As cryptocurrency becomes a more mainstream asset to invest in, investors may be curious as to how they can use their assets beyond trading. For example, let’s imagine that you’re a homeowner looking to take care of some renovations around the house. Can you use crypto to do this? For those with virtual currency looking to use it in new ways, let’s dive into how you can use crypto for home improvement projects.
Trade your crypto assets to earn money for your home renovations.
Whether you have popular assets like Bitcoin or popular altcoins like Dogecoin or Ethereum, making the decision to trade your crypto to realize gains and make a profit can be a great way to pay for home renovations. Although the market has been stagnant recently, a future bull run for your chosen cryptocurrency can help you access the money you would not be able to see in traditional markets. This potential for profitability is what makes cryptocurrency so popular.
That being said, educating yourself on various assets (BTC, EOS, ATOM, etc.) will provide you with the foundation you need to understand your assets and trade them confidently. Use a resource like cryptovantage.com to jumpstart your crypto education journey and learn more about these virtual currencies, the Bitcoin market, and the best solutions that you may rely on (wallets, cryptocurrency exchanges, etc.). The more knowledgeable you are, the better your odds are of making the right moves with your investments.
Use a crypto debit card to pay contractors to take care of projects.
If you’re less interested in selling your cryptocurrency, you can use it like you would use legal tender in the United States instead. How? It’s as simple as opening up a cryptocurrency debit card account. For example, let’s imagine that you live in South Carolina and you want to extend the life of your Sumter, SC cooling system. You’ve found the great technicians who will help you repair your HVAC system, you’ve scheduled an appointment to help them learn about your air conditioner problems, and you’re ready to go. Rather than paying for the system in cash, you can use a crypto debit card to immediately exchange your digital assets for cash and pay for them from your exchange account. Just remember that every sale is considered a trade and is subject to capital gains taxes!
Borrow cash using your cryptocurrency assets as collateral.
Traditional lenders won’t offer loans to everyone, and those looking to tackle remodeling in their homes may be left out if they don’t meet the requirements. The good news? There are other avenues. Just one suggestion involving cryptocurrency is Coinbase’s new borrowing feature. Coinbase currently has a feature for individuals who want to borrow cash (up to $100,000) that allows them to use Bitcoin in their exchange wallet as collateral. This is just one example, but it’s important to remember to read the terms of service and to carefully research interest rates and other details of the loan. Otherwise, you may end up in financial or legal hot water. If you need quick cash and can’t secure funding from local lenders, consider crypto lending instead.
New investors may think that becoming traders is the only way that they can use their assets. But while that’s certainly the most popular way, it’s not the only one. If you want to use your cryptocurrency investments to tackle projects around the house, the suggestions above will give you a glimpse into just how crypto can be used to purchase goods and services in today’s world. No matter which option appeals most to you, they’re sure to help you get the job done!