A new form of currency emerged in 2009. This type of money is known as cryptocurrency but it was originally given the name bitcoin. This was the first cryptocurrency to emerge on the market. Since its inception, cryptocurrency has been slowly gaining acceptance. About a decade later, cryptocurrency (bitcoin) is now gaining popularity in the world. You can see cryptocurrency styled ATMs out in public. Also, more people are now starting to understand the importance of this legal tender.
CoinPayments is a service that helps businesses to perform bitcoin transactions. The company’s goal is to increase the adoption of cryptocurrencies throughout the world. They accomplish this goal by implementing payment solutions that support cryptocurrency exchange. Keep reading to understand how Coinpayments works to provide this important service.
Since 2013, CoinPayments has been innovating payments by providing solutions for businesses to transact in hundreds of cryptocurrencies. Hundreds of coins supported, millions of users worldwide and the convenience of prebuilt plugins and integrations for all the major ecommerce platforms! The CoinPayments mission is to increase the adoption of cryptocurrencies globally by bringing innovative payment solutions to everyone, including the unbanked and under banked.
1. Understanding Coinpayments is about Understanding Bitcoin
In order to understand Coinpayments you must first know about bitcoin. Cryptocurrency is a form of digital money. This service is established through the use of an online ledger that has been created through a blockchain formula process. The technical side of this process is complex and will not be explained. However, it can be summed up by simply saying that it has been made to record financial digital transactions online.
A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.
a. What is bitcoin?
Cryptocurrency (bitcoin) is a form of digital money. This service is established through the use of an online ledger. People have three ways for picking up bitcoin. They can mine it from transactions, buy it on a cryptocurrency exchange, and/or accept them for goods and services they provide for people. Once a person gets a hold of cryptocurrency, they usually place it in a digital wallet. This is when a service like Coinpayments is used.
Keep in mind that bitcoins can be stored in a regular wallet through the use of a USB device. The digital currencies are also be stored on paper through printed information about keystrokes and passwords related to a bitcoin account or ledger. Sometime around 2020 there have been some money minters that are now producing physical bitcoin for the market. These special coins are extremely expensive to purchase.
Still, the coins do provide a secure way for people to protect their investments. However, the coins are still in the developmental stage and probably won’t be ready for mainstream use until the late 2020’s. In the meantime, many people rely on digital wallets to store their bitcoin.
b. What is bitcoin wallet?
Coinpayments is a company that provides digital wallet services. They were established in 2013 and have been providing secure bitcoin tech for people who deal with this new currency.
c. How do you use a bitcoin wallet?
In order to use a bitcoin wallet you will have to follow these simple steps. Open your account.
- Create a very strong password.
- Link your account to one of your private email accounts for added security.
- You will be assigned a bitcoin address for the purpose of making and receiving payments. You can then use this as my bitcoin wallet address.
- You should also keep generate new addresses for each transaction and keep track of the addresses that you have already used.
- When you complete this process Coinpayments will add bitcoins wallet your service.
This is an extremely oversimplified example about how all digital wallets work. Of course, there are more steps and important things you must know about using this service. Getting set up on Coinpayments follows this basic concept but more about this will be discussed later in the article.
d. Where do you get bitcoin from?
In the section what is bitcoin it was explained how to get bitcoin. Again, you will have to mine it from transactions, buy it from a cryptocurrency exchange, or accept them as a form of payment for goods and services. Sometimes, if you’re really lucky; you can also get it for free. Bitcoin mining is a fairly complex process, and it allows people to acquire bitcoin currency by ensuring that other people are honestly using their cryptocurrency. This is probably the hardest way to get bitcoin. Many people simply purchase bitcoin, or they accept it as a form of payment. Once they have it, they can simply store it in their digital wallet.
e. Where can you use bitcoin?
Bitcoin can be used anywhere businesses or people accept this form of currency. Remember, the only way that bitcoin can be used to make payments is for people to have bitcoin technology in place to send and to receive payments. This is another reason why Coinpayments are so useful.
f. Why are bitcoins so popular now?
Bitcoins are gaining popularity because the technology is in place for these types of transactions Also bitcoins are now gaining more acceptance by businesses and the general public. Again, if you look around you, they have bitcoin ATM machines that are starting to appear in various retail establishments. Some small corner stores are even having them set up inside of their business. By the year 2030, they will be (or at least should be) a standard form of payment for many businesses and consumers.
2. Understanding Altcoins and how they Work With Coinpayments
Altcoins are another form of cryptocurrency. Coinpayments also accepts and stores these types of cryptocurrencies as well. While Altcoins are similar to bitcoins, they do have some differences. Also, just so you know, altcoins are a form of cryptocurrency, but they are not bitcoins which are cryptocurrency.
