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Where To Spend Bitcoin - What You Can Buy with Crypto

Spending Bitcoin and a wide variety of other digital assets such as Dogecoin, Ethereum, or Bitcoin Cash is not tricky. Still, many people need help answering questions about how blockchain transactions and cryptocurrency payments work, where they can spend Bitcoins, and which types of merchants, service providers, or businesses accept Bitcoin and other digital coin payments.

This article will teach even the least crypto-aware newbie user how to spend Bitcoin or use alternative cryptos as a payment method. It'll cover how and where you can pay with digital currencies in ways as easy and user-friendly as paying a company with traditional cash, Mastercard, or Visa at any online or physical locations. Indeed, right down to options of using a crypto debit card like Bitpay.

Products & services you can buy with Bitcoin

Understanding the mechanisms involved with how to gain, hold, exchange, or buy anything with the available range of cryptocurrencies and their associated payment systems require some degree of financial literacy. To explain the elements of this that are key to the buying process in an easy-to-follow way, we'll need to explore each of the aspects of this method of payment:

Table of Contents

  1. What products or services can you pay for with Bitcoin?
  2. Where to make Bitcoin purchases
  3. How to spend virtual currencies
  4. Benefits and negatives of spending with Bitcoin
  5. What to consider before spending your virtual assets
  6. How do you get Bitcoin?
  7. Problems that might prevent spending
  8. Risks to consider
  9. Alternatives to buying with Bitcoin
  10. Summary
  11. FAQ

Firstly, you may already know all the intricate details around spending Bitcoin and just want to know where to go to spend your virtual coins. You already have coins. You know how to get them, you can protect them, and you know that rate fluctuations and taxation might affect their value in any spending transaction and how fees might impact your costs.

So, we'll start with the core subject of our page and cover the critical question of 'where can you spend Bitcoin?'. We'll also cover what types of products and services present spending options and the companies that offer them.

First up is a quick hit table showing some of the buying options open to you, and we'll explore both questions in more detail afterwards, along with the subject of how to buy Bitcoins.

Where to Spend BitcoinExample SuppliersComments
Online Store ShoppingAmazon, Overstock, Newegg, WalmartWhile Walmart and Amazon do not accept Bitcoin payments directly, you can use cryptocurrency gift cards to make purchases. Other major online retailers, such as Overstock and Newegg, accept direct Bitcoin payments.
Online ServicesPaypal, Expedia, AT & T, MicrosoftMoney transfer services like Paypal have opened up to support Crypto transactions. You can also pay travel costs, phone subscriptions, and other technology-related costs.
Withdrawing FIAT cashAnyYou can withdraw paper cash at Bitcoin ATMs and then spend the money in any establishments that take cash payments.
Making Further InvestmentsAny alternative cryptocurrencyOne possible way to increase your virtual assets is to take Bitcoin profits and invest in alternative coins. 
Donations/Charitable givingWikipedia, Reddit, Red Cross'Free' online services like Wikipedia rely on donations to continue running. Hence they've made it easy for donors to give cryptocurrencies. Similarly, the online discussion platform Reddit allows the use of crypto for tipping high-value contributors. Various charities also accept Bitcoin donations.
Buying expensive items with BitcoinTesla, Ferrari, RealtorsIt's no surprise that Bitcoin can be used in transactions that involve costly items. Cars, yachts, and real estate are all on the list.
This table explores some of the products and services that Bitcoin can buy
Bitcoin Accepted here

What types of products or services can you buy with Bitcoin?

You may be surprised to learn that there are now thousands of online shops, domestic stores, product sellers or service providers that list cryptocurrencies among their payment systems, in the same way, they would if you were making credit or debit card payments to any business. Since the early days, the industry has come a long way when buying pizza with Bitcoin was the only option. Indeed, there are growing numbers of online retailers that will only accept Bitcoin or another crypto and many restaurants where you can still get pizza. Even Burger King accepts Bitcoin as payment, indicating that Bitcoin wallets may soon be as widespread as cash and cards.

Of course, in some countries Bitcoin has even gained legal tender status. So, in El Salvador and the Central African Republic, crypto owners can theoretically use crypto to buy anything. 

