In recent years, cryptocurrencies have grown massively in use and popularity.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
International money transfer bureaus have hit many of us with large and unjustifiable bills when sending cash abroad. Cryptocurrency is the way to avoid these exorbitant fees.<\/p>\n\n\n\n
Before we look at how to use cryptocurrencies for international money transfers, it\u2019s worth understanding the fundamentals of cryptocurrencies<\/a>.\u00a0<\/p>\n\n\n\n Cryptocurrencies are digital assets that holders can exchange for goods and services, as an alternative to traditional flat currency like the US dollar or the British Pound. They are decentralised, which means they\u2019re not issued by a central authority like a bank or a government. <\/p>\n\n\n\n When you send crypto money to someone else, there’s no middleman between you and the person you’re paying. You always have full control over the assets you own in your digital wallet.<\/p>\n\n\n\n Bitcoin<\/a> was the first cryptocurrency and is the most widely known. <\/p>\n\n\n\n After Bitcoin launched, nearly 11,000 more followed in its wake.\u00a0 Other notable assets in the crypto space include Ethereum<\/a>, Ripple<\/a>, and Cardano<\/a>. You can send Bitcoin and any of these other currencies to other people and businesses around the world at little or no cost.<\/p>\n\n\n\n While fiat currencies, banks and other financial institutions hold a ledger of all transactions, cryptocurrency transactions are recorded a little differently.<\/p>\n\n\n\n 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. <\/p>\n\n\n\n Transactions on the blockchain are immutable and irreversible. Anyone with an internet connection can view the blockchain record.<\/p>\n\n\n\n The decentralised nature of the blockchain means that all digital assets are traceable. Every coin has an owner and they can prove the asset is theirs through digital proof of ownership. <\/p>\n\n\n\n This infrastructure and transparency make it virtually impossible to \u00ab\u00a0cheat the system.\u00a0\u00bb It’s also how cryptocurrency trading<\/a> and cryptocurrency exchanges operate without needing banks.\u00a0<\/p>\n\n\n\n When it comes to transferring money internationally, Bitcoin and other cryptocurrencies such as Ethereum, Cardano and Ripple offer some of the cheapest ways to send assets abroad. The first step to sending money overseas using a digital currency is to select the right one for you.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Most major software wallets like Metamask and TrustWallet can transfer digital assets. You can also send and receive assets such as Ethereum and Ripple using a wallet address on exchanges such as the Kinesis Exchange<\/a>.<\/p>\n\n\n\n You can also store digital assets on a hardware wallet<\/a>. 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.<\/p>\n\n\n\n To get started, you can either use an exchange wallet on Kinesis or another exchange or use a software wallet to send your first transfer.<\/p>\n\n\n\n To send money abroad the traditional way, you\u2019ll 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.<\/p>\n\n\n\n Both banks and MTOs usually charge a fee for international money transfers. They also make a profit on the exchange rate they use when converting one currency to another. <\/p>\n\n\n\n Unsurprisingly, this approach is expensive.<\/p>\n\n\n\n The World Bank reported that banks charge an average fee of 10.7%<\/a> of the amount sent. That\u2019s 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.<\/p>\n\n\n\n When transferring money from the host country to the recipient, you, as the sender, face the following:<\/p>\n\n\n\n <\/p>\n\n\n\n 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.\u00a0<\/p>\n\n\n\n Quite often, recipients in these countries are underbanked. Money sent back home is often a substitute for banking to the poorest segments of society.<\/p>\n\n\n\n With cryptocurrency, it’s different and that’s why many consider it to be the best way to send money abroad.<\/p>\n\n\n\n You can send Bitcoin or other digital currencies directly to a recipient\u2019s wallet. You do this via a peer-to-peer cryptocurrency exchange or using their wallet.<\/p>\n\n\n\n Once it reaches their wallet, the recipient can hold onto the cryptocurrency or cash it out to local currencies using an exchange.<\/p>\n\n\n\n Cryptocurrencies have become an attractive option for international money transfers. Users have cited a wide range of reasons for their preference including:<\/p>\n\n\n\n You should exercise due diligence and caution before sending any amount of money in cryptocurrencies.<\/p>\n\n\n\n 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. 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 Bitcoin 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.