This might seem confusing but it’s not. Just think about it this way. The U.S. dollar is a common form of currency used around the world. However, there are other forms of currencies used in the world as well. The U.S. dollar is the most accepted form of currency and it has a good value.
Still, places such as China, the European Union, and the U.K. have their own forms of currencies. It’s all money but with slight differences on use and currency conversion. You should also know that Coinpayments was created for the purpose of handling different types of altcoins. These different digital currencies will be explained in the next section.
a. What are altcoins and how does it work?
Altcoins work like bitcoins. Altcoins is also the name of any other currency other than bitcoin. The term altcoin simply means “alternative coins” or “alternative cryptocurrencies”. They can use a digital ledger to keep track of ongoing cryptocurrency transactions. The receipts are kept on an ongoing ledger that cannot be altered (not even by skilled hackers) once they have been created.
The transactions are also secured by complex mathematical formulas that appear in the form of blocks. This is why this form of payment is known as blockchain. Keep in mind that bitcoin does the same thing, but the rules for how both these cryptocurrencies work are slightly different. Altcoins processes cryptocurrencies faster than bitcoin and they also produce more. They too can be stored in digital wallets provided by Coinpayments.
b. What are the pros of Altcoins?
Altcoins provide competition to standard bitcoin and they have low transaction fees. They also have unique advantage over bitcoin such as higher cap amounts and faster processing.
c. What cons do Altcoins have?
Altcoins are extremely volatile and prone to fraud.
d. What are the different types of altcoins?
There are many different types of altcoin and some of them are Ripple, Ethereum, Dash, NEM, Litecoin, and Monero. Each of these different types of cryptocurrencies can be used in a Coinpayments digital wallet.
3. Background Information of Coinpayments
Coinpayments was created in 2013 in the Vancouver, Canada for the purpose of processing altcoins. Before 2013 no other service was being provided for cryptocurrencies other than bitcoin. Coinpayments realized that this was a huge problem. Many people and businesses didn’t have a place to put their altcoins once they acquired them. They had to store their currencies in digital places where they were prone to theft and fraud. The company Coinpayments began to process various forms of digital currencies and their business was born.
4. Purpose of Coinpayments
The main purpose of Coinpayments is to provide a safe and secure place for people to store and use their cryptocurrencies. The company has also been created to process different types of cryptocurrencies on the market. Coinpayments also provides businesses with the means to receive different forms of currency which in turn helps to improve their reach into the market since they accept this new form of digital money. The organization is ever expanding. Coinpayments makes it a point to constantly update their list of cryptocurrency coins for processing.
5. Features of Coinpayments
Coinpayments have a ton of features for businesses and individuals to use. Each of the main features will be presented here.
- Multiwallet Storage Capabilities
This feature will allow Coinpayments digital wallet holders to store large sums of cryptocurrencies from different types of altcoins. This means that a business or individual can store up to 1,340 different types of cryptocurrencies. This gives businesses and people the ability to process different types of cryptocurrencies.
- GAP600 Instant Confirmations Technology
GAP600 Instant Confirmations Technology is a service that Coinpayments use to verify transactions. It is necessary for stopping the problem of double spending which is easy to do with cryptocurrencies. By the way, double spending allows a cryptocurrency user to spend their bitcoins in 2 places at the same time.
This simply means that a person can use their cryptocurrency to support 2 different payments. It is similar to a person using a $50 bill to make a purchase at one store and then using the same $50 bill to make a purchase at another store. While this doesn’t happen with hard money. This is a huge problem with digital currencies. The industry is trying to keep it under control. Coinpayments uses the GAP600 service to ensure that this does not occur.
- Coin Conversion Functions
This function allows Coinpayments users to convert their various altcoins and bitcoins into other currencies and hard money. This is useful for clients that want (or need) to convert their bitcoins into cash.
Merchants and business owners can utilize the point-of-sale button to accept transactions directly from the customers and not just through computer.
- Shopping Cart Technology
Businesses can set up multiple shopping carts for their online stores. These carts are extremely secure and will keep track of customer purchases.
- Fiat Currency Settlement Tech
This feature allows Coinpayments users to automatically convert their digital currencies into cash to complete transactions. It can even perform automatic currency conversion for other currencies.
- Vault Storage of Cryptocurrencies
Vault storage that is offered by Coinpayments allows users to store their coins inside of a literal vault. Customers will have to retrieve their stored coin every time they want to use it. However, the coins are extremely secure with this method.
- Coin Payment Mobile
This function provides businesses the ability to make and receive payments with cryptocurrency. It is an app function that can help stores to process payments from different locations and on the go.
