Cryptocurrencies And Real Estate: RealT As A Bridge Between Two Worlds

Cryptos have revolutionized investing by offering new strategies to investors. This dynamic market provides access to high returns but also exposes to high volatility. To secure their capital, many investors seek stable solutions. Real estate represents a reliable safe haven, with a value that grows slowly and regular rental income. However, buying a property with cryptos remains complex due to legal and financial constraints. RealT simplifies this transition by tokenizing real estate to allow direct access via blockchain. This article explains how RealT facilitates real estate purchasing, enhances diversification, and automates crypto payments.

Why are crypto investors interested in real estate?

Cryptocurrencies offer opportunities for high gains but also expose to high volatility. To reduce risks, many investors seek to secure part of their capital in more stable assets. Real estate, historically recognized as a safe haven, represents a credible alternative.

Crypto volatility and the quest for stability

The crypto market experiences sharp price fluctuations. Bitcoin and Ethereum experience spectacular rises but also significant corrections. This instability complicates long-term portfolio management.

Investors seek assets capable of preserving their capital. Real estate shows a more gradual evolution, with a consistent upward trend over several decades. Unlike cryptos, real estate assets do not experience sudden fluctuations.

Rental income reinforces this stability. An investor can receive regular rents regardless of crypto market conditions. This predictable income source helps balance a portfolio exposed to cryptos.

Real estate as a refuge against inflation

Inflation reduces the purchasing power of traditional currencies. Central banks regularly inject liquidity into the economy, causing currency depreciation. Real estate provides effective protection against this loss of value. As a tangible asset, it maintains stable demand even during high inflation periods. Its price generally follows living cost increases, thus preserving investors’ capital.

Unlike cryptos which may face unpredictable downturns, real estate generates passive income in the form of rents. This income, often indexed to inflation, guarantees stable long-term returns.

The complementarity between crypto and real estate

Crypto investors typically value flexibility and liquidity. Real estate, on the other hand, is seen as a more rigid and difficult asset to manage. Thanks to the blockchain, these two worlds can combine. Real estate tokenization improves liquidity of properties, allowing buying and selling of fractions of ownership easily.

RealT plays a key role in this convergence. The platform offers a accessible and transparent solution to invest in real estate using cryptos. By facilitating fractional investment, RealT enables crypto investors to integrate real estate into their portfolio while retaining blockchain advantages.

How does RealT facilitate real estate purchasing with cryptos?

Traditional real estate investment involves long and complex procedures. Investors must go through banks, notaries, and comply with strict regulations. RealT simplifies this process through blockchain and cryptos, making real estate buying faster, more accessible, and fully decentralized.

Tokenization of real estate: simplifying the purchasing process

RealT uses blockchain to divide each property into RealTokens. These tokens represent ownership fractions and allow investors to buy part of a property without the constraints of traditional purchase.

All transactions are recorded on Ethereum and Gnosis Chain. This infrastructure removes intermediaries like banks and notaries, reducing fees and acquisition delays.

Thanks to this model, investors can access the real estate market without filling bank forms or complex administrative procedures. They simply buy RealTokens and become owners of a fraction of the property, with rights to rental income.

Removing geographical and financial barriers

RealT opens access to the US real estate market for investors worldwide. Any user can buy properties located in the United States without needing a local bank account or financial intermediary.

The fractional model allows investing with reduced capital. Unlike classic real estate purchases that require tens of thousands of dollars, RealT enables acquiring ownership shares from as little as 50 dollars.

Tokenization also improves investment liquidity. On the YAM secondary market, investors can buy and sell their RealTokens, offering more flexibility than traditional real estate.

Automation of payments and rental income

Investors receive their rents in stablecoins (DAI, USDC), eliminating bank fees and transfer delays. These payments are made transparently and automatically, without third-party intervention.

Smart contracts secure all transactions. Once an investor owns RealTokens, they automatically receive their share of rental income according to their ownership percentage.

Users can track their investment performance in real time through blockchain. This transparency ensures full control over their assets and simplifies income management.

Crypto payment and conversion: how does RealT manage transactions?

Purchasing real estate with cryptos often poses challenges related to conversions, regulations, and payment security. RealT simplifies these transactions by integrating native crypto payments, automating rent management, and ensuring compliance with current rules.