<\/p>\n\n\n\n Before sending or receiving cryptocurrency, check the on and off-ramp procedures<\/a> to ensure you can deposit and withdraw cryptocurrencies or fiat to and from an exchange or wallet.<\/p>\n\n\n\n Your recipient can withdraw Bitcoin 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.<\/p>\n\n\n\n Before sending or receiving cryptocurrency, check the on and off-ramp procedures<\/a>. Make sure that you can deposit and withdraw cryptocurrencies or fiat to and from an exchange or wallet.<\/p>\n\n\n\n Some exchanges and platforms will allow you to send cryptocurrency from your wallet to another person\u2019s wallet for free. Others will charge a minimal fee if using a blockchain to send the assets.<\/p>\n\n\n\n In most cases though, using cryptocurrency is one of the cheapest ways to send money abroad. You don\u2019t have to pay the fees and foreign exchange rates associated with MTOs and banks.<\/p>\n\n\n\n For example, sending Bitcoin to another wallet costs an average of $1.00 to $3.00<\/a> per transaction and Ethereum an average of $0.50<\/a> per transaction.<\/p>\n\n\n\n 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\u2019s a much cheaper alternative. <\/p>\n\n\n\n Exchanges can also be cheaper. <\/p>\n\n\n\n Most exchanges charge between 0.1-1.5% for sending assets to another wallet, which again works out much less than traditional options. <\/p>\n\n\n\n For example, on Kinesis, you can send assets to another user for a flat 0.22% fee. This makes the platform another viable alternative to using a wallet or a bank\/MTO to send money abroad.<\/p>\n\n\n\n To withdraw cryptocurrency to a bank account, you\u2019ll first need to convert the asset to a fiat currency via the exchange platform you\u2019re using. From there, you can cash out the funds to a bank account using your bank details.<\/p>\n\n\n\n Three ways you can do this are:<\/p>\n\n\n\n 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?<\/p>\n\n\n\n One of the biggest arguments against using cryptocurrency is its inherent volatility. <\/p>\n\n\n\n Kinesis presents an alternative digital currency backed by historically stable, physical assets. We protect the value of the currency by pegging it to fully owned and stored gold and silver bullion we have in our vault. <\/p>\n\n\n\n Kinesis digital currencies combine the security and flexibility of crypto with the rising value of precious metals. This approach minimises volatility and brings stability to your portfolio.<\/p>\n\n\n\n You can buy, sell and manage your digital currency portfolio on the Kinesis platform, as well as fiat currencies.<\/p>\n\n\n\n Not only that, Kinesis has introduced a \u2018send-to-email<\/a>\u2018 feature. This enables users to send digital assets to those who don’t yet have a Kinesis account. You only need the recipient\u2019s email address needed as information for the transaction.<\/p>\n\n\n\n Showing people how easy it is to transfer crypto is key to its widespread adoption. According to Content Producer, Latifa Alkhanjary<\/a>:<\/p>\n\n\n\n \u201cWhen a Kinesis account holder is sending crypto to a potential Kinesis user, the recipient will be sent an email. It will contain instructions prompting them on how to receive their funds. <\/em><\/p>\n<\/blockquote>\n\n\n\n \u201cThe recipient of the email will then need to sign up for a Kinesis account and verify their email address to accept their payment.\u201d<\/em><\/p>\n\n\n\n <\/p>\n<\/blockquote>\n\n\n\n As a streamlined payment option for all Kinesis users, you can use the \u2018send-to-email\u2019 feature on our desktop and mobile applications.<\/p>\n\n\n\n The functionality allows users to transfer digital assets quickly. This includes Kineses gold (KAU<\/a>) and Kinesis silver (KAG<\/a>), as well as Kinesis Velocity Token (KVT<\/a>). Send them to friends, family or business associates even if they haven’t set up a Kinesis account yet.<\/p>\n\n\n\nIntroducing Bitcoin<\/h3>\n\n\n\n
\u00a0How cryptocurrency offers the cheapest way to transfer money internationally<\/h2>\n\n\n\n
Digital wallets<\/h3>\n\n\n\n
Traditional versus cryptocurrency money transfers<\/h3>\n\n\n\n
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Is using cryptocurrency to send money abroad risky?<\/h3>\n\n\n\n
This is unlike cash. Cash is effectively anonymous and untraceable when using paper fiat currency.<\/p>\n\n\n\nCan you transfer money internationally free with cryptocurrencies?<\/h3>\n\n\n\n
How to send money from blockchain to a bank account<\/h2>\n\n\n\n
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<\/li>\n\n\n\nSending money abroad with Kinesis<\/h2>\n\n\n\n
So, how do you start transferring money internationally?<\/h3>\n\n\n\n
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