Crypto-HRT
Introduction to Crypto & HRT
We’re regularly asked “How do I deal with paying for HRT with cryptocurrency?” This short guide wil layout some of the strategies and information about crypto payments and HRT.
Please note: This guide does not condone or recommend users engage in activities or financial transactions which may be legally or regulatory restricted in their locations, but offers general information and potential use cases. Additionally, we have our own biases based on our experiences with crypto transactions, ease of use, security and privacy. This is Not an unbiased assessment of crypto currencies or processes. The goal is to, theoretically, get someone unfamiliar with cryptocurrencies and transactions up and running in a secure manner.
What is cryptocurrency?
Cryptocurrency is (essentially) an entry (or set of entries) on a practically immutable public ledger called a blockchain. It is practically immutable because cryptography makes it extremely difficult or unpractical for unauthorized entries to be written or deleted. That’s all it is. It’s clever, but it’s not magic.
What kind of cryptocurrency should I buy?
This guide is focused on crypto for transactional use. This is not an investment or trading guide. Thus, there are essentially three coins you need to consider for transactions: Bitcoin (BTC), LiteCoin (LTC), and Monero (XMR). Homebrewers and online pharmacies accept payment, typically, in one or more of these three coins. If you have a seller in mind or are ready to order always check the seller’s accepted methods of payment. So, what are the difference in these three coins?
- Bitcoin(BTC) is the oldest and most commonly accepted cryptocurrency.
- Advantages:
- Accepted by nearly every online seller.
- Multiple ways to purchase.
- Wallet support is mostly ubiquitous.
- Disadvantages:
- Slow transactional processing.
- Higher transaction, or gas, fees
- Traceable transactions and little privacy without utilizing bolt-ons.
- High volatility: value may swing wildly throughout a day, a week, or a month.
- Advantages:
- LiteCoin(LTC) is a fork of Bitcoin which was designed to be faster and easier to use.
- Advantages:
- Fast transaction processing
- Lower transaction, or gas fees
- Privacy headers are optionally available via MWEB layer.
- Disadvantages:
- Lower adoption rate: not accepted by as many sellers.
- Requires supported wallet.
- High volatility: value may swing wildly throughout a day, a week, or a month.
- Advantages:
- Monero (XMR) is a privacy focused cryptocurrency known for it’s secure and untraceable transactions.
- Advantages:
- Very secure - privacy and anonymity focused.
- Faster transaction times, typically, then BTC.
- Traditionally, less volatile then BTC or LTC.
- Disadvantages:
- Lower adoption rate, but improving.
- Requires supported wallet.
- Fewer sellers to obtain coins from.
- Advantages:
Why Do We Care About Privacy or Volatility?
In today’s world, each of us must understand and maintain our own individual risk profiles and how online activities can affect our real-world lives. Whether or not some online activity could result in negative consequences is something each of us needs to decide for ourselves. However, as governments and powerful organizations continue to target the lives of trans people, it is important to consider any potential ramifications of publicly available transactions within your location or situation. Privacy and purchasing ability are frequently tasked by KYC (Know Your Customer) requirements under banking regulations, which we will review later.
Without going into a long rant on monetary theory, cryptos are an inherently deflationary currencies, meaning they all suffer from some level of volatility. Volatility is, essentially, the change in value over time of a currency compared to a more stable or common currency (eg. the daily value of BTC against the $USD or the €Euro). Volatility matters to us because we will inevitably end up with some excess coinage in our wallet for some period of time, and that volatility can affect our second, third, or fourth order of HRT. Essentially, we could find ourselves with $75.00 worth of coin in our wallet one day, and the next time we need to order find the coin is only worth $40.00. There are a few strategies to combat volatility. The simplest one is don’t hold significantly more coins then needed for our first 2-3 transactions. However, if obtaining coins is overly complex or difficult, we may want to make a larger purchase of a more stable coin from the outset and then engage in coin swaps. Coin swaps (vs buys) are lighter transactions that allow a swap of one cryptocurrency for other. Swaps often entail some small fee and depending on the coins involved may be a very efficient and low cost method to ensure we have near the required amount of transactional value in our wallet available at the time of purchase.
Coin Wallets
Cryptocurrency wallets, essentially, hold and access your cryptographic identity on the blockchain (or ledger). They will keep track of how much crypto coinage you have, allow you to make transactions (sending and receiving coins), and, in some cases enable you to swap or buy cryptocurrencies. Crypto wallets are much like real wallets, in that if you loose your wallet or access to it, you loose your money. So their protection is critical to your financial interests. Generally speaking, there are two types of crypto wallets: custodial and non-custodial. Here’s a quick comparison of the two types:
| Feature | Custodial Wallet | Non-Custodial Wallet |
|---|---|---|
| Key Control | Third party (e.g., Exchange) | You (The User) |
| Security Responsibility | Managed by the provider | Managed by you |
| Coin Ownership | Managed on your behalf | Full personal ownership |
| Ease of Use | High (like online banking) | Moderate (requires key management) |
| Recovery Options | Customer support/Password reset | Seed phrase only (manual backup) |
| Identity/Privacy | KYC Usually required | KYC Not required (Anonymous) |
| Transaction Speed | Instant (off-chain) | Subject to network/gas fees |
| Risk | Exchange hack or insolvency | Loss of seed phrase or phishing |
As our goal primarily focus around transactions, and relatively small sums of money, it is highly recommended that users opt for a non-custodial wallet, for reasons of control, privacy, and security. While there exists a large number of non-custodial wallets available, we typically recommend two, based on privacy, moderate ease of use, and transparency: Cake Wallet and Wasabi Wallet:
| Feature | Cake Wallet | Wasabi Wallet |
|---|---|---|
| Primary Platform | Mobile (iOS, Android) | Desktop (Windows, Mac, Linux) |
| Supported Assets | BTC, XMR (Monero), LTC, ETH, etc. | Bitcoin (BTC) Only |
| Key Privacy Tech | Silent Payments, PayJoin, Tor | Address Hygeine, BIP-158 headers, Tor by default |
| Anonymity Level | High (via Monero integration) | Very High using native settings |
| Ease of Use | Moderate (Intuitive mobile UI) | Moderate to Complex (if using CoinJoin) |