cryptocurrency is immutable due to the blockchain underlying it. In case of disagreements, users must use a cryptocurrency escrow service to help facilitate the transaction.
Conducting a cryptocurrency transaction
Regardless of what users decide, the process of purchasing will be relatively simple. Users can browse most online sites as they would any other eCommerce platform and add items to their virtual cart when they find an offering they hope to purchase. Users can then proceed to the checkout page to provide shipping information and select crypto as their payment option. The platform will prompt users to include a wallet address. Wallets are a string of numbers and letters that identify the virtual location of a cryptocurrency. Users can find their addresses by accessing their digital wallets and copying out the code.
If users transact through a cryptocurrency escrow service, the process is similar to the one stated above. The only difference is that instead of transferring your coins to the retailer directly, users will go through the escrow agent. Funds are then held in escrow while the Seller ships the project and the escrow agent marks the transaction as complete.
As a reminder, cryptocurrencies still exist with minimal supervision by the government. Therefore, users should exercise caution and continue to understand the implications of buying and selling cryptocurrencies. With easy-to-use online crypto exchanges, purchasing these digital currencies is not difficult but can be subject to volatile price swings.
Before purchasing Bitcoin, users can engage a trusted platform or escrow service to facilitate the terms and conditions of the agreement.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.