Can You Buy a Home with Crypto? Yes, But Read This First.

Cryptocurrency saw gains this week, with Bitcoin surpassing $100,000 for the first time since February. The digital currency market has already disrupted banking, finance, and art. Now, it’s knocking at the door of real estate. Yes, you can buy a home with Bitcoin, Ethereum, or another digital currency. But before you start moving your Dogecoin to a cold wallet and house-hunting in Westchester, there are a few key things you should know:

1. Not All Sellers Will Accept Crypto: 

   The deal often requires converting your cryptocurrency into dollars through a third-party service or crypto-friendly escrow company. It’s rare (but not impossible) to find sellers willing to accept Bitcoin directly.

2. Crypto as a Down Payment:

   If you're hoping to get a mortgage and fund the down payment with crypto gains, your lender will want those coins sold and seasoned in your account (usually for 60–90 days).

3. Crypto-Backed Loans:

   If you prefer not to liquidate your crypto holdings, consider a crypto-backed loan. This involves using your digital assets as collateral to secure a loan for your home purchase.

4. Prepare for Tax Implications: 

   The IRS treats crypto as property, which means every time you sell, swap, or use it to buy something—like a house—it triggers a capital gains event. A $1M home paid for with appreciated Ethereum? That’s potentially six figures in taxes, depending on how long you’ve held it.

Ralph’s Take

Using cryptocurrency to buy a home is becoming more feasible — but it’s not exactly plug-and-play either. Crypto still works best as a funding source, not the payment method itself. Most sellers — and their attorneys — will still prefer a good old-fashioned wire transfer over blockchain confirmations that can lag or fluctuate in value. If you’re considering using digital assets in your purchase, transparency, legal clarity, and the right team behind you are non-negotiables. Deals get done when everyone feels secure — whether the funds come from Bitcoin or a checking account.