Elsewhere in the world, it effectively doesn't matter that coins are not officially legal tender. Cryptocurrencies know no borders, and whether you're in Australia, Canada, India, or Ireland, or anywhere from South Africa to Singapore to the USA and the UK, deciding where to spend your virtual currencies presents many options. 

So, wherever you are globally, finding a popular retailer that accepts Bitcoin is unlikely to present a severe challenge and - with the sheer numbers handling this type of payment process - it's not practical to list them all individually here. However, we can effectively break down the types of products or services you'll be able to pay for. We'll look at some of those ways of spending Bitcoin here:

Shopping with Online Stores

Shopping online is, of course, firmly entrenched as the preferred way for many of us to obtain goods and products. It would be a surprise to learn of anyone living in a country with a developed online shopping infrastructure that hasn't ordered a gift or personal supplies through an account with an online platform such as Amazon or Shopify.

These major stores are rapidly increasing their ability to handle online purchases with cryptocurrency. It may not be long before Bitcoin, and other cryptos, become the most prevalent payment processing systems. Stores like Amazon offer a wide range of products online from games, clothes and furniture, through to cosmetics, flowers and watches. The choices will be pretty much endless.

Bitcoin payments for online services

The types of services you can pay one-off fees or subscriptions for online are too numerous to mention. Gambling springs to mind, where making a Bitcoin payment to an online gambling account is now commonplace. Indeed, players of online gambling games are offered many great value incentives to make a Bitcoin deposit into their accounts instead of by using fiat currencies. For playing poker specifically, there are several online poker sites that accept Bitcoin deposits and withdrawals.

Making those deposits or withdrawals is pretty straightforward, but if you want to know more, you can read these instructions for setting up Bitcoin for online gambling.

Gambling is just one example, though. The list is growing daily, with firms like AT&T offering their mobile phone services with crypto-based subscription payments and giant operators like Microsoft getting in on the act. Even Twitter is making headlines with a potential intention to accept Cryptocurrency payments to cover subscription costs for their much vaunted Twitter Blue subscription service. In the hospitality industry, you can book hotels, and many airlines will take a crypto payment to book flights.

             

Withdrawing FIAT cash

Just as you can withdraw cash from a 'normal' bank account via an ATM, you can use a Bitcoin ATM to withdraw FIAT cash. Once you have money in your hand, finding ways to purchase items or spend it on services is never a problem, right!?

Making Further Investments

Once you have built up a Bitcoin balance, you can 'spend' it by making further investments in other coins without further bank transfer of fiat currency or identifying an alternative source of investment cash. Knowing where to invest is a bit of a trick; it's an approach that's probably not best for beginners. Investing is arguably best left to traders and brokers with time to research, the experience to make successful trades, and who fully appreciate the risks.

If you want to get involved in some form of investment, you'll need to understand related financial data and market conditions well. One example is to use Crypto holdings for staking. This staking involves committing your assets to support a blockchain network and confirm transactions, for which you get a financial reward. Staking crypto is not exactly spending it - it's still yours, and this falls into the area of investment spending and trading; hence it's definitely one of the ways of using Bitcoin that appeals to investors.

Other ways to invest with a virtual currency include buying stocks and shares or purchasing gold or other precious metals, while crypto interest accounts and crypto savings accounts work like a standard currency savings account, but you'll earn interest at a significantly higher percentage level.

Donations/Charitable giving

There is no shortage of ways to give money away on the internet. Often this can be in the form of donations to charitable causes and even support something like resistance to a country invasion, as we saw in Ukraine in early 2022. There can be additional positives from not needing to pay capital gains taxes with charitable donations. It's a good way of making anonymous individual payments where you don't want anyone to know you're donating.

One helpful website to know if you're considering making donations is Bitope - a Bitcoin crowdfunding platform for charities. Many organizations are listed and give you plenty of choices about where you'd like to send any virtual cash.

On a slightly lesser scale, several online services encourage or allow the tipping of contributors. Reddit is an excellent example of this. Reddit users can buy Reddit Gold with BTC and use it to tip posters that contribute helpful or exciting stuff to the community. Equally, Wikipedia accepts donations in crypto, too. 

