When it comes to buying a new car, there are plenty of options. You can rely on your local car dealership, or you can buy from a private seller. You might even be able to get a good deal on an older model from someone who’s looking to upgrade. If you’re lucky enough to have some extra cash in your pocket, or if you want to take advantage of the crypto market, there’s another option: buying with cryptocurrency. But is it really possible? And should you consider buying cars with crypto?
How does cryptocurrency work?
Cryptocurrency is a digital currency that uses encryption to secure transactions and control the creation of new units. It uses decentralised control (as opposed to centralised electronic money and central banking systems), which means that no single institution controls the cryptocurrency.
Cryptocurrencies are not controlled by a central bank or government, but instead, they’re created through a ‘mining’ process where people compete to solve complicated math problems and verify transactions on their computers. This process generates new bitcoins for the miners, who then have the option to trade them at exchanges like Coinbase or withdraw them into their own wallets as cash equivalent value.
Can I use cryptocurrency to buy a car?
You can buy a car with cryptocurrency. The most popular will be Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC), but there are a few others to choose from as well.
Cryptocurrency is not the most popular payment method for car payments, as it has many pros and cons that we’ll get into below. However, if you want to purchase your next car using crypto, then here’s what you need to know about buying cars with cryptocurrency:
Pros & cons of buying a car with cryptocurrency
The pros and cons of buying a car with cryptocurrency are:
Pros:
It’s a great way to cash out! With adoption taking its time to spread globally there are not many outlets for spending cryptocurrency. However, more and more businesses are starting to open up to crypto and educate themselves so that they can safely accept it as a payment. The number one marketplace worldwide currently is AutoCoinCars. They have been operating for over 4 years in the crypto-car industry so you know you can safely buy a car with cryptocurrency from them.
Speed! Cryptocurrency transactions are nearly instantaneous. Where you might have to wait hours or possibly even days for a standard translation for a car. This is generally because when you spend a large amount of money, your bank might hold it on suspicion of fraud so you will have to manually verify the payment. Or it could even be that if the transaction is on a weekend the money may not transfer until Monday.
Cons:
Cryptocurrencies are volatile. If you’re the type of person who wants to try something new, cryptocurrencies could be a good fit for you. They’re not tied to any government or central bank, so their value can fluctuate quite a bit. This could be good or bad because you might cash out at the right time and have saved yourself from losing a lot of money. Or, you could cash out and then it goes up, making you regret cashing out. It’s all relative though to you and when the right time is for you to spend.
Cryptocurrencies aren’t widely accepted yet. The world has been slow to adopt them as currency; it will be a while before they become ubiquitous like dollars, pounds or euros.
Cryptocurrencies allow anonymous transactions that cannot be reversed if fraud occurs. This can be both good and bad: It allows people with nefarious intentions (for example) more freedom when dealing in large amounts of money without fear of being tracked down later on; however, this also means there is little recourse if someone does scam another person out of their money through digital currency transactions! However, when you are buying a car from a reputable retailer such as AutoCoinCars, they run security checks to ensure something like this would not happen.
You can buy a car with cryptocurrency, but there are some important things to consider first.
First, you need to make sure that the currency you’re trading is accepted and is at a point where you’re personally happy to cash out. The whole point of using cryptocurrency is to avoid fees and other costs associated with traditional forms of payment like credit cards or cash—but if the value of your money fluctuates wildly, then it won’t work as an effective means of purchasing things like cars or houses.
If the price of Bitcoin drops by 50 per cent tomorrow, then it won’t matter how much money you had stored in that wallet; even if it was enough for an entire house before the drop happened, all those coins will be worth half as much or less when next week rolls around.
Second: know what kind of car you want before starting negotiations! I’d recommend checking out sites like AutoCoinCars which has hundreds of partnered dealerships on board giving you thousands of cars to choose from, all of which you can buy with cryptocurrency.
Summary
As you’ve seen, buying a car with cryptocurrency isn’t as simple as buying one with cash, but it may be worth your time. There are several factors that could affect your ability to use this method of payment, including who accepts the currency and where you live. But if all goes well, there are some benefits of using cryptocurrency over traditional methods that could be worth considering.
For any readers based in the EU, consider browsing AutoCoinCars. With so few retailers accepting crypto yet, this company is a world-leading marketplace where you can buy a car with cryptocurrency. With thousands of cars for sale, you’ll be spoilt for choice!
