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How to Use Bitcoin to Transfer Money Internationally

by Pat

Content Manager

Gone are the days when cryptocurrencies were just for trading or staking. Due to their convenience, many individuals now use crypto for cross-border transfers, whether to send money to family members in other regions, shop items abroad, and more.

If you’re thinking of using Bitcoin to transfer money internationally but don’t know where to start, sign up on Ka.app. Also, this article provides a guide that can help.

The Benefits of Using Bitcoin for International Money Transfers

Before anything else,  let’s break down what makes using Bitcoin an attractive option for international money transfers:

1.   Quick Transfers

Transferring money through banks or remittance stores usually takes a few business days, considering all the paperwork and intermediaries involved in the process. Bitcoin and other cryptocurrencies provide a solution for this by enabling quicker transfer times.

There are no middlemen involved in crypto transactions so you can easily send Bitcoin and crypto directly to another user without waiting for days. In fact, some apps like Cash App enable you to send and receive crypto payments within seconds.

2.   More Affordable Transaction Fees

International transfer fees can be costly. The 2021 Remittance Prices Worldwide report says that the global average fee for transferring $200 hovers around 6.30%, with some payment methods charging as much as 10% of the transferred amount.

Meanwhile, an estimate from Deloitte says that crypto can slash cross-border payment prices by 40% to 80%. This is because most crypto trading platforms offer much lower fees compared to traditional options, typically charging less than 1% of the transaction amount.

In Ka.app, for instance, users can send cross-border payments for free if the other Ka.app user will receive the payment in the same currency (e.g., sent in Bitcoin and received in Bitcoin). Otherwise, they can use the Easy Swap Engine to receive payments in a different currency. In this case, swap fees, which could go as low as 0.376% of the transferred amount, will apply.

3.   Control Over Your Funds

Bitcoin operates on a decentralised network, and thus it offers a private payment system free from the control of government bodies and financial institutions. This means you have the freedom to send any amount of money to anyone, anywhere, without any authority keeping tabs on your transactions.

4.   Transparency

Bitcoin offers a level of transparency that traditional methods can't match. Every Bitcoin transaction is recorded on a public ledger, which you can see in real-time. Therefore, when you send Bitcoin to a user in another country, you can easily track its journey from your wallet to theirs. No more mystery or waiting for days to know whether your money reached its destination or not!

5.   Available 24/7

Unlike traditional banks and financial services, which may close during holidays or after office hours, Bitcoin is always up and running, 24/7, 365 days a year. It's powered by a global team of miners working ‘round the clock.

So, whether it's a weekend, a public holiday, or a festive occasion, you can always rely on Bitcoin for your transactions without worrying about delays due to office closures or days off. The network's non-stop operation ensures that your money can move freely whenever you need it, making it a convenient and reliable choice for cross-border transfers and everyday transactions.

The Drawbacks of Bitcoin for International Transfers

To keep the discussion fair, we’ll also enumerate the potential cons of using Bitcoin for international transfers.

1.   Volatility

The crypto market is volatile, so the value of Bitcoin can dramatically change within seconds. Sudden price fluctuations can lead to significant changes in the value of your Bitcoin during the transfer process, so it's wise to plan your transaction during calmer market periods. Choose a moment when the price is relatively stable. Monitor price movements and stay informed about market trends.

2.   The Risk of Making Mistakes and Losing All Funds

Sending Bitcoin to the wrong wallet address or network type could result in irreversible loss of funds. To avoid this, be sure to double-check the recipient’s wallet address, network type, and memo tag, if any, before confirming the transfer. You may also use a QR code to send crypto & Bitcoin to limit the risk of making mistakes.

3.   Intimidating for Beginners

Using Bitcoin for international transfers can be intimidating for crypto beginners due to several reasons. First, the unfamiliarity with cryptocurrencies and blockchain technology can create uncertainty. The idea of sending money across borders using a digital currency may seem foreign and complex, raising concerns about potential risks and complications.

However, it doesn’t have to be. With proper education and guidance, crypto beginners can realise that using Bitcoin for international transfers can be an easy, secure, and efficient option. Learning how to create a Bitcoin wallet, understanding how to send Bitcoin quickly, and reading instructional guides can build confidence and make the process less intimidating for new users.

How to Use Bitcoin to Transfer Money Internationally

Here’s how you can use Bitcoin to transfer money internationally. We’ll use how it works in Ka.app as an example:

a.   If the recipient is a Ka.app user

  1. Create a Ka.app account and log in.
  2. Deposit Bitcoin in the app by tapping the add funds icon.
  3. Go back to the home screen and tap the send icon.
  4. Enter the mobile number or scan the QR code of the recipient.
  5. Choose Bitcoin.
  6. Enter the amount of Bitcoin you want to send.
  7. Enter your passcode to complete the transfer.
  8. The recipient should receive the funds within a few seconds

b.   If the recipient uses a different platform or exchange

  1. Create an account on Ka.app and log in.
  2. Go to the home screen and tap the add funds icon to deposit Bitcoin.
  3. Go back to the home screen and tap Bitcoin.
  4. Tap the withdraw icon.
  5. Get the recipient’s wallet address and paste it into the app. Take note of the network type.
  6. Enter the amount of Bitcoin you want to send.
  7. Enter your passcode to complete the transfer.

Final Thoughts

International blockchain money transfers can be a transformative, seamless experience for individuals and businesses alike. While it may seem intimidating at first, the benefits of quick, secure, and low-cost cross-border transactions make them worth the try for many. The good thing is, with crypto payment platforms like Ka.app, making cross-border crypto transfers can be free and easy.

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FAQ

What is a cross-border crypto transfer?

As its name suggests, a cross-border crypto transfer is the process of sending and receiving cryptocurrencies across different regions.

Can I transfer crypto internationally for free?

Yes. You can transfer crypto internationally for free if you will use a platform that enables free crypto transfers. As mentioned, Ka.app has this feature. You can send crypto for free to another Ka.app user as long as they will receive the payment in the same currency (e.g., sent in Bitcoin and received in Bitcoin).

What is Ka.app?

Ka.app is a user-friendly crypto app for beginners. It allows you to conveniently send, receive, and convert crypto as well as lock up KASTA tokens. It accepts some of the most popular cryptocurrencies in the market, including Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Polygon (MATIC), Tether (USDT), USD Coin (USDC), Polkadot (DOT), and Cardano (ADA), among others.

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