What Can I Buy with Crypto? How to Spend Cryptocurrency

Spending crypto as you go along is a great idea! But what can you spend your crypto on? If you are asking yourself "how can I spend my crypto?" then read on!

Cryptocurrency is not just something the “crypto bros” or the “crypto sisters” buy and sell to make profits (that they boast about all over X) or losses (that they cry about all over X).

Bitcoin was originally invented as an alternative to mainstream money systems. Literally, a peer-to-peer payment system that let users ditch banks and governments if they wanted to. All people needed to use it was a phone.

People in places with struggling economies who can’t get a bank account (sometimes simply because they don’t have an official address) could now be part of a global financial system that previously excluded them.

Relatives working abroad could send money home directly to their loved ones’ crypto wallets on their phones, without having to wait days for banks or other payment services to clear the funds (and charge them seriously high transaction fees).

While there are fees involved in sending crypto abroad, in a lot of cases these fees are minuscule compared to the traditional money system.

Cryptocurrency: Speculation vs everyday spending

While cryptocurrency in general has seen a lot of speculation and investment purely for profit-driven reasons, crypto can be used as a way to pay for things.

In fact, in some countries and regions, it is legal tender. It’s accepted alongside fiat (everyday money).

While the uptake of paying in crypto hasn’t been as fast as initially thought, this may change as Bitcoin and other cryptocurrencies become more popular and using them gets easier and faster.

Using a cryptocurrency card to spend crypto

A crypto card is a debit or credit card that allows you to spend your cryptocurrency at any retailer that accepts Mastercard or Visa. The CoinJar card actually lets users earn crypto when they shop.

The card supports Apple Pay and Google Pay and functions exactly like a standard debit or credit card. But for purchases you use your cryptocurrency balance rather than fiat money.

Real-time cryptocurrency to fiat currency conversions take place, and mobile apps let you keep track of your balance.

They offer a simple way to use cryptocurrencies for regular purchases.

Types of cryptocurrency purchases

The number of merchants who accept cryptocurrencies is expanding quickly, and you can now use them to buy a variety of goods and services. Hopefully, more merchants in the future will accept crypto. Here are some of them.

Online purchases

Many online merchants now accept cryptocurrency as a form of payment. An example is Shopify.

Travel and hospitality

Some travel and hospitality companies accept cryptocurrency as a payment method. For example, Travala lets you book all sorts of holidays and add-ons using crypto.

#Restaurants and bars, other merchants

You can also use cryptocurrency to pay for food and drinks at certain restaurants and bars. There are other businesses that also accept crypto.

Gaming and entertainment

Many gaming and entertainment platforms have in-game economies where you can buy things using crypto.

Real estate

Some real estate agents and property developers now accept cryptocurrency as a form of payment. This option is particularly popular among buyers who value the privacy and security of their transactions.

Luxury car dealers are also starting to accept Bitcoin.

The future of crypto purchases via a crypto wallet or a crypto card

As technology advances, the future of crypto purchases will become easier.

Spending using cryptocurrencies has some solid advantages, like low transaction fees, fast transactions, and increased privacy.

Plus, blockchain technology makes crypto purchases secure and transparent.

But… there’s always a “but”..! The volatility of the crypto market remains a challenge for widespread adoption, as well as the lack of regulation in some jurisdictions.

Tips for safely and securely making purchases with cryptocurrency

When buying with crypto, before making a purchase, double-check the transaction details, including the amount you are spending, the recipient's address, and the transaction fee.

This is to ensure that you are sending the correct amount to the correct address and not paying unnecessary fees.

Second, think about using an escrow service when conducting a peer-to-peer transaction. A third-party intermediary known as an escrow service holds money or other assets until the transaction is finished on behalf of two or more parties.

By doing this, it will be ensured that the money is held securely until the transaction is satisfactorily finished. This is particularly crucial if you don't know the seller and/or the transaction is for a sizable sum of money.

Security

Be cautious of phishing scams. Hackers may attempt to gain access to your cryptocurrency wallet by sending you fake emails or messages asking for your login details. Always verify the authenticity of messages and emails before entering any login information.

Make sure to use a reputable wallet that has strong security features such as two-factor authentication and encryption. Keep your cryptocurrency wallet and private keys secure. Store your private keys offline, such as on a hardware wallet, and avoid sharing them with anyone. Additionally, keep your cryptocurrency wallet password protected and do not share it with anyone.

Keep track of your transactions and monitor your cryptocurrency wallet regularly. This will help you detect any suspicious activity and take action immediately if necessary.

Conclusion: Using crypto for purchases

While cryptocurrency has gained popularity as an investment, most people don’t realise it can be used for purchases.

A crypto card, like the CoinJar Card, lets you use your cryptocurrency balance in the same way as a standard debit or credit card is used.

Cryptocurrency can be used to buy a wide range of goods and services, including real estate, luxury goods, everyday items, travel, and even charitable donations.

Definitions

Bitcoin, Ethereum, Ripple XRP, Litecoin, and Tether: These are examples of cryptocurrencies, which are digital or virtual tokens that use cryptography to secure and verify transactions and to control the creation of new units. Each cryptocurrency has its own unique characteristics and value proposition.

Cold Wallet: A cold wallet is a digital wallet that is not connected to the internet. It's called "cold" because it's more secure than a hot wallet, since it's not vulnerable to hacking or other online security risks.

Cold wallets are usually used for large amounts of cryptocurrency that you want to store for a long time.

Cryptocurrency: A type of digital or virtual currency that uses cryptography for security and to control the creation of new units. Cryptocurrencies are decentralized and often rely on blockchain technology.

Cryptocurrency card: A cryptocurrency card is a type of payment card that allows you to spend your cryptocurrency like regular money.

You can use it at places that accept regular debit or credit cards. It works by converting your cryptocurrency into the local currency when you make a purchase.

Escrow service: An escrow service is a third-party intermediary that holds funds or assets on behalf of two or more parties involved in a transaction until the transaction is completed.

In the context of cryptocurrency, an escrow service can be used to facilitate the buying and selling of cryptocurrency between two parties who do not necessarily trust each other.

The funds are held in an escrow account until the buyer confirms that they have received the cryptocurrency from the seller.

Fiat currency: Fiat currency is legal tender issued by a government / central bank and is generally used as a medium of exchange in a particular country or region.

Examples of fiat currency include the US dollar, AUD, GBP, the euro, and the Japanese yen.

Digital Wallet: A digital wallet is an electronic wallet that allows you to securely store, send, and receive digital currencies like Bitcoin or Ethereum.

It's like a bank account for your cryptocurrency, but it's not connected to a bank. You can access your digital wallet using a computer or smartphone.

Hardware wallet: A hardware wallet is a type of cryptocurrency wallet that stores a user's private keys on a physical device, typically a USB-like device.

Hardware wallets are considered to be one of the safest ways to store cryptocurrency because they are not connected to the internet and therefore not susceptible to hacking. Examples of popular hardware wallets include Trezor and Ledger.

Hot wallet: A hot wallet is a digital wallet that is connected to the internet. It's called "hot" because it's more vulnerable to hacking and other security risks than a cold wallet.

Hot wallets are usually used for small amounts of cryptocurrency that you want to use for transactions frequently.

Stablecoin: A stablecoin is a type of cryptocurrency that is designed to be stable in value. It's usually pegged to a stable asset like the US dollar in the United states, so its value doesn't fluctuate as much as other cryptocurrencies like Bitcoin or Ethereum.

The goal of stablecoins is to create a more reliable and stable form of digital currency that can be used for everyday transactions.