Step-By-Step Guide of Using Bitcoin To Buy A Home

Last updated on July 18th, 2023 at 03:47 pm


While a lot of people are not yet convinced to use cryptocurrency as a means of payment – sure, it is relatively new – but those who already know how it works are already using the pioneer digital coin, Bitcoin to buy an apartment.

In Miami, UAE, and the Philippines, we’ve seen how buyers and sellers deployed cryptocurrency to make great transformations in the real estate business. In this post, we will explore the step-by-step process involved between a seller and buyer of property before buying a home with Bitcoin.

What Does It Mean To Buy A Home with Bitcoin?

This is a process of exchanging Bitcoin with a property. It is completely similar to using fiat currencies, the difference is that once an agreed price is set and both buyer and seller agreed to use Bitcoin a means of transaction, the buyer transfers the corresponding amount in Bitcoin to the seller’s Bitcoin wallet, which can be likened to a traditional bank account details.


When the transfer is confirmed by the seller, he then transfers the ownership of the property to the buyer.

Pros and Cons of Using Bitcoin for a property transaction

It is recommended that a buyer and seller should check the antecedent of a real estate firm that has experience with cryptocurrency and blockchain when you’ve decided to buy a property with Bitcoin.

Using BTC as your payment option can be quite faster than the traditional banking system, it also comes with some challenges and risks.

Benefits of Using Bitcoin to Buy a Home

It isn’t a bad idea if you’ve made some profits investing in cryptocurrency and decided to use the most popular coin to acquire a home.

And of course, investing in property is one of the best ways to diversify your portfolio and consolidate your profits. When you do this, there are lots of advantages you are going to get from it, they include:

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Fast and efficient

Bitcoin transactions are faster and more efficient than traditional banking systems, especially for international purchases. While conventional banking systems may give certain hours or days for transactions to be done, digital coin transactions are 24/7. It allows transfer to be implemented at any time. Public holidays do not hinder cryptocurrency transfers.


It offers a certain level of privacy compared to traditional transaction methods. Parties involved in Bitcoin transactions are represented by anonymous alphanumeric addresses, though the transactions are publicly recorded on the blockchain.

Avoiding banking systems:

Bitcoin can be a viable alternative for home buyers who may have difficulty accessing traditional banking systems as a result of their location.

Futuristic investment:

Purchasing a home with Bitcoin could be seen as a futuristic investment that combines real estate and crypto. It is a financial innovation that will trigger the interest of buyers.

Lower transaction fees:

While traditional banks may subject your transaction to scrutiny and bank fees and prevailing exchange rates, only miner’s fee is applied in cryptocurrency transactions.

Asset appreciation:

If the value of Bitcoin increases – which usually pushes up the price of other cryptocurrencies – after you purchased a home, you could be paying less for the home than you would have with fiat currency. It also comes with some risks, for instance, if the value of the crypto decrease, then you could effectively be paying more.

Risks of using Bitcoin to buy a house

While the benefits of using BTC to buy a home are enticing, it is important to pay attention to the risks and challenges that might come with such transactions.


The value of Bitcoin and other crypto is highly volatile. This can make the actual cost of the home in fiat currency unpredictable. This means that the value of Bitcoin you spend on a property today could double or halve in a twinkle of an eye.

Lack of sellers

How many property owners know how cryptocurrency works? How many of them are ready to sell their property for Bitcoins even when they have crypto knowledge?

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The lack of sellers is one of the challenges of using Bitcoin to buy a home. Even when your wallet is funded, you are likely to find it challenging to see a seller who will accept Bitcoin. You might also find a property in your preferred location.

Regulatory uncertainty:

With the popularity of Bitcoin, there may be legal implications of closing a deal worth millions of dollars in BTC. Governments of countries around the world are now considering monitoring crypto transactions. When this is fully done, there would be heavy taxation on property bought with Bitcoin like buying a home.

Security risks:

If you mistakenly sent your Bitcoin to the wrong address, it is irreversible. Although, with the proposed policies on crypto which could force exchanges to disclose the identity of the sender and receiver, it may be feasible to reverse transactions in cryptocurrencies in the near future.

Another risk is you may permanently lose your crypto asset if you forget a password or lose a hardware wallet.

Complicated process:

From finding a trustworthy mediator to finding a seller that accepts Bitcoin, the process might be more challenging than it seems.

Consumer protection issue:

Unlike the traditional banking system that has support tools and staff in place in case anything goes wrong, transacting with Bitcoin doesn’t have the support tools. If anything goes wrong in crypto transactions, there is no guaranteed means of fund recovery.

Potential for misuse:

Buyers may hide under the use of crypto to carry out illegal financial activities. They may use illicit funds to acquire real estate.

Tax implications:

If a cryptocurrency has appreciated in value since you acquired it, you might owe taxes on the gain, even though you are just using it to purchase something. Spending Bitcoin can trigger the capital gain tax.

Process of Buying a House with Bitcoin

From property search to the point of confirmation, there are six steps involved in the buying process:

Step 1: Search for a home

Jabulani, an investor whose investment in Bitcoin turns out positive, decides to buy a home using a portion of his Bitcoin profit. He begins to search for a home in his preferred location that also accepts Bitcoin.

Also Read:  Cryptocurrencies Americans Want to Sell the Most

He eventually finds a property in Austin, Texas, which is listed on Propy, a property listing platform that specializes in real estate transactions via cryptocurrency.

Step 2: Negotiate the price

This is where both parties – buyer and seller – have to exercise caution due to the volatile nature of cryptocurrency.

If the property is listed for $1.5 million USD, both parties would agree to base the transaction on the dollar amount. They would also agree that the Bitcoin-to-Dollar exchange rate will be decided using the rate on an exchange platform.

Before proceeding with the transaction, Jabulani needs to hire a real estate attorney to handle the legal paperwork. The legal aspects of the deal must be handled with care.

The lawyer ensures that the seller is the rightful owner of the property and ensures that it has the legal right to sell the property. Then they can proceed to prepare a transfer of ownership of the peremptory.

Step 4: Buyer transfers Bitcoin to seller’s Bitcoin wallet

Jabulani who is the buyer transfers the equivalent of $1.5million in Bitcoin to the seller’s Bitcoin wallet. This transaction is immediately recorded on the Bitcoin blockchain as evidence of payment.

Step 5: Transfer of property to the buyer

While the Bitcoin Blockchain provides a tamper-proof and transparent transaction, the seller would still have to confirm the receipt of the Bitcoin. At this stage, the attorney finalizes the transfer of the property to Jabulani. The property changes to its name.

Step 6: Buyer confirms receipt of documents

The buyer (Jabulani) now confirms the ownership of the property. All documents related to the ownership of the home would be transferred to him.

In some states, a report of the transaction is necessary for tax purposes.

In this video, Jennifer Beeston summarizes the process involved in using Bitcoin for a home:


The process of using Bitcoin to buy a home might vary depending on various factors, using crypto as a means of transaction makes the process faster and easier. Both parties still have to look out for any form of red flags in the buying process.

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