Bitcoin is the most popular digital currency created in 2009. The main purpose of creating this digital currency was to give people a convenient way to send money over the internet. Nowadays, Bitcoin is used to make various online payments for goods, services, etc. Sending Bitcoin is different from sending money to anyone. Moreover, sending Bitcoin is also complicated; so in this article, we will discuss how you can pay someone with Bitcoin securely and easily.
If you want to pay someone with Bitcoin then that person must have a Bitcoin wallet to receive the Bitcoin. Every wallet has security keys and a unique wallet address. So when you want to send Bitcoin, you have to use his wallet address to facilitate the payment. The wallet address is blockchain system-generated so there is nothing to worry about the security of your Bitcoin payment. So when you are making the payment make sure the wallet address is correct or the payment won’t happen.
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- 1 Reasons To Send Bitcoin
- 2 How To Pay Someone With Bitcoin
- 3 How To Pay Someone With Bitcoin On PayPal
- 4 How To Pay Someone With Bitcoin On Cash App
- 5 FAQs About How To Pay Someone With Bitcoin
Reasons To Send Bitcoin
Bitcoin provides full control of your money so that you can easily transfer value anywhere in a very easy way. Moreover, Bitcoin also provides high levels of security therefore, over the years the use of Bitcoin has increased. There are many reasons people send Bitcoin. They are –
1. Use Bitcoin as a payment method to purchase something online
2. Easily donate money to a crypto-friendly charity
3. Send funds using Bitcoin to friends or family around the world
4. Make a payment for any type of services
5. In order to move the Bitcoin from one wallet to another wallet or one account to another account
6. Get a subscription to a live streamer on a platform like Twitch or dLive
7. To cash out your Bitcoin at select Bitcoin ATMs
How To Pay Someone With Bitcoin
Many people think that when making a Bitcoin payment, it requires the private keys, passphrase, or seed phrase of the other wallet. But that’s not true; you only need the public Bitcoin wallet address of the receiver to pay someone with Bitcoin. Below you will find the detailed step-by-step guide that will help you easily pay someone with Bitcoin.
Step – 1: Open An Account On Cryptocurrency Exchange
A cryptocurrency exchange allows you to send and receive various types of Cryptocurrencies including Bitcoin. There are lots of Cryptocurrency exchanges available and among them, Coinbase is the best option. Now follow the below steps –
- You can use Coinbase from your computer or download the Coinbase app on your iPhone or Android phone
- Now, if you already have a Coinbase account then log in to your account, or
- Register an account on Coinbase
- First tap on the Signup button
- Then you will be asked for the following information:
- Legal full name
- Email address
- Your State
- Now check the box and click Create account
- Coinbase will send you a verification email to your registered email address
- Click the link to verify your Coinbase account and your account is ready to use
Step – 2: Add A Payment Method
The next step is the payment method where you have to add a payment to your Coinbase account. Here are the steps –
1. Go to the “Payment Method” from your computer or,
2. Select Settings from your Coinbase mobile app and then tap on “Add a payment method”
3. Now select the type of account you want to link
4. Finally, follow the instructions to complete verification depending on the type of account you have chosen
Step – 3: Add Funds To Your Account
Once you have successfully added a payment method to your Coinbase account, now the next step is to add funds to your account. You can easily add funds to your Coinbase account. Just follow the below steps –
1. First, open the Coinbase app on your mobile and login into your account
2. Now tap on the Wallet Balance and then from the available options select the Deposit
3. Then in the currency type field select USD
4. Select the Bank Account tab and you will see your verified bank account
5. Now select the verified bank account and specify the USD amount that you want to add to your account
6. Finally, click on the Deposit USD button to complete the process
Step – 4: Buy Bitcoin
If your fund is added to your Coinbase account, then you can easily buy Bitcoin from the Coinbase wallet. Follow the below steps –
