💰 Crypto Can Help Save Money?
Crypto really is versatile. Not only can it help you make money but also save it. Here's how.
The crypto craze is not restricted to the wild wild west. It has taken over India as well.Â
And why not. When superstars like Salman Bhai and Big B are promoting cryptos and NFTs, people are bound to get influenced. Currently, over 1.5 crore Indians have crypto assets worth Rs. 15,000 crores! While most of these investments are driven by the greed of hitting a jackpot, some people have found another use for crypto. Expats, or the people who live outside their native country, are using it to save money. Yes. Really.
Another Use For Crypto
Many expats regularly send money back home. But sending money to another country is usually a costly affair. According to a World Bank report, transferring $200 can cost you 5%-9.3% in fees. Wondering why are these charges so high?
Because money transfer agencies like Western Union have to follow many rules like Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations to make sure you're not transferring money illegally. But this makes the process expensive and lengthy.Â
Now, nobody likes losing money. And for expats especially, these transactions can quickly add up to cost them a small fortune. And here's where crypto stepped in to disrupt the $540 billion remittance industry.
The Need for CryptoÂ
Cryptocurrencies, which are decentralised, don't need to be transferred through traditional money exchange offices. You can either transfer money directly to someone's crypto wallet or give them access to yours. Easy Peasy. Many other cryptocurrency remittance services like Paxful, Satoshi Citadel, and Bitso have also cropped up recently, which make crypto transfers much more simple.
Crypto transactions also take place much faster than traditional money transfers, which can often take 1-5 business days to process.
If it were so easy, why haven't we always been using crypto for money transfers?Â
While crypto has been around for some time now, its popularity has exploded in recent times. With growing popularity, more solutions have developed. And the pandemic accelerated the process all the more.Â
Now, many crypto-sceptics must be wondering how much of a difference crypto transactions can actually make? Well, if you ask El Salvador's President, the answer will be $400 million! The country recently adopted Bitcoin as legal tender and its President said remittances was one of the major reasons for the move. Remittances and money transfers account for 23% of El Salvador's GDP, and by adopting Bitcoin, the country could save up to $400 million in commissions every year!
So, are crypto transfers absolutely free of charge? Sadly, no. Nothing in life is free (except for maybe unwanted advice). You need to pay a fee so that the crypto miners will accept your transaction and move it forward. But it's not so simple. This fee will depend on the size of your transaction and the congestion of the network. Wait, what does that mean?
You know how when you send a courier the courier service takes a charge from you depending on the size of the package? The same principle applies here. The more Bitcoin you send, the higher the transaction fee. Also, sometimes the courier place may have too many packages. So, they tell you your package will be delivered after 10 days. But you want your package to reach in 2 days time, so you choose the speed delivery option. Again with cryptos, the faster you want your transaction to take place, the higher the fee. One thing you should keep in mind is that crypto prices are highly volatile. So, if you choose a longer delivery time, chances are the price of the crypto you're sending may rise or fall.
The Best Crypto for Remittances
Like El Salvador, most people's first crypto choice seems to be Bitcoin. And why not, it's the OG (original) crypto, and is widely accepted and trusted. It is also one of the few cryptos you can use to make payments. But this popularity is what has made Bitcoin transactions super expensive now. The average fee for a Bitcoin transaction right now is $24-$31. But if you can't afford this or simply don't want to spend this much money, you can opt for several other cryptos that are not only cheaper than Bitcoin but also faster. In fact, some cryptos like Ripple have been created for the purpose of remittance.
Here are a few popular cryptos and their transaction fees:
Indians are currently receiving roughly billions of dollars through crypto remittances. But with the government cracking down on crypto will this industry survive?
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All inverd Remitance from other than bloodrelative have GIFT TAX.... AND MANY MORE COMPLICATIONS AND FINES...SOONER OR LATER....