Transferring money with bitcoin

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Does it make sense to use BitCoin to transfer money to yourself internationally?
4 Answers 4
Make Swift Money Transfers With Bitcoin or MTOs
How to Buy Bitcoins with Bank Account or Bank Transfer
What are the pros of buying with a bank account?
What are the cons of buying with a bank account?
What about bank vs credit card?

Does it make sense to use BitCoin to transfer money to yourself internationally?

If you have a bank account in the US and an account in the UK, and you want to move money from one to the other, is Bitcoin a sensible way to do it, or are you better off using TransferWise or just doing an international wire transfer?

4 Answers 4

While in the US last year, I sent money to myself in Europe that way once, because it was significantly cheaper than using the legacy banking system.

I think it mostly comes down to whether you have easy access to a Bitcoin exchange from your bank account in the US and what amounts you are trying to transfer. It also depends on how urgently you need the money in the other country, and which country you currently are residing in.

Alternative 1 (if in UK): Use your US credit card to get Pounds from the bank, deposit those in your UK bank.
Advantage: Fast
Disadvantage: Currency exchange fee, fee for using CC abroad, (Deposit fee, if you have one)

Alternative 2: International Wire Transfer
Advantage: No manual involvement
Disadvantage: Takes several days, expensive (

$50), get lost sometimes

Alternative 3: PayPal
Advantage: Very fast, independent from residence
Disadvantage:

3% exchange fee, % transfer fee, has to be withdrawn to Bank account

Alternative 4: Money transmitter
Advantage: Fast
Disadvantage: Needs to be picked up and deposited, expensive I think

Bitcoin:
Advantage: Can be cheap
Disadvantage: Takes a few days, manual involvement
Procedure:
• Consider buying Bitcoin locally if in the US, else buy Bitcoin from Exchange or Coinbase (each takes a few days until it is cleared, I think)
• Send Bitcoin to your account at an exchange in Europe
• Trade Bitcoin for national currency
• Withdraw to Bank account (usually a small fee applies).

Personal experience
Back when I did that last year, I was able to buy Bitcoin at a Bitcoin Meetup at Bitstamp spot-price. I transfered those to Bitstamp, traded, and ordered a withdrawal.

I had a confirmation that the money was headed to my bank account within 30 minutes, it arrived two days later. I actually made a few dollars on it, because the price had slightly increased between my local trade and the trade on Bitstamp.

To organize a wire from Europe to the US and back using bitcoin without fees, you can:

Open an account on KRAKEN.com do a IBAN/BIC wire to your kraken account (free!), takes 2-4 business days
Open an account on circle.com and register your US bank account
Buy bitcoins on kraken.com (very small fee, usually around 20 eurocents)
Transfer bitcoins from kaken.com to circle.com account
Withdraw bitcoins in USD from circle.com

I did not try it yet but the whole process should not cost you more than 50 eurocents. Of course you risk small losses/profits due to volatility of bitcoin prices. Also, I do not know what is driving the exchange rates at circle.com.

Most big US banks charge 40-50$ in fees for international transfers and take a cut of the exchange rate. You might be able to lower this if you use a company like Usforex or Xoom, which I believe take around a 1-1.5% cut of the interbank rate plus a Kraken took 20 minutes. The trade bitcoin -> EUR then cost 0.34%, so 3.4 EUR. This fee can possibly be lowered to 0.1% by doing the transfer with a different type of electronic money, like litecoin, I haven’t looked into that.

The SEPA transfer to the EUR bank account cost EUR 0.09 and took 4 days.

Now this is not the whole story, because I haven’t figured out the cut the bank takes on the exchange rate and what the difference between the interbank rate and the US->Bitcoin->EUR rates is.

In total the bitcoin fees were less than 14 USD for 1000$, the bank transfer cost was at least 50$. The bank exchange rate spread can be around 1.5%, I have no idea what the spread in the case of bitcoin is, but probably lower.

The Bitcoin transfer took around 7 days, similar to what it takes to do a Usforex/Xoom transfer.

The bitcoin transfer takes a lot more manual clicking work. You have to transfer the money (1-2 minutes), do the bitcoin transfer (+wait 20 minutes), do a bitcoin/euro trade (+ wait 20 minutes), then do the 2nd transfer. Neither coinbase nor kraken can schedule any of this. You also can lose money if you delay any of this, as the exchange rates of bitcoin may change over time. That being said, the volatility of bitcoin at the moment is lower than the banking fees, even over weeks.

I think overall I prefer Xoom or Usforex like services for the occasional transfer, as it’s so much easier to use. I hope someone automates the whole transfer one day with a program using coinbase’s / kraken’s APIs.