Buying expensive items with Bitcoin

Since many Bitcoin owners might be reasonably wealthy if they acquired their coins at the right time, it'll be no surprise that buying big-ticket items is possible. Yachts or boats will go on this list, as will expensive cars such as Lamborghini's or Ferrari's. Houses and real estate are other high-cost items that can now be bought with cryptocurrencies.

There are heightened risks with high-value purchases, but as long as you follow all sensible precautions during the buying process, there should be no reason to avoid them altogether.

 

Where to spend Bitcoin

It's easy to list some high-profile retailers offering services and products where you'll be able to pay with virtual coins.

First, we should mention Amazon. You'll find that Amazon currently doesn’t directly accept any form of crypto payment. That shouldn't stop you, though, since you can buy Amazon gift cards with Crypto or use a BitPay card at checkout.

Tesla, PayPal, AT&T, Microsoft, Overstock and Expedia are all other big brand businesses already associated with the acceptance of Bitcoin as payment. In the fast-food field, you'll be able to get your burgers and chicken from Burger King or KFC. Subway and Pizza Hut ensure you can get your sandwiches and pizza.

When you get down into the detail, though, it will probably pay to use a service that lists different merchants:

Online directory sites listing merchants accepting Bitcoin

One of the easier ways to determine where to spend cryptocurrency with an online retailer is to use one of the websites now springing up that lists multiple merchants. These websites are a great way to identify opportunities to purchase products or services. Some of these hold searchable databases and act as directories. Here are a few that look set to battle it out as being the best place to go for lists:

  • Bitcoinwide
  • Spendabit
  • Coinmap.org
  • Cryptwerk
  • Spendbitcoins

These sites will get you comprehensive listings of different places or services that have all made the step forward to handling their inbound payments in digital currencies.

Products and services you can pay for with Bitcoin

Here's a list of examples designed to illustrate the widening choices available:

  • Apple iPhones, iPads & Macbooks
  • Airline Tickets 
  • Books and Literature
  • Cell Phones
  • Clothes & Fashion Accessories
  • Computers, Laptops & PC Parts
  • Coffee
  • Diamonds and Jewelry 
  • Domain Names, Web Hosting, VPNs & Servers
  • Drones
  • Electronics & TVs
  • Flowers and Gift Baskets
  • Food Delivery & Restaurants
  • Furniture and Home Improvement
  • Groceries
  • Guitars and Musical Instruments
  • Hotels and Stays
  • Movies and TV Shows
  • Sneakers and Shoes
  • Vacation and Travel
  • Video Games, In-Game Purchases & Accessories
  • Watches

How to spend virtual currencies

Assuming you're clued up in sending emails or any other form of digital message, getting your head around how a Bitcoin transaction works will be reasonably straightforward. You're sending digital currency from one address to another with a cryptocurrency transfer.

This use of virtual addresses is one of the ways that allows Bitcoin owners to maintain anonymity in a similar way to that which you get when physically paying for a product with cold hard cash. That's a level of anonymity you don't get when paying with a credit card or debit card.

When you make a Bitcoin payment, you obviously need your own source of funds. That source will be a wallet or an exchange address. You'll need to know the virtual address where you're sending the payment. The most crucial aspect is to be sure you know the receiving address, that the blockchain address is correct, and that you haven't made any error when typing it in. An alternative to typing in an address would be to use a QR code provided by the seller of the product or the service supplier.

What is a crypto exchange?

Before we proceed to explore the different ways you can complete a Bitcoin purchase, it's worth understanding in a little more depth what an exchange is. A Cryptocurrency exchange is an online platform where you can buy or sell cryptocurrencies. After you buy or invest in a cryptocurrency, you can leave it in the exchange you've used for the transaction, but it will not be as secure as you'd really need. This is where wallets come into the picture as both a secure method of storing cryptocurrencies and a tool for actually spending.

The concept of exchanges is well-known in the cryptocurrency community with the largest cryptocurrency exchange being Binance. The honour of being the most popular cryptocurrency platform probably lies with Binance, too.

Major cryptocurrency exchanges

What are wallets?

Think of a wallet like a wallet you've always known in the past. Like a purse, it carries hard cash in the form of Bitcoins and other coins. Crypto wallets are essentially similar but are virtual software wallets or physical hardware wallets like a USB device. 

