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How to Pay with Bitcoin and Other Cryptocurrencies in the U.S. (Beginner’s Guide 2025)
Have you ever wondered if you can actually spend your Bitcoin or other cryptocurrencies instead of just holding them? The answer is yes, and in 2025, it’s easier than ever in the U.S. Whether you’re shopping online, paying for food, or even booking a trip, crypto is slowly moving from “just an investment” to something you can really use.
This guide will walk you through exactly how to pay with crypto in simple steps, what to watch out for, and how to avoid beginner mistakes. Don’t worry, no complicated tech talk, just plain English.
Two Main Ways to Pay with Crypto
When you pay with Bitcoin or any other coin in the U.S., it usually works in one of two ways:
1. Convert Crypto to Dollars at Checkout
Apps like PayPal, Venmo, and Cash App now let you pay with your crypto balance. You just choose “Pay with Crypto,” and the app instantly converts it to U.S. dollars and pays the store.
Good for beginners because it feels just like using a debit card.
- The store gets dollars, so they don’t need to “understand crypto” at all.
- The only downside? Every time you spend crypto this way, it counts as selling, so taxes apply (more on that later).
2. Pay Merchants Directly in Crypto
Some businesses now accept Bitcoin, Ethereum, or stablecoins like USDC directly. At checkout, you’ll usually see a QR code or wallet address. You scan it with your crypto wallet app, approve the payment, and done.
- Good if you already have a wallet and want to keep more control.
- The store may either keep the crypto or convert it to cash using services like BitPay or Coinbase Commerce.
- It feels more like “real crypto,” but you need to double-check the details before sending.
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Taxes: The One Thing You Can’t Ignore
Here’s the tricky part: the IRS doesn’t treat crypto like cash. Instead, it treats it like property. That means every time you spend it, it’s like you sold it.
Example:
- You bought Bitcoin at $20,000.
- You spend it today when it’s worth $25,000.
- That $5,000 difference is considered a gain, and it can be taxed.
So yes, even buying a $10 pizza with Bitcoin can create a taxable event. That’s why it’s smart to:
- Keep receipts or screenshots when you pay with crypto.
- Use apps or tax tools that track your spending and gains.
- Ask a tax professional if you’re spending crypto regularly.
Step-by-Step: How to Pay with Crypto (Beginner-Friendly)
Let’s make it super practical:
If You’re Using PayPal, Venmo, or Cash App
- Buy some crypto in the app (Bitcoin, Ethereum, etc.).
- At checkout, select “Pay with Crypto.”
- The app shows how much crypto it will take for your purchase.
- Approve it, and the app converts your crypto into dollars instantly.
- Save your receipt for records.
If You’re Paying Directly to a Store in Crypto
- Get a wallet (like Coinbase Wallet, MetaMask, or even a hardware wallet).
- Buy or move crypto into that wallet.
- At checkout, the store gives you a QR code or wallet address.
- Open your wallet app, scan the QR, and confirm the payment.
- Wait a few minutes for the blockchain to confirm it, and you’re good.
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Why Stablecoins Might Be the Easiest
If you don’t like the ups and downs of Bitcoin, you can use stablecoins like USDC or PayPal USD (PYUSD). These are digital dollars tied to the U.S. dollar, so $50 in stablecoin is always $50. No worrying about sudden price drops while your payment is processing.
Things to Watch Out For
- Double-check addresses — crypto payments can’t be reversed.
- Use QR codes whenever possible (less chance of a mistake).
- Watching fees for Bitcoin and Ethereum can get pricey; other networks like Solana or Polygon are faster and cheaper.
- Protect your wallet — enable 2FA and never share your recovery phrase.
Where Can You Actually Spend Crypto in the U.S.?
- Many online stores now accept Bitcoin and other coins through payment processors.
- Travel companies, gift card platforms, and even some food delivery services accept crypto.
- For local options, check merchant directories from services like BitPay or Coinbase Commerce.
Quick FAQ
Is it legal to spend crypto in the U.S.?
Yes, it’s legal — but don’t forget the tax rules.
Do I pay extra fees?
Sometimes. There may be network fees or small service charges, depending on the payment method.
Should I use Bitcoin or stablecoins?
For everyday spending, stablecoins are often easier since their value doesn’t swing wildly.