The rise of cryptocurrency is not a trend but a strong force that will be around for the long-term. With a single Bitcoin reaching a value over $60,000 as of October 2021, it is understandable that crypto investors are thinking big about tapping into their crypto stashes.
Is it possible to use cryptocurrency to purchase a house?
You’re not the only one considering Bitcoin, Ethereum or Dogecoin to buy a house. Although it’s becoming more common, there are still some issues to consider. The volatility of the cryptocurrency market can also make transactions difficult. Brock Pierce, a former child actor, is now an entrepreneur, and the director of the Bitcoin Foundation. He is believed to be the first person to do so. To buy a house, you can use cryptocurrency To secure a loan to buy a property in Amsterdam, you can use $1.2 million worth Bitcoin as collateral. Although not everyone can become a Bitcoin billionaire like Pierce, it is possible to convert cryptocurrency into real property. Here are some tips and pitfalls to avoid.
How can you buy a house with cryptocurrency?
You have a few options to use cryptocurrency to purchase a house.
Convert cryptocurrency into cash
A service such as Coinbase allows you to easily sell your cryptocurrency to get fiat money (dollars). BitPay Then, you can use the money to buy a house. Keep in mind, however, that the fiat money must be kept in your name for at most two months before it can be used to buy a home. A deposit that is too large could get flagged by the IRS. Capital gains tax may apply to any money earned from the sale of cryptocurrency. Check with your tax attorney or financial advisor.
Borrow against cryptocurrency
Companies that like Nexo You can use your cryptocurrency to secure a loan in fiat currency, which you can use to purchase real estate. You will pay higher interest rates than a traditional mortgage at 8% and the IRS might flag your account if a large amount of money appears. You can use your cryptocurrency for long-term investments. It will be in your account, and its value can follow market trends.
Transfer cryptocurrency directly to the seller
Although it can be difficult to find sellers willing to accept cryptocurrency for payment, there are many sellers who are open to the idea. Some sellers want to buy Bitcoin, Ethereum, and other cryptocurrencies. Offering cryptocurrency could help you rise to the top of the list in these cases.
This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Looking for homes for sale in Rio vista FL we are the real estate team for you!