Wednesday, June 29, 2022

How Do You Pay Someone In Bitcoin

How To Pay Someone With Bitcoin

How to PAY with BITCOIN and make your first Bitcoin Transaction in 2020

Everybody loves a friend who gives away free money. Paying friends and family with Bitcoin is really straight forward: ask them for their wallet address, and pay them directly.

What if your friends or family dont own a wallet ? You can also send Bitcoin via email using Blockonomics Bitcoin Mail feature. Once the recipient receives the email, theyll be invited to accept your Bitcoin transfer.

At Blockonomics, were creating greater utility for Bitcoin. Our tools include the worlds most popular wallet watcher, address tracker, a payment processor with free merchant tools for e-commerce stores such as WordPress and Prestashop, peer-to-peer invoicing, and BTC payment links.

You can read more about Blockonomics Bitcoin tools here:

Why Are Some Bitcoin Transactions More Expensive Than Others

Now let’s imagine Alice buys one more BTC at a later date from a different miner. Alice will then have 2 BTC in her wallet, but each one will have originated from different ‘notes.’ In effect, this means Alice has two 1-BTC notes in her wallet. If Alice wants to send 2 BTC to Bob, she’ll be sending those two notes. And since more notes means more data, and more data means higher cost, this transaction will be more expensive than if Alice had sent a single ââ¬Ënote.ââ¬â¢ Put another way, the transaction will consume more bytes, so Alice will have to pay more satoshis to convince a miner to include it in the next block.

For the average user, this means you’ll end up paying significantly more for a transaction if it involves moving many ‘notes.’ For example, imagine you’ve received a hundred small payments into your wallet from different people, over a period of months, until you’ve accumulated one full bitcoin. Now, if you want to send that one bitcoin to someone else, you’ll actually be sending 100 ‘notes.’ This will incur significantly more fees than if you’d sent a single ‘note’ as our miner did in the first example.

How To Pay Bills With Bitcoin

In order to make a living off cryptocurrency, your bills will need to be paid from it too. A growing number of crypto startups, such as or CoinBills, are offering the ability to pay bills with Bitcoin, including credit cards, utilities, and more. All you need is your account number, which is typically found on your bill statement.

Paying bills with Bitcoin is straightforward: create an account, choose the bill youd like to pay, then enter your account number and amount that youd like to pay. Make a payment using your Bitcoin wallet, and once its confirmed, your bill payment will be submitted. Depending on the bill provider and cryptocurrency facilitator, it could take a few business days for it to appear on your statement.

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Living Room Of Satoshi

The Living Room of Satoshi platform is an Australian-based cryptocurrency bill payment system that is already seeing substantial use in the country. This 2014 startup is currently processing around $1 million a week in small bills for BTC users in Australia. The system is integrated with the BPAY bill system to provide users access to the most popular service providers in the area.

This platform is excellent in its abilities and overall informative feel. You can see the actual payment statistics of the platforms users by category for the last 14 days. A quick review of this data is truly eye-opening. Credit cards bills are the #1 bill paid on the platform followed by the internet, phone, electricity, and gas. The platform even allows you to pay your rent with crypto.

This is truly a remarkable tool for the BTC users of Australia and hopefully, they will expand their operation in the future.

How To Pay Freelancers And Employees With Bitcoin

Why Small Businesses Should Start Considering Bitcoins As ...

During and after COVID-19, companies that manage remote teams have and will continue to look to pay freelancers, contractors, and employees with Bitcoin. Cryptocurrency payments are faster and significantly cheaper than PayPal or bank transfers which is one of the greatest utilities that Bitcoin provides.

If you require an invoice, you can pay remote workers with Bitcoin using two methods:

  • Ask them to create an invoice for you, which includes their personal BTC address, and pay them directly
  • Ask them to generate a Bitcoin invoice for you, which creates a more simple way for you to track and facilitate invoice payments
  • If you dont require an invoice, you can ask them to create a Bitcoin payment link. Similar to PayPal.me, you can click their payment link and pay much faster than conventional methods.

    At Blockonomics, we have two different tools to pay your freelancers or employees with Bitcoin: by creating invoices and generating payment links.

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    Things To Consider When Holding Cryptocurrencies

    The laws around cryptocurrencies vary country to country and some require you to declare cryptocurrency assets in the same way as other assets. Organizations looking to buy Bitcoin or other cryptocurrencies should ensure their legal and financial departments are aware of the risks and compliance requirements around these types of assets and a clear line of responsibility is made to establish ownership of the crypto-assets.

    Transactions in Bitcoin can be viewed as money laundering under various policies and laws, warns Rogers. This is a great way for an internal party to transfer large funds into an unstoppable transaction to flow out of the company. The US federal government has already shown interest in making it difficult to pay the ransom for this reason.

    Having a clear and tested incident response plan is also advisable, including identifying key stakeholders, establishing processes for making payments, deciding whether you’ll negotiate or haggle with attackers, and verifying that attackers have decryption keys. Whether you plan to engage with third parties such as a broker or cyber insurance firm should also be included in your planning.

