Sending money overseas isn’t always easy, especially when you’re either financially supporting your family living in another country or receiving money from your loved ones working abroad. Providing lots of personal information, waiting in line for hours, and paying hefty transaction fees are just some reasons why we need an alternative to the conventional way of transferring money anywhere in the world.
One of the best solutions available today is crypto remittances. Don’t know where and how to begin? Read ahead and learn how you can quickly and conveniently send money to Mexico, Colombia, and other parts of Latin America with your crypto.
Comparing Paxful’s fees to other remittance methods
Often, transfer rates vary depending on the destination and amount you wish to send.
In case you want to have a quick look at how much you can potentially save with remittances using your crypto, here’s a quick comparison of fees in some money transfer service providers.
Remittance Service Provider
|Starts at 3.69 GBP or 5.21 USD|
Starts at 0.99 USD
Starts at 25 USD + other fees
1% (Except for gift cards at 3-5% and Bank Transfer at 0.5%)
How to send remittances the Paxful way
The great thing about this process is that it’s way easier than you think. Here are four simple steps for a hassle-free remittance.
Step 1. The sender and recipient create a Paxful account
Both the sender and the recipient of the money should create their own Paxful account. This is the very first thing you need to have to transfer money with crypto. After you sign up on Paxful, you’ll instantly receive a free Bitcoin wallet where you can store and track your money and process other crypto transactions.
To unlock exclusive platform benefits, be sure to verify your account. This includes your ID, address of residency, and email address. Having a verified account also allows you to easily get trusted trade partners where you can buy and sell crypto quickly—which we’ll get into later.
Step 2. The sender buys BTC using fiat currency
After creating an account, the next step is to buy Bitcoin using the currency you prefer—assuming you’re the sender. You have over 350 ways to buy BTC and these include the most popular payment methods in your country. All you need to do is go to the Buy Bitcoin Page and look for available offers in your chosen currency and payment option.
Once you’ve picked the deal that best matches your needs, click Buy then you’ll be directed to the individual offer page, where you can indicate the amount of BTC you wish to buy. Also, be sure to check the offer terms. This is where you’ll find the seller’s trade conditions. If you’re confident that you meet the seller’s offer terms and requirements, click Buy now and your transaction will begin.
Here’s the best part: when you buy Bitcoin and other cryptos like Tether (USDT) and Ethereum (ETH) on Paxful, you will be charged zero fees—yup, no fees at all. If you’re buying crypto for the first time, you can check out this video for a step-by-step guide on how to easily buy Bitcoin on Paxful.
Step 3. The sender transfers BTC to the recipient’s Bitcoin wallet
Once you’ve bought BTC, the next thing to do is to ask for your recipient’s Bitcoin wallet address. This address, often 34 characters long, consists of random numbers and letters in upper and lower cases. This is the address you can provide to others if they wish to send you BTC.
After that, you can now proceed to your Paxful wallet, where you can view your balance in BTC and other cryptocurrencies. Then, under the BTC section, input your recipient’s wallet address and the amount you wish to send.
Note that Bitcoin transactions are nearly impossible to reverse, so be sure that you have the correct wallet address before hitting the send button.
Step 4. The recipient sells BTC and gets paid in their preferred currency
Once the BTC you sent has been successfully received, the recipient can now cash it out by either looking for a buyer on the Sell Bitcoin page or by creating an offer to sell Bitcoin to get paid in USD or other fiat currencies. Note that your recipient can instantly receive money in local currency via bank transfer, credit or debit cards, online wallets, and cash, among others—whichever is the most convenient for them. Please also note that there’s a fee starting from 0.5% – 5% when selling/cashing out Bitcoin.
This means that your recipient—whether it’s your family, friends, or loved ones—can easily and instantly receive the money without having to pay hefty fees and worry about providing personal information to banks and other financial institutions that offer such services. Convenient, right?
The state of crypto adoption in the Latin American region
Now that you’re familiar with the process, let’s take a look at the current state of crypto adoption in Latin America. The region has seen growth in terms of payments using cryptocurrencies, which implies that digital coins are gaining trust among a significant portion of the region’s population.
Paxful.com Latin America Trade Volume
Data from usefultulips.com shows that Latin America’s trade volume on Paxful for the past year reached over USD 28.2 million, with Brazil, Colombia, and Mexico leading the charge. But what factors really contributed to this booming crypto adoption?
Apart from using crypto for payment transactions, one of the many reasons behind the spike is the drastic effects brought about by COVID-19 in the region. The value of many local currencies in Latin America started to fall, which drove people to look for new and effective ways to save and protect their wealth.
In 2020, Bitcoin (BTC) started to become a safe haven for many Argentinians, and their search for a strong currency that can help them protect their money was over. While BTC is popular for being a highly volatile currency, its value isn’t affected by the unpredictable rates in foreign exchanges and fiat markets.
On top of that, a new wave of cryptocurrency users also emerged in Mexico and Venezuela as more people turned to Bitcoin to efficiently process cross-border remittances. Since Bitcoin transactions can be done in the comfort of their own homes—yup, no need for a bank account or money transfer services provider—the process is easier, faster, and cheaper.
Transferring money has never been easier
Now that you know the hassle-free way of transferring money using your cryptos on Paxful, the next big question you probably have in mind is this: “Are crypto remittances safe?” You might want to hear about what our traders from the Latin American countries have to say or perhaps give it a shot and follow these steps when you send money to Mexico or other parts of Latin America again.
But if you want to go over the things we’ve discussed earlier, here’s a one-liner summary just for you: crypto remittances on Paxful are way cheaper, faster, and more convenient than the conventional way of transferring money.
Ready to add extra cash to your savings while sending remittances? Go to your Paxful account now and experience hassle-free money transfers.