As technology has advanced, the world has grown much smaller. As a result, you probably have loved ones in other countries, do business in other nations, or perhaps like to vacation all over the globe. So, you need a reliable way to send money across borders. Crypto is the best method for cross-border money transfers, offering faster and cheaper services than banks. So, in what ways can you transfer money with crypto? This guide details the three top methods.
What are the best ways to use crypto for cross-border money transfers?
Crypto debit or credit cards
There are some great benefits to using crypto cross-border payments rather than traditional fiat for foreign exchange. Primarily, Visa and Mastercard crypto debit and credit cards are accepted anywhere Visa and Mastercard are accepted. Secondly, when you withdraw, they instantly convert to EUR if you open an account in Europe.
Nexo gives you fiat you can spend and in return, you provide crypto as security for repayment. All this is done in the background whenever you make a purchase with your card. Rates start from 0% APR and never exceed 13.9% APR.
Service fees and limits
– No monthly, annual, or inactivity fees
– No FX fees for up to €20,000 per month
– Up to €10,000 in monthly ATM withdrawals
– Up to 10 free withdrawals per month
Pros and cons
Physical and virtual
Accepted wherever Mastercard is accepted
Only available for EEA residents
Only works on credit
How to get the Nexo Card?
1. Sign up to Nexo using the link below, complete KYC and download the mobile app.
2. In the Nexo app go to the Card tab.
3. Swipe left and tap on the Order Nexo Card button.
4. Follow the on-screen instructions and wait up to 2 weeks for your physical card to arrive. Virtual card will be issued immediately.
The Coinbase Card is a Visa debit card that is accepted anywhere Visa is accepted. It works offline, online, and globally. You can use the card to make everyday purchases at your favorite stores or to withdraw cash from your Coinbase account at ATMs. The Coinbase Card can be used to spend funds from any of your Coinbase balances.
Service fees and limits
There are no transaction fees for spending with the Coinbase Card. You can spend US Dollars (USD), USDC, or any supported crypto on Coinbase using your Coinbase Card and there will be no transaction fees. Coinbase does include a spread in the price to buy or sell cryptocurrencies.
Pros and cons
Connects to your Coinbase account
Accepted anywhere Visa is accepted
One card per user
How to get Coinbase card?
1. Sign up for Coinbase Card through Coinbase.com or the Coinbase mobile app using the link below.
The Binance Debit Card is a cryptocurrency debit card that allows you to easily convert your crypto assets into fiat currency. Because the Binance Card is issued by Visa, it can be used anywhere Visa is accepted. It also functions similarly to a traditional debit card, allowing you to make purchases and withdraw cash from ATMs.
Service fees and limits
-Amount per contactless transaction: 50 EUR (across Europe)
-Accumulated amount of contactless payments: 150 EUR
-When you reach the accumulated contactless payment limit, you need to make a chip & pin transaction to reset it, and you will be able to use contactless payment again.
-Transaction fees up to 0.9%.
Pros and cons
Up to 8% cashback
Card for refugees
Low ATM and virtual card spending limit
Not available in U.S.
How to get Binance Card?
1. Visit the Binance Visa Card website directly using the button below.
2. Click Finance and select Binance Visa Card from the navigation bar at the top.
3. Click Card at the bottom of Binance.com.
4. You must complete KYC requirements and live in an area where Binance Card is available to order a Binance Card.
5. Sign in to your Binance account and click Get Started on the Binance Card page.
There is a great benefit to using exchanges rather than banks for international payments. Exchanges that accept fiat make it easy to convert cryptocurrency into cash. Furthermore, you can open an account on an exchange and purchase crypto using a card. You can send crypto from anywhere to an account on an exchange and, in some cases, can even withdraw to any account.
Using crypto wallets to send cryptocurrency is a great way to remain sufficiently decentralized. You can instantly send crypto to any other wallet anywhere in the world. Peer-to-peer transactions are always cheaper. Furthermore, some wallets allow you to purchase crypto directly within the app.
Making payments to other countries is a nightmare with traditional systems. This is the case for tradesmen, businesses, and banks alike. Cost, security, time, liquidity, and transparency are all problems that affect cross-border transactions.
Global remittances may take days to settle. Not only do banks have to have relationships with each other to facilitate transfers, but they have to resolve their ledgers with each other. Not to mention that nations have to have swap lines to access liquidity for each other’s currencies.
Because this financial system has such a wide surface area, there is a lot of room for fraud, so naturally, anti-money laundering measures must be imposed. This system takes time and has a high overhead. Thankfully, crypto cross-border money transfers solve all of this.
Crypto cross-border money transfer methods compared
Crypto offers an effective solution for reliable cross-border payments
The global monetary system is convoluted. In today’s era of crypto, it makes less sense to use it for money transfers between individuals. Blockchain networks can guarantee faster and more reliable payments. The safeties — or lack thereof — guaranteed by central banks are slowly moving over to decentralized finance. Crypto cross-border money transfers are only the beginning.
Frequently asked questions
What is a cross border money transfer?
A cross-border money transfer refers to the process of sending money from one country to another. This type of transfer involves the movement of funds across different currencies and financial systems. Cross-border money transfers can be conducted for a variety of reasons, including personal remittances, business transactions, and international trade.
What is the problem with cross border money payments?
Cross border money payments suffer from time, cost, security, liquidity and transparency. It can take days to settle an international transaction. There also exists obstacles with liquidity and currency swap lines.
How do I transfer money internationally through crypto?
As long as you have a blockchain wallet and the recipient’s wallet address, you can send crypto internationally. Simply copy the recipient’s address, select a coin or token, and send. The transaction is near instant compared to traditional transactions.
How do crypto cross border payments work?
When you send crypto payments, the transaction is recorded on a global public ledger. The ledger is updated by nodes, which facilitate the transfers. All of the nodes on the global network record the transaction.
What is the best crypto for international transfer?
Most cryptocurrencies are better than using traditional services. However, stablecoins are good for sending transactions if you need a precise amount. Using a rollup will allow you to send transactions at a lower cost.
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