    More on ransomware:

    How To Pay With Bitcoin : Explained

    The leading cryptocurrency bitcoin is now accepted by several vendors all over the world as a legitimate mode of payment. In this detailed article, we will provide you with a detailed set of guidelines that will help you know how to pay with bitcoin in 2020.

    Currently, the market capitalization of the leading cryptocurrency, bitcoin is over 169 billion US dollars with a 24 trading volume of over 29 billion US dollars. Several crypto experts will tell you that bitcoin is good as a store of value rather than as a means of payment, but it is not entirely true. Bitcoin has all the features to work as a successful means of payment, and many vendors around the world believe so too.

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    Select The Wallet And Cryptocurrency You Want To Pay With

    a) Select the wallet / exchange service you want to pay with.

    b) Select the currency you want to use to pay the invoice.

    c) Use your wallet to make the payment, see step 2.

    Note:

    • Some cryptocurrencies are not available for all wallets. For instance, Ethereum and USD stablecoin deposits can only be done via DApp browsers, web3 wallets, or wallets which have implemented the JSON payment protocol.

    Order A Bitcoin Debit Card

    How To Make A BitCoin Payment Using An Online Wallet Service

    Nowadays, there are several companies offering Bitcoin debit cards. Choosing the right one for you will largely depend on three factors: where you live, which currencies you use, and how much you are willing to pay for it. You can compare the available payment options using this tool.

    If youre planning on ordering the Crypterium Card, simply go to the Card section to apply for a card. At the moment, you can choose between a UnionPay and Visa card. Our cards are available in more than 200 countries.

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    Where To Store Bitcoin

    Cryptocurrencies are held in wallets, programs that hold your public and private keys. Wallets allow you to send and receive payments, show balances, and interact with different blockchains.

    The public key is the designated location where transactions are deposited to and withdrawn from, almost like a bank account number. These are usually in the form of 26 to 35 random alphanumeric characters.

    Private keys are more like passwords that enable currency to be moved away from the wallet. Private keys on wallets are important. Lose them and your wallet will be inaccessible and its contents will be lost. Have your private key stolen and you run the risk of having your cryptocurrency stolen. Some wallets will create a secure seed phrase containing a set of words that will allow you to unlock your wallet if you lose your keys.

    There are different kinds of wallets for different purposes: Cold wallets are offline hardware wallets, often in the form of USB sticks, that can only be accessed via physical means. These are more secure that online wallets but have less redundancy in that the loss of that hardware token renders the wallet inaccessible.

    Words of warning: While being more connected and potentially user friendly, online wallets also run the risk of being more easily compromised by attackers.

    Returning Of Goods And Refunds

    Another downside of using bitcoin for payment is that most goods are priced in dollars and the price of bitcoins is constantly in flux, significantly changing from day-to-day. Lets say, you paid 1 bitcoin worth $1,000 and are entitled to a refund of $1,000 at a later date. The problem is, a bitcoin might be worth $2,000.

    The company would naturally want to refund you the $1,000, which was the agreed upon price. However, they would end up profiting at the customers expense. Thus, creating a potential for conflict.

    In order to avoid such situations, most companies dont offer cash refunds for bitcoin payments. For example, Overstock only offers company credit instead of cash refunds or in the case of damaged goods, it offers to replace the item.

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    How To Pay Employees Or Get Paid With Bitcoin

    Paying or getting paid with digital coins is the norm in the cryptocurrency sector. Participants in many other industries, however, may also be tempted to take advantage of the benefits offered by decentralized currencies. In the case of bitcoin cash , that means fast, secure and low-cost transactions. Some platforms facilitate crypto payments between companies and their employees, while peer-to-peer settlements remain a viable option as well.

    Also read: BCH Can Be the Global Coin for Daily Spending, Says Italian Crypto Executive

    Crypto Payroll Services Offered

    What can you buy with Bitcoin?

    Businesses exploring the possibility of introducing crypto payments for their employees and contractors may need the help of companies that specialize in this type of accounting. Bitwage is a well-established platform that provides payroll and human resource services for this day and age, when the use of digital currencies in payments is growing rapidly around the world.

    Bitwage helps international companies pay their vendors faster and cheaper using crypto. Many of its clients are employers who want to offer their workers and contractors benefits associated with digital assets. At the same time, it provides individuals who would like to get paid with coins the option to receive some or all of their salary in cryptocurrency.

    The platform, which has offices on both sides of the Atlantic and customers from Brazil to India, is working with businesses that need extensive payroll and HR services. It offers a wide range of flexible solutions and pricing to both employers and employees. For payroll funding, Bitwage currently supports bitcoin core and ethereum as well as multiple fiat currencies including U.S. dollar, Chinese yuan, Russian ruble, and euro.

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    What Is The Current Status Of Bitcoin Fees

    At present, there are more than 5000 transactions pending in the mempool the size of which is increasing every day and Bitcoins blockchain is validating more than 300,000 transactions per day, the highest in Bitcoins history.

