Easy
How to pay in Bitcoins : full guide to use your cryptocurrencies in the real world
Using your cryptocurrencies to adjust purchases in daily life is sometimes possible thanks to various methods. Here is a detailed guide to understand how to pay in Bitcoin - a solution that includes direct payments between Wallet S, the use of specialized providers Lightning Network as well as the Crypto card which instantly converts your assets to Fiat .
Table of contents
How to pay in Bitcoins Bitcoin payment methods
How to pay in Bitcoins : direct payment via wallet to wallet
The most classic method to pay in Bitcoin is to make a transaction directly between two portfolles . In this process, the customer and the merchant each use a crypto wallet such as Metamask , Exodus or Trust wallet to send and receive funds.
Technical operation
- The merchant generates a single address in the form of a code incorporating the exact amount to pay in bitcoin .
- The customer scans the QR code with his wallet and validates the transaction .
- The transaction is broadcast on the blockchain and awaits several confirmations to be validated.
This method, called on-chain , is based on the main network of the blockchain . Although this solution offers security through cryptography and decentralized consensus mechanism, it is often criticized for its slowness. Indeed, an on-chain transaction can take between 10 and 60 minutes, or even more during the congestion periods of the network. This period is the compromise necessary to guarantee security and decentralization. This is why many alternatives exist.
How to pay in Bitcoins : payment via a Crypto payment service provider
To simplify the process and reduce exposure to volatility , many traders use specialized payment platforms These providers act as an intermediary between the customer and the merchant by managing the entire management of payments .
Detailed process
- The Customer chooses the “Pay in Bitcoin ” option on the site or in store.
- The service provider generates an invoice in the form of a code with a address bitcoin amount corresponding to the sum in Fiat .
- The customer scans the QR code with his wallet and signs the transaction .
- Upon receipt of the transaction , the service provider can immediately convert the amount to a fiat via instant conversion crypto funds to the merchant's account.
- The merchant receives a notification confirming the reception of payment.
Solutions such as Bitpay , Commerce Coinbase , Nowpayments or Shopify with Crypto facilitate this process. These providers simplify the collection in Bitcoin and allow the merchant to protect himself against the volatility of the course thanks to an instant conversion into Fiat currency. In exchange, they generally charge costs around 1 to 2 % of the amount paid. We nevertheless lose the idea of decentralization specific to Bitcoin, since a centralized intermediary intervenes in the treatment of payment.
How to pay in Bitcoins : payment by Crypto card
The Crypto card represents an indirect alternative to use your daily cryptocurrencies In this case, you do not make a Bitcoin payment directly , but your cryptocurrencies are converted to Fiat (euros or dollars) before being debited on your card.
Operation of a crypto card
- You have cryptocurrencies on a centralized platform (Binance, Coinbase , etc.) or a decentralized wallet (Ledger , etc.) and a crypto card is available.
- At the time of expenditure, the crypto card automatically converts the sum to Fiat thanks to an instant conversion
- The merchant receives payment in Fiat , without having to adapt to the specificities of the Bitcoin .
This system is particularly interesting for those who wish to use their cryptocurrencies without worrying about the complexity of transactions on the blockchain . Banking cards linked to a centralized exchange allow automatic conversion of funds to euros or dollars at the time of payment, but they involve entrusting its assets to a third -party platform and therefore to give up the holding of private keys .
Conversely, some more recent cards can be connected to decentralized wallets , in which the user remains fully master of his funds. In this case, cryptocurrencies remain stored on a portfolio whose user holds the private key , and conversion to Fiat currency only intervenes at the time of expenditure, via a gateway integrated into the portfolio. This helps preserve the spirit of decentralization , while benefiting from the universal acceptance of the traditional banking network.
The Lightning Network is based on an open payment channel system between two users. Once this channel has been created, they can perform an unlimited number of transactions between them, without them being immediately recorded on the blockchain . Only the opening and closing of the canal are registered on-chain. This brings together exchanges as a wholesaler of transactions , which considerably reduces the load on the main network.
off-chain functioning , payments are almost instantaneous, independent of the congestion of the network, and the costs are extremely low-often lower than a fraction of a penny. This approach is particularly suitable for micro-paids and daily uses such as the purchase of a coffee or a transport ticket.
