Crypto and COVID are the latest buzzwords. I’d say that the pandemic has been a considerable force in bringing this digital currency into the mainstream. A study from Cornerstone Advisors revealed that 15% of American adults now own at least one type of cryptocurrency.
Are you one of them?
According to an article published in Forbes, crypto trading increased sharply at the beginning of 2020, jumping to a new high in February. It stayed that way through the height of the Corona crisis from March until May.
What was the reason?
It’s no surprise that people preferred to make online payments instead of handling potentially virus-infected currency. But it’s more than just a safe-to-use alternative to notes and coins.
Many people are investing in digital currency to make more money. 44% of Americans who invested in crypto said their financial health is “much better” since the beginning of the pandemic.
Forbes reports that the Bitcoin buying binge during the crisis was conducted by:
- High income, well-educated men: Nearly 80% of 2020 crypto buyers were males with an average annual income of $130,000, and 70% had a Bachelor’s degree or higher.
- Millennials (26 to 40 years old) and Gen Xers (41 to 55 years old): 57% of the consumers buying cryptocurrency in 2020 were Millennials while 30% were Gen Xers.
So what are these crypto investors doing?
Many have plans to buy luxurious, high-end automobiles. Their choice of automobiles increases as more and more auto dealers accept crypto. If you plan on buying a high-end car with cryptocurrency, make sure to consider McLaren, Ferrari, Tesla, Rolls-Royce, or Bugatti.
If you’ve read this far, it means you’re interested in purchasing one for yourself. Now all you need to do is use your cryptos to seal the deal.
However, if this is your first time buying a car with crypto, you might feel a little nervous. To help you through this process, I’ve compiled a few guidelines.
- Select a car
If you already have a car picked out, you’re pretty much set. However, if you’re still indecisive, you need to start your search with online research. You want to invest in a car that has good resale value and is a good run for your money.
Here some factors you should be looking at:
Find a car that falls within your budget. The key is to ensure you have enough digital tokens in your wallet. Since the value of crypto fluctuates, ensure you have enough to buy an automobile at any given time.
A high-end model is typically more superior in quality than others. More importantly, a rarer model can fetch a better resale price than one that is readily available.
A well-maintained car that does not have too many miles on is a better investment than a shabby, run-down vehicle. The last thing you want is to spend the next month going to the garage.
- Locate platforms that accept crypto
Once you have a vehicle in mind, you need to find a place with the best cars for sale and one that accepts crypto. You can start by reaching out to the crypto community. Members have a tight-knit network of businesses that accept crypto. They can refer you to those that are eager to take digital tokens in exchange for a car.
However, you can do a little research yourself. Search for the following:
- Auto car manufacturers
Many auto manufacturers like Tesla and BMW now accept crypto. Some even offer discounts for transactions completed in digital currencies.
- Auto dealer
Many authorized car dealers facilitate the buying and selling of cars using digital currencies. More importantly, they provide up-to-date information about the vehicle, including background checks, history records, maintenance reports, etc.
To ensure a smooth transaction, always ask about the digital currency that the platform accepts. If you don’t have these tokens, you will need to buy them or convert your current cryptos into those they take.
- Identify the right time to sell your cryptos
The crypto world is a volatile place. Prices can vary up to 50% in a day. If you want to get the best price, you need to watch the market. You need to sell your coins when the price is high so that you can maximize your profits.
Certain factors can influence the price. Here a few that you should consider:
- Trading times
Finding the optimal trading times requires in-depth analysis. By watching price fluctuations, you will be able to pick up a pattern. Dips in prices indicate times when you should buy crypto, while peaks are the best times to sell. For instance, studies highlight high trading volumes between 9 a.m. to 5 p.m.
While crypto trading is part of the global market, the trading platform will operate according to local timezones. Depending on where your crypto platform is located, you will need to match optimal trading timings.
- Trading day
Just like the demand varies throughout the day, the price of crypto fluctuates during the week. For example, the price of digital currencies drops over the weekend. That means you’ll get less out of your cryptos if you plan to buy a car over the weekend.
- News that affects the crypto market
Laws and rules concerning crypto are constantly changing. If there is legislation that supports the buying and selling of crypto, you’ll notice a spike in the price.
- Market demand
Not all coins are the same. Some are worth more than others. If there is a greater demand for the token you own, the price will increase, and you can get more money for it.
- Transfer the tokens into a wallet
This is the era of mobile-friendly transactions. Now, you can effortlessly purchase your automobile from just about anywhere.
Before initiating the transaction, you should inform the cashier that you will be making a crypto payment. Mention the digital currency you will use to make payments. Key in the fiat amount at the POS terminal. The corresponding crypto amount will automatically appear on the screen.
Complete the payment from your wallet. You will need to enter your password to confirm the payment. The cashier will receive a confirmation of the transaction.
Congratulations! Your crypto transaction is complete. And now, you’re the owner of a new set of wheels.
Over to you
Crypto is the future. It’s a faster, more secure way to transact, especially when making large payments. Whether you buy real estate or a high-end car, using crypto will make things easier.
But like other assets and commodities you trade, you need to observe market trends. Conducting comprehensive research will help you make an informed decision, from deciding on what car to buy and when to sell your crypto.
So are you ready to buy the car of your dreams with crypto?
ABOUT Alycia Gordan
Alycia Gordan is a freelance writer who loves to read and write articles on healthcaretechnology, fitness and lifestyle. She is a tech junkie and divides her time between travel and writing. You can find her on Twitter: @meetalycia