How to Buy a Dedicated Server with Crypto

Making a payment for a dedicated server in cryptocurrency like Bitcoin has distinct advantages and disadvantages compared to using cards. They mostly pertain to how your transaction works, how much privacy you have in this kind of payment, how price volatility is addressed and several other key points to take into consideration.

This guide gives an insight into each of these.

How does paying for a dedicated server with crypto actually work?

When paying with crypto, you send the money directly from your wallet to the wallet of the provider via blockchain, which means that you don't involve any banks and credit card companies in the transaction.

The fact of you sending money directly without using any intermediaries is what makes most of the points listed below different.

Why do some hosting providers accept Bitcoin or other cryptocurrencies?

The primary reason is the inability to cancel a transaction, which means no chargebacks are possible. It is quite an important difference for a company to provide its services after getting such payment, which can't be undone.

According to Wikipedia's page on Bitcoin, "the inability to process chargebacks" is one of the commonly stated reasons for Bitcoin to be less used for regular purchases — yet for a provider of a server, this feature becomes a good thing.

Does paying with crypto affect the price, given how volatile it is?

It does, as the price of Bitcoin is more variable than in case with any of the currencies used regularly for transactions. For this reason, most providers lock the exchange rate for a brief period at checkout.

As it states in the same source, "Bitcoin prices show much higher volatility and respond strongly to both regulatory changes and market events," and "high price volatility" is one of the factors that discourage merchants from accepting it more widely — which is why locking the exchange rate for a while is necessary.

Is paying with crypto more private than a credit card?

It is pseudonymous, not anonymous. While your name won't appear in the transaction history, your wallet ID will be publicly displayed on the blockchain, along with transaction amounts.

According to the same source, "Bitcoin is pseudonymous, with funds linked to addresses, not real-world identities" — a point worth considering, as your wallet may still be traced to you using other information.

What should I check before paying for hosting with crypto?

The time frame of the locked rate before it gets reset, what will happen in case you send an incorrect amount of money or choose the wrong blockchain, and refund policies (if any) of the provider in case something goes wrong — as once you send your payment, there is no turning back.

All of these points aren't hosting-specific, but become particularly relevant here as misusing any of them may result in irreversible consequences.

Our Bare Metal servers and VPS plans may be purchased using this knowledge.