2% higher and I forgot to do my trade for two days. Sigh. This comparison is actually not that easy, also because Kraken does not send me reminder when the money arrived, so it’s easy to forget. In the end, I actually made a profit from the transfer. – Max May 1 ’15 at 17:46

To make an international money transfer using bitcoins you need to figure out 2 things: 1. How to convert FIAT to BTC and 2. How to convert BTC to FIAT.

FIAT to BTC
Open an account on your local exchange. I find this resource useful: https://bitcoincharts.com/markets/list/ to find local exchanges. You want to open an account on the local exchange because generally, it is cheaper and faster to transfer money locally. Once you have an account buying BTC is generally straightforward.

Things to keep in mind:

0.1 to 0.5% per transaction, while resellers generally charge above 1%.

Make sure to check out the spreads (the difference in buying and selling prices) on the exchange. If daily trading volumes on an exchange are low, chances are the spreads are high and you might end up overpaying for your BTC.

You bank account name and your registered name on the exchange must match.

Sending BTC is straightforward.

BTC to FIAT
To convert BTC back to FIAT you need to register on an exchange in the receiving country. You need to keep in mind exactly the same things as for point 1. In addition keep in mind that most exchanges require 3-6 verifications before you can sell your BTC on the exchange. This takes on average 30 to 60 minutes and during this time you are exposed to the price volatility of Bitcoin.

To simplify the process of making international transfers using Bitcoin you can give finmates.com a try. This is my company. We take your bitcoins and deliver local currency to your recipients and charge only 1%.

Having said the above IMO it makes sense to use BitCoins if: 1. The money transfer channel is not too bit (for example, not US/India), hence there is not a lot of competition and prices are high. 2. There are liquid exchanges at the both ends of the transaction (last time I checked spreads in Curacao (Caribbean islands) were around 10%. 3. You price conscious and make transfers regularly. IMO if you answer «yes» to these questions it makes sense to use BitCoins to make international money transfers

For a UK/US channel Transferwise charges

0.5-1% depending on the amount (with a minimal of 2 Pounds or 3 USD). Hence IMO using Transferwise is easier and cheaper.

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Make Swift Money Transfers With Bitcoin or MTOs

Bitcoin and other virtual currencies offer a range of unique benefits for people who regularly need to transfer money to someone in an emerging country, such as many states in Africa.

Cryptocurrencies are relatively secure, but in many countries they remain unregulated, so as with any payment method, there is an element of risk.

Although the African continent may not have been as quick to adopt cryptocurrency payments as Europe, Asia and North America, in recent years both individuals and businesses have built up a network of bitcoin initiatives.

For now, it is South Africa which has been at the forefront of a formal blockchain technology uptake, with trials taking place to test out the currency in a range of diverse financial transactions (article convert btc to zar).

What Are The Advantages Of Bitcoin-Based Money Transfers?

Any cash which is sent in bitcoin takes place discreetly. A crypto user can choose to share their transactions, but unless they do so it is not possible to link any purchases back to them and their identity remains protected.

All the best bitcoin wallets encourage a user to generate a new address for every new purchase, so the level of anonymity is only really matched by cash purchase.

Mobile Payments Are Simple

Just like with PayPal and other online payment services, people who use a bitcoin wallet can make payments from any location which offers access to the internet. Therefore, it is not necessary to visit a bank, money transfer specialist or shop, in order to send funds.

The key difference between PayPal and bitcoin is that no personal information is required for each crypto transaction.

No Purchases Are Subject To Tax

As it is not possible for governments or law enforcement departments to detect or follow transactions made using bitcoin, any sales tax which might usually be applicable is not added on to a purchase.

There Is No Need For Third-Party Involvement

A crucial feature of bitcoin is that no bank, regulatory body or government is able to monitor, disrupt or intercept cryptocurrency accounts.

The benefit of a person to person system is that each user gets to make the transactions they need across international borders, free from conventional currency restrictions.

Attractively Low Fees And Charges

When people send money abroad using a wire transfer or they make purchases from a foreign source, this can often generate a range of exchange fees and charges. The difference with bitcoin is that there are no outside interests, so all of these costs are minimal.

This is especially advantageous for people sending funds abroad. Furthermore, as most bitcoin transfers take place at a rate of one block every ten minutes, the wait times are smaller.

How Do Bitcoin Payments Differ From Money Transfer Apps Like Worldremit And Azimo?

WorldRemit and Azimo are online services which enable their users to transfer money abroad (mobile money transfers). They present a very convenient method of payment but are lacking compared to the freedom offered by cryptocurrency transactions.

