Buy a car with cryptocurrency
A quick glance at online news or clips of the latest celebrity endorsements helps speak to the growing popularity of cryptocurrency. Although virtual currency was once such a futuristic topic that it was hard for most people to imagine, it is now becoming more mainstream. As cryptocurrency – like non-fungible tokens (NFTs) and Bitcoin – have become more popular, there are new opportunities to purchase larger, more expensive items with it. It may even be possible to buy a car with cryptocurrency. Consider the following key statistics on the various cryptocurrencies available – including the best ones to invest in – and the steps involved in buying a car with cryptocurrency.
Key cryptocurrency statistics
How cryptocurrency is changing the way we live
Cryptocurrency has become part of many daily financial discussions, from investments and portfolios to salaries and purchases.
Investing in Crypto
Investing in cryptocurrency has become increasingly popular due to the potential for significant financial gainsas well as increasing the number of virtual currencies to invest in. Crypto could be an investment option to consider, with 0.05% being generally the recommended starting allowance in accordance with the representation of cryptocurrency in the global market wallet.
However, the investment should not be taken lightly as cryptocurrency is always volatile and lacks the regulation that other investments (such as stocks and bonds) may have. Also there are cybersecurity concerns associated with cryptography.
In which crypto to invest
Bitcoin is often used loosely as a term when discussing investing in cryptocurrency, although it is only one type of digital currency. Bitcoin happens to be the most popular type of cryptocurrency with the highest market capitalization, which is why people often hear about it first despite having thousands of digital currencies to choose from. Here are the top five based on trading volume:
- Bitcoin (BTC): The “original” cryptocurrency debuted in 2009 and grew in popularity, dominating the market share among digital currencies.
- Ethereum (ETC): Ethereum is popular due to its ability to power NFTs and digital applications, and it can automatically initiate a contract when the terms of a purchase are met.
- Tether (USDT): Tether is considered a stablecoin because its value is tied to a US dollar.
- Binance Coin (BNB): Binance Coin is a cryptocurrency issued by the world’s largest crypto exchange, and can be used for purchases of goods and services and to make payments
- USD coin (USD):USD Coin is considered another stablecoin because it is also tied to the value of one US dollar and is held in accounts regulated by mainstream US institutions.
Using crypto in our daily life
A criticism of crypto is that it is difficult to use in everyday life, such as at the grocery store or at the gas station. However, there seem to be more ways to use cryptocurrencies in everyday shopping in 2022. For example, there are now companies, such as Wallet.io which allow you to make purchases with Amazon using Bitcoin or Bitcoin Cash. Crypto ATMs, like Coinsource, also appear, allowing you to buy Bitcoins and send money to other people.
As crypto continues its growth trajectory, there will likely be more ways to use it in everyday scenarios. Two examples are NFT generating ways to earn passive income and cryptocurrency lending options, such as for car loans.
Buy a car with cryptocurrency
In 2022, buying a vehicle with cryptocurrency becomes a reality. While there aren’t as many options for buying a car with crypto as there are with the traditional car buying process, it is possible to use crypto to buy a vehicle. Automotive brands like Tesla have helped move the conversation forward by providing options for consumers to use virtual currency. But before going that route, crypto owners should do their due diligence in research.
Advantages and disadvantages of buying a car with crypto
|Benefits of buying a car with crypto||Disadvantages of buying a car with crypto|
|Crypto is becoming a more accepted form of currency, providing more options for buyers.||Transactions are only safe and secure if you have the exact wallet address for both parties.|
|Transactions are secured by authentication processes.||The number of car dealerships accepting this payment method is still limited.|
|Transaction fees can be low or zero, depending on the exchange used.||The dealer may have a preferred virtual currency, which may not match the one you own.|
|If the value of crypto increases, you could potentially buy a car worth more than what you paid for in crypto.||Crypto is very volatile, which means you could overpay for the car if the value of the crypto goes down.|
Steps to buy a car with crypto
You have several options when buying a car with crypto: you can buy from a dealership that accepts virtual currency or buy it from a private seller that accepts it. Finding a private seller who is comfortable with the currency can be a bigger hurdle, so most people usually choose to work with a reseller. If you want to buy from a reseller, consider these important steps:
- Step 1: Research which dealerships accept cryptocurrency.
