How can I actually spend crypto in real life?

[Strongkored]

I would really like to hear how others are using their crypto in real life, or if most people are still just holding onto it.

So far, my experience using Bitcoin or stablecoins has been when purchasing domains and renewing VPN subscriptions.
A few years ago, there was a platform in my country that offered mobile phone credit purchases, but it seems Bitcoin's volatility forced them to stop using Bitcoin.
If you want to use Bitcoin for everyday purposes, you can exchange it for Fiat, as its use is currently very limited.

[Z-tight]

The most preferred way would be to pay directly with BTC. But depending on where you live, you may find it very difficult to get a merchant who would be willing to to accept BTC, they'll say it is too volatile. If i am not going to pay directly with BTC, then i prefer to just use an exchange and convert BTC to fiat. I choose that option over debit cards or gift cards, because it is not like you are spending BTC directly when you use them.

[joniboini]

I also used crypto primarily for VPNs and other digital products, like digital games top-up. It's quite good so far, although most merchants are overseas since my country doesn't allow crypto for payments. Fees are not an issue so far. I used a crypto debit card too in the past, although most of them stopped working or require KYC now, so I don't think it's worth it anymore. The fees are quite expensive, too. Selling my crypto for fiat is probably better compared to it.

[robelneo]

I would really like to hear how others are using their crypto in real life, or if most people are still just holding onto it.

My PayPal was always restricted because of transacting with unverified accounts, and cryptocurrency is heaven-sent for many webmasters because they can buy and renew their domain and webhosting, and subscribe to their VPN. You have to explore various marketplaces for your needs where cryptocurrency is accepted.
If cryptocurrency is legal in your country, chances are you have local merchants that accept it; you just have to explore.
 

[348Judah]

And if a place does not accept crypto, is buying gift cards basically the main workaround?

There are so many platforms that accepts the use of cryptocurrency in making payment on their sites, so you may not have to be tied on using a particular one only, try on others, gift card is only an alternative and something quit different form the use of bitcoin or any crypto in making payment, some may have to take a look on places like these https://bitcointalk.org/index.php?topic=5467964.msg62902489#msg62902489
 as already discussed.