Over the past few years, many investors have made small and large fortunes with Bitcoin and other cryptocurrencies. But as with any volatile investments, such fortunes can be lost just as quickly for those who don’t know when to ring the cash register and take some profits. Over the past week alone, Bitcoin has taken a number of hits that have left it down nearly 50% from its local high.
Now some will say that the lesson here is not to invest in cryptocurrency, but savvy investors like Elon Musk would disagree. In fact, Goldman Sachs just declared Bitcoin to be a new asset class.
So what is the lesson? The lesson is a principle of investment that has been around for ages – and that is to diversify. And I would recommend specifically that if you hold large amounts of cryptocurrency, you should diversify by adding real estate to your portfolio. We have all seen in recent years how real estate in Canada is not only holding its value, but is continuing to appreciate substantially from year to year and even month to month.
As one of only a handful of real estate agents in Canada who has facilitated real estate purchases with cryptocurrency, I can help you take a portion of your crypto holdings and convert them into a more stable property investment.
BTCHome.ca, a cryptocurrency division of Real Estate Bay Realty is the only brokerage in Canada that can convert your crypto assets directly into real estate. While the website lists prices in BTC, buyers may also use other cryptocurrencies, such as Ethereum, Nano, XRP, Chainlink and many others.
The process is very straightforward. Upon acceptance of the offer (Purchase and Sale Agreement), we convert you crypto assets, such as Bitcoin, into Canadian dollars and deposit the funds into your lawyer’s trust account, the same way a bank would deposit the mortgage in a regular transaction. The funds are then held in your lawyer’s trust account and are disbursed upon the closing of the transaction, typically 30 to 90 days after the acceptance of the offer. Since the seller gets paid in Canadian dollars, neither the seller, nor the listing agent even need to know what Bitcoin is – for all parties involved, it is a normal real estate purchase.
Purchasing Bitcoin and other cryptocurrency can be a smart investment decision, but at some point, it’s critical to lock in some of your gains. Over the years, I have seen many of my clients make small investments into to crypto and make millions. Until you cash out, your profits are technically unrealized and you are facing the risk of losing a large portion of your portfolio in a correction or a downtrend.
Converting your cryptocurrency directly into real estate is the safest way of protecting your gains, while also investing in an asset that appreciates in value over time.