After purchase, it is necessary to provide secure storage of cryptocurrency, guaranteeing protection against hacking and theft. Cryptocurrency is usually stored in cryptocurrency wallets. These are physical devices or online programs used to securely store cryptocurrency private keys. Some exchanges provide wallet services so that cryptocurrency funds are stored directly by the platform itself, but not all exchanges and brokers provide such services automatically.
There are also different wallet providers. There are two types of storage of funds: “hot wallet” and “cold wallet”.
A hot wallet is a cryptographic storage facility that uses online software to protect the private keys to assets.
A cold wallet (also called a hardware wallet), unlike a hot wallet, uses offline electronic devices to securely store private keys.
Generally, there is a fee for using cold wallets and no fee for using hot wallets.
What can I buy with cryptocurrency?
Bitcoin was originally conceived as a medium for everyday transactions, allowing you to buy anything from a cup of coffee to a computer or even expensive items such as real estate. These plans have not yet fully materialized. Despite the growth in the number of institutions accepting cryptocurrencies, large transactions using cryptocurrencies are quite rare. Nevertheless, it is possible to buy various goods with cryptocurrency on e-commerce sites. Here are a few examples.
Technology companies and e-commerce sites
It is possible to make payments in cryptocurrency on the websites of individual companies that sell technology products. Examples include newegg.com, AT&T and Microsoft. E-commerce platform Overstock was one of the first sites to accept bitcoins. Bitcoins can also be used to pay for purchases at Shopify, Rakuten, and Home Depot.
Luxury Goods
Some luxury retailers accept cryptocurrency as a form of payment. For example, online luxury retailer Bitdials offers Rolex, Patek Philippe, and other exclusive watches for bitcoins.
Cars
Some car dealers, from mass-brand sellers to luxury dealers, also accept cryptocurrency as a form of payment.
Insurance
In April 2021, AXA, a Swiss insurance company, announced that it would begin accepting bitcoins as a payment method for all insurance programs except life insurance (due to regulatory concerns). Premier Shield Insurance, which sells property and auto insurance policies in the U.S., is also accepting bitcoins to pay premiums.
To pay with cryptocurrency at a store that does not accept it directly, you can use a cryptocurrency debit card, such as BitPay in the United States.