Cryptocurrency is more than the investment instrument that people see it as today. It was initially designed to function like any other currency: as a means of exchange for goods and services. Shopping with crypto is a bit different from shopping with cash or bank cards, and we’ll tell you a few things you need to know before you click that buy button.
- It Might Take Longer than You Think
Crypto was made to be a faster method of global payment, especially when compared to wire transfers. Where credit card transactions may take days to complete from end to end, some crypto transactions can take a few minutes or a few hours. Still, there can be delays due to network activity. If the network gets congested, brace yourselves for it to take a little longer than you expected.
- Fees Can Be a Bit Unpredictable
Fees are generally transparent and you can use certain services to estimate what they may be. However, that same congestion in network activity could cause the fees to skyrocket. It’s best to always plan for upper limit fees when making purchases using crypto.
- Keep Volatility in Mind
Everyone and their dog has heard about how risky and volatile cryptocurrencies are. Their value can soar or plummet in the blink of an eye, as it has before. Keep an eye on the price movements so that you don’t spend too much or have too little for your next purchase.
- Paying with Digital Wallets
You’re going to need a digital wallet to make any kind of transaction. The top wallets have browser extensions and apps that can connect to a crypto shop to make transactions easier. You won’t have to be approving small purchases every minute from your hardware wallet if you don’t want to.
- Easy to Use Crypto Debit Cards
The easiest way to make any kind of purchase would be to use crypto-enabled or crypto-specific debit cards. This is ideal and convenient for regular shoppers who are going to merchants that don’t take crypto directly. There are many providers to choose from and some offer a cashback program that makes shopping worthwhile.
- Remember Your Taxes
You probably already know that there are tax laws for selling crypto, whether it’s at a gain or loss. You should also know that you are also taxed for exchanging cryptocurrency for property, goods, or services. If the value of your coins has increased up to the time of purchase, then you have to pay taxes on those gains.
Shopping with crypto could become as easy as shopping with any other form of payment. Compared to credit cards and wire transfers, crypto is a faster payment method, but there can be delays if the network is congested. That same congestion can lead to high fees since these fees are calculated in real-time based on network activity. In addition to fees, the value of your coins is also quite volatile. Since both can change at any minute, it’s best to stay abreast of any and all changes before you go shopping. Once you’re poised to checkout, you can use a digital wallet or crypto debit card to make payments. Now that you’ve gotten your item, you may not want to worry about taxes, but filing them is quite important. Keep a record of all your transactions and have fun shopping with crypto!