The currency norms in this age have drastically changed. They continue to uncover a new aspect every day. And cryptocurrencies are solid proof of this norm. What was only an investment source initially has now become an endorsed payment method. However, financial experts still believe that cryptocurrency is in its early stages. There is a considerable difference in fiat and cryptos. Where the former is readily available for daily use, crypto does not enjoy that luxury. A few well-known finance prodigies are operating to expand its reach. Take The Divi Project, for instance. It’s all about educating people about the digital coins. Their vision is to make “the entire money-sending process more approachable to non-geek users.”
Despite this, we are far from the comfort of using cryptocurrencies in our usual shopping. You cannot go to the local grocery store and exchange your cryptos for a pack of crisps. There is only a small chunk of industries that are ready to deal with digital currencies.
Among these, the Automobile is a popular sector that’s leaping towards virtual transactions. It began when a couple of vehicle vendors started accepting Bitcoin as a type of currency.
With companies such as ADA Cardano Wallet on the scene, cryptocurrencies are spreading like wildfire. According to Elizabeth White, CEO of White Company, the number one car among this crowd of crypto wealth is Lamborghini.
Indeed the crypto-auto dimension holds a lot of potentials. The only question is how to make the most out of it? Is it effortless to buy a car using cryptos, or are there any extra steps involved?
Read on to find out more:
Basics of buying a car with a cryptocurrency
The application of blockchain generally eliminates all central parties involved in a transaction. There is no need for intermediaries. Moreover, this tech also allows you to remain anonymous during the deal. Yet, all of this does not work the same in the automotive sector.
When you are dealing with a vehicle exchange using cryptos, your identity does not remain anonymous anymore. For security reasons, it is vital to provide insurance, tax history, and driver’s license.
Additionally, there are some prerequisites that you must follow before purchasing a vehicle online. It includes:
- Research the seller
You must research the market thoroughly. If there is a dealer or a private seller who has a sound offer, make sure to check out their history. Due diligence will save you the trouble later. Find out how their customers rate them. And study the feedback of the prior clients. It will allow you to make an informed decision.
- Research the vehicle
Checking the product is the ground rule of purchase. It amplifies further when a big-ticket item is under consideration. You must thoroughly inspect the car. Find out its history before proceeding further with the deal. If possible, visit the seller and evaluate the vehicle in person.
Bear in mind that once the cryptocoins leave your wallet, there is no way to get them back.
Ways of buying cars with crypto
For starters, you must find out a seller who accepts cryptocoins as a mode of payment. Voluntary acceptance of the seller is the key to go further with the exchange. In case a seller does not deal with cryptocoins, there is no way you can force them.
Meanwhile, here are some of the ways you can adopt to buy cars with cryptocurrency:
- Convert to Cash
One way would be to carry out a currency exchange. It means supplying the payment with cryptocurrency. The buyer uses crypto while the seller gets fiat currency. Of course, it will require additional exchange charges. After paying those, the trading platform will transfer cash to your bank account.
Car dealers can also convert the cryptocurrency into fiat money. They can register on a vehicle website like Autocoincars. On it, they need to provide information about themselves. Then they can upload an ad and reach out to millions of crypto users across the globe.
- Buy from a dealer
Unlike private sellers, dealerships tag along with several benefits. For one, most of them are authentic. A certified dealer makes you confident that the vehicle will last long. Check out the dealerships that accept cryptocurrency as a mode of payment.
Log on to websites like SpendBitcoins. They have some highly appealing car models that you can go for. Some of them are way too exotic. A study by Technavio found that the global luxury vehicle market will grow at a compound yearly rate of 12%. This is around 8000 units in five years. If you are into fast cars, we are sure you’d love to read about Our Three Favorite Fastest Cars You Can Buy Right Now.
For all such purchases, make sure your virtual wallets are full of cryptos.
- Talk to the Community
You can use a network to reach a viable seller in the market. Join a platform and become active in the crypto community. Or you can ask for a reference from someone who is a part of such groups for a long time.
Public inclination towards cryptocurrency is growing at a fast pace. According to the survey of the Auto Coin Cars team, there are over 3 million cryptocurrency wallets in the UK alone. This illustrates the growth potential of this market. The security and speed brought to the table by this medium are one of the reasons behind it.
On a final note
Cryptocurrencies bring us the feasibility of walking freely. There is no need to carry hefty cash in your pockets anymore. There are neither central authorities nor any extra-legal restrictions. But, it requires you to exercise caution. Its volatile nature can bring in severe losses at times.
Indeed, we are drawing close to a time when crypto coins will be standard across the globe. Do you agree or not? Feel free to let us know.
Author Bio:
About Michelle Joe: Michelle Joe is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences, and express herself through her blogs. You can find her on Twitter, LinkedIn, Facebook
