If you’re planning to make most, if not all, of your purchases with Bitcoin, there are a few ways to go about it. We’re going to assume you already have a Bitcoin wallet set up and have some Bitcoin to spend. Once that’s out of the way, here are some ways to pay with Bitcoin.

1. Crypto Debit Cards

A crypto debit card works just like a regular bank’s debit card, except that it allows you to make purchases with your bitcoin or other cryptocurrencies. These cards are linked to your crypto wallet, and the funds are automatically converted into fiat currency when you make a purchase.

You can use a Bitcoin debit card to make an online purchase at any merchant that accepts traditional debit card payments. Some major crypto debit cards you can use to pay with the Visa network are issued by Crypto exchanges such as Coinbase, Binance, Crypto.com.

Pros: Widely accepted and offer cash back on select purchases.

Cons: Crypto debit cards may have relatively low spending limits and charge transaction fees (from zero to 2%) and conversion fees (from 2 to 3%). Most importantly, crypto credit cards defy one of the main purposes of Bitcoin. They do not guarantee your privacy. Visa transactions are stored in databases, so there’s always the possibility of your transaction data being hacked or leaked.

2. Payment providers such as PayPal or Venmo

If you have a Personal or Premier PayPal account, you can make online purchases and check out using Bitcoin, and your crypto holdings will automatically be converted to the fiat currency the merchant takes. While Venmo doesn’t let you make purchases using cryptocurrency, you can use it to transfer Bitcoin to businesses or vendors that accept crypto payments.

Pros: Ease of use, wide acceptance and also some degree of fraud protection.

Cons: The Payment providers security policies may come at the expense of complicated procedures to unfreeze your accounts which are frequently frozen due to potential signs of fraudulent activity.  Most of the times the transactions were fully legit but you would end with your account frozen and temporarily unable to access your funds. The most important downside of using payment providers is again privacy. Also payment providers transactions are stored in databases, so there’s always the possibility of your transaction data being hacked or leaked.

3. Direct payment from the Bitcoin Wallet

You can also use your Bitcoin wallet to make purchases directly from merchants or businesses that accept Bitcoin. Simply select the cryptocurrency option at checkout and enter your wallet details to pay.

Pros: 

Bitcoin was designed for this type of use. When you pay directly, you don’t need a third-party or intermediate service like Visa, PayPal or a crypto payment provider. This guarantees your full privacy. Furthermore, direct payments typically have lower fees compared to using a payment provider, especially if you use the Lightning network (see dedicated blog article)

Cons:  

Of course, a main issue with direct Bitcoin payments is the risk of fraud. Direct Bitcoin payments are irreversible, which can be a risk, especially if you use them at non-reputable merchants. There’s also a risk of fraudulent businesses posing as legitimate ones and accepting Bitcoin payments to scam customers. As there’s no intermediary, you’re on your own if the payment goes wrong. Another obstacle is the shortage of merchants who really accepts crypto as a payment method. Most online sources listing merchants that accept Bitcoin are inaccurate or not up-to-date (see dedicated blog article). It is not always easy to find places to spend your Bitcoin (Bitaggregator.com addresses this issue)

Wrapping Up There are several ways to use Bitcoin for your online purchases. Some ways are obviously more accessible than others. But others may be more secure or more private. It’s up to you to decide which method to use. If you only plan to buy from businesses that accept Bitcoin, direct payments are the way to go. If you want to use crypto for everything from your morning coffee to your grocery shopping using PayPal or a crypto debit card might be a better option.