Cryptocurrency is a blockchain-based maintained by a decentralized system rather than a central authority. The IRS views it as a property rather than a currency, like stocks. In November 2021, President Biden passed a law requiring all ‘cash outs’ to be reported to the IRS. This means you can invest, but as soon as you want to spend it, it is subject to the same tax rules as any other investment — capital gains, loss, etc.
There are hundreds of cryptocurrencies worldwide. Bitcoin is one type of cryptocurrency. Is Bitcoin a good investment? Bitcoin is one of the hundreds of potential blockchain investments available and recently saw a substantial loss. Before investing in Bitcoin specifically, talk to your financial advisor about your cryptocurrency options in today’s ever-changing market.
Remember, just like stocks, cryptocurrency is subject to market fluctuations. What you buy today can go up or down in value. Other up-and-coming currencies include Ethereum, Solana, Cordano, PolkaDot, Bitcoin Cash, Dogecoin, Litecoin, Binance Coin, Tether, and Polygon.
How to buy Cryptocurrency?
Purchasing Bitcoin is simple, much like buying shares. You can buy it on the open market for a fixed price using a cryptocurrency exchange, or you can buy it through a broker for a variable price. A cryptocurrency exchange is a website where you can buy, sell, and store cryptocurrencies.
Buying Bitcoin in 4 Simple Steps
All you need is a smartphone or computer, an internet connection, photo identification, and a method of payment, and the entire process can be completed in as little as 15 minutes.
Compare cryptocurrency exchanges
Purchasing Bitcoin from a cryptocurrency exchange is the simplest option.
Create a profile
You must authenticate your email address and identity in order to create an account on an exchange. Prepare your phone and some photo identification.
Set up a deposit
Following verification, you can make a deposit using the payment method of your choice.
You can now buy bitcoin with your money. This can be done by simply entering the desired purchase amount and selecting “buy” on simpler exchanges. You can now withdraw your Bitcoin to a wallet of your choosing.
Why Crypto for payments?
Any form of currency will always have its costs, and cryptocurrency is no different. However, you can decrease the tax and charges by taking the time to find a business that accepts crypto payments. Companies that accept cryptocurrency as payment are worldwide. When you buy something from another country and have it shipped to the United States — as with all items coming to the US — you must declare the item’s value and pay any taxes and duty due.
Another critical point with using cryptocurrency to pay for things relates to its fluctuating value. If you buy a coffee today for three dollars and your crypto-investment increases in value, you have left money on the table. This is not the best route for you if the goal is to get the most out of your investment dollar.
What can you buy with Crypto?
You can buy just about anything with cryptocurrency. As of early 2022, there are over 18,000 businesses accepting cryptocurrency as payment, and more are making the shift every day. With an estimated 106 million people worldwide using cryptocurrency as payment, it is clear there is a market for accepting crypto payments.
Furniture is a common household item many people want to buy. Furniture is what makes a house a home. With cryptocurrency, you can purchase cozy beds, mattresses and pillows, couches, and dinette sets. Overstock is an online site that accepts Bitcoin today, and they also accept other cryptocurrencies. Bitshopping is another site that accepts cryptocurrency for purchasing furniture and other goods.
Tips To Consider For Buying Furniture Using Crypto
When you buy furniture using cryptocurrency, there are a few tips to consider. Finding the right vendor or platform for the type of furniture you want to buy is key. Ensure you carefully investigate the retailer, read online reviews, and pay close attention to hidden fees. Look at their prices and evaluate how they compare to similar furniture stores that accept traditional payment methods. Are they comparable and listed at fair market value? Evaluate the size of the piece and check to see the shipping costs. Finally, understand their return policy. If you get the furniture into your home and the size, shape, or color isn’t what you wanted, make sure you won’t be stuck with it.
When you are ready to make home improvements, you can cash out your cryptocurrency investment and hire a contractor. That will mean paying brokerage fees and any taxes that apply. With more people interested in diversifying their investment portfolios, it could be worth your time to research local electricians, plumbers, or repairpersons to see if they accept cryptocurrency as payment. A tradesperson investing in cryptocurrency will likely be a good source for finding out where you can use your cryptocurrency to buy materials and appliances to improve your home.
You can buy bulk and packaged foods with cryptocurrency at any online stores accepting cryptocurrency as payment. But why not get creative? Contact your local farms and find out if any of them are interested in starting to invest or already investing in the cryptocurrency market. If they are, you can work with them to acquire meats, eggs, dairy, tree fruits, berries, produce, vegetable plant starters, and more. Many farmers also can their sauces and jams and cure their meats.
Beverage and drinks
There is a vast market of craft beers, spirits, and wines in the United States, but did you know there are beverage-based cryptocurrencies? Cocktail offers diverse incentives just for holding the currency. They also provide incentives for promoting it. DRINK is the first alcoholic beverage industry-backed cryptocurrency. It hasn’t seen the best of days lately, but like all stocks, fluctuations are expected.
Clothes and shoes
Nike in the United States will accept Bitcoin directly from your crypto wallet and will convert your price into bitcoin to make the transaction more transparent. H & M will accept Bitcoin to purchase their gift cards which you can then use to make your purchase. Etsy has an option for you to select ‘other’ for your form of payment, and in the space, you can write down your cryptocurrency. The seller is then notified and will get back to you if they accept your form of payment.
Through crypto-exchange, you can purchase an Audi using Bitcoin. BMW, Nissan, and Toyota each have dealerships in the United States that accept some form of cryptocurrency, but not all dealerships, and not all cryptocurrencies. Tesla accepts Dogecoin, but only for select products.
There is also an auction site, Car for Coin, that will let you pay for your vehicle with cryptocurrency. If you have the winning bid, they take care of the rest, regardless of whether the seller accepts cryptocurrency. They recommend you exchange your currency to a stable Crypto like Tether, a 1:1 USD.