- 2nd step: Take the time to research several cryptocurrency exchange apps and learn how they work. The dealer may have their own favorite app, such as BitPay, which you can download and create an account if you don’t already have it.
- Step 3: Find out which virtual currency the dealer you want to work with accepts and verify that it matches the currency you purchased. Bitcoin tends to be the most widely accepted right now.
- Step 4: Select the vehicle to purchase.
- Step 5: Follow trade instructions with dealer.
- Step 6: Once the transaction is complete, make sure you take out adequate auto insurance to protect yourself financially while driving your new vehicle.
Cars you can buy with crypto
If you find a dealership that accepts cryptocurrency for payment, it should be possible to buy all the vehicles the dealership has. Fortunately, buying with crypto is no longer limited to the luxury market as it was in the past.
- Audi: You can buy an Audi with bitcoin through CryptoExchange.
- BMW: BMW has dealerships that will now accept virtual currency as a form of payment.
- Nissan: A Nissan dealership in Daytona, Floridabegan accepting virtual currency, DogeCoin, for deposits up to the equivalent of $5,000.
- You’re here : Tesla has made a lot of headlines with its recurring acceptance of bitcoin as a payment method. At this time, you cannot buy a Tesla directly with cryptocurrency, but you may be able to use an alternative method, such as the Car for Coin Auction Site.
- Toyota: Although not available nationwide, an Idaho-based Toyota dealership now accepts several major cryptocurrencies for vehicle purchases, including Bitcoin Cash and Ethereum.
Dealerships that accept crypto
- Nissan Transportation: Carriage Nissan, with locations in Athens and Gainesville, Georgia, accepts bitcoin payments through the Coinbase platform.
- Atlanta MotorCars: MotorCars of Atlanta is a luxury car dealership – based in Atlanta, Georgia – that accepts Bitcoin as a form of payment.
- Edmark Toyota: Edmark Toyota is a Nampa, Idaho-based dealership and accepts several forms of virtual currency, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, NEO, IOTA, Cardano, and USDC.
- Reed Jeep, Chrysler, Dodge and Ram: Merriam, Kansas-based dealership Reed accepts bitcoin payments for all of its inventory.
- Bob Moore Automotive Group: Bob Moore Auto Group operates 16 dealerships across Oklahoma and accepts Bitcoin, Ethereum and Litecoin for payments.
The future of crypto
Cryptocurrency is a hot topic that has sparked a ton of questions. Virtual currency is still relatively unknown, but it continues to grow in popularity. Here are some current crypto trends in 2022 and beyond worth noting:
- Regulations: Crypto has captured the attention of lawmakers and institutions as more stakeholders look for ways to regulate the industry. US Securities and Exchange Commission Chairman Gary Gensler recently commented on several aspects of crypto, including suggesting that “safeguards” are in place for crypto trading and lending.
- Bitcoin Price Volatility: One of the reasons why Bitcoin – the most popular cryptocurrency – has been in the news so much in recent years is its extreme volatility. Bitcoin has been on a rollercoaster of highs and lows in 2021, dropping from a high of $51,000 in late December to a low of around $33,000 in late January. It currently sits at around $38,000, but whether Bitcoin will stabilize in the near future remains to be seen.
- Better Adoption: Even as Tesla is hesitant to embrace crypto, many other companies are embracing the idea. Industries will likely continue to gain more acceptance as companies such as PayPal and Square have purchased in the cryptocurrency offer. Additionally, investments will continue to evolve as more online brokers allow the purchase of cryptocurrency.
At the end of the line
Much is still unknown about the logistics of cryptocurrency. While crypto is clearly gaining traction and attention, questions remain about what the future landscape will look like. Even if new practices are adopted, it can be useful to know that if you have virtual currency, it is possible to buy a car with it. You’ll need to determine if the purchase is in your best financial interest – based on the volatility of the virtual currency – but there are certainly more options for buying a car with crypto now than in the past. If you’re going this route, it’s essential to do all your research beforehand and make sure you’re working with a reputable dealer and exchange.