How to Transfer Funds Abroad Using Cryptocurrency: A Guide

One way to transfer funds in the current conditions is through cryptocurrency. This is legal since the use of digital financial and crypto assets is permitted in almost every country worldwide. Currently, there are no restrictions on sending cryptocurrency abroad or receiving it in Europe and globally, as the circulation of digital assets is entirely within the legal framework. Credits, like most other crypto services, is a licensed participant with all necessary permissions.

How can this be useful? Let’s consider the following scenario: You are in Germany and need to send money abroad, for instance, to Kazakhstan or Turkey, and you’re exploring different options. Or you’re sending money from Kazakhstan, Ukraine, or any country to Europe, such as Germany or Poland.

Advantages of Sending Money with Cryptocurrency

• You want a simple transfer with minimal documentation and delays, completing it instantly in a few minutes rather than 5-7 days as with traditional banks.

• You want to make a quick, easy transfer in just five minutes.

• And you want to save money: crypto transfers can cost around 1-2% of the transfer amount, while traditional banks may charge up to 5-6%.

Simplified Steps for Transferring Money Abroad with Cryptocurrency

1. The Sender Buys Cryptocurrency.

2. The Sender Transfers Cryptocurrency.

3. The Receiver Converts Cryptocurrency into Local Currency.

How to Transfer Money Abroad Using Crypto? Cryptocurrency, as a new type of currency, has impacted both banking and commerce in recent years. It is now also modernizing the process of international money transfers. Mobile and online platforms support sending and receiving crypto, and since cryptocurrency is digital, sending it is as simple as emailing. Unlike dollars or euros, which are tied to banks, cryptocurrency has no physical boundaries. Thus, you can send crypto to friends, relatives, or merchants abroad just as easily as to someone nearby, as long as there's internet access.

To send cryptocurrency, you’ll need the recipient's wallet address. A wallet address is a unique string of characters that indicates where the digital currency should go, similar to a bank account number. Now, let’s discuss how to transfer money abroad without incurring high costs.

Detailed Guide to International Transfers with Cryptocurrency

• Step 1: Download the App
  Start by downloading the Credits app, available on iOS, Android, or web browser.
  Time required: 1 minute

• Step 2: Register and Verify Your Account
  To fully use the service, create an account at Credits.com. You can register using a phone number or email address. Verification requires a passport scan, which is uploaded to the site, where it also verifies the user’s identity with facial recognition.
  Time required: 5 minutes

• Step 3: Purchase Cryptocurrency from Local Currency
  To send money, you first need to buy cryptocurrency. To do this, add funds to your Credits.com wallet. Then, exchange fiat currency (dollars or euros) for the cryptocurrency you intend to send abroad.
  Credits Wallet offers a wide range of services for both personal and business needs:

  • Simple cryptocurrency purchase and sale using VISA and Mastercard

  • Deposit accounts via bank transfers

  • Crypto-to-crypto and fiat-to-crypto exchange options
    Time required: 5 minutes

• Step 4: Send Cryptocurrency
  From your Credits wallet, where you’ve received the purchased cryptocurrency, you can send it to the recipient's wallet, such as in Turkey.
  There are two possible scenarios:

  • The recipient already has a Credits account, as Credits operates in over 180 countries, which is simpler and less costly.

  • The recipient does not have a wallet and uses decentralized wallets like Blockchain.com or Myetherwallet. If they don’t yet have a wallet, it's best to create one in the Credits wallet, which offers the lowest fees.

  • Download the wallet here

  • It’s best to use Credits services for free crypto transfers. The recipient receives the cryptocurrency instantly and free of charge, saving up to 2-3% of the transfer amount. Given that blockchain transfer fees average $3-$5, this represents 2-3% of a $300-$500 transfer.
    Time required: 1 minute

• Step 5: Recipient Converts Cryptocurrency Back to Fiat
  Now, the recipient has received cryptocurrency in their account and can:

  • Use it for living expenses, groceries, or other needs by converting it to local currency.

  • Store the cryptocurrency in their account.

  • Convert it to local currency.
    In cases where fiat currency is needed, the recipient can also convert cryptocurrency abroad through P2P transactions with local digital asset sellers. Credits offers excellent options to convert received currency to local currency at low cost, and transfer it to a VISA or Mastercard.
    Time required: 5 minutes

Total Time Required: About 15 minutes, entirely online. Opening an account and a wallet with Credits.com is free.

The Most Popular Cryptocurrency for Sending Money Abroad For such transactions, stablecoins and low-volatility digital assets are ideal. If you’re not aiming to profit from potential cryptocurrency growth, it's better to send funds in USDT, USDC, or BUSD rather than BTC.

Using Stablecoins for International Transfers A stablecoin is also a digital currency but, unlike Bitcoin, is financially backed, meaning its price is supported by financial assets that prevent significant value drops. For example, USDT, BUSD, and USDC are pegged to the dollar, allowing even the potential for returns.
USDT (Tether) is currently the most popular stablecoin, with a market cap second only to Bitcoin and Ethereum. It’s traded on all exchanges and exchanges, and in the US, Brazil, and some other countries, it can be converted to regular currency at crypto ATMs.

Advantages of Transferring Money Through Cryptocurrency You can send money to any country worldwide without restrictions from banking systems or currency regulators. Even if bank-to-bank transfers aren’t possible, you can always use P2P crypto exchanges. Additionally, crypto transfers are often cheaper and faster than bank transfers due to the lack of intermediaries and fees, especially when using a service that finds the best offers for crypto transactions.

Other Ways to Buy Cryptocurrency You can buy cryptocurrency through exchanges or with cash and bank transfers. Your choice depends on the initial currency in your account. For example, if you want to transfer money in cryptocurrency abroad, there’s no need to exchange fiat currencies and lose on exchange rates—you can proceed directly to cryptocurrency.

Note: When purchasing, make sure to buy the original coin or token. For example, Bitcoin is also available on the Ethereum network as an ERC-20 token. You cannot send BTC (ERC-20) to a Bitcoin wallet on the original Bitcoin network, as it’s incompatible with the Ethereum blockchain.

Conclusion Cryptocurrencies are a relatively new way of transferring money internationally, but they are among the fastest-growing and significantly cheaper than using traditional banks. With Credits, you have access to a comprehensive range of financial services to send and receive funds at minimal costs.