- Air Drop Support
Air dropping cryptocurrencies is a unique way that cryptocurrency companies send bitcoins or tokens to digital currency traders. The coins are given for free to get people to start using them or they are given in exchange for a small promotional service. Coinpayments accepts airdropped coins because not all digital wallet services accept them.
- Pay by Name
The Pay by Name feature allows users to receive payment based off a business’s or individual’s name. This feature streamlines the payment process, so a person doesn’t have to give their full name for the service.
- Low Fees
Coinpayments states that they have the lowest fees on the market. We’ll discuss their fees momentarily.
- Uses CPS Coin Processing
This service allows users to process CPS or utility coins.
- Coinbase Ripple Hack
This is a feature from Coinpayments that allow clients to receive coins that have been hacked or stolen by bitcoin thieves. This type of situation happens but Coinbase ensures it customers that they will receive back their stolen currency.
The feature allows bitcoin users to convert their currency into other coins or to automatically withdraw their digital currency on a set schedule. This will users to send the coin to a specific address if they choose or to simply convert their bitcoin into another form of currency.
- Auto-Converting and Forwarding
This is similar to the auto sweep feature. However, it is suited for merchants who will accept different types of altcoins that they want to be converted into only one type of cryptocurrency.
- Fiat Settlement
Fiat settlement allows merchants to convert various altcoins into different forms of money currencies used around the world.
- Discounts and Mark-Up Features
Discounts and mark-up features allow Coinpayments to provide consumers with discounted coin services and it is also useful for marking up unusual altcoins up for a profit.
- Personal Coinpayments Customers Additional Features
- Hold 2,045+ cryptocurrencies on one platform
- Buy crypto with your credit card
- Convert your crypto
- Purchase gift cards
Coinpayments has other features as well but these are the main benefits that this platform offers to clients. Keep in mind that all these different features (and many more not listed here) is what makes Coinpayments a very robust cryptocurrency service. Their services are very vast and having this flexibility makes it easy for clients to manage their bitcoin currencies.
6. Coinpayments Fees
Coinpayments fees are necessary for the company to make a profit. The company states that their fees are the lowest in the business. They have a fee scale which is a listed below.
- Payment/Commercial Activity Fee
- Incoming Payments – To Balance (funds go to CoinPayments Wallet) 0.5%
- Incoming Payments – ASAP (funds are forwarded to external address) 0.5% + coin TX fee
- Incoming Payments – Nightly (funds forwarded and available in nightly batch) 0.5% + coin TX fee
- Commercial Deposits (Callback Addresses created with our API) 0.5%
- Transfers (off-blockchain sends to $PayByName tags or email, etc.) 0.5%
- Wallet Service Fee
- Personal Deposits First 15,000 USD equivalent monthly: FREE
- After that: 0.5%
- Conversions coin TX fee2 + conversion partner's fees (if any)
- Withdrawals coin TX fee2
The various altcoins that can be used on the Coinpayments platform also have their own individual fees for use. These fees can be viewed at https://www.coinpayments.net/help-fees. Altcoins fees used on the Coinpayments services are made to be competitive with rivals.
7. Coinpayments Platform Safety
Coinpayments takes security seriously. They have an incentive program that encourages users to report any detected security weaknesses with their system. This program encourages users to report any bugs or any other noticeable flaws to the security settings within the service. The company also uses authentication, monitoring, and data encryption to secure your account information.
8. Coinpayments Pros and Cons
Coinpayments pros include safe and secure cryptocurrency transactions, the ability to process various altcoins, quick confirmations for payments, instant withdrawals when you need them, support of various coins, and is easy to use. The cons for the service is the long registration process and the long wait to create support tickets for issues.
9. Steps for Setting up Coinpayments
You can register with Coinpayments by going to the site and filling out the information that is required to hold an account. Once you fill out the information, your account will be set up. You can start the registration process at https://www.coinpayments.net/register. Your account will have to be verified as well. Once this happens you will be able to start using your account.
10. A Final Word about Coinpayments
Coinpayments is a solid platform for dealing with cryptocurrencies. This service is useful for acquiring, managing, and spending bitcoin. It is also useful for converting the digital currency into cold hard cash. The security features are outstanding and effective. The different features that are offered through Coinpayments are important and provides users with lots of flexibility for using their bitcoin.
Coinpayments various features allow the service to give clients a wide variety of options with how they manage their coins. Having these features makes Coinpayments a powerful competitor in the digital wallet market. Also, many Coinpayments customers are extremely satisfied with the service. They find very few flaws with the company and how it operates. Ultimately, Coinpayments is considered the number one digital wallet service for businesses and consumer. The service Coinpayments provide is outstanding and it is extremely useful for providing high quality digital wallet functions for cryptocurrency holders.