Primarily, with bitcoin, there is no one who can see what you are transferring or whom you are transferring it to. Unlike with WorldRemit and Azimo where your transaction history is visible to certain members of staff.

Moreover, WorldRemit and Azimo payments can be traced back to you in seconds, because you have opened an account with the service and verified your identity.

Aside from a greater degree of privacy, a bitcoin payment does not have to be converted from one currency to another, so there are no exchange fees. Moreover, any fees which are charged tend to be very low.

As with all traditional online wallets, payments made through WorldRemit and Azimo are completed with the services’ permission. If the company believes there is a problem, or their terms and conditions were not met, they can cancel transactions and even ban users.

With bitcoin, no permissions are required regardless of the transaction and your account can never be frozen as part of an investigation.

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How to Buy Bitcoins with Bank Account or Bank Transfer

This page lists companies that will let you buy bitcoins with a bank account or bank transfer. Some countries offer specific transfer types, like SEPA transfer or ACH transfer (USA).

We may receive advertising compensation when you click certain products. Before jumping into this page, an important disclosure.

This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Exchange based in Canada
Very high buy and sell limits
Supports Interac & wire

Swyftx, established in 2017, is a great exchange if you want to use your bank account to buy crypto.

Swyftx aims to make crypto buying super simple for beginners with an easy to understand user interface, great guides, fast chat support, and an app for every device.

This is an ad. We may receive compensation when you use Swyftx. Please visit Swyftx for its exact pricing terms.

fast chat and phone support
230 trading pairs
multiple payment methods
Supports automatic recurring purchases
Instant verification

ID verification required when depositing AUD

Swyftx, established in 2017 and targeted at New Zealand users, aims to make crypto buying super simple for beginners with an easy to understand user interface, great guides, fast chat support, and an app for every device.

They support deposits with credit card.

This is an ad. We may receive compensation when you use Swyftx. Please visit Swyftx for its exact pricing terms.

fast chat and phone support
230 trading pairs
multiple payment methods
Supports automatic recurring purchases
Instant verification

ID verification required when depositing NZD

CoinSpot, established in 2013, is a popular Bitcoin & cryptocurrency exchange based in Australia. CoinSpot provides a simple and easy to use interface with a wide selection of features. Users can deposit via POLi, PayID, BPAY, cash deposit or direct deposit.

The exchange supports Bitcoin, Ethereum, Litecoin & 100+ other coins. OTC trading is also available.

Читайте также: Биткоин это афера века

This is an ad. We may receive compensation when you use CoinSpot. Please visit CoinSpot for its exact pricing terms.

Local exchange based in Australia
Wide range of cryptocurrencies
Free & instant deposits
Registered with AUSTRAC
Support available 24/7

ID verification required when depositing funds

Established in 2013, CoinJar is the easiest way to buy, sell, store and spend digital currency. CoinJar’s iOS and Android apps allow users to trade cryptocurrencies on the go, while CoinJar Exchange and CoinJar OTC Trading Desk cater for professional traders, as well as SMSF, individuals and institutions looking to make larger transactions.

This is an ad. We may receive compensation when you use CoinJar. Please visit CoinJar for its exact pricing terms.

Low trading fees at just 1%
Clean interface makes it easy for first-time buyers
Instant bank transfer with NPP / Osko / PayID
Australian crypto exchange established in 2013

Verification required in order to trade

EasyCrypto.ai is a non-custodial exchange that supports over 40 cryptocurrencies including Bitcoin, Ethereum, and XRP. They also offer a full OTC desk for Corporate and SMSF trading. Best of all is their simple 1% fees with no hidden costs added at checkout.

This is an ad. We may receive compensation when you use easycrypto.ai. Please visit easycrypto.ai for its exact pricing terms.

Non-custodial
low 1% fees
Fees are easy to understand — no hidden fees

Few payment options, but more coming later this year

bitbuy is a cryptocurrency exchange based in Canada. You can buy bitcoins, litecoin, ethereum and other coins with credit card or Interace e-Transfer for 0.75% fees, or sell for 0.5%. The exchange has good support available through its live chat, or via phone & email.

Get a $10 bonus when you buy or sell at least CAD $100. T&Cs apply.

Fast way to buy bitcoins
Very high buy and sell limits
Can handle large buys through OTC desk
Only Canadian exchange to offer 1:1 BTC insurance

CoinSmart is a Canadian exchange. It allows users to buy and sell Bitcoin and all major cryptocurrencies in Canada.

Customers can buy and sell bitcoin and ether using Interac e-Transfers, bank transfers, SWIFT, and credit/debit card. New users will receive $20 CAD in BTC once they deposit at least $100 CAD.

