Speedy transactions, low fees, a wide range of payment options, and accessibility are just some of the many things you need to carefully consider when you want to send money to India and other parts of the world. Undeniably, our means of transfer—often fiat money— plays a significant role in making seamless and hassle-free remittances.
If you’re looking to make a quicker and cheaper money transfer to India, cryptocurrencies like Bitcoin (BTC) have got you covered. This new kind of money allows you to send money to India in ways like never before. But before we go any further, let’s first take a quick look at the importance of remittance in India and how it impacts the country’s economy.
The importance of remittance in the Indian economy
Apart from its diverse and vibrant culture, India is also known as the world’s largest recipient of remittances since 2008. According to a report from The Indian Express, India received 83 billion USD in remittances in 2020, with a slight decline of only 0.2% from 2019. This was despite the fact that a pandemic has badly affected the world economy.
Reports say that global remittance flows have proven to be more resilient than expected during the pandemic. In India, remittances are most often used for financial support, travel expenses for family and loved ones, educational programs and tuition fees, medical treatments, and a lot more.
Like sending money from other countries, sending remittances to India also requires you to choose a service provider and payment option, pay processing fees, and consider a lot of things like transaction speed and the amount of personal data you have to give. On many occasions, money transfers become tedious because of these necessary conditions.
This reality drives many people to look for alternative ways to send money to India. And luckily for some, they found new financial hope in cryptocurrencies like Bitcoin.
Factors that make Bitcoin remittances unique from traditional means
Earlier, we briefly discussed some challenges you may often encounter when you send money to India. Now, we will dig a little deeper into how Bitcoin can help you make money transfers to India without a hitch.
It’s available 24/7
Bitcoin is decentralized money that only runs digitally. This means that there’s no bank or any central authority that governs it. You don’t need to worry about financial institutions’ operating hours, nor their holidays, weekends, and even lunch breaks. With Bitcoin, you can make money transfers to India anytime you want.
It’s highly accessible and convenient
Since Bitcoin is a digital currency, it works with the use of technology. There are no paper bills or coins to keep in your pockets. All you’ll ever need is a digital wallet installed on your smartphone or laptop that’s connected to the internet. Once your Bitcoin wallet is all set, you can send, receive, store, and keep track of your funds right away. Simply put, everything you need is right on your phone. You can send money to India and beyond whenever you want and wherever you are.
It’s relatively cheaper
Let’s say you want to transfer money from India to the USA. Apart from finding a remittance center that can facilitate your remittance, you also have to carefully consider the fees and other important factors that come with the transaction. In many instances, money transfers come with hefty fees as these charges vary depending on the amount you’ll send, the destination of the fund, your mode of payment, the transaction purpose, and a lot more.
Bitcoin is probably the cheapest way to send money to India. Since it eliminates the need for intermediaries, you can steer clear of the fees charged by third-party platforms. Peer-to-peer (P2P) marketplaces like Paxful, for example, allow you to buy Bitcoin with no fees regardless of your chosen payment method.
It can give you better exchange rates
The value of fiat currencies shifts depending on the movements in the economy. Currently, some nations implement foreign exchange controls, which essentially give people limited access to foreign currencies. Folks from these countries can only change money at money changers or similar financial institutions that the government approves.
Fortunately, that isn’t the case with Bitcoin. It’s decentralized money, which knows no bounds and limits. It may be known as a highly volatile currency, but there are many ways to use Bitcoin to your advantage. Since the crypto market is evolving non-stop, BTC’s value can get higher in the future.
How to send money to India using Bitcoin
Now that we understand what makes Bitcoin transactions distinct from traditional means of sending money to India and other countries, let’s walk you through how to send money to India using Bitcoin on Paxful.
Step 1. The sender creates a Paxful account and buys BTC with USD
To send money to your friends and loved ones in India using Bitcoin, you must first create a Paxful account. Verifying your account allows you to unlock and enjoy more exclusive platform perks. After signing up, you’ll instantly receive a free Bitcoin wallet where you can store, send, receive, track, and manage your funds.
Once your account is all set, go to the list of Bitcoin offers and choose the one that best fits your needs. You can check out this article for a detailed guide to buying BTC.
Step 2. The recipient creates a Paxful account and forwards the Bitcoin address to the sender
For your recipient to receive the money, they also need to have a Paxful account. Once it’s all set, the recipient must send their Bitcoin address to the sender. A Bitcoin wallet address is a set of letters and numbers where BTC can be sent to and from. Here’s an example of what it looks like:
Apart from this long string of random letters and numbers, a wallet address can also be presented as a QR code. It can be shared publicly, especially with those who wish to send you Bitcoin.
Step 3. Sender transfers BTC to the recipient’s Bitcoin address
Once you have your recipient’s Bitcoin address, you can send the amount of BTC you like directly to their Bitcoin wallet. You can visit this guide to know more about how to send Bitcoin easily. It’s important to note that Bitcoin transactions are nearly impossible to be reversed. This is why you need to make sure that you’re sending the right amount to the correct username or Bitcoin wallet address.
Step 4. The recipient receives BTC and sells it on the marketplace to get paid in USD or INR
After your recipient has successfully received the money, the next step is to sell the Bitcoin on the marketplace to cash it out in United States dollars (USD) or Indian Rupees (INR). On Paxful, you have nearly 400 ways to get paid, including PayTM Online Wallet, Google Pay, IMPS Transfer, PhonePe, PayPal, and other popular payment methods in India. Check out this article to learn how to sell Bitcoin instantly on Paxful. Spoiler alert—it’s super easy.
Are you ready to make remittances with Bitcoin?
If Bitcoin remittances are new to you, you probably have a lot of exploration to do. The good thing is that we’re with you at every step of the way as you explore the ins and outs of the crypto world. We’re thrilled to know how your money transfers to India will go using BTC. Are you ready to take your first step towards cheaper, faster, and safer money transfers? Create your Paxful account now to get started!
* Paxful has no relation to PayTM Online Wallet, Google Pay, IMPS Transfer, PhonePe, PayPal or any other payment method. Paxful makes no claims about being supported by or supporting these services. Their respective trademarks and wordmarks belong to them alone.