Revolutionary, transformative, and controversial – these are all adjectives that we all have heard when it comes to cryptocurrencies. However, regardless of your personal thoughts on this modern payment option, it’s time to start recognizing the fact that it is becoming mainstream, especially when it comes to the millennials and Gen Zers out there.
But what are its practical purposes apart from investment assets? Can you actually buy something with them, like a car? If you’re pondering over these questions and how to spend crypto, you can be sure that many world-class companies accept the digital assets. All you have to do is do your research, prepare your crypto wallet, and use the assets as a mode of payment – with a selected, crypto-friendly provider.
So, without further ado, read on to learn more about using crypto for car purchases.
Can You Use Crypto to Buy a Car?
As modern and smart as our world has become, as informed as we can be thanks to the democratization of information provided by the internet – far too many people misunderstand what crypto is. While it is virtual, it is still an asset, which is something any smart investor will be able to tell you. Apart from that, it has plenty of uses, but let’s get back to the original question that brought you here, can you use crypto to buy a car?
We’ll be frank with you, the answer is yes. But, while our answer is straightforward, the process itself might not be. As a digital currency, it’s not like you can physically go to just any dealership and hand over your virtual coin to them.
For starters, you’ll first need to find a trustworthy and reputable car dealership that openly accepts crypto. This may be challenging depending on your location and the current legislation employed by your government. While change is inevitable, some governments are still pushing against it pretty hard.
How to Buy a Car with Crypto
There are plenty of ways you can go about it. Most of us will tend to google this question, which is a good starting point, but we’d also recommend calling up local car dealerships and checking out if they offer this option. Alternatively, most of us will know at least one crypto-aficionado, so send them a text and see if they know of one.
Of course, if you find a car dealership that does accept this form of payment, don’t just hand over your hard-earned crypto to them. The motto when it comes to this is research, research, research. Unfortunately, there are far too many scammers in this world, and even more so in the digital one, even when it comes to physical items.
Once you’ve done your due diligence, as you should with anything as it is not limited to crypto, of course, it’s time to pick your car. Don’t settle for something you don’t really want or something far outside your budget, you want to play it smart with such an important decision. This part of the process is, honestly speaking, identical to when you buy one with a normal currency.
Then, see if you can barter around and get a better deal out of it. Typically car dealerships will try to sell you everything under the moon – at sky-high prices of course. Try to avoid getting mugged and just stick to what you actually want and need.
Make sure all the necessary paperwork is done and dusted and after this, we get back to the less typical stuff, purchasing the car of your choice with crypto. Instead of grabbing your standard wallet, you’ll have to access your digital wallet and transfer the agreed-upon crypto total and cryptocurrency type to finish up the purchase.
Make sure that you double-triple-quadruple-check the address because whatever you send, will be basically impossible to recover if you send it to the wrong address. Then, all you have to do is wait for the confirmation that the dealership received it and you can go and get your car. Voila, this is how you can buy a car using crypto.
Pros and Cons of Using Crypto to Buy a Car
Okay, so now you know that you can buy a car with crypto, and how to do this. But what’s the catch? There has to be one, after all.
Well, unfortunately, just like with everything else, there are both pros and cons – but let’s start off with the positive. Using crypto to buy a car offers more privacy and security when compared to regular payment methods. And we can’t forget about the fact that crypto typically offers not only faster transactions but also lower-cost ones, meaning you don’t have to spend too much extra for that big transfer.
Unfortunately, we do also have to mention the less-than-positive part, which is how volatile crypto is. The prices do fluctuate, a lot, so you and the dealership will most have to agree upon the exchange rate at the time of signing it, so it might not go in your favor if there’s a drastic price change.
Plus, as we touched upon above, if you send it to the wrong address, all that money is basically lost. This is where the privacy part goes quickly from a pro into a con.
This is why you should assess all of the information available to you prior to the purchase and go through with it as an informed person. A small mistake could end up being very costly.
This article has definitely answered your question, but beyond that, we hope that is has given you all the information you need on how to actually go about it. Luckily, there is no shortage of information available online, and definitely no shortage of professionals out there who can further help you with more nuanced questions. So go on and enjoy the thrill of living in the modern age, paying for a physical car with a virtual currency.