In terms of traders, providers like Opennode , Strike or BTC Pay Server offer solutions compatible with the Lightning Network, allowing to accept instant payments without undergoing deadlines or costs associated with on-chain transactions .
How to pay in Bitcoins : technical details and practical aspects
Technical operation of Bitcoin transactions
At the heart of each Bitcoin transaction is the blockchain , a decentralized public register . Here are some essential technical aspects:
- Each transaction is signed digitally thanks to cryptography , ensuring flawless security
- On-chain transactions require validation by minors, which guarantees the integrity of the system .
- The validation process implies solving complex mathematical problems, making it possible to create new blocks.
- Transaction costs vary depending on demand on the network and the size of the transaction data .
This decentralized consensus mechanism ensures that each payment in Bitcoin is irreversible and traceable, even if this is made at a relatively long confirmation time.
Safety and management of payments in cryptocurrencies
Security is a major concern when using cryptocurrencies . Here are some recommendations for management management :
- Use a wallet or a wallet to store your cryptocurrencies .
- Make sure you save your private keys and recovery sentences in a safe place.
- Always check the authenticity of QR code and addresses before launching a transaction .
- Update your software and Wallet Crypto safety improvements .
The use of providers safety protocols to protect funds from fraud and attacks.
Accounting and tax management for merchants
For merchants who accept Bitcoin payments , payments management must be accompanied by rigorous accounting management and precise tax monitoring. Here are the essential points:
- Record each transaction with the date, time, bitcoin and its equivalent in Fiat at the time of payment.
- Use specialized tools to automate the conversion and reconciliation of transactions .
- Keep evidence of each payment in order to be able to justify the amounts during tax controls.
- Consult experts in decentralized finance to adapt your practices to the regulations in force.
This accounting rigor is essential to avoid tax complications and guarantee transparency in the management Bitcoin payments .
How to pay in Bitcoins : Bitcoin network slow?
Bitcoin 's on-chain network is based on decentralized mechanisms that ensure security and resistance to outstanding censorship. However, these advantages come with a cost in terms of speed:
- transactions validation process requires adding each operation to a block, which can take 10 to 60 minutes, or more during periods of high demand.
- The costs increase with the congestion of the network, making micro- payments sometimes economically non-viable.
- The compromise between security and speed is at the heart of the design of the Bitcoin : the faster the transaction , the more risk of compromise on the reliability of the blockchain .
This slowdown has led to the development of alternative solutions, in particular the Lightning Network , which offers Lightning technology allowing instant payments based on an off-chain .
How to pay in Bitcoins : comparison of different payment methods
Bitcoin payment method has its advantages and disadvantages in terms of costs , speed, security volatility management . Here is a synthetic overview:
- Wallet in Wallet :
- Advantages : Total control over your cryptocurrencies , lack of intermediate costs
- Disadvantages : long confirmation time, exposure to volatility .
- Payment provider :
- Advantages : Instant Fiat conversion , simplified transactions management .
- Disadvantages : Service costs (often 1 to 2 %), dependence on a third party.
- Map Crypto:
- Advantages : Universal use with merchants accepting the Fiat , automatic conversion
- Disadvantages : It is not a direct Bitcoin , dependence on conversion rates. Dependence on a third party.
- Lightning Network :
- Advantages : Instant payment , very low costs , ideal for micro-payments .
- Disadvantages : requires the opening and management of payment channels, a solution still in the adoption phase for certain traders.
Use your bitcoins to pay: what tax obligations?
The tax management of Bitcoin payments varies according to the courts, but implies in many countries-such as France-a taxation on capital gains during any crypto-fiat or direct payment in cryptocurrency .
In France, each time an individual uses his bitcoins to buy a good or a service, he is considered to have sold a digital asset, thus generating a possible taxable capital gain . The latter is subject to the single flat -rate levy (PFU), also called flat tax , at the rate of 30 %. It does not matter that the merchant accepts the payment in Bitcoin or that the conversion is made automatically by a card or a service provider: in both cases, the tax administration considers that a sale of assets took place.
