Bitcoin is more than just crypto and its potential is evident in making cross-border transactions. It allows you to make cheaper, faster, and more convenient money transfers to India and beyond. Ready to know how?
There are lots of things to consider when sending money abroad. Apart from the financial institution or money transfer service provider, you also have to take note of the fees you have to pay and the time it takes for the money to be sent. This is where the unique power of cryptocurrencies like Bitcoin (BTC) comes into play.
You might know Bitcoin as the reigning digital currency in the market today or perhaps as the most popular internet money. But here’s the thing: Bitcoin is more than just crypto and its potential is evident in making cross-border transactions. It allows you to make cheaper, faster, and more convenient money transfers to India and beyond. Ready to know how? Let’s dive into it.
A quick look at Bitcoin
Bitcoin is a digital currency that runs solely with technology. It has no physical representation like paper bills or coins and it uses a storage called crypto or Bitcoin wallet. Bitcoin is also known as decentralized money, which means it isn’t run or supervised by any higher authorities like banks, other financial institutions, and even governments.
The decentralized nature of Bitcoin is also what makes it borderless and highly capable of facilitating monetary transactions, like remittances, in ways that are different from traditional means. But how do BTC transactions differ?
Making remittances to India with BTC
Let’s admit it, transferring money to your friends and loved ones in India isn’t always cheap, convenient, and accessible. If you’re using cash, you need to go to a remittance center to process the transaction. Before you even proceed, you have to consider the exchange rates and service fees that come with the transaction and the kind of service you’ll possibly get in case you have questions or concerns.
Apart from the costs, rates, and the effort you exert, you might also want to consider the speed of the transaction especially when your friends or loved ones will use the money to pay for school fees and medical emergencies, among other things.
According to the data from Trading Economics, money transfers in India have increased
from 140,353,123 USD to 143,547,564 USD in the second quarter of 2021 vs. the previous quarter.
This shows a significant growth in remittance rates in India.
If you’re sending money from abroad to support your friends and loved ones in India, you might want to consider using Bitcoin. Here are some of the benefits you can enjoy when you use BTC for overseas money transfers:
Convenient processing - Since Bitcoin operates solely digitally, you no longer have to make trips to your nearest remittance centers. All it takes is a few taps on your internet-connected smartphone or computer and you’re done!
Available 24/7 - Bitcoin transactions also know no holidays, weekends, or even lunch breaks. You can send money to your friends and family whenever you want and whenever they need it.
Speedy transactions - Not all money transfers made through remittance centers are done in an instant. Sometimes, it takes hours, days, or even weeks before your recipient successfully receives the money. With Bitcoin, you can send remittances in just a few minutes, if not in an instant.
Cheaper costs - Most of the time, remittance charges vary depending on your transaction’s amount, location, purpose, and payment method—and frankly, these charges aren’t cheap. However, when you make remittances with BTC, the costs are significantly more affordable, depending on the payment method and platform you choose.
Supports multiple payment options - Sending money using Bitcoin allows you to process your transactions in hundreds of ways. Some peer-to-peer exchanges like Paxful let you transfer money using any of the nearly 400 payment options it supports. This includes payment groups like banks, gift cards, debit or credit cards, online wallets, and a lot more.
How to send money to India using Bitcoin
Now that we know what benefits you can get from using BTC for overseas money transfers, let’s discuss how you can get started with it through Paxful.
Step 1. Create and verify your account
First, you need to have a Paxful account and verify it to unlock more exclusive platform perks.
Step 2. Buy Bitcoin using your preferred payment method
You have over 350 payment options to choose from on Paxful, including those popular in India and the country you’re in. Click Buy on your Paxful homepage, select Bitcoin as your crypto, choose your preferred payment method, enter your desired amount, and click Find Offers. From there, select the offer that best matches your needs and complete the trade.
Step 3. Ask for your recipient’s Paxful Wallet details
To send Bitcoin to your recipient, you’ll need to know their Paxful Wallet address, which is a long string of random numbers and letters (both uppercase and lowercase). Alternatively, they can also send their wallet address’ QR code to you.
Step 4. Send BTC to your recipient
Once you have your recipient’s Paxful wallet address details, head over to your Paxful wallet and enter their wallet address or scan their QR code. It’s important to note that Bitcoin transactions are irreversible, so make sure you have the correct details before you proceed.
Note that steps 1 to 4 apply to you (sender). Let’s now move on to how your recipient can cash out the money you sent to their Paxful wallet.
Step 5. Recipient to cash out BTC
To cash out the money you transferred, your recipient must simply reverse the process by selling Bitcoin on Paxful. Your recipient can get paid via Bhim, PayTM, and other payment methods supported by the platform.
And you’re done! That’s how easy it is to make cheaper and convenient money transfers to India and other countries even without a bank account.
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Last Updated Oct 21, 2021, 7:48 PM IST