Online payments are one of the essential services that are said to be dominant in this fast-moving world. Now, it’s very easy to make online payments via banks and many other platforms; but all these require you to register an account before being allowed to access financial services.
Although many banking entities have employed security features for their customers’ best interests, if anyone ever accesses your bank account without your authorization, they can steal vital personal financial data and even your savings.
Crypto In Modern-day Financial Transactions
Recent hacking incidents have shown that many corporations end up falling victims to the sophisticated and well-orchestrated attacks by malevolent forces. This makes many online payment platforms open to possible fraud.
That’s why many people are said to find cryptocurrency or crypto very useful for making secure online payments because there’s no central authority or intermediary that could seize funds and sensitive information without prior consent. You may now even shop on Amazon with Bitcoin and other cryptocurrencies. Today, you can possibly pay your bank mortgage, electricity bill, grocery pick up, and the like with your crypto earnings.
Secure Payments With Crypto In 2 Easy Steps
With the recent boom and hype over cryptos, many financial institutions have started to slowly integrate digital currency into their services to better cater to their clients. Though it may sound Greek to many people, it’s said that transacting online with the use of different cryptocurrencies is relatively easy. Check out below to find out how to make secure payments with cryptos.
Setup A Crypto Wallet
To start using crypto in your online financial dealings, you’ll need to establish a secure crypto wallet first. There are many available in the market today and most of them are free. But what’s a crypto wallet? Think of a crypto or blockchain wallet as a pouch where you can safely store and manage your crypto stash.
Due to the recent massive attention over crypto and how they show a promising future, many crypto wallets are made available to many application stores and platforms. It’s advised that you only install software packages from official stores. Look for credible reviews and you may even ask around in different crypto communities about wallets online.
After installing a legitimate crypto wallet, it’ll prompt you to create a password that’ll be used to encrypt its private key and sign transactions. You must not forget this password because you’ll lose access to your wallet if you do. It’s recommended that you write down or take note of your password or use a password manager for convenience.
Once you’ve provided a password to your crypto wallet, it’ll generate your private key and wallet address. Never readily share this information with anyone for it holds your cryptocurrency collection.
There are different types of crypto wallets you can use for online shopping and other transactions, but most have similar steps to create an account.
- Cold Wallets
Cold wallets are offline storage options said to be more secure. Experts believe that they’re best if you’re holding a large amount of cryptocurrency. Examples of cold wallets are hard wallets and paper wallets.
A hard wallet is a physical device that’s used to manage your portfolio. Paper wallets, on the other hand, are like an offline electronic device where it’s printed as a paper-based wallet of which your private keys are written.
- Hot Wallets
Hot wallets are like your online checking account. Examples of hot wallets are web and mobile wallets. Web wallets are cryptocurrencies hosted on a third-party site where you have to enter your private key to access it. Mobile wallets are like an app version of a web wallet.
Send Your Crypto To The Recipient
The next step after securing a crypto wallet, you can now use it to send crypto to others. To do this, you’ll only need the intended recipient’s wallet address. You may ask the receiver to send it to you. Before proceeding, make sure that the address you entered is correct. A crypto wallet address consists of a string of characters. A small error in this step can lead you to send your money to the wrong account.
It’ll take some time to complete, but once done, you’ll receive a notification. When the transaction reflects in the crypto blockchain database, you can get the transaction hash sequence and use it to track your payment. You can do so by checking the block explorer for that specific coin.
You may also share the transaction hash with the recipient so that they can track it too. The transaction hash serves as a receipt and proof that a transaction took place and the payment will reflect on the recipient’s account once it gets confirmed.
Is Crypto Safe To Use For Payment
Have you ever received a call from someone before who claims to be a bank representative and will ask you for your bank details or credit card number? They’ll claim that there’s a problem with your account and you should help them by providing them with your banking details.
The question is how did they find your financial information to convince you that they’re real? Scenarios like the one mentioned happen because your personal banking data is stored in a database controlled by a single entity. This is one of the main downsides of centralized systems that cryptocurrency is trying to get rid of.
By using cryptocurrency, you don’t have to worry about a third-party company exposing your information thanks to blockchain technology. The transaction database is decentralized and it knows nothing about you except your wallet address.