Wallet

To make a payment using cryptocurrency, you'll also need to have a wallet application. Wallets can be installed on your computer or mobile devices and act as an interface for accessing your crypto.

Your wallet doesn't actually store crypto; it holds the keys you need to access them—these are your private keys. Your wallet has a public key that is used in transactions; it acts like an email address that is used to send and receive payments.

There are hundreds of wallets available, each with different features. Some are compatible with nearly all cryptocurrencies, while others may only work with a few.

Most cryptocurrency exchanges provide a wallet for their users that lets them transfer funds to other exchange users or make payments using services that are compatible with the exchange's services. Many wallets can use your device's camera to scan QR codes to create unique addresses for sending and receiving crypto. Some even have near-field communication capabilities that let you make touchless payments in cryptocurrency.

Sending and Receiving a Payment

You'll need to use your wallet to send and receive payments. All wallets are different, so the Coinbase wallet is used for this example. In general, to make a payment or send cryptocurrency, you:

1

Open your wallet app

Click on Send Payment or a similar button

Enter the amount you want to send

Enter the QR code or wallet address of the recipient

Click Send or a similar button

To receive a payment, you would:

Open your wallet app

Tap Receive Payment or a similar button

Share your address (your public key) with the sender

Accept the payment when it appears in your wallet

Where Can You Pay With Cryptocurrency?

Cryptocurrency is still in its infancy, but the list of places you can use it to pay for goods and services is growing. Most businesses that accept cryptocurrency as payment do so through cryptocurrency payment gateways, which are payment service providers that generally guarantee cryptocurrency to fiat conversion at the time of the transaction so that there is no price slippage.