HOW TO USE CRYPTOCURRENCY TO SEND MONEY ABROAD FOR FREE
By Olushola
Key points:
- Traditional versus cryptocurrency money transfers
- How to buy crypto with fiat
- How to convert crypto for fiat.
- Final thoughts
TRADITIONAL VERSES CRYPTOCURRENCY MONEY TRANSFERS
To send money abroad the traditional way, you’ll need to go through a Money Transfer Operator (MTO) like Western Union or arrange a direct transfer from your checking account.
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.
Not surprisingly, this approach is expensive. In Q3 2022, the global average cost to send money overseas was 6.30%. That’s more than $12 in transfer fees for a payment of just $200!
When sending money from the host country to the recipient, the sender can face a transaction fee, a loss of value due to the exchange rate, and a fee relative to the speed of the transfer – taking anywhere from under an hour to more than six days.
The majority of people remitting payments to their countries of origin are likely helping families or individuals in developing countries who are considered to be underbanked. What’s more, remittance payments function as an alternative financial solution for, often, the poorest segments of society.
With international cryptocurrency transfers, you can send Bitcoin or other digital currencies directly to a recipient’s wallet via a peer-to-peer cryptocurrency exchange or using their wallet. Once it reaches their wallet, the recipient can hold the cryptocurrency or cash it out to local currencies using an exchange.
Cryptocurrencies have become an attractive option for international money transfers for a number of reasons, including
1. Speed:
Unlike banks, cryptocurrency services generally operate 24/7, and in many cases, transactions happen instantly.
2. Freedom:
Because cryptocurrencies aren’t tied to banks or government institutions, you can send as much money as you want, whenever you want.
3. Flexibility:
There are hundreds of ways to transfer cryptocurrencies with different payment options and platforms suited to different destination countries.
Transparency: With a crypto transfer, you can see exactly where your funds are at all times using the blockchain.
HOW TO BUY CRYPTO WITH FIAT
If you want to send money abroad using crypto, you must first buy some crypto. The process of buying crypto with fiat (i.e. government-issued currency) on a P2P exchange will vary depending on the exchange you use. In this example we’ll be using Binance Exchange.
Here is a beginner’s guide on how to buy USDT with GBP using Binance P2P.
1.Create a Binance Account
The first step is to create an account on Binance if you haven’t done so already. You can do this by visiting the Binance website and clicking on the “Register” button. Follow the prompts to create your account.
2. Navigate to the Binance P2P
From the main dashboard, choose “Buy Crypto” from the top of the screen. Then select “P2P Trading”.
3. Set-up Payment Method:
To buy crypto with fiat on Binance P2P, you need to have a payment method set up. This can be done by choosing “More” under the P2P page.
4. Link Bank or Payment Provider:
When you choose to “Add Payment Method,” you’ll then be prompted to link your bank account or by using a payment provider such as PayPal, Skrill, or Neteller.
5. Select the Cryptocurrency to Buy:
Once you have set up your payment method, you can select the cryptocurrency you want to buy. Binance P2P supports a wide range of cryptocurrencies, including Bitcoin and Ethereum.
6. Find a Seller:
The next step is to find a seller who is willing to sell the cryptocurrency for your chosen fiat. You can do this by browsing the available listings on Binance P2P.
7. Initiate the Trade:
When you have found a seller, you can initiate the trade by clicking on the green “Buy” button. You will be taken to a page where you can enter the amount of fiat you want to spend and confirm the trade.
8. Complete the Payment:
You then need to make the payment to the seller and notify them. You can do this by following the payment instructions provided.
9. Receive the Cryptocurrency:
Once the seller has received the payment, they will release the cryptocurrency to your Binance funding wallet. You can then send the cryptocurrency to another Binance wallet, on the exchange or to another wallet.
HOW TO TRANSFER CRYPTO TO SOMEONE ELSE
Once you have purchased the cryptocurrency of your choice, you can transfer it to someone else using their wallet address.
To transfer crypto to another person on Binance, you will need to follow the below steps:
Step 1: Log into Binance
The first step is to log in to your Binance account. You can do this by visiting the Binance website and entering your email and password.
Step 2: Navigate to “Wallet”
Once you are logged in, navigate to the “Wallet” section on the top menu and click on “Fiat & Spot”. Here, you will see all your cryptocurrencies available in your Binance wallet.
Step 3: Select Cryptocurrency to Send
Select the cryptocurrency you want to send from your Binance wallet. Click on the “Withdraw” button for that cryptocurrency.
Step 4: Send to Binance User
On the withdrawal page, from “Send to”, choose “Binance User”. From here, you can send enter the user’s email address, phone number, PayID or Binance ID fee-free.
Step 5: Enter the Amount to Send
Enter the amount of cryptocurrency you want to send to the recipient. Double-check that the receiver has enabled Pay — Settings — Receive Funds via Email or Phone Number.
Step 6: Review & Confirm Transaction
Review the transaction details and make sure everything is correct. Once you’re sure, click on the “Submit” button to confirm the transaction. The cryptocurrency will be transferred to the recipient’s wallet after transaction processing.
And that’s it! With these simple steps, you can transfer cryptocurrency to another Binance user for free.
HOW TO CONVERT CRYPTO FOR FIAT.
If you want to convert your cryptocurrency back into fiat currency, you must sell it on a crypto exchange. The process of selling crypto for fiat will vary depending on the exchange you use or the method. Again, this can be done using Binance P2P.
HOW TO SELL USDT FOR INR ON THE BINANCE P2P.
Step 1: Log into Binance
The first step is to log in to your Binance account. You can do this by visiting the Binance website and entering your email and password.
Step 2: Navigate to “P2P Trading”
Once you are logged in, navigate to the “P2P Trading” section on the top menu and click on “Trade”. Here, you will see the various trading pairs available on Binance P2P.
Step 3: Select the INR currency and choose the payment method
Select the INR currency from the list of available currencies and choose a payment method that is convenient for you. There are many payment options available on Binance P2P, such as UPI, bank transfer, and more.
Step 4: Search USDT Offers
In the search bar, type “USDT”, and you will see all the offers available for selling USDT. Choose an offer that suits your requirements.
CLOSING THOUGHTS
If you are Buying Bitcoin for the first time or looking for a method to cash out your cryptocurrencies in an easy, fast and secure way without paying commissions? Binance P2P is the best option you can find in Nigeria.
Binance P2P is the best and reliable means of buying crypto currency such as Bitcoin with over 70+ Supported Local currencies and over 300+ Payment Methods.
One of the great advantages of Binance P2P is that you can trade wherever and whenever you need, because it is available on Binance app. To get started on Binance P2P click on the link below
