We all know about the revelations happening in the world of cryptocurrency and people, out there, have been very ambitious about the potential of digital currencies to replace fiat currencies. One such emerging topic of discussion that currently exists today is whether or not buying a house with cryptocurrencies is viable or not.
If possible, what are the things that you need to look out for before buying a house with cryptocurrency? How are these transactions made to buy a tangible asset with something that does not exist?
As the public has many soaring expectations with cryptocurrencies, in general, and Bitcoin, in particular, your thoughts have been asked and answered. In this guide, you will learn everything that you need to know about whether you can buy a house with cryptocurrencies. Do Visit this site to know more about trading digital financial assets.
Is It Possible To Buy A House With Cryptocurrency?
Yes, it is very much so. Even though such a thing was a far-fetched dream once, the possibility of what cryptocurrencies can do is incredible. The question is not about whether you can have a house with cryptocurrency or not. Rather it is about how the process works or what key considerations that you need to keep in mind before you experiment with your hard-earned cryptocurrencies.
And like any ordinary transaction that you make with fiat currencies every day, all it needs is a consenting seller and a willing buyer. People have been skeptical about digital currencies and there is no doubt that many people and companies have succumbed to mental injuries because of crypto mining and hacking.
An informed person definitely knows how to protect their crypto coin and what better way to invest all of it in a house! Let us quickly go through the details of the mechanics and some prerequisites involved in the said process.
1. Get A Wallet Today
This is a pretty simple one really. If you own cryptocurrency, you will need something to keep the said coins. What do you do? You first get a wallet for your cryptocurrencies just like you get a wallet to keep your ordinary money. But unlike your ordinary wallet, crypto wallets are different with respect to your accessibility. You can access your wallet either online or offline. When offline, these wallets are called cold wallets and vice versa.
As you might have already guessed, cold wallets are definitely in a much safer zone than hot wallets. Many high-end people keep their crypto assets in cold wallets as it offers itself as a great defense strategy to prevent crypto miners and hackers from doing their dirty work. However, it is definitely much easier to work around cryptocurrencies that are stored in your hot wallet. But there are risks.
So, what many crypto admirers suggest is that you divide your bulk of cryptocurrencies into smaller accounts and put it in different wallets. This way, even when you fall prey to such criminal activities, unfortunately, you would not give yourself the trauma of losing it all. Learn about risk management programs today and give your crypto assets the best protection that it needs.
2. Find A Seller
The only reason cryptocurrency is not able to replace fiat currency is because of its volatile nature. So, when you are thinking of buying a house with it, even though we do not want to discourage you by saying it’s not possible, it might be hard to find a willing seller who will accept crypto money in exchange for the house.
This means you have two options here to make the payment, exchanging your crypto coins for cash or persuade them to receive cryptocurrency payments. Another reason why cryptocurrencies are subjected to doubt and skepticism is that they are not governmentally regulated or backed.
This gives cryptocurrency a bad image and hence makes it quite risky for the sellers to accept the said currency. Now the moment your seller is convinced enough to accept cryptocurrencies in place of real money, all you have to do here is to wire your valuable crypto money from your wallet to theirs. There, you have it. You have the keys to your dream house
If your seller refuses to accept cryptocurrencies as a medium of exchange, you can always go and encash your cryptocurrencies at the price value that is currently existing. The house’s real value in terms of dollars can be determined by deliberating and once the value is fixed, you go ahead and encash. Pay the seller and the house is yours!
Things To Look Out For
Buying a house with cryptocurrencies is not the hard part at all once you put your mind to it. But before signing the deal, you might have to look out for certain other variables that factor in. Some of these could be the following.
1. Government regulations
Governments from all around the world have been pushing their respective authorities to look at the mechanics of the crypto world and blockchain companies. There are many reasons why governments are tirelessly bent on laying down regulations for companies who authorise transactions with cryptocurrency and the most significant one is the decentralised mode of cryptocurrency.
Make sure that you learn all the rules and regulations that your government has made regarding investing in a house with crypto. Visit your nearest bank today to learn more about this. No regulations mean a green flag!
2. Fluctuations In The Price Value Of Crypto
This is something organic about cryptocurrencies. Owing to the volatility of cryptocurrencies, the price value always fluctuates. So much so that it changes within a matter of seconds and not in terms of days or weeks. This is definitely a con due to which your seller might not be willing to accept crypto. Most of all, the predictions that are arrived at by evaluating the indicators are not always true. Random fluctuations can cause confusion in your mind, for sure.
After weighing out the pros and cons, if it is in your best interest to buy a house with crypto, do not let anyone stop you and buy your dream house today!