Bitcoins! What can you see? A golden coin having the letter “B” carved like a dollar, indeed that’s our first impression when we come across this word all thanks to the news channels. In this article, our primary focus is not on Bitcoin(BTC) but it is necessary to understand its basic nature and how it aids a Seedbox user before knowing how we can actually use bitcoins for our Seedbox payment.
Know Thy Bitcoin:
Bitcoin was a news headline somewhere around 2013 when it achieved the highest prize of 1124 US dollars. Don’t be carried away by your image pertaining to this golden coin it is just a term coined for one of the many ‘cryptocurrencies’, its very nature is intangible. Consider any cash money Bitcoin and cash money are analogous to each other.
Once you pay any vendor or do any transaction with cash that cash cannot be linked back to you in other words it is impossible to trace the source of that cash from where it was generated through which chain of transactions that money flowed through is untraceable, unlike other payment options like wire transfers, Bank transfers or paying through credit card or debit card that is linked to your Bank account who has all your details like social security number(SSN), through which our identity can be easily traced.
Bitcoin can be considered as cash in the form of virtual currency, It is a decentralized cryptocurrency system based on blockchain technology that helps users to process transactions digitally staying “anonymous”. It is not controlled by any regulatory body or any central authority; bitcoin transactions are processed through a network of private computers using complex mathematical encryption algorithms.
Why we need to pay for your seedbox using Bitcoins:
The very purpose of using a seedbox is to stay anonymous but is that purpose really achieved? You might be missing some loopholes! How do you pay for your seedbox now? Debit card and credit card indeed! Be thankful to God if you are not pinged by your bank manager yet.
Seedbox provides you anonymity for browsing content on the torrent and protects your identity, but it doesn’t protect you while making payment for this transaction is very well on records with your bank and you can be easily traced at least as a user of a seedbox. Bitcoin helps a seedbox user to stay anonymous by making your payment anonymous. It is just like you entered the store wearing a mask, made payment in cash, and vanished!
Working with Bitcoins:
This concept of using virtual currency may seem really alien at first look but it’s really simple. Before going into the steps it is necessary to understand a few entities and their roles.
- Bitcoin Exchange: Bitcoin exchanges are very similar to Stock exchanges. It is an online marketplace for buying and selling bitcoins using our traditional payment methods(Debit cards, credit cards, wire transfers, etc.), these exchanges act as a broker between buyers and sellers of the cryptocurrency. Just like there are brokerage charges for using any trading platform in the stock market similarly transaction fees are levied on buyer and seller for exchanging cryptocurrency and it depends on various factors like the amount of transaction, currency in which transaction is done, mode of payment, etc. These rates are also different from exchange to exchange.
- Note: For buying bitcoin from this exchanges user needs to open an account for which he or she must go through a verification process and provide his identity but it doesn’t hinder our motto of staying anonymous while paying for seedbox because paying with bitcoin is just like paying cash to anyone and it cannot be traced back to the person making the payment.
- Bitcoin wallets: As we store our valuables in a safe, Bitcoins are also stored in a digital wallet. It actually stores the access key for our BTCs without which it is not possible to access them. There are various types of wallets and it is necessary to understand its basic nuances for our own safety.
- Online or hot wallet: These wallets are very often provided by the bitcoin exchange but here ‘all rights reserved’ problem arises because users are at the mercy of the exchange, the private access keys are stored online and due to this there have been many instances of hacking when the prize of bitcoin reached its peak in the year 2017, this option is not recommended if a user is planning to store bitcoin for long.
- Offline wallet or Cold storage: This is considered the safest option for storing bitcoins as such wallets resides on our computer memory and is not connected with the internet, hence hackers cannot easily access your private access keys However one must be careful and maintain a backup of this private keys if the computer crashes or due to any malfunctioning of the device if memory gets erased one can lose all their bitcoins and there is no way of recovering it with other methods because private keys are the only way to access your bitcoins.
