Real Estate & Cryptocurrency
Buying property with cryptocurrency may be somewhat of a new concept, but it is becoming more common. It is also becoming the choice method for many sellers and buyers. But before you dive into the cryptocurrency market to buy or sell a home, there are a few important things you should know. Be sure to talk with your local Realtor to see if they work with cryptocurrency to make your home buying or selling as seamless as possible.
Do Your Research
Cryptocurrency takes some education and research to get more familiar with it. You will want to get comfortable with the market. You want to understand all of the risks involved and how it all works exactly. You can get some great hands-on practice through Coinbase and Binance which are verified exchanges. This way you can get to know how digital money works before getting into larger investments such as the buying and selling of real estate.
Escrow is another area that you will want to get comfortable with as it can be somewhat complicated. You can either convert your cryptocurrency to cash or use crypto-to-crypto transactions. If you want to convert your crypto to cash, it is much like a regular cash transaction. It is ideal to set up the escrow with a crypto payment processor which will convert any cryptocurrency to a USD wire transfer. For a crypto-to-crypto transaction, you should work with a title company that is familiar with blockchain technology.
A New Way to Complete a Property Transaction
Blockchain technology is still quite new, but it is becoming much more widely used. It is predicted that it will eventually be used as the standard for all transactions. At this point, it does have a few challenges though. Many have the idea that it is fake money and many sellers would prefer not to deal with it but not everyone.
Cryptocurrency can be quite volatile, and that can be burdensome to the buyer. If you are using cryptocurrency in a property transaction, you should use the price of the house in fiat to set the standard. You will also need to have the right working records in the contract on how the crypto will be settled after the escrow. This will ensure that you are well protected. If the transaction seems just too good to be true, then it is most likely true. Cryptocurrencies have the potential to be hacked, and it is a good idea to get educated in the area of anti-money laundering and get to know your customer as best as you can. Just like any transaction you want to make sure that you are protected and aware of all scenarios-good and bad.
It can be harder to trace money that is no good in Bitcoin and other cryptocurrencies. It never hurts to be very cautious. Verify all parties involved and do your homework. Despite all the hurdles that can come with cryptocurrencies there are also many great benefits as well.
More and more homes are being listed with a Bitcoin price tag attached. Other sellers have asked that payment is made in both US dollars as well as in Bitcoins. This trend seems to be picking up as well and doesn’t look like it will go away anytime soon. This is a tactic that is proving to be successful, and many sellers have enjoyed big returns and are looking for ways to keep those gains in their real estate assets.
Many entrepreneurs are also incorporating digital currencies into property transactions by creating new tokens and currencies for trading, buying, and selling. They are also being created for investing.
The Many Benefits of Cryptocurrency in Buying and selling Property
The advantages of using cryptocurrencies in the buying and selling of property in the market are many. First off there is privacy when making a purchase, and it is much easier to make transactions overseas. There are liquidity and a reduced cost. There are no taxes on transferring property rights, and it is much easier to balance the security of traditional real estate with the flexibility that it offers.
A Great Way to Buy and Sell
If handled the right way cryptocurrency can be a great way to buy and sell a property. It can be more convenient, and it’s going along with the direction that the market is headed so it can be a great advantage if you get familiar with it now and hone in on your cryptocurrency skills. It never hurts to learn a new skill or two and to get the right people in your corner. Then when it hits big, you will be well prepared. Cryptocurrency makes it possible to buy a home from anywhere in the world. For more information about purchasing real estate using cryptocurrency, consult your local tech savvy real estate professional.