In just a few short years, the public’s perception of cryptocurrency has evolved dramatically.

It began with many first seeing it as a novel but impractical idea, then as a scam, then as a valid but volatile investment, and now, it’s finally starting to be seen as a legitimate form of currency for all kinds of transactions.

While there are advantages to buying real estate with crypto, there are also some disadvantages as well. Let’s address the disadvantages first. 

Most sellers, as well as most real estate professionals, simply don’t understand cryptocurrency yet, let alone how to conduct a real estate transaction with it yet. That can make it difficult to conduct a transaction this way because the seller, both Realtors, and title professionals involved in the closing all need to understand cryptocurrency. This may be possible in major cities where people tend to be more tech savvy, but it’s unlikely in many areas.

For the most part, every other aspect of the closing process remains the same.

"Crypto transactions are not complicated as they seem. Especially if you are working with an experienced seller. As it becomes a more accepted form of payment, you will find more companies willing to share the steps to open a wallet, or third party providers that can assist with the transaction," says Denis Smykalov, with Wolsen Real Estate—a real estate brokerage that has conducted multiple real estate transactions using cryptocurrency.

Lizell recently purchased a property this way. He shared his experience, saying, “Last August I purchased my home in Naples FL and I used $100,000 worth of Bitcoin as my down payment towards the purchase. This transaction was handled by Bitpay, which converted the Bitcoin to US dollars in real time.” This approach meant that the seller didn’t even have to understand crypto, but it can further complicate a deal. 

Smykalov says, “Market volatility has been a problem in the past, but by using a third party company or attorney, they can facilitate the transaction and convert crypto to US dollars. Other options include choosing stable coins that equal US dollars 1-1."

But the advantages of purchasing with crypto can be significant too. 

And sellers who understand crypto also understand that the balance in a wallet or cold storage is just as good if not better than cash in the bank. This can give you a powerful advantage over traditional buyers who are relying on financing because you can close faster and the seller will get their money immediately. Anyone who has tried to purchase a property lately knows that you need every advantage you can find in this hypercompetitive market. 

Taxes are another area where cryptocurrency offers advantages over purchasing a property using traditional funds. 

In the past, if you had made a killing in crypto, you basically had two options—continue holding it to delay taxation on your gains, or sell it and pay a capital gains tax. However, now that it’s starting to be accepted in real estate transactions more frequently, you have a third option, which is to use it to directly purchase a property.

It’s important to note that you should make sure the tax professionals you work with have deep expertise in both real estate and crypto. Especially the latter because the tax laws on crypto are still unfolding and there is a lot of gray area, so it takes a true expert to keep you on the right side of the law here. 

And as a seller, accepting cryptocurrency as a payment method often means a larger pool of potential buyers. More buyers typically means a higher final sale price, driven by bidding wars, which means greater profits for you. 

Ultimately, crypto is here to stay, and it’s playing a growing role in real estate, so smart buyers and sellers will leverage this trend early on to maximize their returns. Eventually it will become commonplace, but leading up to that, you absolutely should make the most of the advantages it creates for early adopters.