 

There are multiple types of wallets. Hot wallets are those that are connected to the internet. They're software and can be accessed on a desktop PC, laptop, or via a mobile app. Cold wallets are kept unconnected to the internet and will be the most secure. Physical wallets can be either hot or cold, which applies to any form of a mobile wallet.

Note that some exchanges supply a wallet in addition to their ability to exchange currencies, while some wallets are unassociated with any exchanges.

Coinomi cryptocurrency wallet

How do you pay from a wallet?

If you want to make a payment for a product or service directly from your wallet, that payment will be sent from your wallet address. As we'll see below, using a QR code is one way to complete payment. The other is to manually enter the bitcoin address of the vendor using your wallet software. To complete this manual process, you'll need two pieces of crucial information:

  • The bitcoin address for the receiver of the payment
  • The amount of bitcoin to send

You'll enter this info into the 'send' section of your wallet, after which you'll receive a confirmation that the transaction is complete.

Spending with Cryptocurrency credit cards, debit cards, and gift cards

Although some of the largest online retailers don't accept Bitcoin yet, there's a workaround where you can still buy from them. This workaround comes in the form of Cryptocurrency debit cards or gift cards. A number of exchanges and other Crypto-related operators present account-holders with Cryptocurrency debit card or credit card options. In fact, the use of prepaid debit cards is perhaps destined to be the most used way of spending Bitcoin in the future. We'd best have a look at how crypto debit cards and gift cards work:

Using Cryptocurrency debit cards

These debit cards are cards loaded with a Bitcoin balance resulting in the potential to use them anywhere that debit cards are accepted, regardless of whether Bitcoin or any other crypto is accepted. There's no hassle with the conversion of virtual currency into a local currency.

Good examples of providers of these types of cards include Bitpay and Coinbase, with Amazon being a good example of the type of retailer where the cards can be used.

Using a pre-paid card or gift cards for crypto transactions

There's also a way to spend your Bitcoin by using gift cards. Just as with standard gift cards, you buy the card itself for the value that's held in the card. There'll be no shortage of places to use a Crypto gift card, but do note that there are normally service fees associated with using them. These fees could amount to four or five per cent of the card's value.

Some useful names to note in the field of virtual asset gift cards include:

  • Bitrefill - a website that sells gift cards designed to cover the cost of popular services, where the gift cards can be bought with Bitcoin. 

  • BitPay - At Bitpay, you can buy gift cards with crypto for spending with major online retailers such as  Amazon and Walmart. BitPay also offers a crypto debit card that will allow you to instantly spend crypto like it was cash in your hand. Purchases can be completed with popular brands and well-known merchants.

    How do you pay with QR codes with merchants that accept Bitcoin?

    Most bitcoin payment processors will show a QR code when completing a transaction. This code represents a bitcoin address and the payment amount. In particular, QR codes make it easy to pay from a mobile wallet app on your smartphone. You'll just need to scan the code, and it will enter the receiving bitcoin address and the appropriate payment amount. After sending the transaction, the payment will be complete.

    The benefits and negatives of spending with Bitcoin

    The online gambling industry has always been positioned as one of the prime industries to welcome the use of Bitcoin and other cryptocurrencies as a form of online payment. Understanding why that's the case can be key to getting to appreciate the reasons.

    In the case of online gambling, those reasons are multiple, with the most important being the aspects of anonymous transactions and the ease of making them. These are two aspects that are almost always universally welcomed - and actively sought out - by online gamblers. Satoshi Nakamoto probably knew that gambling was a perfect target to act as a key enabler in the early acceptance of Bitcoin as a form of payment.

    It was only a matter of time before the early narrow use of virtual currencies changed. Many online retailers and shops quickly recognized that customers with crypto assets would want to spend their digital funds. The situation with digital currencies has been - and still is - changing rapidly. As Bitcoin becomes more widely recognized as a mainstream method of making financial transactions, payment options have become more widespread and have touched other areas of everyday spending. It's not just Dark Web stuff or gambling anymore, and Bitcoin is beginning to come of age as a payment method.

    More of us now have access to crypto-based funds and coins and consider them a valid form of currency alongside their use as an investment vehicle. It's getting easier to realize that access through crypto exchange platforms, and we're either creating, buying, winning, or earning Bitcoin or one of its close cousins like Bitcoin Cash, ETH, USD Coin, or a raft of alternatives. Some of the lucky ones among us may even be getting small amounts of cryptocurrency for free or as a digital coin reward.

