There was a time when the world of cryptocurrency was surrounded by ambiguity, skepticism, and doubt. Very few people were willing to invest in this new currency, and its rise was termed as a ‘fad’.
However, in the past few years, mainstream adoption of the digital currency and its associated technology has increased.
According to data collected by Finivi, the market capitalization of cryptocurrency currently stands at approximately 155 billion USD. One Bitcoin, which is the most popular type of cryptocurrency, is equal to 11,360 USD.
Furthermore, as per Tech Jury, 6 billion dollars’ worth of transaction is done daily via Bitcoin alone. Bitcoin is just one of the cryptocurrencies out there. If you have invested in cryptocurrency as well, you can now consider using it as money.
One asset that you can now purchase using cryptocurrency is a car. Are you afraid of ensuring the safety of your purchase? Well, here are ways you can ensure that your transaction is secure when buying your dream car using cryptocurrency.
- Select the right dealership
One of the key steps to avoiding cryptocurrency scams is choosing authentic platforms or dealerships when purchasing your vehicle.
Make sure to conduct thorough and rigorous research regarding the authenticity of your chosen auto dealership.
Rather than merely relying on the online presence and sponsored content, read reviews of past customers. Look at third-party website reviews instead of testimonials featured on their website. It will allow you to gauge the credibility of the dealership.
Also, if possible, select local platforms. It enables you to track down the company when things go awry.
You can also look for similar platforms in your country as well.
- When in doubt, convert your cryptocurrency
In case you are unable to assess the credibility of the dealership or seller of a given vehicle, rather than taking a risk, it is better to convert your cryptocurrency into fiat money and conventionally conduct the transaction.
Recently, a new cryptocurrency with the name of ‘AutoCoin’ has been developed that will be used used to buy cars. Online car dealerships use this currency to make the payment process easier for customers.
For example, Auto Coin Cars, an online marketplace to buy cars with cryptocurrency, allows users to pay for the cars using Ethereum, Bitcoin, Litecoin, and other currencies, which are then converted into AutoCoin.
However, if you want to cash your cryptocurrency into fiat money, there are different ways of doing it. It includes the following:
- Use a cryptocurrency exchange to sell your bitcoins for cash. Quality options include Coinbase, Libopro, and Kraken.
- In case you have Bitcoins, you can withdraw money via Bitcoin ATMs. There are currently approximately 5,000 ATMs in over 76 countries.
- Use authentic websites to get your hands on Bitcoin Debit cards, which you can use like conventional debit cards when purchasing items.
- Opt for Peer-to-Peer transactions over the blockchain network. Money can either be deposited via cash or bank transfer.
- Enable two-factor authentication
Regardless of what item you are purchasing, take specific security measures on your end to ensure a safe transaction.
Just like with traditional bank accounts, always avoid using simple passwords when creating a digital wallet. The logic behind this requirement is to reduce hackers’ chances of cracking your password and exploiting your investment.
Apart from having a strong password for your cryptocurrency wallet, also use two-factor authentication. Use multi-signature when authorizing bitcoin transactions to reduce the chances of fraud.
Even if the dealership you select is credible, you can never be too sure about the online network, especially in today’s time when data breaches are rampant.
- Never trust public Wi-Fi
Once you have made sure that the dealership is authentic and accepts cryptocurrency as a payment mode, the next step is to transfer the money.
You can either choose to pay in cryptocurrency or cash them out into fiat currency. Whatever mode you choose, always make sure not to use an open or a public Wi-Fi network while making the transaction.
These open networks often have lax security and are easy to hack, making your online identity vulnerable. So, pay attention to the type of network you are connecting to when accessing your digital wallet or paying for your car.
Whenever unsure, it is better not to connect with the Wi-Fi. Instead, it is better to conduct the transaction on your private network and arrange to later pick the car.
- Secure your wallet and devices
One way of making sure that any transaction using cryptocurrency is safe is by securing the digital currency wallet and your device.
As cryptocurrencies have increased in popularity, numerous wallets have sprung up, but not all are secure. Therefore, you must be careful when selecting your wallet provider.
Select a wallet that offers advanced protection. It includes encryption of data for the protection of private keys on the network.
However, even the most secure wallets can be compromised if there is a security vulnerability in your mobile, PC, or tablet. So, install an antivirus, set the firewall settings at a high security, and regularly check your system for viruses and malicious software.
It doesn’t matter what you buy using your cryptocurrencies; you should always be vigilant while making a transaction for your purchase.
It is true, however, that purchasing a vehicle is quite a hefty investment. And while scams on minor transactions are easier to get over,5 ways such is not the case with an automobile purchase.
So, ensure that you have taken all the steps to make your transaction safe and secure.
To sum it up:
- Conduct research and select the most trusted car dealership
- Select a quality wallet and add additional security measures
- Never use public networks for transferring cryptocurrencies
- Whenever you are in doubt about the process, convert the money in cash.
Once you have taken all the security measures, negotiate with the dealer to get the best price. After all, amidst ensuring a safe transaction, you cannot forget about getting a good deal. Let us know how your car buying experience goes.