Disclaimer: This is NOT financial advice. With that out of the way, let's talk about how your junk car can become an entry into the world of cryptocurrency.
Cryptocurrency has become the next best thing online. Many people have amassed a fortune from buying major digital currencies like Bitcoin, Ethereum, etc. In fact, some people made a huge profit from buying underdog coins, also known as shitcoins and meme coins. In 2021, Dogecoin, a meme coin, hit a market capitalization of $85 billion following a series of tweets by Tesla's owner, Elon Musk.
Getting into the world of digital currencies and investing can be tricky. There's a lot to gain and a lot to lose, depending on how you approach it. We have found that the best way to get in is by using spare cash. What better way to get spare cash than selling your junk car for cash?
In the sections below, we will be walking you through the world of selling your car for cash to invest in crypto. But first, let's break down the terms.
What is Cryptocurrency?
Cryptocurrency is also known as crypto. It is a digital currency based on blockchain technology. The technology allows transactions to be verified and records maintained by a decentralized system. With cryptocurrency, there are no heavy government regulations; instead, there's a transparent online ledger that shows the inflows and outflows of transactions.
One of the biggest advantages of crypto is that transactions can neither be counterfeited nor double-counted. Blockchain technology is a distributed ledger that records and tracks everything.
If it all sounds like jargon to you, consider cryptocurrency to be money that cannot be held but can be used to purchase tangible or intangible assets.
What is a Junk Car?
A junk car can also be called a scrap car or decrepit car. They are cars that have become too old to use, damaged beyond repair, or require repairs worth more than their value. A junk car doesn't necessarily need to be inoperable. Many criteria may qualify a car as junk. Some of them include;
- Cars with missing paperwork
- Abandoned cars
- Cars that are too old for the road
- Totaled cars
- Damaged cars that require high repair costs
- Inoperable cars
If your car falls within one or more of the categories above, the chances are high that you have a junk car on your hands. Junk cars can also be described based on whom you're selling to. If your car isn't worth selling to a private buyer, the chances are high that it is a junk car too.
Selling Your Junk Car To Buy Crypto
Have you ever heard someone claim they 10x their crypto assets in one bull run? Do you want to get in on the action too? One of the best ways to get started is to use spare cash. Many crypto investors will advise you to put spare money into crypto to avoid suffering heavy losses.
In the same vein, the best time to invest in crypto is during the "bear run". The bearish run is a point where crypto holders are scared about the value of their digital assets, thus forcing them to sell. Following the law of demand and supply, the increase in sales causes the market price to fall lower, thus crashing the price.
Getting in during the bearish market movement often promises the best returns. For example, many people bought Bitcoin in March of 2020 when it crashed by 50%, sending its value to $4,000 from over $10,000.
These people who got in during the crash were mostly able to enjoy the multiple increases in coin value as Bitcoin hit a new all-time high (ATH) value of $69,045 in November 2021. Many more cryptocurrencies, including Ethereum (ETH), hit their ATH within this time.
The price of Bitcoin in 2022 has remained largely in the $30,000 threshold, a crash from the $69,045 ATH in November of 2021. Many other cryptocurrencies, including Terra's LUNA (plunged from $85 to $0 in a week), have suffered a downturn.
Selling your junk car for cash may be one of the finest ways of raising money to buy the dip, knowing that your investment may someday buy you a brand-new car.
How Much Can You Sell Your Junk Car?
It is possible to sell your junk car for $500 or more. Junkyards often offer a good price for operable cars that have their parts intact. However, you can sell your car to the right junkyard in any condition. Some of the common factors that affect the price of junk cars include;
- Scrap metal prices
- Vehicle make and model
- Vehicle's condition
Similar to crypto, the demand for scrap metal in the market affects the purchase price. The higher the demand, the higher the value of your junk car. Asides from the scrap car prices, you should also consider the make and model of your vehicle. Older and inoperable cars may not sell as high as newer models. Some junkyards are also particular about specific car models. For example, the Toyota Prius is highly sought after because of its catalytic converter.
The condition of the vehicle also matters. Junkyards are likely to pay higher prices for good-performance cars than rusty, old vehicles. And lastly, the location wherein you make the sale matters. Some states have a high number of junkyards, thus making competition for junk cars fierce.
Top 20 Cryptocurrencies and their All-Time Highs
If you're looking for the top cryptocurrencies to invest in after selling your junk car for cash, here is a list of the top 50. We encourage each junk car seller to do their own research (DYOR) before investing their junk car cash in any cryptocurrency.
- Bitcoin BTC - $69,045.00
- Ethereum ETH - $4,878.26
- Tether USDT - $1.32
- USD Coin USDC - $1.17
- BNB BNB - $686.31
- XRP XRP - $3.40
- Binance USD BUSD - $1.15
- Cardano ADA - $3.09
- Solana SOL - $259.96
- Dogecoin DOGE - $0.73
- Polkadot DOT - $54.98
- Avalanche AVAX - $144.96
- Wrapped BTC WBTC - $70,643.00
- Lido Staked Ether STETH - $4,829.57
- TRON TRX - $0.23
- Near Protocol NEAR - $20.44
- Dai DAI - $1.22
- LEO Token LEO - $8.14
- Litecoin LTC - $410.26
- Terra USD UST - $1.09
Junk Cars and Crypto FAQs
Can I buy a used car with crypto?
Yes. You can buy a used car with crypto provided the seller accepts cryptocurrency as a valid means of exchange. If unsure, here are some cars you can buy with crypto:
Can I sell my car for crypto?
Yes. You can sell your car for crypto. All you need to do is agree on a certain amount to sell your car and receive the cryptocurrency equivalent. Some junkyards also buy used and junk cars with crypto.
Can you finance a car with crypto?
Yes. Crypto-backed car loans allow the borrower to use their cryptocurrency portfolio as collateral. You should speak with your lender about their position on cryptocurrency and available crypto-related loan products.