What Can I Buy with Crypto? A Guide to Spending Digital Assets

You have set up your wallet, bought your first Bitcoin or Ethereum, and watched the price move up and down. At some point, you may want to do more than just track the market. You may want to actually use your crypto.

A common belief is that crypto only belongs in a digital bubble. In reality, the connection between blockchain and the everyday economy is stronger than ever.

You can now spend crypto on flights, video games, gift cards for major retailers, and a growing list of services. For Australian users, this is becoming easier every year.

How spending crypto actually works

When you spend cryptocurrency, the transaction usually happens in one of three ways. Knowing how each method works makes it easier to choose what suits you best.

1. Direct peer‑to‑peer transfer

This is the most native way to pay with crypto.

If you are hiring a freelance designer or buying from a small, crypto‑friendly merchant, they might give you a wallet address or show you a QR code. You send the agreed amount of crypto directly from your wallet to theirs.

There is no bank, card network, or payment company in the middle. That can be efficient, but both sides are exposed to price volatility while the payment is being arranged and confirmed.

2. Crypto payment processors

Most established businesses do not want to manage price swings or private keys. They want to get paid in their local currency, such as AUD.

To do this, many use crypto payment processors, which work a bit like online card terminals.

When you reach the checkout of a website that supports crypto:

• The processor generates a QR code showing the exact amount of crypto to pay, based on the live exchange rate.
• You scan the code with your wallet and send the funds.
• The processor detects the transaction, locks in that rate, then usually converts the crypto into local currency (such as AUD, USD, or GBP) for the merchant.

The merchant sees a normal fiat payment. You get to pay in crypto with a smoother checkout process and less stress about rapid price movements while you are paying.

3. Crypto debit cards

For places that do not accept Bitcoin or stablecoins directly, such as many supermarkets, petrol stations, or local cafes, crypto debit cards are the usual workaround.

These cards are linked to your crypto balance with a provider. When you tap or swipe at a normal EFTPOS, Visa, or Mastercard terminal:

• The provider sells just enough of your crypto in the background.
• The proceeds are converted to fiat currency.
• The merchant is paid in their normal way, in local currency, through the existing card network.

From the shop’s point of view, it is just another card payment. For you, it feels like spending crypto in the real world.

Real‑life examples: What can you buy?

You can use digital assets for a wide range of goods and services. The list is growing, but these are the main areas where crypto spending is currently most active.

Travel and tourism

Travel is one of the most crypto‑friendly sectors.

Platforms such as Travala let you book hotels, flights, and some activities using a variety of cryptocurrencies. Some airlines and private jet charter companies accept Bitcoin directly for bookings, usually through specialist payment partners.

For Australian travellers, this can mean paying for global accommodation and flights using your digital assets instead of your bank account.

Technology and online services

Tech‑focused businesses were among the first to accept decentralised digital money.

You can pay for VPNs, web hosting, domain names, and some cloud services with crypto. At various times, large tech companies have allowed users to fund accounts with Bitcoin, then spend that balance on games, apps, and digital content.

For privacy‑conscious or globally mobile users, paying online service providers in crypto can be more convenient than using a bank card.

Gift cards

If a retailer does not accept crypto at checkout, you may still be able to shop there using a gift card.

There are services that allow you to buy digital gift cards or vouchers for thousands of brands, including supermarkets, entertainment services, and global online retailers. You pay in crypto and receive a code or voucher that you can spend like a regular gift card.

This is a popular way to spend crypto with major retailers that only accept traditional payment methods.

Luxury goods

High‑value purchases are another area where crypto is used.

Some luxury watch dealers, car sellers, and property vendors accept crypto for large transactions, often through payment processors that convert to fiat in the background. Because crypto can be transferred quickly and in large amounts, it can offer an alternative to international bank transfers or lengthy settlement processes.

These deals usually involve extra checks, contracts, and sometimes legal advice, especially for real estate. However, they show how crypto is moving into big‑ticket purchases.

