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The three main ways of paying with crypto include: Pay a merchant who accepts crypto payments. Make a peer-to-peer (P2P) payment from your wallet directly to another wallet. Use a crypto debit card to convert crypto to cash.
Crypto is an alternative form of payment that can be used to purchase a car. Not every car dealership accepts cryptocurrency as a form of payment. Crypto values remain volatile, so it's best to exercise caution if considering this currency.
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Bitcoin has been classified as an asset similar to property by the IRS and is taxed as such. U.S. taxpayers must report Bitcoin transactions for tax purposes. Retail transactions using Bitcoin, such as purchase or sale of goods, incur capital gains tax.