Crypto

Can You Purchase a Home Using Cryptocurrency?

The real estate market has changed dramatically over the last decade, from tightened lending requirements and the abandonment of most subprime loans to the current affordability crisis afflicting many major cities and metropolitan regions. The houses may have remained the same, but the manner in which they are purchased has altered considerably.

The currency utilized to make down payments has also begun to alter. It would have been inconceivable only a few years ago to pay for a house using cryptocurrencies, but it is now attainable. While not all lenders recognize or even comprehend, cryptocurrencies such as Bitcoin, a rising number of mortgage lenders are taking these alternate means of payment very seriously. So, should you use cryptocurrencies to purchase your next home? Here are some things to think about before you purchase a home using cryptocurrency.

Why Should You Invest in Real Estate Using Crypto?

There are various reasons why someone could opt to pay for a home with Bitcoin, Ethereum, or another cryptocurrency rather than cash or a loan-backed offer.

For Diversify Your Investments

When you purchase a home using cryptocurrency, it might help you diversify your financial portfolio.

To Cash Out for Retirement

You may be ready to retire after a lifetime of investing in cryptocurrency. Buying a property with cryptocurrency may be easier than selling your assets to fund your retirement.


For Discounted Sale Price on Crypto Payments

If a seller is extremely enthusiastic about cryptocurrency, they may provide a discount on cryptocurrency-based real estate transactions.


For Faster Transactions

Blockchain technology and smart contracts have the potential to eliminate conventional wait periods and intermediaries in the real estate market.


While there are several benefits to purchasing property and real estate using cryptocurrencies, it is not always the best option. Potential limitations include the seller’s refusal to accept cryptocurrency payments and daily swings in cryptocurrency values, which impair purchasing decisions.

Purchase a Home Using Cryptocurrency

How to Purchase a Home Using Cryptocurrency

So, with all that stated, can cryptocurrency be used to purchase real estate? The answer is yes, but both the buyer and the seller must be on board. You’ll also need to locate title insurance and escrow organizations that are willing to handle bitcoin transactions rather than real-world money. If you can locate all of the above, you’ll almost certainly be paid in Bitcoin or Ethereum – there haven’t been many cases of customers paying in other sorts of crypto yet.

Let’s look at why you would want to purchase a property using cryptocurrencies — and what could make it difficult.

Have People Bought Real Estate with Crypto?

There have been numerous instances of cryptocurrencies being used to purchase property in the United Kingdom, but these are currently an exception rather than the norm. Buying houses with cryptocurrencies has not yet become commonplace, as some would have predicted.

In the renting market, co-living brand The Collective began taking cryptocurrency deposits and rent as early as 2017, although it’s unclear whether this is still the case, and it hasn’t spread widely to other lettings providers. Meanwhile, on the sales market, cryptocurrency purchases have been relatively unusual – resulting in interesting anecdotes.

Back in December 2017, property firm Go Houses became the first in the UK to sell homes using Bitcoin, while the odd agency has said that they would take Bitcoin as a USP. There have also been a handful of luxury residences up for sale that only take Bitcoin offers.

Overall, it remains a niche market, with concerns about money laundering deterring many brokers, conveyancers, and lenders, not to mention the amount of due diligence and verification necessary in comparison to a standard property transaction.

5 Things to Consider Before Buying or Selling a Home With Cryptocurrency

Despite the swings and critics predicting a crypto bubble that will collapse soon, cryptocurrency continues to appear in new industries and it is the real estate market now that has got engaged. But what do you need to know before using cryptocurrencies to purchase or sell a home?

Get Some Real-World Experience

While cryptocurrency is undeniably popular and becoming a rage among high-net-worth investors, the space is not for the inexperienced. Do your research if you’re thinking about utilizing digital currency to buy or sell a house. Learn about the market, its risks, and how it all works. Get some experience by using trusted exchanges such as Coinbase or Binance, which enable investors to purchase and sell Bitcoin and Ethereum. They function similarly to traditional stock trading, and users quickly get verified and are able to link bank accounts. Beginning with this form of trade will enable consumers to educate themselves on the intricacies of digital money before moving on to bigger pools like real estate.

Establish a Standard

Using cryptocurrencies to buy or sell real estate has its drawbacks. The buyer bears the brunt of cryptocurrency’s volatility. If you are participating in a cryptocurrency real estate transaction, always utilize the house’s fiat price as the reference. The contract must include detailed language describing how the cryptocurrency will be settled at the conclusion of escrow. For example, if the property costs $1,000,000 and the price of cryptocurrency falls at the closing, the buyer must make up the difference. If the price of cryptocurrency rises after the transfer, the difference should be repaid. Protect yourself by ensuring that all of the information is laid out in your contract.

Locate the Right People

Someday, blockchain technology will be the norm by which we conduct all transactions. Until then, individuals who choose to pursue it must cope with the problems that come with it. One of the most difficult aspects of adopting cryptocurrencies for real estate deals is convincing people to accept it as “false online money.” Many merchants are still unwilling to deal with it. As cryptocurrency grows in popularity, this stigma is fading. Anyone who is open to learning about the technology and how cryptocurrency works may begin utilizing it right now, even in real estate. However, although crypto is still in its early stages, you can protect yourself by identifying the correct people to deal with. Interview agents to ensure they are knowledgeable and experienced with cryptocurrency transactions. Find a buyer or seller willing to create a BitPay account to accept the wire transfer, or a bank ready to participate as a third-party transfer.

Additional Read: 6 Instances That Prove Crypto Could Be The Future Of Money

Frequently Asked Questions About Buying Real Estate with Cryptocurrency

1. Can you purchase real estate with cryptocurrency?

Yes, as long as the seller accepts cryptocurrency, you may use cryptocurrency to purchase real estate. You may execute a wallet-to-wallet transaction or use any crypto-to-fiat services.

2. What kind of cryptocurrency can I use to purchase real estate?

Bitcoin and Ethereum are the most often utilized cryptocurrencies in real estate transactions. The widely accepted cryptocurrencies include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Shiba Inu, XRP, Dai, Binance USD, USD Coin, Wrapped Bitcoin, Pax Dollar, and Gemini Dollar.

3. What kind of real estate can I purchase with cryptocurrency?

Using cryptocurrencies, you may buy your permanent property, a second vacation home, investment properties, and commercial real estate.

A Word of Advice

Cryptocurrency is the newest and freshest means to purchase and sell anything, even real estate. While there are potentially significant advantages to adopting digital currency in the real estate industry, sellers and buyers must conduct due diligence and protect themselves when they choose to purchase a home using cryptocurrency. Cryptocurrency is still in its infancy in the real estate market and should be regarded as such. Do your research and make sure you know what you’re getting yourself into before you dive in.

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