People tend to forget that Bitcoin isn’t just for investing and trading for profit. It is even used as a currency for many people. The unbanked, or people without bank accounts are found all over the world. Predominantly in poor countries, but there is a growing number of people that are now using cryptocurrency to replace their banking needs to save money.
A few years ago it would have been very difficult to buy real estate with Bitcoin as it hadn’t been adopted by the mainstream yet. Not long ago if you approached a seller asking to pay with Bitcoin it would have been assumed that you were a money launderer. These days just about everybody has some Bitcoin.
In this article, I will go over how you can buy real estate using your earnings from Bitcoin so you can save a lot of money on bank fees.
Have your Bitcoin ready
You can buy Bitcoin without a bank account very easily. You can buy Bitcoin with Payoneer, Paypal, or even doing peer to peer buying in exchange for cash or whatever you agree upon with the seller.
All of your Bitcoin should be kept in a cold wallet so it can be secure until the time of the transaction. If you have multiple wallets, it’s a good idea to consolidate them into one. Making sure that it is the most secure wallet.
A cold wallet is best since it is not connected to your computer and has very strong encryption. This way there is no chance of the Bitcoin being accessed by somebody else while you are waiting to make the transaction.
Choose your currency
There are various cryptocurrencies to choose from with Bitcoin being the most obvious. However, a case should be made for Ethereum as the blockchain allows for smart contracts to be made. This way all of the documentation will also be on the blockchain in addition to the payment.
Having a smart contract that can’t be modified makes the transaction very safe and transparent to anybody who needs to see it. This way there can’t be any fraudulent claims on the property or transaction. All of the necessary documentation can be stored in the smart contract so it can never get lost.
Settle the price in fiat
Even though you will be selling in cryptocurrency, you need to agree on a price in fiat, or regular, currency. This is because of the fluctuating nature of cryptocurrency. Since it can take a while for the sale process to take place, the value can be higher or lower than what was an agreed-upon price.
You can still make the purchase in crypto, but at the value of whatever the local currency is so, there is no fluctuation.
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.