There are some popular electronic companies like Newegg, Avnet, and Overclockers that directly accept cryptocurrency at checkout through Bitpay. Gipsybee is an online retailer of electronics that accepts multiple cryptocurrencies and allows the purchaser to select which kind of cryptocurrency to display their prices in, making the process more transparent. With Bitrefill, you can buy Best Buy Gift cards using Dash, Dogecoin, Litecoin, Bitcoin, or Ethereum.
Various crypto wallets allow you to purchase games, game gift cards, or big box store gift cards that you can use to buy gaming equipment and other items. But there is another side of crypto and gaming: the rewards system. Some games offer play and get-paid features. The more you play, the more cryptocurrency you can earn. Lucky Block, Axie Infinity, Gods Unchained, Star Atlas, Spider Tanks, ICE Poker, Battle of the Guardians, and Plant vs. Undead are all considered the top 8 crypto games that offer Play-To-Earn.
Home gadgets mean different things to different people. For many people these days, you can find the newest home gadget on Amazon. Currently, Amazon doesn’t accept cryptocurrency as a direct form of payment. However, that shouldn’t stop you from getting your gadgets. Users of Bitpay, Bitrefill, Blockcard, CashApp, Crypto.com, Shopping.io, Purse, and many more give you the option of using different cryptocurrencies to pay for your Amazon Gift cards. Your choice depends on the currency you invest in and the fees you are prepared to pay.
Real estate assets
You cannot currently use cryptocurrency to purchase a house in the traditional sense. However, you can use an app like Bitpay to facilitate the purchase of real estate almost anywhere in the world as long as the seller is willing to take cryptocurrency for payment.
You will need a special contract of purchase and sale that outlines the home’s valuation in current market value terms set to the value of your currency. You will also need contingencies in the contract that account for the market fluctuations of whichever currency you use.
Supplies for pets
Pet Fancy will allow you to purchase your pet supplies using Dogecoin or Bitcoin directly — no gift cards to purchase or exchanges are required. CryptoPet is another online pet supply store that will accept payment in major cryptocurrencies and less common currencies. Rundawg and TheEcoDog also accept cryptocurrency, giving the purchaser peace of mind knowing they made the eco-friendly choice. Offline stores that accept cryptocurrency include PetsPyjamas, Doget, and Pet Camp.
CryptoArt.io is an exclusive online art gallery that deals in Ethereum cryptocurrency. Crypto Art is a way of making it unique and provably rare. It is different from digital art in its inability to be replicated so easily that a person can duplicate and reproduce digital art. This rarity is what gives it its value. It can be hung on a wall, depending on the piece, using a monitor rather than a traditional canvas. In some cases, it is a hologram displayed like you would a sculpture — though some of the art is not for display in the conventional sense.
Can crypto be converted to cash?
You can convert cryptocurrency into cash. The first step is to sell your currency to a buyer at a fair value. Your next step is to transfer your payment to your bank or credit union and then remove the money as you would a traditional cash withdrawal.
Where can I spend my crypto?
You can spend and invest your cryptocurrency in any of the places listed above. Like any investment, you should base your decision on your risk level. Cryptocurrency is a volatile market subject to intense fluctuations. Only invest if you are prepared to lose as much as you gain. You will be taxed on the loss and the gain all the same.
Top Companies accepting cryptocurrency
Here is a list of major companies that accept or have accepted cryptocurrency as payment.
Microsoft founder Bill Gates recently stated that he would not invest in cryptocurrency because he prefers to invest in products that have a valuable output. He went on to say that the value of companies is in the great products they make. Cryptocurrency does not make products. Despite this announcement, the tech giant Microsoft continues to accept payment through gift cards that you can purchase with cryptocurrency through your crypto-wallet.
Electric car and solar panel maker Tesla has recently announced it will accept Dogecoin as payment for some of its products. Look for the Dogecoin symbol beside the order button. You will need a Dogecoin wallet to make your purchase. Once the order is placed, you cannot cancel it. If you have overpaid with Dogecoin, Tesla will not refund the overpayment.
This space-bound airline accepts Bitcoin as payment for space flights. You can prebook your flight for $250,000. If you pay with Bitcoin, your amount is transferred to US currency to secure its value at the current rate. Cancellations are accepted up to three months before departure.
Wikipedia is an online encyclopedia written and supported by a community of volunteers through open-based editing. Until recently, it accepted donations in cryptocurrency. However, in May of 2022, it announced it no longer takes cryptocurrency for reasons ranging from its negative impact on the environment to its volatility as an investment.
Burger King is a fast-food chain that makes burgers, fries, and other fast food. Recently they began to dip their feet into cryptocurrency. They ran a promotion where they gave away Bitcoin, Ethereum, and Dogecoin cryptocurrencies. You needed to open a RobinHood Finacial Brokerage Account and download the app to accept your prize. While they did run a crypto promotion, they currently have no plans to accept cryptocurrency as payment.
The coffee and beverage giant, Starbucks, does not directly accept payment in the form of cryptocurrency. However, you can load your Starbucks card through their app by linking it to your cryptocurrency wallet.
Shopify is an Ottawa, Canada-based multinational eCommerce company and an eCommerce platform for online stores and point-of-sale outlets. Users of the platform can enable various cryptocurrencies in their payments page in the setting section of your Shopify admin.
Cryptocurrency is touted by many as an excellent investment. Although, like any investment, it is subject to market fluctuations. If you cash out today to buy everyday items, you run the risk of cashing out too early if the currency increases in value the next day, month, or week. On the other hand, you can trade small amounts of your investment and use it as currency to buy everyday items for your home — the choice, and flexibility, are yours.