The recent popularity of cryptocurrencies and the unexpected boom in their rates have made them a desirable mode of currency for many. People who had bought a few bitcoins when the exchange rate was in pennies, and somehow managed to hang on to it for a few years, are now sitting on a fortune.
Today, there are many ways to spend the coins on substantial resources instead of participating in the market trading for tokens and cryptos.
Trading in cryptocurrency
As more and more people are getting involved in cryptocurrencies, an increasing number of merchants have begun accepting cryptocurrencies in place of fiat currency. While it is exciting to learn about property dealers and automotive businesses accepting digital currencies, there is also a downside attached to trading in cryptographic currencies.
For starters, the volatile nature of the currency offers lucrative returns, but it can also incur huge losses. In short, you can win big, but you can lose even bigger. Secondly, due to its potential to be used in illegal activities like terrorism, tax evasion, and drug trade, many regional and national authorities are trying to regulate its trade.
Some governments, including China, India, and South Korea have put legal restrictions on cryptocurrencies; some have banned them altogether while others are skeptical about the policies regarding digital currencies.
- permissive (legal to use bitcoin)
- contentious (some legal restrictions)
- contentious (interpretation of old laws, but no ban directly)
- hostile (full or partial prohibition)
There is also the anonymity factor. Cryptocurrencies were, for the most part, used secretly to purchase commodities without uncovering your privacy. However, legal car or house ownership is anything but anonymous. You will have to transfer the title, pay the taxes and fees, and sign up for an insurance plan. This, too, beats the purpose of using cryptocurrency.
But in case you had bought a few bitcoins when the exchange rate was in pennies and had managed to hang on to the coins for a few years, you are sitting on a fortune. You’d want to spend the coins on substantial resources instead of participating in the market trading for tokens and cryptos. Fortunately, there are ways to use the digital currency to buy a commodity of your choice.
Buy a car with cryptocurrency
The wider adoption of cryptocurrency has prompted crypto-exchanging and the acknowledgment of digital currency as a legitimate method of transaction. You can now use cryptocurrency to purchase the extravagant apartment in the city, book an airline ticket, buy hosting for your new project or even buy your favorite car. As long as you can find a dealer who accepts cryptocurrency as a mode of payment, you are good to go.
5 tips to keep in mind when buying a car with cryptocurrency
Several services allow you to buy a car for sale using cryptocurrency. However, as this concept is new, this is always a chance that you may get confused. To streamline the process, here are five tips you need to keep in mind when dealing with auto dealerships who trade vehicles for cryptocurrencies.
1) Do a background check:
Buying an item such as an automobile from a private car seller is a risky affair, especially when you are trading in cryptocurrency. It is necessary to do your research on the car seller and inspect the vehicle in person before you strike a deal. Check the vehicle’s history and ask any questions you have about the vehicle. Once the coins leave your cryptocurrency wallet, it is almost impossible to recover it.
2) Have your cryptocurrency converted to cash
If you are finding it hard to locate a private seller or auto dealership who accept cryptocurrency, or you simply want to avoid any hiccups, the easiest way is to convert your coins into conventional currency. This is probably the simplest way to turn your cryptocurrency into a vehicle without asking the seller to accept the digital currency.
Many dealerships keep in touch with cryptocurrency trading platforms which trade cryptocurrency to fiat currency. They will exchange your coins for a small fee and deposit the funds to your bank account.
3) Join a cryptocurrency forum
Nowadays, there are communities almost for everything where experts and enthusiasts actively discuss new ideas, problems, and solutions. Join such forums and groups to widen your network and look for people who have heavily invested in cryptocurrencies. You can not only ask any questions from the experts but also have a good chance to catch up with someone in the community who might be willing to pay for a car with digital currency.
4) Find an intermediary
Many web-based companies and websites facilitate the conversion of cryptocurrency to fiat currency and act as intermediaries between buyers with coins and individuals or dealers with cars. They specialize in being the ‘middle man’ and link the two parties (i-e buyer and seller); however, it is important to do a background check before trusting a company with any currency. Check out the customer reviews and see what other customers are saying about the service on their website or online review forums.
5) Find a car owner who wants to get started with cryptocurrency:
Many people want to get cryptocurrencies but don’t know how to obtain them. In this digital age, it is not hard to find people who will trade their goods or services for digital currencies. So, while visiting online crypto communities and forums, look for someone having a car with a desire to get their hands on some digital currency. Make them an offer but again, do the due diligence and research by doing a background check.
The rise of cryptocurrencies offers a lucrative opportunity for car buyers and sellers, but it comes with certain risks. There is no denying the convenience that the currency of the digital age offers; however, it is necessary to analyze all the risks, understand the market, and keep these tips before you trade.