Cryptocurrency has been gaining traction in the past few years, and it shows no signs of slowing down. But if you’re unfamiliar with it, you might wonder why anyone would choose to use cryptocurrency over fiat currency (aka government-backed money). Cryptocurrency offers many benefits for travellers, including privacy and protection from exchange rate changes when you shop abroad. If you are planning things to do in Akureyri or wherever your next vacation is and are hoping to use cryptocurrency to make your travel easier, here is all you need to know about using cryptocurrency for travel.
Using Cryptocurrency for Travel
Where to get started
If you are interested in learning how to use cryptocurrency, start by making an account with Coinbase or Kraken. Both allow you to purchase cryptocurrencies like Bitcoin and Ethereum with a credit card. When you want to withdraw your coins, there are many websites that will trade your coins for other currencies, depending on what your needs are. For example, if you want Euros, simply find the website that trades Bitcoin for Euros and make the exchange. The only difference is paying taxes on your profits.
How do you store your currency?
There are a few ways that you can store your cryptocurrency. The first is to keep it in an account on the exchange, or any other website or software that you trust, as these exchanges have been getting hacked with regularity. Secondly, you can use a hot wallet which is one connected directly to the internet. Thirdly there are cold wallets which are offline devices where you put your private key. Finally, if you want more security and control over your funds, then hardware wallets are the best option. These are physical devices like USB sticks or external hard drives that hold only the information needed to access your money and nothing else.
What if you don’t have any yet?
Start by opening an account on Coinbase. This popular cryptocurrency platform offers an easy-to-use, intuitive design with plenty of info to help you along the way. Once you sign up, they’ll give you a $10 gift card which you can use as your first bit of digital currency. Then pick the cryptocurrency you want to start investing in and decide on how much money (in either US dollars or the cryptocurrency) you want to invest. The investment will show up instantly on your screen and the price will update accordingly to reflect its value in relation to USD or other cryptocurrencies.
Where can you spend crypto-currency?
Buying cryptocurrency might not be a possibility for everyone, but it’s becoming easier to spend it as time goes on. With more merchants accepting cryptocurrencies every day, there are more ways than ever before to spend your coins. The possibilities are limited only by what you’re willing to buy with them. Here are a few ways to use crypto in travel:
- Flights: CheapAir and Air France offer flights from Paris and other cities in Europe.
- Hotels: Booking sites like Expedia offer hotels that accept crypto, including some of their luxurious properties.
Can you buy flight tickets with crypto-currency?
Typically, you can’t buy flights with cryptocurrency like Bitcoin or Ethereum. However, there are some airlines that allow you to use these currencies as a payment option when booking your flight. Airlines that currently offer this option include: Azul Brazilian Airlines (BRL), Air France-KLM (EUR), Cancun International Airport (MXN), and Nature Air Costa Rica.
Will airlines let you exchange crypto-currency for cash?
If you are exchanging crypto-currency as a method of payment on your ticket, make sure you find out if the airline will accept it. If not, there may be an additional fee when it is time to convert the crypto into cash. So far major airlines like Lufthansa and British Airways do accept bitcoin, but with more airlines recognizing cryptocurrency as a valid form of payment this is definitely something that should be checked before you purchase a ticket.
