Introduction
Crypto payments overview
Setting up a crypto wallet
How to pay with crypto
Using Kraken Pay
Kraken Pay step-by-step guide
Tips for using Kraken Pay
Get started with Kraken 🏁

How to pay with crypto

By Kraken Learn team
7 min
29 gen 2025
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Key takeaways
  1. Cryptocurrency payments, powered by blockchain technology, enable secure, peer-to-peer transactions that are fast, globally accessible and free of traditional intermediaries like banks.

  2. To start using cryptocurrency for payments, users need to set up a secure digital wallet, add funds and carefully follow steps to ensure key information is inputted correctly.

  3. Platforms like Kraken Pay make crypto payments easier with features like automatic currency conversions, custom Kraktags and easy-to-use interfaces. These features make digital transactions accessible for everyone to use.

A beginner’s guide on crypto payments 📚

Imagine paying for your morning coffee, booking your next vacation or upgrading your wardrobe—all with the tap of a button, using cryptocurrency. 

Once considered complex and futuristic, paying with digital assets like Bitcoin (BTC) and Ethereum (ETH) is now easier than ever. 

Thanks to its speed, security and global reach, cryptocurrency is gaining traction as a preferred payment method for people and businesses worldwide. From small everyday purchases to big-ticket items, the convenience of crypto is making it a go-to choice in today’s digital economy.

In this article, we’ll explore how cryptocurrency payments work, delve into the practical steps of setting up a crypto wallet and outline the process of making secure transactions using popular crypto payment options like Kraken Pay.

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Click here to sign up for your free Kraken trading account.

The Kraken Pay feature is not available to clients in the United Kingdom (UK).

How cryptocurrency payments work 👀

Cryptocurrency payments rely on blockchain technology—a fully-transparent, decentralized ledger that records transactions and other data.

Unlike traditional payment systems that require middlemen such as banks, blockchain payments are peer-to-peer, allowing direct transfers between users.

You can think of digital currency payments as sending an email over the internet, and traditional payments like sending a physical letter in the mail. The former takes place almost instantly and is sent directly to the recipient, while the latter can take several days and involves a number of costly intermediaries.

When you pay for something using digital assets, like booking a holiday with Solana (SOL), your cryptocurrency transaction is broadcasted to a blockchain network—a community of volunteers (called nodes) spread across the world who use their computers to independently check if the transaction is legitimate. After all, you don’t want people trying to spend crypto they don’t have.

Once verified, the transaction details are permanently recorded and stored in a digital block. Each new block is cryptographically linked to the previous one before it, creating a virtual chain of blocks. This is where the name "blockchain" comes from. 

Since a blockchain’s information is stored on multiple computers, it's very hard to tamper with. If somebody wanted to do something malicious, like try to alter the order of new transactions, they would need to access the computers of at least 51% of nodes in the network to do this. Not an easy feat when these nodes operate all over the world.

Want to dive deeper? Check out our Kraken Learn Center guide, What is blockchain technology?

SOL icon
$197.020
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BTC icon
$97.647.00
+0,91%
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Setting up a wallet for crypto payments 📝

Before you can make crypto purchases, you'll need a digital wallet to store and manage your coins. There are dozens of cryptocurrency wallet options available, from mobile wallets to hardware self-custody wallets, each boasting their own pros and cons.

Whichever option you choose, they each follow similar steps to get started:

  1. Choose a wallet application: Select a wallet that fits your needs. Options include hardware wallets (e.g., Ledger, Trezor), software wallets (e.g., Kraken Wallet, MetaMask), or exchange wallets (e.g., Kraken, Coinbase).
  2. Install the wallet app: Download and install the wallet on your device or access it through an online platform.
  3. Secure your wallet: Create a strong password and back up your wallet’s recovery phrase. Never share this information with anyone.
  4. Add funds: Most crypto exchanges allow you to fund your account using credit cards, debit cards, wire transfers or via bank transfer. You can use these funds to purchase cryptocurrency from an exchange and transfer it to your wallet’s address.

Our guide, How to keep your crypto safe, provides all the key information you need on crypto security best practices.

