International money transfers via cryptocurrency. How can we help you?
Over the past few years, the global financial sector has undergone dramatic changes. First of all, this happened due to technological progress, as a result of which a huge number of practical and effective digital technologies appeared, most processes shifted to an online format. Secondly, due to the introduction of a fundamentally new financial system of cryptocurrencies.
Digital coins are not just an alternative means of payment. Many investors and traders immediately rationally assessed the prospects and took such an asset into circulation. Due to commercial regulation of value, it is possible to make a profit from the sale and purchase of cryptocurrency. In addition, it is possible to carry out completely anonymous money transfers via cryptocurrency anywhere in the world. Technically the process is not complicated. You just need to have all the necessary tools to make the payment.
Basics of Cryptocurrency Transfers
The main difference between digital coins is that it is a completely decentralized system. That is, digital money is not the currency of a specific country. They are used as a universal means of payment in any country in the world.
What are transfers via cryptocurrency?
The basic principles on which any money transfer through cryptocurrency is carried out:
anonymity of each user;
unconditional confidentiality of users’ personal data (unlike the fiat system, if necessary, you can only find out the data on the accounts involved in the transaction, but personal data is not disclosed);
non-refundability of payments - it is impossible to return or cancel transfers via cryptocurrency, so you need to enter account details very carefully;
minimum commission - as a standard, the commission goes as payment for the services of the miner who validates the transaction, however, the amount of associated payments may increase slightly, depending on the conditions of the selected service for the transaction.
Particular attention should be paid to the aspect of non-refundability of payments. It is impossible to cancel transfers through cryptocurrency even in the event of fraudulent actions by one of the participants in the transaction. Therefore, you need to carefully select an opponent and the service through which the transaction is carried out, first checking all available information
Advantages and disadvantages of cryptocurrency transfers
Before you figure out how to transfer money through cryptocurrency, it’s a good idea to understand what advantages this particular method provides. The main advantages are:
transparency and fairness of conditions;
the ability to verify data on any transaction made since the founding of the cryptocurrency system, since all information is stored in full and is available to any user through open source code;
minimum commissions;
high speed of transaction processing - a transfer via cryptocurrency from one country to another is much faster than if you send it through the payment systems available today, such as Revolut, Perekaz24, Western Union, MoneyGram, Fin.do, TransferGo, PayPal.
Many users are also attracted by the fact that there is no state financial monitoring. Accordingly, cryptocurrency transfers can be carried out for large amounts equivalent to fiat without the risk of increased control and attention from government officials.
The process of international transfer through cryptocurrency
When wondering how to transfer money through crypto, first you need to select all the tools necessary for this:
crypto wallet;
online currency exchanger.
In the case when the transfer is carried out in the same cryptocurrency from the account of one user to the account of another, an exchanger will not be required. The main thing in this case is that there is consistency between crypto wallets by currency type.
Creating and using a cryptocurrency wallet
A transfer via cryptocurrency occurs in a similar way to how a bank account works: the user needs to indicate the amount and details. The difference is that in order to make a cryptocurrency transfer, you will need a special account. It is created through a wallet, which come in different types:
A cold cryptocurrency wallet is a hardware device that stores user login and key data. To connect such a wallet, you must log in via Bluetuth or a USB connection to special software on a personal computer or laptop. This option is suitable if you are interested in the question of how to transfer money through cryptocurrency in large amounts.
Hot – these are websites, mobile applications or special software. Such a wallet provides the ability to carry out transactions as quickly as possible. But due to the not particularly high degree of security, it is better to use hot wallets for small and frequent transactions. With this approach, this is an ideal option for transferring cryptocurrency to a user who is located in another country.
To make a smooth transfer via cryptocurrency at any convenient time, you need to register on the chosen cryptocurrency wallet platform. When choosing such a service, it is important to pay attention to which types of digital coins are supported from the several hundred options available today.
Steps to make a transfer
First, the account is registered and verified, as a result of which the user gains access to his personal account in the system. The wallet address is the same details that are used to withdraw money or send money. The traditional several stages of creating an account in the cryptocurrency wallet system include setting up verification. It is best to immediately enable two-factor authentication, which will ensure the proper level of reliability. This must be done from the point of view that the owner of digital coins is the one who has access codes to the account (user’s private key). It is used only for login. It is not indicated if you need to withdraw money from an exchange or other service.
Further algorithm of actions on how to transfer cryptocurrency:
select a currency pair;
provide the details so that your money is debited, and then the money goes to the other user’s account;
confirm your desire to transfer cryptocurrency using the selected verification methods.
These are the few steps you have to go through every time you make a transfer via cryptocurrency.
Comparison of fees and transaction times
According to the terms of banking payment systems, the commission is a fixed amount, although it can be calculated using a complex formula. In the digital coin system, withdrawing funds and conducting transactions to pay for various services and goods, directly from user to user, regardless of which payment method is chosen, is carried out according to a slightly different principle:
each transaction declared by the user is necessarily verified by miners who confirm its authenticity;
a high level of security for a transaction is achieved if the payment validation is confirmed 6 times, although this value can vary from 3 to several hundred confirmations;
miners receive a reward for their services - this is the commission that must be paid.
All transactions are carried out according to this principle, regardless of the type of digital coins.
How to minimize commissions?
Given this algorithm of actions, it is logical that the speed of transaction processing directly depends on the system load. As soon as the market experiences increased surges in user activity, which is especially evident when the fear and greed index increases, miners do not have time to quickly validate all declared transactions. But there is a simple way to transfer money through crypto quickly, even under heavy network congestion. When we enter data when filling out an application, it is enough to increase the size of the standard commission. Miners prioritize those transactions for which they will receive a larger reward. Thus, the commission in the digital coin system is not a static but a dynamic aspect. By correctly understanding this feature, you can better navigate favorable conditions:
when it is more profitable to make a transaction, so that there are no large associated costs, minimize commissions;
when is it better to speed up by increasing the amount of remuneration in order to eliminate financial drawdown.
A better understanding of the cryptocurrency market comes with experience, which, however, is gained quickly.
Conclusion
International money transfers through crypto are a convenient payment format that provides users of digital coins from different countries with a fast, simple process with minimal fees. Therefore, this method is in increasing demand as an alternative to fiat transfers through various payment systems.