To manage this complexity, tools like Waltio , Koinly or Cryptotaxcalculator allow to automate the calculation of capital gains , to import transactions from wallets or exchange platforms, and to generate tax reports adapted to French regulations. These solutions are particularly useful for active users or those who make regular payments in cryptocurrencies .
How to pay in Bitcoins : practical cases and concrete examples
Example of an online merchant
digital currency accessories offers several options to pay in Bitcoin :
- During the checkout, the customer chooses the method of payment in Bitcoin .
- The site redirects the customer to an interface provided by a service provider such as Coinbase Commerce or Bitpay .
- The service provider generates a personalized QR code address and the amount to be paid in Bitcoin .
- The customer scans the QR code with his crypto wallet and signs the transaction .
- As soon as confirmation of the transaction , the merchant receives a notification and ships the order.
This process ensures immediate conversion FIAT if necessary, limiting exposure to Bitcoin .
Example of a physical merchant
In the case of a local business, for example a fast food store, the acceptance of Bitcoin is often done via a payment terminal integrated into a service provider :
- The terminal displays a QR code with the payment address and the amount in Bitcoin .
- The customer scans this QR code from his wallet and sends the transaction .
- The provider detects the transaction and performs an instant conversion to Fiat to credit the merchant's account.
- The merchant receives confirmation of payment and the customer can immediately recover his order.
This solution is particularly suitable for avoiding waiting times related to confirmations on the On-Chain , while offering an instant payment .
Integration of Lightning Network in daily trade
Lightning Network is useful in particular for purchases requiring speed of execution, such as the purchase of coffee or transport tickets. For example :
- The merchant installs a system based on BTC Pay Server compatible with the Lightning Network .
- At the time of payment, the customer scans a specific Lightning Network Code .
- The transaction is carried out almost instantly, with costs , often less than 0.001 €.
- The system records payment in an open payment channel, which will then be regularized on the blockchain when closing the channel.
This method is ideal for micro-paids and makes it possible to avoid the periods and costs associated with on-chain transactions .
How to pay in Bitcoins : evolution prospects and future innovations
Research and innovation in the field of cryptocurrencies and decentralized finance are constantly progressing. Several axes of improvement must be noted:
- Optimizing transaction protocols to further reduce costs and time on the blockchain .
- The development of new hybrid solutions combine the advantages of on-chain transactions and Lightning Network .
- Improving user interfaces of Wallet S and payment platforms for more intuitive integration in the daily life of consumers.
- The rise of crypto cards and their large -scale adoption, allowing conversion and universal compatibility with the traditional financial system.
- transactions themselves without intermediary, thus strengthening decentralized finance and financial sovereignty.
Bitcoin payments even more accessible and effective, thus meeting the needs of a full change market. Sector experts provide further integration of instant payment in various sectors, ranging from e-commerce to local services.
Conclusion on cment to pay in Bitcoins
In summary, paying in Bitcoin is still marginal on a daily basis but the main options are:
- Direct payment via Wallet S, which offers total control but requires a confirmation period due to the ON-Chain .
- The use of payment providers conversion into Fiat transactions management .
- The crypto card which allows the use of cryptocurrencies held on a centralized or decentralized platform, by converting instantly into traditional currency.
- The adoption of Lightning Network for instant payments and low- cost micro-paids .
Each method has its advantages and limits, and the choice will depend on the specific needs of the merchant or the user. While the Bitcoin offers security and decentralization, its confirmation time remains an obstacle for large -scale daily uses. The development of Lightning Network opens up new perspectives for a massive and fluid adoption of cryptocurrencies .
Investments in cryptocurrencies are risky. Crypternon could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a property or service put forward in this article. Readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. Past performance does not guarantee future results. This article does not constitute an investment .
Certain links of this article are sponsorship links, which means that if you buy a product or you register via these links, we will collect a commission on the part of the sponsored company. These commissions do not train any additional cost for you as a user and certain sponsorships allow you to access promotions.
AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
All our articles are subject to a rigorous verification of the facts. Each key information is verified manually from reliable and recognized sources. When we cite a source, the link is systematically integrated into the text and highlighted by a different color, in order to guarantee transparency and allow the reader to consult the original documents directly.
To go further, read our pages legal notices , privacy policy and general conditions of use .
Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