There are some other methods of storing BTCs in hardware like flash drives, even the private access keys can be printed out on a piece of paper which can be later used to access the bitcoins.
Pay for your seedbox with bitcoins:
Now as we have a clear understanding of modus operandi and an understanding of common practices working with bitcoins let’s understand how we can make payment for our seedbox purchase and stay anonymous.
Setting up a Bitcoin wallet:
- firstly It is necessary to store the BTCs that we purchase from a bitcoin exchange.
- Many different wallets are available but we need to choose based on our requirements, as our motto is just to pay using bitcoins so even a hot wallet is a good option.
- Exodus is best suited for beginners as it is simple to use and also provides good customer support. Let’s understand the steps involved in setting up this wallet:
- Downloading and installing exodus – click here to download exodus, it must be noted that exodus is supported for 64 bit operating systems. Installation of this is simple just like any other software application.
- Sign up or creating an account is not required as everything is stored on a computer hard drive.
- The dashboard of Exodus shows the amount in your account, it also displays the price of different cryptocurrencies.
- For the first time after installation, it will prompt you to set up a password make sure password length is not too short for anyone to guess it.
- you will also receive a master key that can be used if you forget your password.
Buying BTCs for the first time:
- to start with the purchase we need to set up an account with a bitcoin exchange. Coinbase is a popular exchange that is easy and simple to use.
- sign up to coin base account: You can sign up using an email address or google account.
- You need to verify your identity before making your first purchase for which a photo ID proof is required.
- Add payments method to the coinbase account, by providing details like credit card number or bank account details, etc.
- Tap on ‘Trade’ on the top-right corner of the website or you can use a mobile app for the same.
Enter an amount in BTCs or inversely you can enter the amount in your native currency( Dollars, Euro, etc.)
Click on the buy now button and complete the checkout process.
Transferring BTCs from Coinbase account to Exodus:
Coinbase allows you to store your BTCs in the same account but for security reasons, it is always advisable to transfer them to Exodus account that we have just set up.
Locating your bitcoin address: Just like bank accounts have account numbers this wallet has a bitcoin address which is required to transfer BTCs.
Click on the blue icon located on the top bar.
Now click on the receive button.
Click on the copy address button to copy the address.
Transferring bitcoins from coinbase account to Exodus:
Now sign in to your coinbase account and click on the portfolio tab.
Scroll down and you will see all your available assets, click on bitcoin.
Click on the send button which will open a pop-up.
Now paste the exodus wallet address that we had copied in step 3 in the text box that mentions “Enter a BTC address”. Now, enter the amount and click on continue.
After clicking continue a confirmation screen will appear to check all your details before pressing confirm. You need to enter 2 step authentication code if you have set it up. Click confirm to complete the transaction.
Making payment for your seedbox subscription:
- Firstly we need to search for a seedbox provider where we can pay using bitcoins.
- Different Seedbox providers use different payment gateways for checking out that uses BTCs as a payment method.
- All wallets are not supported by a particular gateway and with the advent of technology, many different payment gateways that use different payment protocol and hence we cannot be sure which wallet we must prefer because next time you make a purchase you might need to use a different wallet which is supported by the payment gateway of your new seedbox provider.
- To overcome this problem anytime we pay for the seedbox we can create an account in a wallet that is supported by the payments gateway and transfer BTCs when required from our Exodus account.
- Sending BTCs is very similar to receiving BTCs, here are the steps for sending money to any other address (BTC address of wallet that is accepted by seedbox provider)
Click on the blue icon located on the top bar.
Click on the send button and then paste in the address of the wallet accepted by the seedbox provider, we can also use a QR code.
Type the amount and click on the send button.
Verify your details properly and again click on send to complete the transaction.
That was all about going an extra step in protecting your privacy and staying anonymous Bitcoin is truly a blessing for any seedbox user as it acts as an extra layer of securing your privacy and lets you truly relax without worrying about getting knocked on the door by your ISP!