1. First, open the Coinbase app on your mobile and login to your account
2. Now from the upper right-hand side, select Buy/Sell
3. Then click the Buy field and then select Bitcoin from the available Cryptocurrencies
4. Enter the amount you’d like to buy
5. Then select the Payment method
6. Now click Preview Buy to confirm your purchase
7. If all the information is correct then click Buy to complete the purchase
Step – 5: Send Bitcoin
This is the final step where you will be able to pay someone with Bitcoin. Now follow the steps below –
1. First, open the Coinbase app on your mobile and log in to your account
2. From the main navigation bar, click on the Portfolio
3. Now select the Send button on the Portfolio page
4. In the next dialog box, you have to select the wallet address or provide the wallet address of the receiver
5. Then enter the amount of cryptocurrency you’d like to send in the Amount field
6. Select the Continue button
7. Finally, confirm the details of the transaction and click on the Send button to complete the process
How To Pay Someone With Bitcoin On PayPal
Now PayPal allows its USA users to send and receive Bitcoin on PayPal. The Checkout with Crypto feature of PayPal offers US Customers with Personal and Premier PayPal accounts to pay with Bitcoin for millions of online businesses. Here are the steps –
1. First, log in to your PayPal account
2. Now select Checkout with PayPal
3. Then select the Cryptocurrency
4. Review Terms and Conditions and click Got It
5. Finally, check the exchange rate and click Sell to complete the process
How To Pay Someone With Bitcoin On Cash App
Cash App allows its users to pay/send Bitcoin to another account; follow the below instructions –
1. First, open the Cash App on your mobile and log in to your account
2. From the Cash App home screen tap on the Banking Tab
3. Now select Bitcoin from the available Crypto
4. Then Press Withdraw Bitcoin button
5. Next, scan a QR code address or press the Use Wallet Address button to enter the wallet address manually
6. Then confirm the transaction with your PIN or Touch ID to send the Bitcoin on Cash App
FAQs About How To Pay Someone With Bitcoin
How long does it take to receive Bitcoin?
When you are sending Bitcoin or paying someone with Bitcoin, it might take up to 10 minutes to receive the Bitcoin. When you initiate a Bitcoin transfer, a new block will be created on Blockchain and usually, it takes 10 minutes. Moreover, it also depends on the transaction fees. If you are willing to pay a higher transaction fee then your transaction will be completed quickly. If you are paying Bitcoin from a Coinbase account then it won’t take more than 10 minutes to receive the Bitcoin unless there is any network delay.
What’s the Bitcoin network fee?
The Bitcoin network fee is the transaction fee that you have to pay while making a Bitcoin transaction. The Bitcoin network fee helps the miners prioritize Bitcoin transactions and confirmation times. Usually, the average Bitcoin network fee is $23.
Is there a limit on the amount of Bitcoin I can send?
No, there is no limit on the amount of Bitcoin that you can send to anyone. As long as your wallet has a sufficient amount of Bitcoin then you can send any amount of Bitcoin. Moreover, it doesn’t matter when you are sending or where you are sending the Bitcoin.
Can you cancel or reverse a Bitcoin transaction?
No, you won’t be able to cancel or reverse a Bitcoin transaction once it is confirmed. So, if you made any mistake then you can only ask the recipient to refund the Bitcoin that you have sent and that’s your only option.
Can I send Bitcoin to someone without a wallet?
No, you won’t be able to send someone Bitcoin without the wallet. It requires a wallet address to send Bitcoin and you can’t have a wallet address unless you have a Bitcoin wallet.
How do I cash out my Bitcoins?
There are many ways you can cash out your Bitcoin. They are –
1. Third-Party Broker Exchanges
2. Peer-to-Peer Platforms
3. Cash-out With a Bitcoin ATM
4. Using a Bitcoin Debit Card
Is Coinbase a Bitcoin wallet?
Coinbase is a Cryptocurrency wallet that supports Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, XRP, Stellar Lumens, Dogecoin, etc.
Is the Cash app a Bitcoin wallet?
Cash App is a Cryptocurrency wallet that allows you instantly buy, sell, store, withdraw, and deposit Bitcoin. So you can use Cash App as a Bitcoin exchange as well as a custodial wallet.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.