Do you know that it is possible to invest in real estate by using cryptocurrency? Thanks to increasing options available, investors can now use cryptocurrency to invest in real estate. There are also a lot of “cypto-rich” people that want to make a home purchase using part their digital wealth in case you want to sell properties in exchange for cryptocurrency.

Read on to see how you can make money by buying and selling homes using cryptocurrency.

1. Be informed:

The first thing you need to know before you start using cryptocurrency to invest in real estate is to get knowledge. A lot of crypto experts think that they can just waltz into the real estate space. No, things are not done like that. The same way you got some information about cryptocurrency is the same way that you need to get more information about the real estate market before you make a purchase. Understand the real estate market deeply before making your first purchase. And if you are not yet a crypto expert, you need to get a lot of information on cryptocurrency before you start.

2. Get a good escrow service:

You will need an escrow service to protect both parties from being duped. Transactions could be made from one cryptocurrency wallet to another or by converting cryptocurrency to cash. For a cryptocurrency to cash transaction, you can set up an escrow with a cryptocurrency payment platform that will convert your cryptocurrency to cash. For a cryptocurrency to cryptocurrency transaction, there might be some slight issues. For example, when recording the transaction for tax and accounting purpose, there might be issues as these are traditionally recorded in cash. Also, there might be difficulties finding an escrow service and an insurance company that deals in crypto to crypto transactions. You might need to charge for title insurance, transfer taxes in cryptocurrency. You may not know the exact amount of cryptocurrency to charge for this, but you and the buyer can work something out.

3. Set a cash standard for comparison purpose:

For now, cryptocurrency is highly volatile, and the price of cryptocurrency could rise and fall within seconds. To prevent either the buyer or the seller from being on the losing side due to this, you should set a cash standard. Determine the value of the house in fiat currency and then convert that value to cryptocurrency. If the value of cryptocurrency changes during a sale, the increase or decrease in value should be compensated for by the buyer or the seller as the case may be. Ensure that both parties are clear on this with legal documents to back things up to prevent issues. Remember, you want to make money with cryptocurrencies and not lose money so don’t let volatility be a cause for an unnecessary loss.

4. Verify the source of the cryptocurrency:

There are some people who obtained their cryptocurrency through fraudulent means. There are others that use cryptocurrency as a means of laundering money. Verify your buyer/seller and know the source of his cryptocurrency before you conduct a transaction. You must also know the type of cryptocurrency that you are trading in. There are a lot of scam cryptocurrencies out there. Don’t accept payment with non-established cryptocurrencies. Accept payments using the ones that you can trust.

Conclusion

You can make a lot of money using cryptocurrency to buy and sell homes. You need to know your onions well before starting. Educate yourself a lot on the topics of cryptocurrency and real estate before you start. Don’t jump into something to make quick cash. It is easier to get scammed when you are too hasty about something.