Most people depend on banks and online money transfer services for international money transfers, which might be regarded as the safest method to do so. However, if you’ve ever sent money internationally using one of these companies, you know that it’s not always a smooth trip.
To combat the upheaval brought on by blockchain and cryptocurrencies, especially there are cryptocurrencies with extremely cheap fees, banks would claim that there is no safest method to do it. According to Find.Exchange News, 10% of Santander’s 2016 revenues were derived from money transfer fees. What should we thus expect banks to say?
I. Let’s take a look at the steps to a traditional money transfer service
First, you enter a money transfer destination and advise the staff that you want to send money, along with the recipient’s name, city, and country.
They will collect your information and do everything else necessary to guarantee that your funds reach their intended destination.
Some organizations may provide same-day-transfers for an additional price, but often it may take days, and rates may vary based on the amount you are sending and how quickly you need the money to arrive.
Additionally, you may transfer money online, which often involves the same processes. It’s straightforward, however costs might be costly and delivery time is sluggish.
And if you use a bank wire, you will be required to submit a great deal more information, such as your account number, routing number, SWIFT code, etc., and pay far greater costs than with money transfer services. Transfers might take three to five days or more to reach their destination.
I once utilized a bank wire and will never again. People have sent me money before, and it has never been an easy voyage. It is a bother.
Thus, I began utilizing money transfer services more than two decades ago. I have lived in several countries throughout the years, and money transfer has played a significant role in my life. Today, I am used to the terminology, operation, opening and closing hours, and prices. Until cryptocurrencies appeared in my life around a year ago, I never questioned whether or not I should trust all these various firms to move my money or if there are better methods to do so.
At that moment, I understood that what I consider to be simplicity is really more handy than simple, just because that is all I knew and fulfilled the purpose at the time. However, evolution is unavoidable, and now we have something new and improved that has never been seen before. So first it may not feel better or simpler.
My argument is that we must realize there is a LEARNING PERIOD for everything new that contradicts what we already know and teaches us something to which we have no comparison. When it comes to technology, we must learn to anticipate the unexpected in the modern day.
The blockchain and cryptocurrency technology is an altogether different notion from conventional financial systems, similar to when the internet was initially introduced; it was new, contemporary, and quick, but not everyone found it cool or simple.
I believe you get my position.
II. Let’s look at how to transfer cryptocurrency, assuming you don’t have any or need to buy some
The whole of the procedure may be completed online. Let’s assume you want to transfer WCO crypto using your credit card or debit card. First, you’ll need to send your local currency to a cryptocurrency exchange so you can purchase WCO, and then you can send it on to the wallet of the person you’re sending it to.
The receiver will have it in their wallets in a few short seconds once they have been notified. He or she will then bring the WCO into an exchange, convert it to fiat currency (if that is what they would choose to do) — and withdraw the money directly to their bank account. And it is done.
If you already own bitcoin, you may avoid the procedure of converting it, which will make the transaction even more expedient. Money transfer via cryptos is a procedure like no other:
➤ No Go-Betweens
➤ Lightning-Fast Transfers
➤ Highest Levels of Security
➤ At Any Time
➤ From Anywhere in the World
➤ To Whomever You Want
➤ Unlimited Amounts of Money Transferred
Converting $10,000 USD to a cryptocurrency allows you to send that same amount of money to anyone, anywhere, in a matter of seconds or minutes on the blockchain. This is in contrast to the traditional methods of sending money, such as wire transfers and money transfer services, which can be cumbersome.
III. The main advantages with cryptocurrency transfers are the fees and the speed
Even while the procedure seems to include a few more steps than standard money transfers, until bitcoin becomes ubiquitous, this technique will only benefit those that place a premium on expediency and expenditures.
Eventually, conversions will no longer be necessary, and technology will adapt to our use. Another perk is that you get to do everything on your own, which some people perceive to be an advantage and others to be a disadvantage.
Charges on deposits, withdrawals, and transfers are how traditional money transfer firms generate revenue.
Additionally, they profit from the exchange rate while changing your currency. For instance, BRL/USD. If $1 USD equals $3.75 BRL today, the broker’s rate may be 4,000 BRL per dollar in order to generate more revenue.
With cryptocurrencies, you must be cautious of the exchange rates; when you transfer money to a foreign recipient, you convert your funds twice.
First, when you purchase cryptocurrencies using your local fiat currency in order to transmit it, and second, when the recipient converts the cryptocurrency into his or her local fiat money.
If you do not want to lose money, you must be mindful of this procedure in order to make the best possible trades on the exchange platforms. Be mindful that the market remains volatile, which you might use to your advantage.
