How to Use Cryptocurrency for Sending Money Abroad

Cryptocurrencies are the main use case in money transferring and cross border payments. They have grown massively in use and popularity.

They’ve become a major disruptor to financial institutions and how investors are trading their assets. Now, cryptocurrencies may offer you the best way to send money internationally.

Using Cryptocurrency in International Money Transfers

Traditional international money transfer services often impose significant fees, making the process costly and in many cases take days. Cryptocurrencies provide a modern solution to avoid these excessive charges.It solves many problems.

When transferring cryptocurrencies, no intermediaries are involved, granting you complete control over the digital assets within your wallet.

Introducing different type of cryptocurrency: Bitcoin and Tether 

Before delving into their use for international transfers, it is important to grasp the basics of cryptocurrency. Cryptocurrencies are digital assets used as alternatives to traditional fiat currencies like the US Dollar or British Pound. They operate in a decentralized manner, independent of central banks or governments.

Types of crypto currency for money sending

Bitcoin was the first cryptocurrency and is the most widely known.

Cryptocurrencies run on blockchain technology. This is a decentralised shared ledger that records all transactions. The ledger updates at all locations in real-time via a distributed peer-to-peer network of nodes. 

Transactions on the blockchain are immutable and irreversible. Anyone with an internet connection can view the blockchain record.

Stablecoins like Tether USDT for sending money

Despite the name, most stablecoins are usually tokens utilising existing blockchains – another quirk of usual crypto lexicon!

One of the endemic characteristics of cryptoassets is that they are extremely volatile, and while this volatility can be beneficial, it is one of the characteristics that makes cryptoassets unsuitable as a medium of exchange or store of value. Stablecoins exist to address the problem of volatility by pegging their value to an external reference, for example a commodity such as gold, or a fiat currency such as the US dollar.

Whilst all stablecoins maintain their value by some external reference, there are different types of stablecoins.

Some stablecoins are said to be fiat-collateralised – in other words, they are said to be backed one-to-one by reserves of fiat currency. An example of such a stablecoin would be USDC. For every USDC token in existence, there is an equivalent amount of fiat US dollar held in reserve.

How cryptocurrency offers the cheapest way to transfer money internationally

When it comes to transferring money internationally, Bitcoin and other cryptocurrencies such as Tether USDT, offer some of the cheapest ways to send money abroad. The first step to sending money overseas using a digital currency is to select the right one for you.

Your choice will influence the account transaction fees you pay and how long these wire transfers take. It’s also important to consider crypto wallet compatibility.

Digital wallets help send money abroad

Most major software wallets like Credits.com help people to transfer digital assets and money. You can also send and receive assets such as Tether or USDcoin using a wallet address using a wallet like Credits.com.

You can also store digital assets on a hardware wallet. They are encrypted physical devices that hold your assets offline. These provide greater security than software wallets and you can send and receive digital assets on them too.

To get started, you can create an account at Credits.com using a link.

Traditional versus cryptocurrency money transfers

To send money abroad the traditional way, you’ll need to go through a Money Transfer Operator (MTO) like Western Union. You can also use a bank transfer from your current or checking account.

Both banks and MTOs usually charge a fee for international money transfers. As a rule it is very complicated. In often takes days to send money inexpensive or to pay a very high fee up tp10% if you want to send money instantly. Unsurprisingly, this approach is expensive.

The World Bank reported that banks charge an average fee of 10.7% of the amount sent. That’s more than $21 in transfer fees for a payment of just $200. When you use the banks, there is no such thing as a cheap international money transfer.

Cross border transfer is very expensive

When transferring money from the host country to the recipient, you, as the sender, face the following:

• A transaction fee

• Loss of value due to the exchange rate

• Fee relative to the speed of transfer (can be as little as an hour up to six business days)

Most people sending an amount of money abroad are sending it back to their country of origin. They’re likely to be sending a remittance to their families and friends in a developing country. 

Quite often, recipients in these countries are underbanked. Money sent back home is often a substitute for banking to the poorest segments of society.

How to sell crypto from a wallet?

You can sell crypto directly from integrated Credits wallet without ever leaving the Credits platform or app. 

Just go to your favorite wallet or moonpay.com/sell and choose the cryptocurrency and amount that you'd like to trade for fiat. After entering your email address and completing our secure identity verification process, you'll be prompted to enter your bank account information. Next, simply follow the remaining instructions to complete your transaction. 

Credits Provides a comprehensive service for quickly selling cryptocurrency like Bitcoin (BTC) and Ethereum (ETH) in a few clicks and has bank and Mastercard and VISA trusted partners that include several to withdraw your fiat currencies to the local bank or local card.

Cryptocurrency is the cheapest way to send money cross borders

With cryptocurrency, it’s different and that’s why many consider it to be the best way to send money abroad.

You can send Bitcoin or other digital currencies directly to a recipient’s wallet. You do this via a peer-to-peer cryptocurrency exchange or using their wallet.

Once it reaches their wallet, the recipient can hold onto the cryptocurrency or cash it out to local currencies using an exchange.

Advantages of crypto as a means of payment for sending money abroad

Cryptocurrencies have become an attractive option for international money transfers. Users have cited a wide range of reasons for their preference including:

• Speed: Unlike banks, cryptocurrency services generally operate 24/7. In many cases, transactions happen instantly.

• Freedom: Cryptocurrencies aren’t tied to banks or government institutions. That means you can send as much money as you want, whenever you want. 

• Flexibility: There are hundreds of ways to transfer cryptocurrencies. Choose from different payment options and platforms suited to different destination countries.

• Transparency: With a crypto transfer, you can see exactly where your funds are at all times using the blockchain.

Is using cryptocurrency to send money abroad risky?

You should exercise due diligence and caution before sending any amount of money in cryptocurrencies.