Steps to pay with Bitcoin and other cryptocurrencies ✅

Learning how to make online purchases with Bitcoin and other popular cryptocurrencies typically involves a number of steps, including: 

  1. Obtaining the recipient’s public wallet address (this may involve QR codes or copy and pasting in a person or vendor’s unique address).
  2. Accessing your wallet to initiate the payment.
  3. Inputting the correct address, cryptocurrency and configuring the blockchain fees.
  4. Waiting for sufficient confirmations before the payment is finalized.

For seasoned crypto users, this process may seem relatively straightforward. However, for those just starting out in their crypto journey, the prospect of sending cryptocurrency can seem incredibly daunting. Especially given the high risk of permanently losing funds if done incorrectly.

Using Kraken Pay for secure and efficient crypto payments 🔒

At Kraken, we’re dedicated to making the virtual currency world as accessible as possible for everyone. That’s why we’ve developed Kraken Pay; a simple, easy way to send crypto, fiat and other assets that even your techphobic Grandmother could use.

Need to pay for your share of a restaurant bill but only have Pepe (PEPE) in your crypto wallet? No problem. Kraken Pay supports over 300+ supported assets and automatically handles the payment conversion process, so both parties can send and receive their preferred currencies.

Want to send money to family overseas? Kraken Pay can process any form of payment near-instantly at a fraction of the cost compared to popular traditional payment channels.

Worried about fat-fingering the wrong crypto wallet address and permanently losing funds? With Kraken Pay, you no longer need to deal with confusing strings of characters. Instead, we've introduced Kraktags—simple, fully customizable unique IDs for sending and receiving payments.

Because let’s face it, Steve101 is a whole lot easier to remember and enter correctly than 37jKPSmbEGwgfacCr2nayn1wTaqMAbF94F.

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How to get started with Kraken Pay 🏁

Kraken Pay is available today on the Kraken app. If you already have a Kraken account, you’ll be able to start making crypto or fiat payments immediately.

Don’t have a Kraken account yet? No problem. Follow the simple steps below and start making seamless payments with your crypto in no time:

  1. Create a Kraken account: Sign up and complete the identity verification process.
  2. Fund your account: Deposit fiat currency or transfer cryptocurrency into your Kraken wallet.
  3. Secure your account: We take security very seriously at Kraken. It’s why we’re one of the most trusted and secure exchanges in the world. Once you’ve created your account, it’s strongly advised that you set up additional security measures such as two-factor authentication.

Tips for using Kraken Pay 🔑

Paying with crypto can be seamless if you follow these tips:

  1. Choose your asset: Kraken Pay lets you choose from more than 300+ assets, including stablecoins and government-issued currencies.
  2. Enter the receiver's details: Enter the recipient’s unique Kraktag and select which assets you’d like to send from your account. 
  3. Double-check payment details: Always verify wallet addresses, Kraktags, amounts and network fees before sending.

By following these steps, you’ll find it easier to pay with crypto, whether you’re buying products, services or making peer-to-peer transfers.

Understanding how to pay with cryptocurrency opens up a world of possibilities for secure, fast, and global transactions. By setting up a wallet, learning the steps to pay with Bitcoin or other cryptocurrencies, and utilizing platforms like Kraken, you can make your crypto payments smooth and efficient. Remember to stay vigilant and informed for a hassle-free experience as you explore how to pay with Bitcoin or other digital assets.

Get started with Kraken 🏁

Kraken Pay is your cryptocurrency payment gateway. With over 300+ supported assets, you have complete control and flexibility to send and receive payments however you want, whenever you want.

Sign up for your free Kraken account and start using Kraken Pay today!

Disclaimer

Geographic restrictions apply. Instant buy/sell fees apply when you convert one asset or currency to another when making a transfer. Please see our fee schedule for more information. Applicable fees will be shown before you make a transfer.

Although the term "stablecoin" is commonly used, there is no guarantee that the asset will maintain a stable value in relation to the value of the reference asset when traded on secondary markets or that the reserve of assets, if there is one, will be adequate to satisfy all redemptions