How Do I Buy a Boat With Cryptocurrency?

How Do I Buy a Boat With Cryptocurrency?

As technology advances, new ways of paying for luxury items like yachts continue to be created. While traditional methods are still ubiquitous, cryptocurrency is emerging as a reliable way to purchase these assets. Many people have started to see the potential of a blockchain system to speed up the entire sales process and brokers, sellers, and buyers alike have started to use it for any of their transactions.

If you’re one of these cryptocurrency investors, The Advantaged has a guide to help you understand what the process of using Bitcoin or altcoin to make purchases entails. Keep reading to learn how yacht sales with cryptocurrency work.

What is Cryptocurrency?

Before everything else, let’s first break down cryptocurrency. It’s a digital currency distinct from fiat money (traditional money). Instead of a central authority like a government controlling it, cryptocurrency is maintained, verified, and recorded by a decentralized network of computers called a blockchain.

Thanks to this, bitcoin users can exchange or accept cryptocurrency anywhere in the world through a digital wallet. In addition, everything is recorded in the blockchain, so there’s virtually no possibility of fraud.

Popular Currencies

Today, the most popular cryptocurrency is Bitcoin, which was the first cryptocurrency company. In recent years, many investors and enthusiasts have joined the Bitcoin bandwagon. Although its value has been dropping, ups and downs can be expected thanks to the volatile nature of crypto. There are currencies that are more stable, albeit less powerful than Bitcoin, known as altcoin. These include Ethereum, Tether, and the infamous Dogecoin.

Cryptocurrency’s New Role in Luxury Goods

Industries involving luxury goods and assets have always been forward-thinking, so it comes as no surprise that they’re among the first to adopt cryptocurrency. What can you purchase with crypto? Art, designer fashion, jewelry, cars, trips, and even real estate property are just some of the items that you can currently buy with Bitcoin and other crypto. And now, boats are included in the list.

Why a Luxury Yacht Investment is a Great Way to Capitalize on Your Crypto Gains

Why buy a luxury boat with your crypto gains? Like many other luxury items, a yacht is a great investment. It works much like a real estate property or a car, giving you the kind of experience and adventures that you and your family will remember. Exploring new horizons will create a positive effect on your lifestyle, not to mention the immense freedom it gives you.

When you buy a boat with Bitcoin or other cryptocurrencies, you can expect fast transactions, fewer fees, and the ability to buy from anywhere in the world. That’s the wonder of digital money.

How the Process Works: Buying Your Crypto Yacht

You’re now ready to make your crypto yacht transaction.

The 1st Stage – Dealing With a Cryptocurrency Broker

Transforming Crypto Into Fiat Currency

Transferring crypto from one wallet to another wallet is different from transforming it into fiat currency. The latter will take a bit more effort and it’s very similar to exchanging two kinds of currencies at the airport.

First, you’ll want the services of a third-party broker. Through them, you can deposit your cryptocurrency and wait for a few days so they can convert it. Once it’s done, the broker will deposit the converted amount to your chosen bank account. You’ll have to pay transaction fees and taxes for this transfer, values that increase the more tokens you exchange.

The Know-Your-Customer Process

This step is often shortened as KYC and it’s the stage when banks and brokers verify the identity of their client or merchant. In cryptocurrency, it’s how each end-user can confirm the other party’s personal information. Before you can proceed with the conversion, you’ll want to familiarize yourself with the steps needed for this process.

What Companies ARE Accepting Bitcoin transactions?

Currently, several yacht manufacturers accept bitcoin as payment for a transaction. Denison Yachting is the biggest one today and the first to adopt this system. They have a wide selection of superyachts, catamarans, boats, cruisers, and many other watercraft that you can buy with Bitcoin. There are others like them, but you’ll want to make sure that they do accept Bitcoin before you commit. In this case, you’ll want the help of yacht brokers from The Advantaged.

The 2nd Stage – Working With a Yacht Broker and Law Firm

The Yacht Purchase Process

Here are the steps you’ll need to take in every standard yacht sale:

  1. Choosing Your Boat: There are many kinds to choose from, and the team at The Advantaged can help you find the perfect:
    • Yacht
    • Cruiser
    • Megayacht
    • Superyacht
    • Sailing Yacht
  2. Making an Offer: You’ll need to make a formal offer to the owner. It’s the broker who’ll present an industry-standard contract to the seller. You’ll typically pay an initial 10% of the offer into escrow, so make sure you’ve made a withdrawal from your digital wallet by this time.
  3. Accepting the Offer: The seller will either accept, reject, or counter your initial offer. Don’t expect it to be closed immediately. This is where negotiation is essential and a broker can help make sure you get a fair price.
  4. Getting a Survey: This step involves checking all the electrical, mechanical, and other systems of the water vessel. During this stage, you’ll get a better understanding of the yacht’s current state and the maintenance costs you can expect in the future.
  5. Conducting a Sea Trial: The sea trial is exactly as it sounds: the step where you take the yacht out and see how it performs on the high seas. You’ll need to check if its engine is performing as promised, assess the noise levels, verify cruising and maximum speeds, and so on.
  6. Finalizing the Acceptance: After the trial, the buyer will submit an acceptance letter. This is a conditional acceptance since the seller must address any deficiencies found during the survey and the trial before closing. In some cases, any issues that the seller cannot fix will result in deductions from the final sales price.

Tax Considerations

Before you proceed to closing, you’ll want to understand the additional taxes you need to pay during the purchase. While there is no federal tax imposed for yacht sales, there are taxes mandated by state or local governments. As your broker, we’ll help you learn about these so you can prepare ahead of time.

In Florida, all boat sales and deliveries are subject to 6% sales and use tax. The broker or dealer will collect this amount at the time of purchase. You’ll want to use the exchanged Bitcoin cash or other cryptocurrency as a source for payment.

Making the Final Purchase and Celebrating

The last stage is closing time, where you’ll sign the papers in the presence of your broker, legal representatives, and other relevant parties. At this stage, you’ll also finalize the transfer of the escrowed funds from your Bitcoin or altcoin cash.

There you have it. You’ve successfully purchased your yacht with cryptocurrency! Now it’s time to celebrate and board your new vessel for the maiden voyage!

Let The Advantaged Help With Your Purchase

The Advantaged is an established company in the marine industry, specializing in yacht charters, sales, and brokering in Miami, Florida. Our clients have trusted us for many years as their partner for all water vessel transactions thanks to our comprehensive services.

If you’re a buyer who’s looking to invest in a new yacht using Bitcoin transactions or other cryptocurrencies, we’re here to help! You can give us a call at 305-358-0745 or contact us online. Reach out to us today to begin your journey.