It’s worth noting that while blockchains give you a certain level of anonymity, blockchain transactions are traceable and recorded, which leaves a trail of your transfers to and from a wallet address.

This is unlike cash. Cash is effectively anonymous and untraceable when using paper fiat currency.

The second is removing your assets from an exchange or a wallet. To exchange cryptocurrencies for local currencies and remove them from an exchange or wallet to a card or bank account can be tricky if local banks flag the activity as suspicious. Your recipient can withdraw Tether to their bank account or debit/credit card or convert cryptocurrency into cash. However, they may have trouble completing the transaction if the local bank flags up the activity as being suspicious.

Sending or receiving cryptocurrency abroadlike money 

Before sending or receiving cryptocurrency, check the on and off-ramp procedures to ensure you can deposit and withdraw cryptocurrencies or fiat to and from an exchange or wallet.

Your recipient can withdraw Tether to their bank account or debit/credit card or convert cryptocurrency into cash. However, they may have trouble completing the transaction if the local bank flags up the activity as being suspicious.

Before sending or receiving cryptocurrency, check the on and off-ramp procedures. Make sure that you can deposit and withdraw cryptocurrencies or fiat to and from an exchange or wallet.

Can you transfer money internationally free with cryptocurrencies?

Some exchanges and platforms will allow you to send cryptocurrency from your wallet to another person’s wallet for free. Others will charge a minimal fee if using a blockchain to send the assets.

In most cases though, using cryptocurrency is one of the cheapest ways to send money abroad. You don’t have to pay the fees and foreign exchange rates associated with MTOs and banks.

For example, sending Bitcoin or Ethereum or Tether or USDcoin to another wallet costs an average of $.30 to $1.00 per transaction and Ethereum an average of $0.50 per transaction.

This is far cheaper than traditional methods of sending and receiving money abroad. As you can send crypto to any wallet around the world, it’s a much cheaper alternative. 

Using Credits crypto wallet for sending money abroad

Step 1. Send money in cryptocurrency abroad like money

To send money abroad to anywhere in the world, the sender just needs to know the sender's wallet number. You do not need to use bank details and numbers. 

It's very simple, you just need to specify the number of the sender's wallet address and that's it. The money will be delivered instantly.

To do this, the Sender needs to open a Credit account and top up the account in any convenient way. Using a credit card or bank transfer. 

After depositing, change them to cryptocurrency. 

And send this cryptocurrency to the recipient. 

Stage 2. Get a cryptocurrency from international money transfer

The recipient receives the cryptocurrency in a matter of seconds.At the same time, it pays a minimum commission of 0.1 to 1%. Compare with trust banks that charge up to 10% commission.

For example, on Credits.com, you can send assets to another user for a flat for  fee. This makes the platform another viable alternative to using a wallet or a bank/MTO to send money abroad.

How to send money from blockchain to a bank account

To withdraw cryptocurrency to a bank account, you’ll first need to convert the asset to a fiat currency via the exchange platform you’re using. From there, you can cash out the funds to a bank account using your bank details.

Three ways you can send money abroad via cryptocurrency:

• Use a card that supports cryptocurrency payments: You can link these cards to your crypto wallet and use them in the same way as any other debit card. When you use the card, it draws from your crypto wallet, converting it into fiat currency at the card’s exchange rate. Some retailers allow you to pay by crypto via a QR code.

• Spend it directly: A growing number of online and physical merchants accept cryptocurrencies. Popular cryptos accepted include Bitcoin and Ethereum. This means you can shop online and spend using your crypto wallet via a card like the Kinesis Virtual Card, with instant conversion to fiat currency.

• Use a crypto ATM: In major cities in the United States and other countries, you can buy Bitcoin and other cryptos at physical ATMs. Some of these ATMs will also allow you to convert crypto and withdraw cash in the local currency.

Sending money abroad with Credits.com

Cryptocurrency provides an easy and cheaper way to send money to friends, family or business associates abroad. But what happens when market fluctuations impact the value of your crypto wallet?

One of the biggest arguments against using cryptocurrency is its inherent volatility. That's way for the best reason is to use stable tokens like Tether USDT or USDcoin USDC 

Credits wallet offers 40+ most popular cryptocurrencies in one simple free application.

So, how do you start transferring money internationally?

You can buy, sell and manage your digital currency portfolio on the Credits platform, as well as fiat currencies. Additionally you can get A Mastercard or open banking IBAN abbount.

Not only that, Credits has introduced a ‘send-to-email‘ feature. This enables users to send digital assets to those who don’t yet have a Credits account. You only need the recipient’s email address needed as information for the transaction.

Sending money via crypto using Credits.com platform

“When a Credits account holder is sending crypto to a potential Credits user, the recipient will be sent an email. It will contain instructions prompting them on how to receive their funds. 

“The recipient of the email will then need to sign up for a Credits account and verify their email address to accept their payment.”

Unique features of Credits for sending money abroad

As a streamlined payment option for all Credits users, you can use the ‘send-to-email’ feature on our desktop and mobile applications.

Open an account with Kinesis to start sending, spending, storing and trading digital currencies in one place.

How to get a free Credits crypto wallet for sending money and crypto abroad?

To open a free European IBAN account with Credits, follow these steps:

1. Access the App: Download the Credits app from Google Play, the App Store, or use the web version via your desktop browser.

2. Complete Identity Verification: Registering for Credits is simple and quick. You just need to provide your personal details and complete the identity verification process.

3. Deposit account using card or bank transfer. This enables you to send and receive money immediately.

4. Send money to the recipient via Credits.com simple interface. The transaction will be executed immediately.

5. Recipients receiving cryptocurrency can use crypto or he/she can convert crypto to the local currency using the same Credits.com wallet.