Do you remember the early days of cryptocurrency? No one could have expected that the technology would blow up to this extent! Marked with mystique and ambiguity, the masses were reluctant to adopt digital currency.
However, it is safe to say that things have changed. Bitcoin often makes it to the headlines. Overall, the cryptocurrency market has expanded beyond imagination.
For instance, according to Statista, now the trading volume on Binance is 18.63 billion USD! And the size of the blockchain technology market (which powers cryptocurrency) is a whopping 1.2 billion USD! By 2023, it is being estimated that the figure will reach 23.3 billion USD, as per PR News Wire.
As the digital currency and the inherent technology it uses reaches mainstream use, many industries are adopting and accepting cryptocurrencies as a valid mode of payment.
For starters, now you can even purchase vehicles through cryptocurrency! There are three ways you can do so.
1. Convert your cryptocurrency into fiat money
Let’s begin with the option that offers you the maximum autonomy when selecting car dealerships. Even though cryptocurrency, especially bitcoin, is taking the world by storm, many dealerships don’t accept it as a mode of payment yet.
Given that the dealership that offers you the best price does not offer the digital currency facility, you can still use it to purchase your desired vehicle. How? Well, the safest option is to convert your cryptocurrency to fiat money and then proceed to purchase a car from your choice.
This is quite easy to do. There are various Bitcoin ATMs that allow you to convert your cryptocurrency into fiat money. According to Statista, there are over 14,000 Bitcoin ATMs around the globe as of 2021.
Even if you can’t find an ATM, you can convert your money into fiat currency using a cryptocurrency exchange like Binance, Coinbase, or Kraken.
The good thing about converting your cryptocurrency into cash and then using it for purchasing a vehicle is that you can wait for the cryptocurrency’s value to increase and then convert it at the right moment. This ensures that you pay a minimal amount for the vehicle, much less than what you had invested!
2. Find a dealership
Slightly harder than the first way, you can still find dealerships and online solutions that accept cryptocurrency as a valid form of payment if you try.
Various other car companies accept cryptocurrency. All you have to do is conduct research and find dealerships within your region willing to incorporate this novel mode of payment.
While you are at it, make sure that the dealerships you select are credible. Considering that purchasing a car is a hefty investment, do a thorough background check on them. Look at customer reviews before agreeing to purchase via an online dealership.
If you can find a physical dealership that accepts cryptocurrency, make sure you are getting the best deal. Don’t just agree to the deal because the dealership accepts cryptocurrency. This should be an additional benefit, not the sole reason for your decision.
3. Find P2P Sellers
Another network that has been increasing in the past few years is “P2P” communities. This refers to peer-to-peer networks where buyers transact directly from sellers. The good thing about such platforms is that they tend to offer the best value to customers since there is no haggling car seller involved in it.
However, there is an issue of trust and credibility. But, there are online solutions that have dealt with this issue as well.
There are various P2P platforms out there. Try to look for sophisticated solutions rather than open-for-all networks. This will make the transaction secure.
Summing it up
All in all, here are the key things you must remember before embarking on your car buying journey.
- Begin by conducting research about what vehicle you wish to purchase.
- Keep your budget and financial situation in mind. This will allow you to decide whether you should purchase a brand new car or a used one.
- See if converting your cryptocurrency into fiat money is a more profitable way to purchase a car. Tip: If the value of your currency is at an all-time high, it is!
- If you wish to purchase directly, conduct market research to find physical or online dealerships that accept cryptocurrency.
- For a better cryptocurrency experience, seek out P2P networks for purchasing or selling cars.
- Regardless of what method you select, do your research to get the best deal.
Whether you are buying your vehicle from fiat money or cryptocurrency, it is still a very hefty and hence crucial investment. Whenever there is a lot of money involved, always make a point of being extra careful. And when cryptocurrency comes into the mix, the need to be cautious increases even more.
After all, while cryptocurrency has reached mainstream adoption, the technology is still new and hence evolving. Make sure you understand how digital currency works before you invest in it, let alone purchase a car using it.
Once you have understood all the technicalities and found the perfect way to purchase your vehicle via cryptocurrency, nothing is left other than finalizing the deal. Good luck!
Interesting related article: “What is a Digital Currency?“