Buying a car with a cryptocurrency like Ethereum or bitcoin may sound like a non-viable thing to do, given the volatility of cryptocurrencies. Although virtual currency was once a futuristic topic, it was hard for most people to envision its potential.
But today, there is a rising and mainstream adoption booming, and using crypto to buy a car is now easier than you think. Crypto has become a household name, with new coins popping out on various trading platforms. And it is now being used to purchase or pay for larger items like vacations, houses, cars, and make investments on MLB picks today, for instance.
There are many reasons why crypto enthusiasts would choose to buy a car using cryptocurrency. These may include ease of transaction, discount rate, payment plan, fund security, and the exchange rate of the choice of car. This article discusses some advantages of using cryptocurrency to purchase a car.
Little to No Transaction Fees
Purchasing a car with crypto has become a reality in 2022, and transaction fees can be little to zero, depending on the exchange used. Brands like Tesla, Audi, BMW, etc., have made it possible and have provided buyers with the option of using virtual currency to buy their cars with little to no transaction fees on each purchase.
For instance, you will have to deposit $100 in bitcoin to purchase Tesla, depending on the Tesla model you want. But, like all crypto-enabled purchases, buyers should do their due diligence before releasing coins from their wallets. The reason is that once you send the money, it can’t be reversed unless the receiver sends it back themselves.
Secured Transaction
Unlike the traditional banking method, where your transaction can be tapped into without security, all transactions on cryptocurrency are secured through authentication processes. This process verifies users and transactions before processing and making the transaction complete.
This technology is known as the blockchain, which makes Bitcoin and other digital currencies secure to trade on as they can take on huge transactions that can cause issues if it isn’t very safe.
An Increase in Market Value Can Reduce the Amount You’ll Pay
If the value of the cryptocurrency you choose to purchase a car with increases, you could potentially buy a car valued more than the amount you paid in crypto, making your purchase a good deal. Although this can be tricky as sellers may opt out of getting paid in crypto if they know they’d be on the losing end. So, you should try it.
Keep the Value of Your Crypto
Crypto value increases based on the supply and demand rate on exchange platforms, and the value fluctuates based on the market perception at any time, making it volatile. But if you can purchase a car with the current value before it spikes or reduces in value, you have successfully made a good purchase.
Fast and Easy Transaction
Crypto transactions take between 5 seconds to 10 minutes to go through, making it easy for merchants to confirm transactions. However, the estimated time may vary with different cryptocurrencies. This also depends on the platform where the transaction is carried out.
Bitcoin, for example, could take around 20-40 minutes on Kranken, depending on the fees involved—while tokens like Solana may be confirmed for transmission immediately after the transaction. The transaction speed matters in crypto trading as it indicates which coin is more efficient.
A fast and easy transaction means that the blockchain powering that particular coin is more capable of transmitting data from one party to another and verifying transactions. Many factors can influence transaction speed, including block time, transaction fees, block size, and network traffic.
Final Thought
A lot is still very much unknown about cryptocurrency. While cryptocurrency like Ethereum and bitcoin is clearly gaining attention, there are still questions about their future for investors and traders. With new practices being adopted daily in the crypto world, purchasing a car with virtual currency is a trend that we will see becoming more notable in the future.
Ensure that you have weighed your options before considering whether the purchase is in your financial best interest based on the virtual currency’s volatile nature. And if you decide to buy, it is important that you do all your basic research and ensure you are working with a reputable dealership and exchange platform.