Cryptocurrencies have revolutionised the way people receive and send crypto and Bitcoin across borders, especially in developing countries. From having to deal with lengthy processes, long wait times, and high fees involved in traditional remittance methods, cryptocurrency remittances made the process much quicker, affordable, and convenient.
In this article, we’ll discuss what is crypto remittance, including how it works, its benefits, and how you can easily facilitate them using Ka.app, one of the most reliable apps like Cash App in the market.
What Is Cryptocurrency Remittance?
Crypto remittance refers to the process of sending or receiving cryptocurrencies to or from a different country. Instead of relying on traditional financial institutions like banks or physical remittance centers, crypto remittances use blockchain technology to execute secure and quick transactions.
How Does Cryptocurrency Remittance Work?
The process of a cryptocurrency remittance begins with the sender converting their local currency into a specific cryptocurrency using an exchange or crypto payment platform.
Let’s say a user named Joe wants to send Bitcoin to a friend overseas. After buying Bitcoin through an exchange, Joe should initiate a transaction by entering the recipient's crypto wallet address. The transaction would be broadcasted to the blockchain network, which consists of a decentralised network of computers known as nodes. These nodes would verify the transaction and add it to a block, creating a permanent record. This transparent and immutable nature of the blockchain ensures the security and integrity of the transaction.
Once the transaction is confirmed, Joe’s friend will receive the Bitcoins sent to their wallet. The time it takes to receive the funds sent may vary from instant to a few hours, depending on the platform you will use.
What Are the Benefits of Crypto Remittances?
Crypto remittances offer several benefits that make them an attractive option for making international fund transfers. Some of their key advantages are as follows:
1. Quick transfer times
Crypto remittances are much quicker compared to traditional remittance methods such as banks and remittance centres. Transactions can be processed within seconds or even instantly, allowing recipients to access funds hassle-free.
2. You can transfer funds for free
Traditional remittances may cause high costs that involve transfer fees, currency conversion fees, and intermediary fees. Crypto remittances can be more cost-effective, especially if you use Ka.app, which allows you to send crypto for free if the receiving Ka.app user will accept the transfer using the same currency (e.g., sent in Bitcoin and received in Bitcoin).
3. Security
Blockchain technology and crypto platforms often use strong security systems. They enable you to safely store cryptocurrency and make it difficult for hackers to manipulate your transaction data.
4. Greater financial control
Crypto remittances offer users greater control over their funds. You can securely manage and store your funds in a digital wallet, without relying on traditional financial institutions.
5. Financial inclusion
Banks and other remittance methods are not easily accessible in some areas. The good thing is, crypto remittances make it possible for individuals who may not have access to traditional remittance services to make facilitate their own transfers. All they need is a smartphone or computer with internet access to create a crypto wallet and start making transactions.
6. Global accessibility
Crypto transactions transcend geographical boundaries, which opens up opportunities for international trade, e-commerce, and financial collaborations on a global scale.
How to Do a Cryptocurrency Remittance
You can make an international blockchain money transfer using Ka.app in two different ways:
a. To another Ka.app user
1. Log in to the app.
2. Deposit crypto in the app by tapping the add funds icon. If you want to use KASTA, the app’s native token, here’s how you can buy KASTA token in just a few taps.
3. Go to the home screen and tap the send icon.
4. Enter the mobile number or scan the QR code of the Ka.app user.
5. Choose the crypto you want to send.
6. Enter the amount of crypto you want to send.
7. Enter your passcode to complete the transaction.
b. To someone who uses a different crypto platform
1. Log in to Ka.app.
2. Go to the home screen and tap the add funds icon to deposit crypto.
3. Go back to the home screen and choose the crypto you want to send.
4. Tap the withdraw icon.
5. Get the recipient’s wallet address and paste it into the app.
6. Enter the amount of crypto you want to send.
7. Enter your passcode to complete the transfer.
The Bottom Line
Crypto remittances bypass the limitations of traditional remittance systems. They offer a convenient and efficient way to transfer money internationally while allowing users to have greater control over their funds. In case you want a tip, it’s ideal to use the best crypto app for beginners for a quick, secure, and effortless crypto remittance experience.
Scan to download the app
FAQ
Can crypto be used for remittance?
Yes. Crypto remittances are common nowadays as they offer some advantages over traditional remittance methods, such as faster transaction times, lower fees, greater accessibility, and increased security.
How much are the fees for crypto remittances?
It may depend on the specific platform you will use. For instance, in Ka.app, you can send crypto for free if the other Ka.app user will accept the crypto using the same currency (e.g., sent in Bitcoin and received in Bitcoin). Otherwise, a conversion fee that may range from 0.376% to 2.504% of the transaction amount would apply.
What are some of the best platforms for cryptocurrency remittance?
You can make crypto remittances using a wide range of platforms. Two of the most popular ones are crypto exchanges and crypto payment apps like Ka.app.
