Cryptocurrency is no longer an obscure financial tool. As crypto becomes more popular and we see its applications in various industries, the potential to use it in your own day-to-day becomes more feasible. For example, if you’re someone who operates their own home improvement business, you may ask yourself how you could use crypto in your home-flipping endeavors. To provide you with some inspiration into how you can be using your crypto, let’s dive deeper into cryptocurrency in the home improvement industry.
Use your cryptocurrency to buy homes you wish to fix and flip.
Crypto assets are just that—assets. However, they can still function the way that fiat currency would, even though they’re a digital currency with more than one classification in the eyes of the United States. For example, let’s imagine that you want to purchase a home to sell at a later date. Did you know that people already buy homes with Bitcoin (BTC)? In some cases, you can give your cryptocurrency directly to a homeowner if they also invest in crypto and are completely fine with selling their home for BTC rather than United States dollars.
Of course, it’s still important that you have your assets in a safe place where you can keep them secure and regularly track their price. How? There are actually quite a few traditional banks and financial institutions that are also crypto-friendly banks. Set aside some time to look for Bitcoin friendly banks where you can deposit your crypto, whether Litecoin, Ethereum, Bitcoin, or any other crypto, and access it alongside your regular bank account. If you’re not comfortable storing it in a cryptocurrency exchange like Coinbase or Binance, this may be the right alternative to you.
Treat your cryptocurrency like fiat when you pay for home renovations.
The problem with crypto is that you can’t always treat it like the fiat money in your bank account. Most vendors do not accept Bitcoin transactions, which can make it hard to use your available balance like trash. Let’s say that you’re working on a home in Kalamazoo, Michigan, and you wish to hire contractors who can take care of new windows or replacement windows in Kalamazoo. In return for the amazing job they do, they’re going to expect payment in the form of a reliable currency, not a major cryptocurrency that you happen to have on hand.
Fortunately, there’s a solution: crypto debit cards. Crypto debit cards and credit cards give you the ability to pay for something, immediately exchange the crypto in your wallet to cash, and pay for the transaction as you would with money in your bank. Whether you’re holding onto Ethereum, Ripple, Litecoin, or other digital assets, you’re sure to find a card that will support your coins or tokens of choice so that you can spend it like cash. Just remember that all cryptocurrency transactions incur capital gains taxes.
Secure the funding you need with cryptocurrency loans.
Crypto lending is a relatively high-risk activity for investors, but there are platforms (Coinbase, most notably) that will allow you to get the funds you need without having to turn to traditional lenders. This can help you secure additional funding you need to make changes to homes you have purchased or even to purchase new homes. However, it’s important that you do your due diligence to understand the risks related to securing a crypto loan and what the consequences may be if you’re unable to pay it back.
If you’re in home improvement and invest in crypto, there are ways that you can use cryptocurrency for your business. To help you get a better idea of what this may look like, use the guide above to see just how cryptocurrency can play a role in your business and what tools you need to get started.