How to pay with cryptocurrency: steps and safety checks
To pay with cryptocurrency, send coins from your wallet to the merchant's address on the named network. Check the coin and network first. Save the receipt.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
On this page
- Merchants name the coins and networks they accept.
- A wallet must support that exact coin and network.
- The IRS treats crypto payments as property.
- Confirmations make a transfer effectively irreversible.
You will need a wallet that holds the merchant's coin on the merchant's network, plus enough balance for the payment and the network fee. Bitcoin payments are recorded on the public ledger of the Bitcoin blockchain, and a Crypto Converter can show the value in US dollars.
What you need before paying
Check the merchant's checkout page or invoice for the coin and network it accepts. A coin sent on a different network may not arrive. Set up a wallet that supports that coin and network, then fund it with enough for the payment and the network fee.
How do you send the payment?
Your wallet and the merchant's payment page both show details you must approve. Bitcoin transfers collect confirmations, and once enough confirmations are added, the transfer is effectively final; the sender cannot reverse it.
- 1Open the payment pageCopy the merchant's address and amount from the page, not from an email or chat.
- 2Match the coin and networkSelect the same coin and network the merchant names. A wrong network transfer often cannot be recovered.
- 3Compare the addressCheck the first and last characters against the merchant's page.
- 4Enter the amountType the exact amount and review the network fee before you confirm.
- 5Save the transaction IDCopy the ID your wallet shows after sending.
- 6Wait for confirmationsBitcoin transfers gain confirmations as new blocks are added, usually about every ten minutes on average.
What should you do after paying?
The IRS treats cryptocurrency as property, so a payment is a disposal for US taxes. Keep the date, coin amount, merchant's address, and transaction ID with your records.
Frequently asked questions
Yes, through a payment processor. It takes your coins, converts them, and pays the store in dollars. Match the coin and network the processor names.
Ask the merchant for an address on a network your wallet supports, or use a wallet that supports the network shown. Do not send to an address on a different network.
Send the merchant the transaction ID and the amount. On a public blockchain like Bitcoin, the merchant can look up the transfer and see confirmations.