Many payment methods accepted
Many coins offered
Fast verification

Netcoins is a Canadian exchange based in Vancouver. You can buy and sell Bitcoin, Ethereum, Litecoin and other major cryptocoins with Interac e-Transfer, online bill payment or wire.

They charge 0% on funding and FIAT withdrawal fees and .5% on trading. Customers receive support during business hours through live chat, email or phone call. Getting started and verified takes a couple of minutes.

New users will receive a $10 CAD bonus once they complete $100 in cumulative transactions.

Deep liquidity with no slippage
Instant withdrawals
Fully audited
Fast verification
Great customer support
Regulated and compliant MSB under FINTRAC

Rain is a crypto exchange focused on serving UAE, Saudi Arabia, Bahrain, Oman and Kuwait. They offer 24/7 support and meet all CCSS requirements as a crypto custodian and is licensed by the Central Bank of Bahrain as a Crypto Asset Brokerage.

This is an ad. We may receive compensation when you use Rain. Please visit Rain for its exact pricing terms.

Middle East Exchange based in Bahrain
Low fees
24/7 customer support
Licensed by Central Bank of Bahrain

Brokerage only — order book coming soon

Luno is a Bitcoin exchange with a presence in South Africa, Singapore, Nigeria, Malaysia and Indonesia. It offers 0% fees for market makers, meaning you can avoid fees if you place a buy order then wait for a seller to take it.

Luno also offers an Instant Buy feature.

One of the most trusted Bitcoin exchanges in Asia
Free deposits and low withdrawal fees
Low fees; 0% for market makers and only 0% — 1% for market takers (depending on fiat currency)
High to infinite limits for exchange, depending on verification level

Only supports Bitcoin and Ethereum

Bits of Gold is a Bitcoin broker in Israel. You can buy Bitcoin directly from the company with bank transfer, cash, or credit card. The fees for buying with Bits of Gold are higher than Bit2c, but it is easier to use for first-time buyers. They also operate a Bitcoin ATM in Tel Aviv which requires no identification and charges a 5% fee.

Clean interface makes it easy for first-time buyers
No identity verification for amounts under 1000 ILS

Not private since identity verification is required for amounts over 1000 ILS

eToro is a trading platform and crypto exchange. It supports Bitcoin, Ethereum, Litecoin, Zcash and many other coins.

Deposits can be made quickly via bank transfer, SEPA, NETELLER, PayPal and more. It also offers unique features like copy trading.

Offers unique copy trading feature
Trusted exchange that has been active in traditional finance
Interface is clean and easy to use

You cannot deposit cryptocurrency, but you can deposit with other payment methods

eToro USA is a trading platform by eToro based in the USA. You can buy bitcoins, ethereum and other coins with bank transfer.

Limited time offer: Get $50 free once you trade $1,000 worth of cryptocurrency.

Offers unique copy trading feature
Trusted exchange that has been active in traditional finance
Interface is clean and easy to use

You cannot deposit cryptocurrency, but you can deposit with other payment methods

Bitpanda accepts bank account payments via SEPA, SOFORT, and Online Bank Transfer.

Some of the lowest fees for buying bitcoins with credit/debit card
Reliable and trusted broker

Fees aren’t shown openly on the site but instead included in the buying price

Coinbase is the world’s largest bitcoin broker. In the United States you can buy bitcoin with a connected bank account via ACH bank transfer. In Europe you can buy with your bank account via SEPA transfer. Purchases made with ACH take 5 days for the coins to be delivered, while SEPA purchases take less than two days. Coinbase charges a flat 1.49% fee on all transactions. Americans may add a Visa or Mastercard credit card to as a backup to unlock instant payments via bank transfer.

High liquidity and buying limits
Easy way for newcomers to get bitcoins
«Instant Buy» option available with debit card

Purchases made with bank transfer can take up to 5 days to complete
Coinbase may track how and where you spend your bitcoins

WazirX is a new Bitcoin and cryptocurrency exchange in India. It’s operated by Binance, one of the largest crypto exchanges in the world.

Very nice trading interface and easy to use
Backed by Binance
Low 0.2% fees

Has orderbook so somewhat hard to use for new users

US customers can fund their Coinbase Exchange trading accounts via ACH or bank wire. Residents of Europe and the UK can fund with SEPA transfer.

Some of the lowest fees available for US and EU customers
Possible to buy bitcoins for 0% fees

User interface is confusing for first time buyers

100% Funds Safety Guarantee
Ability to Set Recurring Orders
Convert Easily Between Cryptos

Buy crypto with no account
Physical stored throughout the country
Accepts cash

Coinmama supports buying in Europe via SEPA transfer. All other countries can send money to Coinmama using International Bank Transfers (SWIFT). There are no fees on purchases of 1000 EUR or more, while purchases under 1000 EUR cost 20 EUR in fees.