    So, as more of us hold Bitcoin and alternative digital assets as a fallout of the cryptocurrency revolution and the ongoing transition away from central bank financial control, we begin to encounter some problems outside of the efforts needed to gain them. Many would say these potential issues are almost exclusively lovely to have, although one or two can inflict some pain.

    We'll explore some potential problems in a minute, but first, let's see some of the benefits of making purchases with Bitcoin.

     

    The Benefits of Spending with Bitcoin and other virtual currencies

    Aside from the potential of making worthwhile financial investments in cryptocurrencies, they do bestow other benefits on holders. Some of these benefits are particularly useful in any buying process.

    For anyone who doesn't have access to traditional banking methods, crypto transactions via wallets, exchanges, or debit and gift cards can all be suitable solutions.

    Transaction speed can be a prime requirement in some situations. Virtual asset transactions are well known for being speedy, particularly when compared to transfers of finances, where traditional methods are often slow and cumbersome. It can take some blockchain transactions seconds to effect a transfer of digital tokens, whereas one through a conventional alternative transaction method might take a week. This ability to make instant payments can't be undervalued.

    For potential spenders in regions where the national currency is unstable, using cryptocurrencies can provide some form of stability to underpin any financial transactions. Notably, the average American crypto investor may not fall into this bracket, given the inherent strength of the US dollar. Still, many countries worldwide don't have a stable national currency.

    Lastly, we come to the anonymity factor. With no banks involved, transactions using any form of digital coin are relatively anonymous. The downside to this anonymity of cryptocurrency is that coins have been used in the past for nefarious or illegal purposes, but for the law-abiding individuals among us that want to pay for something or transfer assets without anyone knowing, they are hugely valuable.

    What are the five main considerations when spending your digital coins and assets?

    Having extra cash is hardly ever a problem that needs real consideration as being problematical. But Bitcoin and other cryptos are nothing if hugely removed from the traditional currencies we know inside out. These new assets require a markedly different approach and present some issues that need to be thought through before you get to the point of spending. 

    One issue is the 'always there' recognition that we're talking about an investment vehicle. Not one of us would say that we're aware that Bitcoin's value (compared as an exchange rate to FIAT currencies) fluctuates wildly. We hope that crypto market value fluctuations are positive, at least over time. Indeed, a wild market crash is probably the most considerable risk. We'd also all recognize that getting hold of currencies at an attractive rate of exchange is highly desirable but not critical due to the historical propensity of Bitcoin, in particular, to increase in value.

    The second is storing and protecting what we hold and avoiding scams and thefts that may deplete our coin stash and deprive us of financial rewards. 

    The third is perhaps the most pleasant problem - how to and where to spend the Bitcoin we've created, earned, won, been awarded, or bought as an investment on services, actual stores, or an online platform that will welcome our alternative cash.

    The fourth - and one that's unarguably the least welcome - is the questions around taxation, tax liabilities, and the tax consequences for individual holders of alternative currencies.

    We need to consider the impact of transaction fees involved in the exchange or transfer of many forms of crypto. These costs are similar to those you'll very likely have encountered in the past when exchanging traditional currency from your own country's legal tender into another. They work along the same lines as many of the daily banking transactions' fees. It'll be worth paying attention to transaction fees involved in any crypto transfers, or the fallout may be that you're losing cash unnecessarily. 

    Lastly, there's the potential problem of the value exchange rate value of Bitcoin changing while at or near the point of making a purchase.

    Before we get to how to overcome or negate these potential problems, another high-level issue needs some addressing: how to get Bitcoin in the first place. After all, Bitcoin is a currency. Currency has a monetary or an associated economic value. Currency is money - it's irrelevant whether this is cold, hard traditional cash or a digital version of it. And to spend money - in many cases - you need to have it to spend it.

    How do you get Bitcoin?

     

    With a bit of instructional help, investing by buying is straightforward. You'll need to understand the types of cryptocurrency and how exchanges and wallets work, but plenty of online info covers those subjects. Indeed, understanding wallets and exchanges is a prerequisite for virtually every form of interaction, purchase, receipt, or award you'll ever be involved in concerning Bitcoin or other coins. Read the ProfessionalRakeback guide to Bitcoin transactions and cryptocurrency payments for more detailed info.

