Jasmine Birtles
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Buying Items With Crypto: Does it Save You Money?
Ruby Layram
1st Apr 2025
One of cryptos’ most anticipated use cases is as a payment method for everyday goods and services. Cryptocurrency offers a decentralised way to pay for things- without most big banks knowing what you’re buying!
But, is using cryptocurrency to buy everyday items is a smart financial move? If you are wondering this, you’re not alone.. More and more retailers are accepting crypto as a form of payment, and for good reason—it’s fast, borderless, and, in some cases, cheaper than traditional banking methods.
But does paying with crypto actually save you money? Or is it just a novelty that comes with extra risks?
In this post, we will take a closer look at whether buying things with crypto is worth it and whether it’s something that you should start doing in 2025.
What is The Appeal of Paying With Crypto?
Cryptocurrency was originally designed as an alternative to traditional banking. No middlemen, no delays, and—depending on how you use it—no hefty fees.
But when it comes to spending, what exactly makes it so appealing?
Lower transaction fees (sometimes!)
One of the biggest selling points of crypto payments is the potential to save on transaction fees.
Banks and credit card companies typically charge anywhere from 1% to 3% in fees when you use your card abroad. Cryptocurrencies, on the other hand, cut out intermediaries, which means lower fees—at least in theory.
If you’re paying with Bitcoin, though, things can get expensive.
Bitcoin’s network fees fluctuate, and during peak times, they can be higher than what your bank would charge. However, other cryptocurrencies, such as Litecoin, Solana, or stablecoins like USDT, can have much lower fees, sometimes even a fraction of a penny.
Privacy & security
If you’re buying from an online store that you’re not entirely sure about, paying in crypto can add an extra layer of protection. No credit card details, no bank account numbers, just a simple blockchain transaction.
However, it is worth noting here that getting refunds from crypto payments may be more difficult, or even impossible.
The Risks & Hidden Costs of Buying With Crypto
Of course, it’s not all sunshine and savings. While there are plenty of benefits to using crypto for everyday purchases, there are also a few drawbacks to consider.
Volatility can work against you
Crypto prices fluctuate wildly. If you pay 0.01 Bitcoin for a laptop today, that same Bitcoin could be worth twice as much next week—or half as much!
Let’s say you bought a £1,000 gadget with Ethereum in 2021. If you had held onto that ETH instead, it might be worth more than that now.
On the flip side, if you’d waited too long to spend your crypto, you might have ended up with less purchasing power.
Tax implications
In the UK, spending crypto isn’t just a simple transaction, it’s a taxable event.
HMRC treats crypto as an asset, meaning every time you sell, swap, or spend it, you could be liable for Capital Gains Tax (CGT). If your crypto has increased in value since you acquired it, you might owe tax on the difference.
So, that coffee you just bought with Bitcoin? Technically, you might have to declare it to HMRC. In contrast, if you’d just used your debit card, it’s unlikely there would be any tax complications involved.
Not all retailers accept crypto
While crypto adoption is growing, it’s still far from mainstream. You won’t be able to walk into Tesco and purchase bananas or pay your rent with Bitcoin (at least, not yet!).
Yes, some platforms offer crypto debit cards, allowing you to spend your digital assets anywhere that accepts Visa or Mastercard. But these cards convert your crypto into fiat currency at the point of sale, which means you’re not really avoiding fees or gaining any special benefits.
When Does It Make Sense to Buy With Crypto?
Despite the risks, there are some situations where paying with crypto makes perfect sense:
- If you’re avoiding high bank fees: International transfers can be costly, but crypto payments sometimes come with lower fees.
- If you hold stablecoins: Cryptos like USDT, USDC, and DAI claim to be pegged to fiat currencies, so they are unlikely to suffer from volatility from those currencies, though keep in mind stablecoins can lose their peg, and will fluctuate against fiat currencies they aren’t pegged to.
- If you’re transacting peer-to-peer: Sending crypto to friends or businesses directly (without third-party platforms) can be faster and cheaper.
- You want to protect your privacy: but make sure to use a wallet that’s not connected to you
- You want to save time by not having to convert your crypto into fiat, then withdraw it to a bank
- You don’t want to withdraw crypto to your bank
- You want to help to grow crypto adoption by using crypto.
- In gaming (like Axie Infinity or the Sandbox) and digital art, it can be easier to pay with crypto than fiat. The transactions can be programmed and be final and can be seen on a blockchain. So there is less likely to be fraud or failed deliveries. There doesn’t need to be a centralised trusted party involved.
The Future of Crypto Payments
So, will we all be using Bitcoin to buy our weekly shop one day? Possibly! While crypto isn’t replacing cash or cards just yet, adoption is growing.
Big players like PayPal, Visa, and Mastercard are integrating crypto into their platforms, making it easier for everyday consumers to spend digital currencies.
Parts of the world like Lugano in Switzerland have also taken steps towards mainstream crypto payments, proving that the future of money might look very different from what we’re used to.
If regulators create clearer tax rules, crypto spending could become even more attractive.
Final Thoughts: Does Buying With Crypto Save You Money?
The answer is… it depends.
If you’re strategic, using the right cryptocurrencies, and avoiding unnecessary fees, crypto payments can absolutely save you money.
However, if you’re not careful, volatility, taxes, and transaction costs can eat into those savings.
For now, crypto spending is best suited for tech-savvy shoppers, frequent international buyers, and those who already hold digital assets. If that’s you, spending crypto could be a savvy way to cut costs.
But if you’re new to crypto and just looking for a way to save money, sticking to traditional methods might be the safer bet.
That being said, the world of finance is changing fast. Who knows? In a few years, we might all be tapping our Bitcoin wallets instead of using contactless cards.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies. The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results.
UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor. New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.).
Cryptocurrency is currently not regulated in the UK. It’s vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments. You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you’re unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) if something goes wrong.
Remember:
Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
https://www.coinjar.com/uk/risk-summary
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