Works in almost all countries
Highest limits for buying bitcoins with a credit card
Reliable and trusted broker

Some of the highest fees among credit/debit card bitcoin brokers

US customers can purchase bitcoins on Gemini by funding their account with ACH transfer.

Trustworthy and regulated exchange
Instant deposit lets you buy coins quickly (but not withdraw them)
Some of the lowest fees in the US and Canada

Somewhat confusing to use for new buyers
Not yet available in all US states

Kraken is the world’s largest euro-denominated Bitcoin exchange based on daily average trading volume. It supports bank transfer deposits from US, European, Canadian, British, and Japanese customers. Deposits can be made via international bank transfer, SEPA transfer, and Interac.

Very low 0.25% taker fee, falling to 0.1% with sufficient trading volume
Very low maker fee, falling to 0% with sufficient trading volume
Highly-rated for security and data protection

Requires ID verification, so not private

100% Funds Safety Guarantee
Ability to Set Recurring Orders
Convert Easily Between Cryptos

CEX.io allows for purchases of bitcoins using ACH in the USA or via SEPA transfer for EU countries.

Support for many countries and regions
Low 0.2% trading fee
Established and trusted exchange

Verification process is extensive, requiring much personal information (including a photo) and incurring a long delay
GBP market lacks liquidity

Residents in Austria can buy bitcoins with a bank account online using SOFORT transfer.

Trusted and established exchange

Limited payment methods available
ID verification is required for their exchange, so not private

Bity is a Bitcoin broker that makes it possible for all Europeans to purchase bitcoins with SEPA. At first, only verification using a phone number is required.

Easy to start buying bitcoins after mobile phone verification
Payment limit of up to €100,000 annually after intensive verification

ID verification is required for most purchases, so not a private way to buy
Low annual limit of only €4,000 without intensive verification

Available from 32 countries
Offers a wide variety of payment methods
Deep liquidity ensures prices near the fair market rate

Not a private way to buy since ID verification is required

Bitstamp is one of the world’s largest Bitcoin exchanges. It makes it easy for Europeans to purchase large amounts of bitcoins fast with SEPA bank transfer. Almost anyone in the world can use their bank account to send a wire transfer to Bitstamp, although fees may apply.

One of the longest-running Bitcoin exchanges
Very low 0.25% fee, falling to 0.1% with sufficient trading volume
Good range of deposit and withdrawal options
Deep liquidity promotes a price close to fair market rate
Offers wide range of altcoins

Has been hacked before, users should not store funds on the exchange for any period of time
High 8% fee on small credit card purchases, falling to 5% with sufficient trading volume
Geared towards traders; slightly confusing for first time buyers

CoinCorner is a Bitcoin exchange based in the Isle of Man. Users in the UK and Europe can purchase bitcoins with SEPA, credit/debit card, or GBP bank transfer.

Trusted and regulated company in the UK
Wide range of payment options
Good customer support
Instant credit card purchases
Supports a very wide range of countries
Video tutorials covering the basics of Bitcoin and buying and selling
Multi-sig security features

1% trading fee slightly high by European standards
Offers a mobile wallet but this is not ideal for bitcoin storage
Requires ID verification, so not private
Does not provide exchange prices for comparison without sign-up

Bitfinex allows customers to deposit large amounts of funds using SWIFT.

Very low fees even for low volume buyers; 0.1% for market makers and 0.2% for market takers
One of the best ways to buy large amounts of bitcoins
Allows lending of fiat or bitcoin to margin traders at interest (but this is risky in light of the hack)
Very deep liquidity promotes a price close to fair market rate
Supports several altcoins

Was recently hacked and has yet to fully compensate all users for their loss
Geared towards traders; possibly quite confusing for first time buyers
Single payment option

Trusted exchange that has been active in traditional finance
Offers interest earnings on crypto accounts
Interface is clean and easy to use

Weekly limit of €50,000 — not ideal for bigger investors.

What are the pros of buying with a bank account?

The benefits of using a bank account are fees. Bank account is usually the cheapest deposit method for buying coins. Limits are also usually higher when using a bank account, assuming you have verified your account.

What are the cons of buying with a bank account?

The cons are speed. Bank transfers are slow in many countries, so bank transfer is often the slowest way to buy bitcoins.

What about bank vs credit card?

Credit card will be faster, but has higher fees. Bank account is slower but has lower fees.

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