Charitable donations

Many charities and non‑profits now accept crypto donations.

The transparency of public blockchains lets donors see the movement of funds on‑chain, which some people find reassuring. For international donations, crypto can also reduce fees and delays compared with traditional bank transfers.

Australian and global organisations are experimenting with this model, especially for fast responses to global events or humanitarian causes.

The tax implications of spending

Before you buy a latte with Litecoin or pay for dinner with Bitcoin, it is important to understand how tax authorities treat that spending.

In many countries, including Australia, cryptocurrency is treated as property or an asset, not as foreign currency.

The trading card analogy

Imagine you bought a rare trading card for $10. Today it is worth $50. You swap that card directly for a video game that is also worth $50.

Tax authorities see this as a disposal event. You've given up an asset (the trading card) that increased in value from $10 to $50. The fact that you traded it directly for something else, rather than selling it for cash first, doesn't change the tax outcome. You've still made a $40 gain.

You never saw the cash in your hand, but you still realised a profit the moment you disposed of the card.

Crypto spending works the same way in many systems. When you pay a merchant using crypto that has gone up in value since you bought it, you're disposing of that crypto at its current market value. The difference between what you originally paid (your cost base) and its value when you spend it is your taxable capital gain.

Taxable events

Spending crypto on goods and services is often treated as a taxable event.

If your coins or tokens have increased in value since you acquired them, using them to pay for something can create a capital gains tax (CGT) liability on the profit. If the value has fallen, you may instead realise a capital loss, which can sometimes be used to offset other capital gains.

This is why record‑keeping is so important. You should track:

• The date you acquired the crypto.
• The amount and its value in AUD at that time (your cost base).
• The date and value in AUD when you spent it.

The good news is that crypto tax software like SUMM and Koinly can automate this for you.

For Australian users, the ATO has specific guidance on crypto, including possible exemptions for some low‑value personal use cases. You should check the current rules or speak with a registered tax agent before assuming any exemption applies to you.

Risks and red flags

Spending crypto can feel liberating, but it also comes with risks that are different from using a bank card or a payment app.

• No chargebacks: Blockchain transactions are usually irreversible. Once you send funds to a merchant, there is no bank you can call to force a refund if something goes wrong. You are relying on the merchant’s honesty, reputation, and refund policy.
• Volatility during checkout: With direct wallet‑to‑wallet payments, the price of your chosen coin could move quickly between agreeing a price and the transaction being confirmed on‑chain. This can hurt either the buyer or the seller. Payment processors try to reduce this with short rate‑lock windows, for example 10 to 15 minutes.
• Input errors: Crypto transactions use long, complex addresses and specific networks. If you send funds to the wrong address, or on the wrong network, the money is usually gone for good. Always copy and paste addresses, double‑check the first and last few characters, or use QR codes from trusted sources.
• Privacy concerns: Public blockchains are transparent by design. If you pay a merchant directly from your main wallet, they may be able to see your wallet balance and linked transaction history. Some users prefer separate wallets or privacy‑focused practices for spending.

Being aware of these issues helps you decide when spending crypto makes sense, and when a traditional payment method might be safer.

Summary

Spending cryptocurrency is no longer just a party trick. With payment processors, gift card platforms, and crypto debit cards, you can now use digital assets to pay for everything from flights and hotels to software, supermarket shopping, and charitable donations.

However, tax rules in Australia and many other jurisdictions treat spending as a form of selling. That means every purchase can create a taxable gain or loss. Careful record‑keeping, a basic understanding of CGT rules, and, where needed, proper tax advice are essential.

It's worth noting that the regulatory landscape continues to evolve. A May 2025 court ruling classified Bitcoin as "Australian money," though this decision is currently under appeal and the ATO has not yet updated its official guidance in response. Additionally, the ATO is now actively reviewing DeFi activity and staking rewards, so if you're involved in these areas, staying informed about tax obligations is especially important.

Used thoughtfully, crypto can be both an investment and a practical way to pay, without nasty surprises at the end of the financial year.