    Another way of increasing your holdings is through crypto staking accounts. Essentially, this is a way of investing further to build up your balance over a period of time. Bitcoin trading can also result in significantly increased virtual coin holdings if you know what you're doing.

    For the gamblers among us, the answer is easy once you've got a funded Bitcoin account. Hopefully, you'll be winning tokens over time and building up a digital coin bankroll. Plus, while you have crypto funds in a casino or poker account, those account funds will be subjected to variations in exchange values.

    As an employee, you may already be getting paid in Bitcoin. Major companies are beginning to show an increasing interest in rewarding employees with digital tokens. In addition, there are many rewards programs or play-to-earn games where players get an allocation of tokens or earn awards of small Bitcoin amounts that can build up over time.

    Lastly, it may be the underpinning activity of bitcoin mining that gets you a stash of coins, although that avenue is only open to a very select few. 

    Before The Spending - Breaking Down The Bitcoin Problems

    Before getting to any point where you're considering how to and where to spend crypto, you'll need to have tackled and overcome or negated the other problems we already covered. But a key consideration first will be whether to consider spending cryptocurrency in the first place or 'hold on for dear life'.

    Hodl or spend?

    This aspect of whether to hold or spend can be a tough one and will depend on multiple variables - almost too many to document. We may well make this the subject of an in-depth page solely dedicated to the concept of holding crypto balances without fear. Still, it will depend on your situation, involving multiple factors. These factors can include financial exposures, the value of Bitcoin or others in the cryptocurrency ecosystem with less market share than you own, and personal levels of risk aversion.

    The bottom line is that there are valid reasons for spending Bitcoin and some equally great reasons for holding on to what you have. Many cryptocurrency investors see Bitcoin as a store of value and never spend it but hold it to see how Bitcoin prices move. But there are also strong use cases for spending.

    Let's assume that you've decided that spending all or some of the bitcoin you've acquired is the right thing to do; in that case, the following items are all worth consideration:

    How to protect your Bitcoin holding so you can get to spend it - Secure storage and the role of wallets

    Since our core focus here is on how and where you can spend Bitcoin, we'll keep this section short. But brevity does not lessen the importance of this aspect of the Bitcoin puzzle.  Learning how crypto wallets work, appreciating the inherent security built into specific types and their security limitations and strengths, and knowing what to avoid when buying or transferring funds are all critical items.

    Hot wallets and cold wallets are crucial terms to be aware of when considering wallet types, with both positive and negative aspects that need to be considered. Custodial and 'non-custodial' wallets are two further terms you'll encounter. Out of these, perhaps the most important to be aware of is the cold wallet - offering the safest way to store and secure your coins.

    Tax Considerations

    While bitcoin acts like a currency in many ways, it’s subject to the kinds of taxation you'll see in other financial investments, such as those you may make in stocks or bonds. Any increase in the value of crypto assets means you're making a profit and increasing your financial worth. And we all know that profits generally spell taxes, taxation, and the need to understand capital gains tax rates.

    Before you spend crypto or buy any services or products with cryptocurrency, it'll be wise to understand the tax implications surrounding ownership and, at a minimum, appreciate your potential liabilities.

    Fortunately, the details around the taxable aspects of digital funds are well documented. This section should be taken as a general summary of Bitcoin taxation. Be sure to carry out your own checks to ensure you understand any liabilities fully.

    Remember that tax laws differ from country to country. We'll focus here on the situation for US residents, but check your own country's tax requirements if you're visiting from outside the US.

    The tax you'll need to be aware of is associated with capital gains. Essentially, the amount you’ll pay in capital gains taxes depends on how long you hold your coins and their increase in value over that period. So, when you spend Bitcoin or any other crypto, the tax liability will be based on the rise in value since the day you acquired the coins.

    Now, you won't have any tax to pay on capital losses - if your holding has reduced in value, there's nothing to consider. If you suffered losses in value,  you could also use those losses to offset any other gains you've made and potentially reduce your taxable income.