1. Cost advantage
The majority of digital currency wallets and exchanges do not need deposits. Withdrawals and transfers using apps such as the Okane Pay App cost less than one percent of the amount being transacted. There are also fees to transact on the blockchain, which might cost a few dollars depending on how long you remain on the network and do business (Same for the person receiving it). Compared to conventional ways, it is certainly more affordable.
Western Union, one of the most prominent money transfer services in the world, charges $12.99 to send $100 through credit/debit card for same-day delivery.
All other methods of sending will take between 2 and 6 days and cost somewhere between.99 cents and 110.00 USD. (Sends a maximum of $5,000 USD.)
If I wanted to transfer $100 USD to my daughter in the United States from Brazil, it would cost me.
It would cost 99 cents (USD) and take six days to get there. If I wanted to send her 10,000 dollars for her sixteenth birthday, I would have to send 5,000 in one month and another 5,000 in the next, and each transaction would cost 110 dollars if I wanted it to arrive within two days.
Would you use this sort of service? It all depends on your priorities. What do you need money transfers to accomplish? Do you need it quickly? Do you have to be frugal? Do you need it to be secure? All of the preceding?
According to coinrepublic.com, PayPal costs up to 8% to process transactions, and customers have 60 days to request a chargeback. In other words, if the person who paid you decides they want their money back (and they could claim anything), PayPal will take it back from you, even if they have to withdraw it from your bank account on file. Wow. I too use PayPal to accept funds, and although I have never had any problems with fraud, the fees are quite high.
Because cryptocurrency transactions cannot be reversed, the recipient is shielded from any kind of fraud that may occur.
The costs associated with wire transfers might range anywhere from 25 to 45 dollars or more.
Imagine how much quicker, cheaper, and more convenient this process will become once cryptocurrency becomes mainstream.
The only real disadvantage that I see with cryptocurrency transfers is that cryptocurrencies are not as popular as fiat currency yet, which makes the process more difficult due to conversions. However, imagine how much more popular cryptocurrency will become in the future.
The combination of cryptocurrencies and blockchain technology is causing widespread disruption in the money transfer industry, particularly with regard to international transactions. It is just a matter of time until it achieves the maximum level of popularity and efficiency that it is capable of.
2. Advantages of money transfer speed
One significant benefit of transferring money via cryptocurrencies is that users are independent of any central authority. This is a significant advantage, and it is essential that the general people recognize its strength in order to make it unstoppable.
The process of transferring money from one nation to another may be time consuming and costly.
Traditional methods of transferring money can be costly and time-consuming due to the involvement of multiple middlemen, intermediaries, and the fees associated with each of these parties.
As a result, the use of cryptocurrencies as a means of making financial transactions is becoming an increasingly popular alternative.
When you get rid of as many middlemen as possible and combine it with lightning-fast processing, you significantly save expenses.
Transferring funds using a cryptocurrency that is stored on a blockchain enables more financial independence, lower transaction fees, increased privacy, less limits, fewer opportunities for fraud, increased safety, and rapid settlement for any and all transactions. Even though it poses a danger to certain existing institutions, if it attains the position that is rightfully theirs, it will be able to represent much more. Evolution is imminent.
IV. Tips to keep in mind for safe crypto transfers
1. Keeping cryptocurrency in a digital wallet
● Immediately put your currency in a wallet when you have received it.
● To store Crypto for an extended period of time, you need to purchase hardware or paper wallets.
● Assessing the safety of online wallets is something you should do carefully.
● Keep just a limited quantity of money in wallets that are less secure.
● If you want to offer someone else access, you may use a wallet that requires multiple signatures.
2. Protecting the information of Your Wallet
● Make sure your password is difficult to guess and switch it up often.
● Create a new email account just for dealing with cryptocurrencies.
● Enable the use of two-factor authentication on all cryptocurrency accounts.
● Download all available security updates as soon as possible.
● Encrypt every device on which you store cryptocurrency or access cryptocurrencies.
● Be sure to protect the seed phrase or mnemonic passphrase you use.
3. Protecting the Information of Your Wallet
● Make numerous copies of your data, using a variety of formats.
● Always keep a copy of your data in more than one place.
● At a minimum, you should let one person know where your backups are kept.
● After each and every transaction, you should update your backup.
I am prepared to send and receive money in a secure and expedient manner, are you?
Leave a comment below and tell us what you think about this. Please share your thoughts on the benefits and drawbacks of this option. What are your thoughts on technological advancements? Would you be willing to give it a shot? Why? Which kind of money transfer service do you use when sending money to a foreign country?
Tell me about your experiences.