Direct purchase of RealTokens in crypto

RealT allows investors to acquire fractions of properties using cryptos. Payments are made mainly in Ethereum (ETH) or stablecoins such as USDC and DAI.

Transactions are instantaneous, avoiding delays imposed by traditional banks. Unlike international wire transfers that can take several days, RealToken purchases via blockchain occur within minutes.

Each payment is immutably recorded on the blockchain. This guarantees full transparency and reduces risks of errors or fraud. Investors can also review their transaction history at any time.

Conversion and payment flexibility

Rental incomes are paid in DAI, a stablecoin pegged to the US dollar. This choice ensures financial stability for investors and avoids crypto fluctuations like Bitcoin or Ether.

Investors have the freedom to convert their earnings into other cryptos according to their preferences. They can choose to reinvest their DAI directly into new tokenized real estate properties or trade them on decentralized exchanges (DEX).

RealT also facilitates crypto-to-fiat conversion. Thanks to partnerships with exchange platforms and services like Mt Pelerin, investors can convert their stablecoins into euros or dollars, simplifying access to their funds.

Security and regulation of crypto payments

To ensure regulatory compliance, RealT enforces an identity verification procedure (KYC). This measure guarantees that transactions comply with current laws and prevents illicit crypto use.

Using blockchain guarantees maximum transparency in fund management. Each transaction is recorded on a public ledger, reducing risks of fraud and forgery.

Payments on RealT benefit from additional protection via smart contracts. These contracts ensure automatic execution of transactions according to pre-established rules, thus avoiding human errors and disputes between buyers and sellers.

The Impact on Wealth Diversification

Wealth diversification allows investors to reduce risks and optimize the profitability of their investments. RealT offers an innovative solution by combining real estate and blockchain to enable crypto investors to access a stable asset while benefiting from the advantages of decentralized finance.

Risk Reduction Through Diversification

A portfolio consisting exclusively of cryptocurrencies remains vulnerable to market fluctuations. Bitcoin, Ethereum, and other cryptos experience price variations that can lead to significant potential losses during a downward trend.

Real estate represents a tangible asset whose value evolves progressively. Unlike cryptocurrencies, it does not undergo sudden and sharp fluctuations. It protects investors against bearish cycles in the crypto market, thereby strengthening their portfolio’s resilience.

By combining RealTokens with cryptocurrencies, investors benefit from better risk distribution. They maintain exposure to blockchain opportunities while securing a stable foundation with tokenized real estate. This approach balances their investment strategy by mitigating volatility.

Creating a Stable Passive Income

Cryptos offer few passive income solutions. Staking and yield farming allow for returns, but they involve risks linked to token fluctuations and the platforms used.

Tokenized real estate guarantees a regular rental income paid in stablecoins. Each RealToken holder receives a share of the rents. This income source is not affected by crypto market volatility, making it a more reliable alternative for investors.

Investors can choose to reinvest their rental income into other DeFi opportunities. They can use it to acquire new RealTokens, strengthen their positions in other cryptos, or convert their earnings into fiat currencies according to their needs.

Access to Optimized Liquidity with DeFi

Traditional real estate faces liquidity issues, as selling a property can take time. RealT’s real estate tokenization solves this problem by facilitating buying and selling on the secondary market.

RealTokens can also be used as collateral on the RealT Money Market (RMM) platform. This feature enables investors to borrow stablecoins (DAI, USDC) by pledging their real estate tokens as guarantees.

Thanks to this capability, investors increase their investment capacity without selling their assets. They can acquire new properties or reinvest borrowed funds into other DeFi strategies, optimizing their wealth while retaining their tokens.

The combination of cryptos and real estate creates new opportunities for investors. RealT simplifies access by merging real estate’s stability with blockchain’s flexibility. Tokenized real estate allows investment in physical assets without the constraints of traditional transactions. It enables crypto investors to diversify their portfolios while benefiting from passive income in stablecoins.

Through integration with DeFi, the RealT platform optimizes asset management and facilitates liquidity access. This innovation redefines real estate investment and makes the market more accessible, transparent, and efficient for a new generation of investors.

La Rédaction C.

The Cointribune editorial team unites its voices to address topics related to cryptocurrencies, investment, the metaverse, and NFTs, while striving to answer your questions as best as possible.