Bitcoins and cryptocurrency, the chances are that you at least have a vague idea of what the words mean. The world has come a long way in this regard. When cryptocurrencies were introduced, they were marked with obscurity and were met with skepticism.
As digital currencies, as well as the blockchain technology behind them, becomes mainstream, the masses have become more receptive to them. For instance, according to Coin.Dance, between 2012 and 2020, the value of bitcoin has been increased by 193,639.36! As reported by Statista, the current value of Bitcoin stands at approximately 63,200 USD.
It comes as no surprise that now many brands and service providers are accepting cryptocurrency as a viable mode of payment. Similarly, many cryptocurrency users are using their accumulated assets to make purchases.
One industry where the transaction via cryptocurrency is slowly gaining momentum is the automobile sector. Whether it be purchasing or selling a vehicle, it turns out that some players of the industries welcome unconventional modes of payment, including cryptocurrency.
How to buy a car from cryptocurrency?
If you are considering purchasing your next dream ride via crypto, here is how you can do so.
Online Dealerships that accept cryptocurrency
There are various car buying and selling platforms online that allow customers to make payments in a variety of ways, including cryptocurrency.
One benefit of purchasing vehicles through this method is that it is highly convenient compared to other modes. Rather than visiting dealerships multiple times and being haggled into a deal that clearly benefits the dealership more than you, you can do it all online, thereby cutting short the negotiation process.
Depending on the platform you choose, generally, different cars are displayed on the site along with their price. Once you decide on a car, you can choose to inspect it before finalizing the deal. Do your research and seek out online dealerships that allow cryptocurrency transactions. You can also resort to platforms like Auto Coin Cars to get access to listings with vehicles at the most affordable prices.
Facilitation through the P2P Community
One of the vital characteristics of the cryptocurrency world is its immensely active community.
You can find various crypto communities operating on different social media platforms. Here, you will find some of the kindliest advice from people who are well-versed in the sector. It also helps in broadening your network.
Additionally, most such P2P communities function as a selling platform as well. Since an automobile is quite an investment, seldom is the chance that a vehicle itself would be being sold in such communities. Instead, you are likely to find someone who has the right connection.
Use the community to seek people who are highly investing in the crypto and automobile market. Ask for potential referrals. Ensure that the person you trust is authentic.
Also Read: Are you searching for Reliable Forex Broker?
Crypto to cash conversion
While the crypto world certainly has favourable odds in terms of mainstream adoption, fiat currency is still the king.
You might have noticed that the section above has ended with a warning – stay safe from scams! You can say that this is one underlying disadvantage of trying to purchase directly via cryptocurrency.
Since the industry is still ambiguous and regulations are fluid, it is not as safe a currency as one would like when purchasing a high-price good. This is why converting your cryptocurrency into cash and then using it to purchase vehicles in a conventional way is likely to be the safest option of the lot.
Also, note that this will also increase your options. Whether it be broadening your search to include more dealerships or purchasing vehicles like Tesla, there are certain limitations of cryptocurrency that you can avoid by converting the asset in cash.
You can convert your digital currency via trading platforms as well as Bitcoin ATMs. In both methods, a small service fee will be charged. To reap the maximum reward, be careful to convert your money when the price of your digital currency is high.
How to buy cryptocurrency?
For those of you who are a novice in the crypto world, before thinking about purchasing things with cryptocurrency, you must first build up your reserves.
How do you purchase cryptocurrencies? Well, you can start with Bitcoins. Purchase it with your US dollars through a wallet – an online app that holds different currencies. Once you have money in your wallet, you can create an account on different credible exchanges like Binance, CoinBase, and Etoro, etc.
You can then use your bitcoins to purchase other types of cryptocurrency.
Is cryptocurrency legal?
This is quite a difficult question to answer. Why? Well, this is because the legal status of cryptocurrencies varies, depending on where you reside. While the US has legalized the use of digital currencies, countries like China have not been as welcoming.
Therefore, make sure to first check whether the currency is legal in your country before investing in it. After all, no one wants to incur huge losses merely because they were unaware of the laws of your country!
To sum it up – Can you buy cars with cryptocurrency? Yes, if you are in the right country!
How can you do so? Via online platforms, crypto to cash conversions, and p2p selling.
Should you use digital currency? Sure, if you are certain about the authenticity of the people involved in the transaction.
If the pattern of growth continues for the digital currency, maybe one day, you wouldn’t have to worry about safety concerns. When you combine this with the lack of need to carry credit cards and cash, it is surely a great proposition.
Until it becomes a reality, continue practicing caution when dealing with cryptocurrency and go ahead and purchase your dream vehicle!