Cryptocurrencies have become a channel for sending cross-border payments, especially in countries in Africa and Latin America, where international banking channels may not be established. The quick and cheap transfers have also made it a lucrative payment method.
If you are choosing the crypto way to transfer money abroad, it is helpful to remember a few things. The exchange, asset, conversion rate, and network cost. With the right combination of all, you can make real-time and near-costless remittances anywhere in the world.
There are three ways to send money using crypto:
| Crypto Exchange | Moderately Technical | Moderate Fees | Medium Risk |
| Crypto Wallet | Technical | High Fees | High-Risk |
| Payment Provider | User-friendly | Optimized Fee | Low Risk |
Sending Money using a Payment Provider
With the increased use of cryptocurrencies for sending remittances abroad, a need for payment service providers has emerged. PSPs streamline multiple processes for easy interaction, automate the technical steps, and ensure cost efficiency.
Binamite is a reliable PSP that automates your payments with the right combination of network, conversion rates, and assets to give you an easy fund flow experience.
A bias, sure; but only because it indeed is the best!
| ✅ Fast blockchain speed | ✅ Zero-cost transfers | ✅ Track your money |
Steps to send money using Binamite:
A traditional and intuitive flow for sending money abroad is as follows:
- Go to https://www.binamite.com
- A transfer widget will be visible on the homepage.
- A pretty self-explanatory widget, we assume! Anyhow, select your source and destination currency, amounts, and payment methods and get started.
- Fill the forms out and proceed to pay. That’s it! All that’s left to do is see your transfer go through from our tracking screen.
| P.S. We would like to draw your attention to the special offering known as the “Binamite Bonus.” On certain occasions, fortunate users may be able to take advantage of these bonuses. However, if you prefer not to start with Binamite, please continue reading to explore alternative methods for sending money using cryptocurrencies. |
Send Money Using a cryptocurrency exchange
Exchanges offer a global presence and user-friendly interface to purchase and transfer cryptocurrencies. We recommend using an Exchange with a global presence and trust.
Steps to send money using crypto:
1. Choose a reputed exchange after review. Binance, Gemini, Kraken, Coinbase, Kucoin, and Crypto.com are some reliable exchanges to choose from if they operate in your country.
| Pro tip: Try choosing an exchange where the recipient has an account. This is because transfers within the same exchange are free and can save $2-30 in blockchain network fees, widely known as ‘Gas fees.’ |
2. Sign up on the exchange: This will require identity verification in most exchanges. If the sign-ups are not verified with identity, it is most likely a verification awaits when you purchase crypto.
The identity verification will involve uploading a national identity and completing a selfie verification. This typically takes seconds, and the user can use the exchange freely to purchase, trade, and send crypto.
3. Purchase a crypto asset: A crypto asset has to be purchased before the value can be transferred to the receiver. Two things are important to consider at this point, especially If you are sending crypto to a wallet address that is not on the same exchange.
| Which crypto asset to choose? Stablecoins are the go-to assets if the transfer is intended to be sold for local currency. Stablecoins are pegged to a stable value like the US Dollar or Euro. Hence the risk of its value decreasing during the transfer is low. They are also available across cheaper networks that will save you network fees. |
| For your information: A blockchain network is a rail on which assets are transferred. Using the rail requires a fee payment, which varies with blockchains. These fees are independent of the amount of crypto transferred. |
The second important thing to consider is the availability of the asset on a cheap blockchain network. For example, Ethereum is a costly network that may cost $5-$30 on average to send a transfer. Luckily, the use of much cheaper alternatives like Arbitrum, Tron, Binance Smart Chain, and Polygon has proliferated. Transfers on these networks may take as low as 10 cents to transfer any amounts.
A sound choice would be to go with a popular stablecoin, USDT or USDC, on one of the networks mentioned above. The network availability also varies with Exchanges, so keep your options in mind!
After you’ve selected the asset, find a typical ‘Buy Crypto’ option to purchase it. Most exchanges offer various local payment methods like ACH, SEPA Instant, Debit/Credit Cards, and E-Wallets. The availability depends on your country. If direct crypto purchase options are unavailable, the platforms offer P2P trading options to settle transactions in local currency outside the exchange.
Fees Alert: This is the costliest part of the transfer. Most payment channels will charge fees for the transaction. Cards, especially credit cards, are notoriously high in transaction fees costing upto 5% of the purchase amount. Be aware and choose the cheapest payment method available to save on cost.
4. Setup the transfer: Once you have purchased the crypto, it’s time to transfer it to the intended recipient. The recipient must carefully copy their wallet address and share it with you. This is a sensitive point, and a transfer to an incorrect address will be a permanent loss of funds.
Once the wallet address is obtained, go to your ‘Wallet’ section, where an option to withdraw assets is present. Navigate to the assets withdrawal page and enter the wallet address of the recipient. At this point, you will be shown a list of blockchain networks you can use for the transfer. In most cases, USDT or USDC transfers on either one of the aforementioned networks will be available.
Important: Ensure that the wallet address you received was for the network you will choose to send on. Wallet addresses may vary with networks.
5. Ready to go: The next step is to cross-check every detail and proceed with the transfer. Exchanges have implemented security measures like 2FA to keep your funds safe, and a Google Authenticator setup may be required to proceed on some. After this, your transfer is initiated by the exchange and should be completed within a few minutes.
6. If all goes well, the recipient will receive their crypto remittance, which can be sold for local currency in exchange for completing the transaction.
Take note of the legal implications and payout costs that may arise for the recipient selling crypto.
| Good to know: Blockchain network transfers can now complete in milliseconds. However, exchanges may take a few minutes to perform automated checks before initiating the transfer. |
In conclusion, sending money through cryptocurrencies has become a popular way of making cross-border payments, especially in countries where traditional banking channels may not be established. While there are several ways to send money using cryptocurrencies, such as using a cryptocurrency exchange, crypto wallet, or payment service provider, each method has its benefits and risks.
However, using a payment service provider, such as Binamite, can provide a user-friendly experience with zero-cost transfers, fast blockchain speed, and tracking capabilities. Whichever method you choose, remember to consider the exchange, asset, conversion rate, and network costs to ensure real-time and near-costless remittances anywhere in the world.
