Moving money around the world has never been easier or more complicated. Traditional methods like wire transfers are slow and expensive, while newer options like PayPal and Venmo are convenient but come with their own fees. So what’s a digital nomad to do? Look no further than cryptocurrency if you’re looking for a fast, cheap, and convenient way to send money abroad.
Cryptocurrencies offer various options for sending money abroad
Why send money abroad using crypto? Easy: quick and secure payments, low transaction costs, and even the ability to transact in multiple currencies at once. Cryptocurrency transactions are also irreversible, which can help protect against fraud and identity theft. Additionally, many cryptocurrencies offer enhanced privacy features that make it difficult for third parties to track your financial activity.
While sending money abroad with cryptocurrency may be more convenient and secure than traditional methods, there are still risks to consider. Cryptocurrencies can be subject to wild price fluctuations, so it’s important to monitor exchange rates and take steps to protect yourself from losses due to sudden changes in the market. Additionally, some countries may have regulations that affect how you can use cryptocurrency for international payments. Be sure to research the laws and regulations that apply to international cryptocurrency transfers in your jurisdiction before sending money abroad. In the meantime, let’s unpack a few undisputed benefits of crypto as a champion of cross-border payments.
Cryptocurrencies are borderless
That means you can send money to anyone in the world without having to worry about exchange rates or fees. All you need is an internet connection, a wallet, and the public address of the person or business you’re sending money. This makes cryptocurrency one of the most efficient ways to send money abroad.
Low transaction costs
Cryptocurrencies are decentralized, so they don’t require banks or other financial institutions to process payments. This significantly reduces the transaction costs associated with international payments, making it much cheaper to send money abroad when compared to traditional methods.
Instant transfers
Cryptocurrency transactions are incredibly fast — most are completed within minutes or even seconds. This means that funds can arrive in their destination almost immediately after they’re sent, eliminating the long wait times associated with traditional methods.
Enhanced privacy
Cryptocurrencies offer enhanced privacy features that make it difficult for third parties to track your financial activity. This can be incredibly useful when sending money abroad, as it means you don’t have to worry about the transaction being scrutinized or blocked due to regulatory issues. Additionally, many cryptocurrencies offer the option to send funds anonymously, which can be particularly useful for those sending money to family members in areas with oppressive governments.
Which cryptocurrencies should you use for cross-border payments?
XRP (Ripple)
XRP is a digital asset that’s been designed specifically for international payments. It’s fast, efficient, and scalable, which makes it a great option for sending money abroad. Unlike some other cryptocurrencies, XRP doesn’t require mining, so it’s more energy-efficient as well. And because it’s backed by a company (Ripple), it’s much less volatile than other digital assets.
How to Use XRP to Send Money Abroad
If you’re interested in using XRP to send money abroad, there are a few things you need to do first. First, you’ll need to create an account on an exchange that supports XRP (we recommend Kraken). Once you’ve done that, you’ll need to deposit some funds into your account. You can do this by transferring fiat currency (e.g. USD) from your bank account or by purchasing Bitcoin or another cryptocurrency and then exchanging it for XRP.
Once you have some XRP in your account, you’ll be able to send it to anyone in the world with just a few clicks. And because XRP is designed specifically for international payments, the transaction will settle almost immediately – in just 4 seconds. Plus, there are no foreign exchange fees when using XRP, so you’ll be able to save quite a bit of money compared to traditional methods like wire transfers.
Stablecoins
Stablecoins are cryptocurrencies that are pegged to a real-world asset, such as the US dollar. This means that their value is relatively stable, unlike other cryptocurrencies that can fluctuate wildly in value. USDT and USDC are two of the most popular stablecoins on the market today.
How to Send Money Abroad Using USDT or USDC
Find an exchange that supports USDT or USDC, or use a digital wallet like TRASTRA. Of course, with everything that’s been going on with DEXes lately, we firmly recommend the second option. Mainly because it’s elementary: create an account on TRASTRA and verify your identity. This involves uploading a photo ID and proof of address.
Deposit USDT or USDC into your account. This can be done via bank transfer or credit/debit card. Or, if you’re expecting a payment, simply share your TRASTRA address with your counterpart.
Enter the amount of USDT or USDC you want to send and the recipient’s wallet address. Make sure you double-check the wallet address before sending. Wait for the transaction to confirm on the blockchain, which can take up to an hour. Once it does, your recipient will have their funds. See? Easy!
Other cryptocurrencies
Obviously, there are other options given that there are at least twenty thousand different coins in the Cryptoverse. So answering the question which one should you use for your next cross-border payment is as timely as ever.
Bitcoin (BTC)
Bitcoin is the original cryptocurrency, and it’s still the king of the hill when it comes to cross-border payments. Thanks to its widespread adoption and strong network effect, Bitcoin is accepted by more merchants and businesses than any other digital currency. And with transaction fees that are typically lower than those of traditional bank transfers, it’s no wonder that Bitcoin is so popular for international money transfers.
Litecoin (LTC)
Litecoin is often referred to as “the silver to Bitcoin’s gold.” Like Bitcoin, Litecoin is a decentralized peer-to-peer cryptocurrency that can be used for cross-border payments. However, Litecoin has a few advantages over Bitcoin when it comes to international money transfers. For one, Litecoin has much faster transaction times than Bitcoin, making it popular among merchants and businesses who need to accept payments quickly. Additionally, Litecoin typically has lower transaction fees than Bitcoin, making it a more economical choice for cross-border payments.
Stellar (XLM)
Stellar is another blockchain network that specializes in fast and cheap international money transfers. Like Ripple, Stellar is able to process thousands of transactions per second thanks to its efficient design. However, unlike Ripple, Stellar is decentralized—meaning that any one central authority doesn’t control it. This makes Stellar a popular choice among those who value decentralization and privacy. Additionally, Stellar’s transaction fees are some of the lowest in the industry—making it a very economical option for cross-border payments.
Ethereum (ETH)
While Ethereum isn’t primarily designed for international money transfers, it can still be used for this purpose thanks to its low transaction fees and fast transaction times. Ethereum also has the advantage of being widely adopted—meaning that there are many places where you can spend your ETH coins. However, one downside of Ethereum is that it isn’t as private as some of the other options on this list—so if privacy is a top concern for you then Ethereum might not be the best choice.
Conclusion
Despite some obvious setbacks in recent months, crypto is still the future of international payments and is quickly becoming the go-to choice for people worldwide. transactions are fast and easy and can be completed in a matter of minutes. It’s secure, meaning you don’t have to worry about stolen or lost money. No restrictions exist on who can use crypto, making it perfect for sending money abroad. Fees for using crypto are much lower than traditional methods like wire transfers. Finally, you have complete control over your transactions, meaning you can track them every step of the way.
The bottom line is if you’re looking for a fast and secure way to transfer money internationally, crypto is the way to go. It offers all of the benefits of traditional methods without any drawbacks.
