Buying property with cryptocurrency is now possible.
A cryptocurrency can be used as an investment, but also as a payment method for different products, including real estate. Therefore, it is necessary to understand how this process works.
Cryptocurrency is a virtual currency, that is, a code. It is so named because just like physical currency, it has serial numbers, watermarks, and other encrypted security features. In addition, it runs on networks that use blockchain technology, which makes it more difficult for cyber attacks, crypto thefts and transaction violations. Therefore, operations are safer.
To have cryptocurrencies, you need to mine them, that is, connect to a virtual currency network and help validate transactions. It’s like solving a math operation. Whoever succeeds, earns money. The other way is to buy from those who already own it, either through networks in direct operations between those who buy and sell, or through companies such as brokers and cryptocurrency exchanges.
Transactions are only carried out over the internet, without conventional bureaucracy and, in principle, without intermediaries, which facilitates negotiation. They are also characterized by the lack of a regulated monetary system and dependence on financial institutions such as traditional banks and central banks. Therefore, if the customer wants to buy a apartment for sale and there are cryptocurrencies, it is already a possibility to think about.
To buy cryptocurrency you need blockchain
For those who do not yet have cryptocurrency, it is important to understand that negotiations with these virtual currencies are registered on the networks. On open networks, everyone can see the transaction codes, but it’s not known who they belong to – unless someone has buyer or seller data. After mining or purchase, the cryptocurrency is stored in a personal digital wallet with access by computer or mobile device, the hard wallets, which are a kind of flash drive. There are those who prefer to leave it in the custody of a company.
Blockchain, which is behind cryptocurrencies. Allows logging and sharing of data. But the difference is that this is done in a decentralized way, that is, on different computers. This network is a kind of ledger and the fact that it has a high level of security allows there to be no intermediaries to create a sense of trust in negotiations between the parties.
The technology is also being used by businesses and governments. That’s why large technology companies have invested in it, such as IBM. Among governments, Brazil, the United Arab Emirates, Estonia and Singapore are among those that have adopted the technology.
Usefulness of cryptocurrency
The logic of digital currency is the same as that of currency. Its function is basically to allow the transaction of purchase and sale of goods and services and to serve as a store of value. Big companies like WordPress, Dell and Soundcloud now accept cryptocurrency payments. Another possibility is the transfer of value over the internet without the charging of fees by financial institutions and banks.
Cryptocurrency can catch the investor’s attention when the price goes up a lot, but it is necessary to be aware of the fluctuations of this currency. It is a very volatile investment option with many, and sometimes very strong, price drops and spikes. And you should not invest more than 3% of the equity, say experts in the field.
If the client opts for the service of a brokerage firm that intermediates the transactions, he will need to meet requirements such as those that the financial market usually charges. How to provide your data to register and make operations. It is possible to buy crypto fractions because these have multiple decimal places. In the case of bitcoin, there are eight, while ethereum has 18. So, to buy a house of R$ 150 thousand , for example, today (26) it would be necessary to have the equivalent of about 0.75 bitcoin.
Bitcoin e ethereum
Bitcoin and Ethereum are the two largest cryptocurrencies by market cap and thus the most used. Bitcoin was the first, presented in 2008 in a white paper signed by the pseudonym Satoshi Nakamoto, which to this day no one knows who it is – or who they are, because it could be a group of people.
Ethereum was proposed by Vitalik Buterin in 2014. It is the currency that allowed the creation of new financial services on blockchain, use by companies for smart contracts and trading of values and creation of new types of cryptos. Examples include decentralized finance and non-fungible tokens (NFTs).
Use cryptocurrency to buy property
Just as cryptocurrency can be an investment, it is also important to consolidate some of your capital. After all, diversifying investment is an important part of maintaining resilience to potential problems.
On the face of it, unlike the volatility of a cryptocurrency, few investments can be as stable over the long term as real estate. The real estate sector has always been well received by the financial market, as it is often not shaken by the crisis and has always had growth. It may seem contradictory due to the volatility issue, but buying immobile using cryptocurrency is possible and may be easier than you might think.