Cryptocurrency has taken the real estate market by storm. As home sellers begin to accept partial or full payments for their homes in cryptocurrency, homebuyers are realizing the benefits of crypto for real estate loans. So how do you get in on the latest craze and what type of crypto for real estate loans should you be focusing on?
What is Cryptocurrency?
Before you think about purchasing real estate with cryptocurrency, it’s important to know how it differs from traditional money. Cryptocurrency is a kind of online digital currency that operates with the help of a blockchain. Essentially, cryptocurrency is a way to have peer-to-peer transactions without a bank. Because of the unique coding in the blockchain, it is impossible to counterfeit.
You can use cryptocurrency to purchase just about anything, as long you find a seller who accepts it. As the future of the way we do business, increasingly cryptocurrency is used to purchase everything from art to real estate.
What is Crypto for Real Estate Loans?
Using cryptocurrency to obtain a loan is how people create crypto mortgages. This type of mortgage is where you can use your crypto as collateral to secure the loan. Once you pay the loan in full, you’ll receive your cryptocurrency back.
Here are 4 popular types of crypto for real estate loans:
- Binance Coin
As the very first cryptocurrency, Bitcoin is also the most well-known. It has its own blockchain and each transaction is verified. It has a market cap of $896 billion.
Ether operates on the Ethereum blockchain. Unlike Bitcoin, Ether is uncapped.
Ethereum was recently used in the biggest cryptocurrency real estate transaction to date, for the purchase of a condo unit in Miami for $6.94 million ETH.
3. Binance Coin
Binance is the largest cryptocurrency exchange as of 2021. It has reduced transaction fees for users who pay with Binance Coin (BNB). To stabilize its value, Binance burns a certain percentage of coins in circulation.
Tether is a stable coin, meaning it is less volatile because it is linked to an external asset. Each coin is backed up by an equivalent number of U.S. dollars.
The Benefits of Using Cryptocurrency in Real Estate
There are several benefits to using crypto for real estate loans. These include:
- Easier international transactions
- Real estate investing liquidity
- Cutting costs for real estate transactions
- Eliminating tax on transferring property rights
- Achieving a balance between the security of real estate with the flexibility of cryptocurrency
Whether you want privacy for your transaction or are diversifying your portfolio, cryptocurrency is an attractive option for those who want to reduce the time and cost spent on their real estate transaction.
Your Home Sold Guaranteed Realty - Florida Waterfront Can Help You Win at Real Estate
Cryptocurrency is the future of real estate and at Your Home Sold Guaranteed Realty - Florida Waterfront we are ready to take the lead. If you are considering cryptocurrency to buy or sell your house, let us know! We can help you find out more about crypto and real estate loans, you can contact us by filling out the form below, calling us at 407-307-2617 or contacting us here.