5 Tips for Buying or Selling a Home with Bitcoin

The cryptocurrency frenzy has disrupted the real estate industry in ways that most people never even thought. Bitcoin’s meteoric rise has property buyers and sellers looking for alternatives to capitalize on the boom in recent years. Bitcoin has strengthened its position as an investment instrument and payment method, far beyond real estate. However, it is a new concept that could be pretty confusing to first-time investors. Here’s what you should know before buying or selling a home with bitcoin.

Do Your Homework
Cryptocurrencies are quickly becoming a common trend among high-scale real estate investors. However, crypto investing is not for everyone and requires a little bit of education before you can start cashing in. So, take time to do a little research to understand the crypto market, how it works, and the potential risks. Joining verified crypto exchanges like Bitcoin Up can offer great insights into how Bitcoin and the entire crypto market operate. Such platforms work almost similarly to regular stock trading, allowing users to link their digital wallets with bank accounts. That would educate you on the basics of digital money transactions before jumping into larger spaces like real estate.

Find the Right People
Bitcoin might become the standard investment instrument and payment method for all real estate transactions someday. Until then, those interested in using it to buy or sell property must be ready to deal with the challenge. The significant problem is that some people still view Bitcoin as a scam. Some vendors still do not want to deal with crypto despite the growing Bitcoin’s popularity. Nevertheless, the people’s divided perceptions of Bitcoin mean you need to find willing buyers or sellers familiar and open to transacting with it.

Understand the Escrow
Escrow might be a complex concept but it offers investors two options to choose from when buying or selling property using cryptocurrency. The first option is to convert your digital money into cash, while the second one recommends using crypto-only transactions. Escrow companies treat crypto to cash exchanges as regular cash transactions.

Experts recommend setting up an escrow account with a crypto service provider to convert the digital currency into fiat money if you need to change Bitcoin to cash. On the other hand, working with a reputable title company would be more suitable if you need crypto-only transactions. Overall, both sellers and buyers must understand how the conversion and money transfers will occur beforehand.

Set Standards
Buying or selling a home with Bitcoin comes with unique challenges. Cryptocurrencies are highly volatile and that could leave buyers with significant burdens. Experts advise it would be best to use the property’s price in fiat currency to set the parameters for crypto transactions. The contract must expressly state how to settle the crypto at the end of escrow. For instance, the seller should return the surplus if the Bitcoin price increases after making the transfer.

Stay Updated on Crypto News and Events
Bitcoin and its underlying blockchain technology are new ideas, subject to constant changes over time. Bitcoin developers and crypto service providers are continually introducing new features to improve security and accessibility. Consequently, those developments may also open new avenues for criminal activities like money laundering, fraud, and hacking. Regulators are also implementing additional rules and guidelines for the usage of cryptocurrencies. Thus, staying updated on the news and events about the crypto world is critical to understanding the potential benefits and risks of conducting real estate transactions in Bitcoin.

Bitcoin has been around for more than ten years but the idea of using it to buy or sell real estate is still relatively new. The above tips can help you get started on how to invest in real estate with Bitcoin.