The cryptocurrency has been gaining traction in recent years and shows no signs of slowing down. But if you’re not familiar with this, you might wonder why anyone would choose to use cryptocurrency over fiat money (aka government-backed money). Cryptocurrency offers many benefits to travelers, including privacy and protection from changes in exchange rates when you shop abroad. If you are planning things to do in Akureyri or wherever your next vacation is and you hope to use cryptocurrency to make your trip easier, here is everything you need to know about using cryptocurrency for travel.
Using cryptocurrency for travel
where to start
If you are interested in learning how to use cryptocurrencies, start by making an account with Coinbase or Kraken. Both allow you to buy cryptocurrencies like Bitcoin and Ethereum with a credit card. When you want to withdraw your coins, there are many websites that will exchange your coins for other coins depending on what your needs are. For example, if you want Euros, just find the site that exchanges 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 to store your cryptocurrency. The first is to keep it on an exchange account, or any other website or software you trust, as these exchanges are regularly being hacked. Secondly, you can use a hot wallet, which is directly connected 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, hardware wallets are the best option. These are physical devices such as thumb drives or external hard drives that only store the information needed to access your money and nothing else.
What if you don’t have any yet?
Start by opening a Coinbase account. This popular cryptocurrency platform offers an intuitive and easy-to-use design, with plenty of information 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 choose the cryptocurrency you want to start investing in and decide how much money (in US dollars or in cryptocurrency) you want to invest. The investment will instantly appear on your screen and the price will update accordingly to reflect its value against USD or other cryptocurrencies.
Where can you spend cryptocurrencies?
Buying cryptocurrency may not be a possibility for everyone, but it is becoming easier to spend it as time goes on. With more merchants accepting cryptocurrencies every day, there are more ways than ever to spend your coins. The possibilities are only limited by what you are willing to buy from them. Here are some ways to use cryptocurrencies on travel:
- Flights: CheapAir and Air France offer flights from Paris and other cities in Europe.
- Hotels: Booking sites like Expedia offer hotels that accept cryptocurrencies, including some of their luxury properties.
Can you buy airline tickets with cryptocurrency?
Normally, you cannot buy flights with cryptocurrencies 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 currently offering this option include: Azul Brazilian Airlines (BRL), Air France-KLM (EUR), Cancun International Airport (MXN) and Nature Air Costa Rica.
Will airlines allow you to exchange cryptocurrency for cash?
If you are exchanging cryptocurrencies as a payment method on your ticket, make sure the airline will accept it. Otherwise, there may be an additional fee when it comes time to convert cryptocurrency into cash. Until now, major airlines like Lufthansa and British Airways accept bitcoin, but with more airlines recognizing cryptocurrency as a valid form of payment, this is definitely something to check before purchasing a ticket.
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