Can Cryptocurrency Be Used to Buy a House? Here’s What You Need to Know
One of the biggest challenges that people face when buying a house is getting the cash or financing in order to make the purchase. But did you know that there are other options than just obtaining a mortgage or having cash in the bank? The cryptocurrency craze has hit the real estate market. That means buyers and sellers can write their real estate deal involving cryptocurrency instead of traditional cash.
In the world of high-end real estate, this is becoming more than just an option; it is becoming a preferred method. Why? Investors are making a fortune off of investments into cryptocurrency and they are looking for new investments. Cryptocurrency investments are still on the newer side and something people are learning about. When an investor wants to diversify some of their investments and invest their gains into another investment vehicle, real estate is a good option.
So if you are buying or selling real estate, especially in the high-end market, there are a few things that you need to know before doing a cryptocurrency real estate transaction.
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Know what you are doing
Before you jump into a real estate transaction involving cryptocurrency, make sure you do your homework. A real estate transaction is a big deal and you need to do your research to understand exactly what you are doing. There are a lot of videos online to help explain how this process works.
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Realize it is a form of currency
If you have heard of cryptocurrency or Bitcoin, it was most likely hearing about people making money by investing in it. While this is true, it is also an actual form of currency. Understand that you can use this in a real estate transaction.
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Find an expert
When you are looking to sell or buy a house with cryptocurrency, you need to work with an expert. Instead of just looking for a local real estate agent that is experienced in your area, you need to find a real estate pro experienced in cryptocurrency transactions. Depending on where you live, you may need to look outside of your area in order to do this.
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Get comfortable using cryptocurrency
Entering into a real estate transaction involving cryptocurrency should not be the first transaction that you do with it. Practice and get comfortable using it.
Find an app to download, such as Coinbase, and buy a small amount of bitcoin. You can even spend as little as $20. The important part is that you get familiar with the process. Get comfortable buying, selling it back, and converting it back to USD.
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Familiarize yourself with the main types of cryptocurrencies
This includes bitcoin cash, ripple, lite coin, and Ethereum.
If all of this seems like a foreign language to you, don’t worry – you are not alone! Start learning what you can about the digital currency to see if this is a good option for you.