In recent years, cryptocurrency has revolutionized both the financial and trade sectors. They have also modernized the international money transfer process. Both mobile and online platforms offer the ability to send and receive.
It is easy to send cryptocurrency via email, as it is digital. It is possible to send cryptocurrency to relatives, friends or merchants around the world as well as to people near you.
The wallet address of your receiver is required to transmit cryptocurrency. A wallet address, a unique string containing a number of characters, is what specifies where digital currency should be transferred. This works in the same way as a bank account. Crypto wallet addresses can be lengthy so they are often presented as QR codes that can then be scanned with a cryptocurrency application. Let’s now talk about how to transfer money overseas without spending a lot.
What is cryptocurrency?
A type of digital asset. They can be used in lieu of traditional fiat currencies such as the US Dollar or the Euro as a means of exchange. They are not supported centrally by banks or governments. Your cryptocurrency wallet is entirely yours, and there is no middleman between you and the person you’re paying.
Bitcoin is undoubtedly the most widely known cryptocurrency. But there are over 6,000 other cryptos out there, and that number is expected to continue growing. Blockchain technology is used to create Bitcoin and other cryptocurrencies. Blockchain is a distributed ledger that records digital assets like cryptocurrencies.
The blockchain allows all virtual money to be traced, so each coin can have a specific owner. This makes it difficult to “cheat” the system and is the reason cryptocurrency trade can function independently of banks and other governing authorities.
How do I transfer money overseas with Bitcoin?
Bitcoin and other cryptocurrencies can be used to transfer international money at a very affordable cost. You don’t have to pay the high fees charged by brokers to make a wire transfer.
MTOs work with Bitcoin remittances in the same way as their traditional counterparts do. In the context of Bitcoin, MTOs could refer to wallets and exchanges or the P2P market. Anyone who can transmit Bitcoin can make Bitcoin remittances.
Not only do they save money on transaction fees but cryptos also offer other benefits when trans-border monetary exchanges are made.
You can make cryptocurrency payments in many different ways.
Standard international bank transfers involve transferring your funds to another party and then hoping they reach their destination. A crypto transfer will give you the ability to know exactly where your money is located.
The coolest thing about cryptocurrencies is that they don’t have any connection to banks or government agencies. You can send an unlimited amount of money anytime you want.
Contrary to banks, cryptocurrency services are available 24 hours a day. Business deals are often closed quickly.
Cryptocurrency transactions are faster and more cost-effective than traditional banking. There are no intermediaries or hidden fees between you and your money. There are no opportunity costs or hidden fees.
The disadvantages of using cryptocurrency to transact internationally
The biggest disadvantage is the fact that, despite higher transmit speeds, there are more stages in the process. This is enough to scare any newbie. Prior to the widespread adoption of cryptocurrency, this method of transfer was only available to those who placed high value on speed and cost efficiency.
Remember that you will need to exchange your currency twice when you transfer Bitcoin internationally. You will see your money converted twice. The first time you buy bitcoin using fiat currency is when you make the initial purchase. The second time the receiver converts to their currency is when your funds are transferred to an international recipient. This step is crucial. You could lose your money.
Comparison of cryptocurrency and traditional money transfers
International money can be sent using traditional methods. You will need to use a Money Transfer Operator like Western Union or arrange for a direct bank transfer. Banks and money transfer companies (MTOs) often charge a fee for international remittances. They also profit from the exchange rate used for converting one currency to another.
Senders of funds may be subject to additional charges such as currency rate losses and transaction fees. The transfer may take anywhere from one hour to six weeks. To transmit Bitcoins or any other digital currency from one country to the next, you can use peer-to-peer cryptocurrency trading.
If you are wondering whether cryptocurrency money transfers are available for free, there are some exchanges and platforms that let you transfer bitcoin to other people’s wallets free of charge. Some require minimal costs.
However, bitcoin is the most economical way to transfer money abroad. There are no bank fees or exchange rates to pay.
You will need the address of their wallet to send someone crypto. The crypto wallet address is often displayed as a QR code which you can scan in your mobile app. It’s easy to access your crypto wallet once you have the address. Then, enter the address and choose the amount you want to send.
Although there is a fee for exchanging cryptocurrencies, the “gas fee” is usually a nominal fee. However, this fee is generally much less than Western Union or wire transfer fees. There are a few things you should consider when sending crypto.
- Transfer Bitcoin to a Bitcoin address. Ethereum to an Ethereum account. Each cryptocurrency has its own address.
- After the transaction has been verified and confirmed, the cryptocurrency should appear in the recipient’s account. This could take a few minutes or several hours.
- It’s easy and affordable to send cryptocurrency across the globe.
Guide to transfer money from blockchain to your account
Before you can deposit your cryptocurrency funds into a bank, you need to first convert the crypto holdings you have to fiat money using an exchange platform. You can then withdraw the funds to your bank account.
There are a variety of ways you can “cash-out” cryptocurrency.
- Crypto transactions can be made with a card
After attaching the cards to your cryptocurrency wallet, you can use them just like any debit card. It automatically subtracts cryptocurrency from the wallet when you make purchases using the card and converts it to fiat money at the card’s rate.
Businesses accept Bitcoin and other cryptocurrencies as payment. You can make immediate purchases from the online shop using your cryptocurrency wallet.
Bitcoin and other cryptocurrencies can be bought through ATMs in big cities. Some of these ATMs allow you to exchange cryptocurrency or withdraw cash in local currency.
What cryptocurrencies are appropriate for international money transfers?
International transactions will be easier with cryptocurrencies that have high liquidity. This means they can be converted easily into fiat currency and require low gas expenses. Stablecoins are one of the most popular cryptocurrencies for sending money overseas. Fiat-backed stablecoins have strong liquidity and are tied to fiat currencies to ensure that inflation is not a problem.
Bitcoin is also a viable option for transferring funds abroad. Bitcoin fees are calculated per byte and not as a percentage so even the cheapest transactions can quickly add-up.
Litecoin costs less than Bitcoin so if transaction costs are a concern and you want to transfer money often but in smaller quantities, this could be the right choice. XRP, a popular alternative, is also available. This, unlike Stellar and Litecoin, is just as fast and safe as Bitcoin and very liquid.
About the Author
Chris Munch is a professional crypto writer, researcher, and journalist with extensive experience in the cryptocurrency and blockchain space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. He has written numerous articles and research papers on a variety of topics, including market analysis, investment strategies, and the latest developments in the industry. With a background in finance and economics, Chris has a deep understanding of the economic and financial forces that drive the crypto market. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers. In addition to his writing, Chris is also a sought-after speaker and commentator on crypto and blockchain-related topics. He has appeared on numerous podcasts, webinars, and other events, sharing his knowledge and expertise with audiences around the world.
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