    Here's an example: You spend $300 worth of Bitcoin initially purchased for $200, so $100 of that is profit from the investment. That $100 is the sum on which you'll need to pay capital gains tax. If you'd spent $300 of Bitcoin that you'd acquired for $600, you'd have incurred a $300. That $300 could be counted as a capital loss and used to offset any liability. 

    What tax rate do you need to pay?

    If you held the digital assets for less than a year, the tax rate would be the same as if it was ordinary income. If you held the coins for more than a year, the long-term capital gains tax rate is lower with the exact amount depending on your annual income.  In the longer-term case, you'd be looking at somewhere between zero and 20 per cent.

    The impact of Crypto transaction fees

    While there are no banking fees involved with Bitcoin transactions, there are often associated costs for the transactions themselves. The fees for making crypto-related transactions vary across different currencies and can also vary at different times as the transaction capacity of blockchain networks varies.

    Although they may not be a significant consideration, fees involved in spending coins work similarly to those you'd encounter when you make payments in a fiat currency that's not your national currency. Depending on the amount involved, it'll at least be worth knowing the extra cost involved, even if not a major consideration in the purchase itself.

     

    Fluctuations in Bitcoin value

    You'll likely have been on holiday or travelling in another country and bought goods in a local currency. If you've paid with a credit or debit card, there will be a cost associated with the exchange of your own currency into the local one. And it can fluctuate. Bitcoin is similar; it'll have a current exchange rate when you're making a spending decision. In the time it takes to complete a payment, that rate may have changed.

    Of course, that fluctuation in the exchange rate could be positive or negative, so it could work for you or against you. There are not too many ways around this other than to make your decision at what feels like the right time and accept any risks attached to the price you're paying. If you're a Bitcoin holder or have any involvement with blockchains - you'll already be aware of the risks and prepared to accept them.

    Are there any other risks in spending Bitcoin?

    We already covered some of the problems to watch out for, such as fluctuations in exchange value, but you should at least be aware of a few additional elements involved with coin transfers.

    The first is that if you overpay, you might not be able to get an amount refunded. Just pay meticulous attention to details when making any transfers.

    You should be aware that some transactions can take hours to complete. Again, some caution will ensure you don't get caught by any problems that may arise from an unanticipated delay.

    Perhaps the most critical risk to note that we haven't already covered in our analysis is that of Double Spending. 

     

    What is Double Spending in Bitcoin?

    Double spending refers to the chance of a blockchain exploit, technical issue, or deliberate manipulation occurring, which allows the transfer of a Bitcoin amount twice or more while appearing only to be registered once. Most exploits of this type involve copying a transaction's details and resubmitting it twice or even multiple times simultaneously.

    Needless to say, if you're on the beneficiary end of a double spend, you're making extra cash. If you're on the receiving end - or the deceived end - you will end up out of pocket. 

    Most forms of Crypto have been developed so double spending cannot occur, but it's something to be aware of and watch out for. With Bitcoin specifically, it's prevented using a consensus mechanism known as proof-of-work (PoW). This proof-of-work system determines - via a network of decentralized parties - which transactions are valid or invalid and allows only the one with the agreed consensus to complete. Hence, there's no chance of encountering a Bitcoin double spending problem.

     

    Alternatives to buying with Bitcoin

    While Bitcoin is the most popular coin, there are many others that you could label as more suitable for buying things or paying for services. Other well-known coins that are arguably better suited for making your payments include those such as Dash, Manero, and XRP. It's also worth considering stablecoins like Tether or USD.

    These alternative options come with fast processing speeds and lower transactional fees than giants like Bitcoin, although some will be subject to similar volatility in their exchange values.

     

    Summary

    It'll be evident that options for spending Bitcoin or other forms of Cryptocurrency are increasing almost daily. For anyone holding virtual assets in some form, the decision to hold on to them or spend all or some of their holding may be debatable.

    While there are now plenty of merchants where buyers can spend bitcoin, not all of them accept coin payments directly. Fortunately, until they do, there are options. Bitcoin debit cards and gift cards are easily obtainable, and these can be used to make purchases indirectly.

    Either way, your choices are endless. Major retailers have jumped on the bandwagon, resulting in many possibilities for buying a wide range of products or services with Bitcoin or any other valid digital currency. Many more will start accepting Bitcoin in the future.