    Currently, resulting from the massive traffic on the Bitcoins blockchain, transaction fees have skyrocketed.

    At the time of writing this article, according to bitcoinfees.earn.com, the fastest and cheapest fee was 25 satoshis/byte. Satoshi is the smallest unit of a BTC. You can read about it here more.

    People are paying almost $0.5 for a $100 transaction which is a muniscle.

    How Is Bitcoin Transaction Fee Decided

    On Bitcoins blockchain, the transaction fee is decided by the free market forces.

    Free market forces mean anyone is free to set their own transaction fee and can send transactions. In a way it is good but it has its disadvantages too when you have less space.

    We all know that miners who are incentivized by the Bitcoin network in the form of block rewards plus the transaction fee are naturally inclined towards maximizing their profits.

    They can maximize their profits in two ways:

      Technically, finding more blocks is energy and cost-intensive process which takes time, and thus makes sense in including transactions that pay them more first.

      So because of free-market users deciding the fees of the transaction, as well as the limited 1 MB space, finding a place in the blocks has become expensive.

      Free market users who cant wait for longer durations for their transactions to be confirmed naturally attach more fee per bytes to their transactions, thereby pushing the free market average fees higher.

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      How To Receive Bitcoin Payment Via Trustee Wallet

      As soon as you create a new Bitcoin address in your Trustee app, it can be easily copied in one click. That is the basic way we mentioned just now. Alternatively, if the person who wonders how to make a bitcoin payment to you is somewhere nearby and they have a Trustee app too, use QR codes.

      You need to select your digital asset , push the Receive button and show the payer the code. In turn, they need to push the Send button and push a little QR-code pictograph in the addresses line. They then catch your code with the camera and type in the amount of crypto to spend.

      Trustee takes no extra commission for transactions like this, isnt it lovely? Well put the download links below if you dont have the mobile app yet.

      Choose Your Bitcoin Wallet

      OpenDime – Easily Pay or Gift Someone With PHYSICAL Bitcoin

      Before being able to pay with Bitcoin, you must find a wallet where you can store your digital currency. This will serve as your Bitcoin bank account through which you can store, pay, and receive money. There are many free crypto wallets on the web, and they all work well on both desktop and mobile devices. Just make an account using your personal details, and youre good to go.

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      First Lets Rewrite The Question:

      Before you can ask Can you tell me how to add money to Bitcoin wallet? you need to ask, Can I add money to my Bitcoin wallet? The answer, much like our relationship with Coinpapa, is Its complicated.

      Lets back up. A crypto wallet is a cross between your bank account and your mailbox for cryptocurrencyits the place where you can send, receive, and store coins, and its also where you can see a record of all of your transactions. But a crypto wallet is, by its very nature, for cryptocurrency.

      So the answer to the question depends on what you mean by money. If by money you mean Bitcoin or other cryptocurrency, then yes! You can buy Bitcoins and send them to your wallet . But if by money you mean fiat currency, such as a Dollar, Euro, or Yen, then the answer is no. While on some exchanges you can link your credit card or bank account, that link is to the exchange and not to your wallet. In other words, you cannot add fiat to your crypto wallet.

      How Does One Calculate The Btc Transaction Fees

      Now comes the million-dollar question: How much fee should one actually pay for a BTC transaction to be successful?

      According to bitcoinfees.earn.com this is the recommended fee chart:-

      On the left side in the image above is the free-range one can select in satoshi per byte, and on the right hand is the number of expected blocks and waiting time.

      Currently, the suggested minimum fees are 21-30 satoshis per byte for which you will get a place in the very next block, the waiting period for which is roughly 10-30 minutes.

      Whereas, if you put a fee which is 5% less , you will get a place in the next 1-3 blocks with an average waiting time of 60-70 minutes.

      I would recommend you wait for your transaction to arrive if you are not in a hurry. You can put anything 30-50% less than the highest recommended fee from bitcoinfees.earn.com, which is roughly around 12 satoshis per byte, the waiting time for which is 3-4 hours.

      This way your transaction fee can come down to almost 50% i.e. which is still acceptable if you are making a significant transaction. You can learn more about Satoshis and its calculation from our blog post: What is Satoshi? Satoshi To BTC & USD Converters.

      Tip: If you are transferring Bitcoin from one of your wallets to another and if you are not in hurry, you can select 1 Satoshi/byte.

      I would like to give you some tips for reducing your fee on Bitcoins network. Some of them are:

      Waiting for your comments.

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      Enter Details Of The Receiver

      Regardless of which cryptocurrency service youre using, the final step is always to enter the wallet address of the receiver. As previously outlined, you can enter it manually on the wallet app or scan the QR code.

      Crypterium offers a different approach to smooth the process. Instead of entering the wallet address of the seller, you can input a mobile phone number or select a contact from your phonebook.

      The seller receives a SMS with a link to a brand new Crypterium Wallet loaded with the funds. Then, he or she can decide whether to keep them there or do something else with them.

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