    Options for playing casino games and online poker to try and fill up your wallet with more assets abound, with many of those available at poker rooms accepting Bitcoin that we list here on ProfessionalRakeback. But fast-food, household and consumer electronics, clothing, computer hardware, financial products, flights and travel fees, and just about everything else can be paid for with a Cryptocurrency.

    There are some risks, and it's wise to make any decision to spend your Bitcoin a considered one. Still, all the indications are that this is just the start, with the use of Bitcoin and Crypto set to grow in the coming years until it's as widely accepted in buying processes as the fiat money we've grown up with. 

    FAQ

    We've put together a suitably comprehensive article here that explores the key aspects of spending Bitcoin or other types of digital assets. So, very likely, you've already read the answer to the central questions of 'How do you spend Bitcoin' or 'where can you spend Bitcoin?'

    But in case you have additional questions or have jumped here for some quick-hit answers to queries, here are some of the most frequently asked questions we've seen in search engines and forums around spending cryptocurrencies.

    Yes, Bitcoin can be converted into cash either by withdrawing using a Bitcoin ATM or using an exchange such as Coinbase.

    You can spend Bitcoin either at online service providers or on products via online stores in several ways. Some merchants will accept payment directly in Bitcoin, while some will accept payments by gift cards paid for with a cryptocurrency or by debit card transactions using cards specifically designed to be funded by virtual currencies. You can also convert digital currencies into cash.

    The methods of making Bitcoin payments for obtaining products or services vary but include using a hardware or software-based wallet, a cryptocurrency exchange, QR codes, debit or credit cards, or gift cards.

    You can use Bitcoin to pay for products or services, donate to charities or other worthy causes, make investments, exchange for cash, or even pay for expensive items like BMW or Tesla cars, yachts, or real estate.

    You can't spend Bitcoin exactly like cash because it's a virtual or digital currency. But for all intents and purposes, the transfer of Bitcoin from your own holding to a merchant or another person acts precisely like a cash payment.

    The places accepting Bitcoin payments are too numerous to list here individually but include major brands such as Apple, Amazon, Microsoft, Tesla, Walmart, and hundreds more. You'll find a detailed list higher up on this page.

    This really depends on where you are! First, you'll need to identify merchants or stores that do accept crypto payments. Then confirm if they are located in your vicinity. Probably the easiest or quickest way to do this is to use a directory of businesses that accept virtual currencies.

    The price of Bitcoin and all other virtual coins fluctuates constantly. So, you can never state the price as a constant. The best way to confirm the current price of any cryptocurrency - either if you intend to buy something or to invest - is to check the exchange rate at an exchange like Coinbase.

    Using Bitcoin as a payment method is completely safe, as long as you keep your private key secure and you're sure that all details of the purchase are correct. Your private key is a long number that serves as your digital signature and should never be revealed or shared. The key point is that Bitcoin is not a physical currency. As such, thieves have no way to physically remove it from the holder. The danger is that hackers could steal your cryptocurrency if they knew the private keys to your wallet.

    Bitcoin transactions are irreversible due to the immutability of the blockchain. Any transfer you make cannot be tampered with by a third party. The only way to reverse a transfer is for the receiving party to send back coins to the originator's address.

    If the merchant you are buying from applies tax to sales then this will apply irrelevant of which currency you use. For personal taxation, you are liable for tax based on the increase in value of your virtual assets from the point at which you acquired them.

    If you've made the decision to spend, the best places to make a purchase or transfer Bitcoin to are those that meet your needs. Cryptocurrencies are especially well-suited to making deposits for various forms of online gambling, however, if you're getting a good deal on any product or service then paying with Bitcoin or any alternative will be a good course of action.

    You can't pay for anything with Bitcoin where the seller of the product or service you require does not have the ability to accept Bitcoin payments.

    Yes, some real estate vendors will facilitate Crypto-based payments. In the unlikely event you were involved in buying a house direct from a seller, then as long as you both have exchange accounts then a transfer could be executed and a sale completed.

    Amazon doesn't accept direct Bitcoin payments at this time, however, you can use a Bitcoin gift card or debit card to make payments in your Amazon account.

    We are unaware of any banks that currently allow mortgage payments with Bitcoin, although the situation surrounding which organization will or won't accept payments with digital assets is changing all the time.