So, you’ve made some money abroad and want to send it to the loved ones in your home country because they simply need it. We know. But how are you about to make a transaction?
Bitcoin (BTC) vs Western Union
Let’s say, you want to send money to your father living in India, and you’ve allocated $1000 for that. Good job! The next obvious step for you is to check out the website of Western Union, right?
- Say, your dad has got a bank account. The transfer to his bank account from your credit card would cost you $2,99, thus, $1002,9. And he will have to wait one day.
- If your dad is a little bit of an old school, he will probably want to get cash at the closest Western Union office simply because it’s the easiest way possible! Yet, that would cost you even more, namely, $20, thus, $1020.
Nothing is too good for our parents, but is there a way to pay less for those transfers? Let’s see what this bitcoin fuss is all about!
You’ve read about it, you’ve heard other people talk, now it’s your turn to get down to the nitty-gritty of transacting BTC!
The equation is the same. You still want to send $1000 to India, except:
- if your dad needs that money in 20 mins, that would cost you, as of writing this post, ~$0.13 (miner’s fee)
- if your dad can wait for 2 hours, that would cost you, as of writing this post, ~$0.04 (miner’s fee)
… in theory
In practice, though, several issues might pop up.
- First, you will have to convert fiat to bitcoin, which is pricey.
- Plus, your dad has to pay for his loaf of bread with fiat, so he will have to convert your bitcoin back to fiat, which is even more pricey.
- Besides, all that might be a little bit too technical for him, and it’s possible that you will need to ask your younger brother, still living at home, to help your father verify his account and make his first trade!
Say, you’re still curious at the point and accept the challenge. Because your dad is cool, and he learns fast. But what options do you have for beginners?
Hmmm… are Coinbase and CEX.IO user friendly?
Yes, and your parents can use them if anything!
To show you how it works, let’s pick CEX.IO, because most likely it operates in your country.
The following countries are restricted for credit card purchases: Iceland, Vietnam, Afghanistan, Algeria, Bahrain, Iraq, Kuwait, Lebanon, Libya, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, and Yemen.
The following countries are restricted from buying with bank transfer: Afghanistan, Democratic Republic of the Congo, Côte d’Ivoire, Eritrea, Ethiopia, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, Liberia, Libya, Guinea, São Tomé and Príncipe, Somalia, Sudan, Syria, Tanzania, Tunisia, Turkey, Vietnam, Yemen, Zimbabwe.
Is your dad living in one of those places? Try Kraken!
But wait a minute! Is this Coinbase/CEX.IO user-friendly experience expensive?
Pretty much. For demonstration purposes, we’ll go with CEX.IO because it’s easy. But this exact easiness comes with the price.
- First, deposit $1000 to your CEX.IO account from your Visa card. The deposit would cost you 3,5% + $0.25 = $35+ $0.25
- Then, buy BTC on CEX.IO and pay 7% for this instant purchase. There are options, but it’s the easiest way! $70
- In the meanwhile, ask your dad to register with the platform, because we’re about to transfer bitcoins to his account. Is there your little brother somewhere around? 🙂
- Here you go. You’re transferring. That would cost you $0.13 miner’s fee.
- And yes! Your dad has received bitcoins. It’s time to trade them and then withdraw dollars to his MasterCard. The trade would sum 0-0.16%, or $1,6.
- The withdrawal would cost him $3,80 + %1,2. $3.80 + $12
In combined, you will have to pay ~1123$ for your dad to grab a hold of ~$1000, which is already much more expensive than with Western Union – $1020.
Still on board? You’re feisty!
To recap =>
it really makes sense to pay those high fees in several cases:
- you’ve landed a lot of airdropped coins, sold them on DDEX and now want to land fiat right to your credit card
- you’ve earned a fortune on bounties
- you trade big volumes on crypto exchanges and generate significant revenues
- you’ve got some money and want to teach your dad to convert bitcoin to fiat with one of the most user-friendly platforms existing
Don’t get the wrong idea! There are multiple ways for you to deposit and transfer bitcoin except for CEX.IO. It’s just that CEX.IO and Coinbase are the easiest options out there to start learning about crypto.
Fees with different BTC exchanges
Do you still want to make your first bitcoin transaction? Let’s look into your options!
These other exchanges have won the praise of the community, although Kraken and Coinbase Pro, honestly speaking, are more for advanced users.
But if you feel like your dad will manage, we really recommend you to take a closer look at the following options first and foremost.
- Kraken Deposit fee with international wire transfer is €5. Withdrawal fee with SEPA bank transfer is €0.09
- Gemini No fee with wire transfer for withdrawal and deposit
- Coinbase Pro Deposit fee with wire transfer is $10. Withdrawal fee with wire transfer is $25
Let’s transact already!
if you still think you should use CEX.IO because this is the only user-friendly platform available in the country where your dad lives, let’s go!
To begin with, register with the platform and tell your dad to do the same. Ask your brother to assist him if needed 🙂
Next, you need to deposit your account. To do that, press the green button at the top right corner of your screen, and you will see something like this:
Hit the “Add a new card” button and proceed to the annoying part, which is called “verification”. It’s time to download the mobile app!
Just click on your profile pic and then on “Verification”! This is where you dad might need your brother!
Then, push the “Identity verification” button and follow the instructions! The verification process is not very complicated. Just make sure you’ve got a nationality ID, or a passport, or a driving license at hand.
As soon as the verification process is done (max 24 hours), you can start using the service. Go back to home page and choose the amount of money you’re ready to spend. Note, this instant buy on their home page will cost you 7%.
Subsequently, you pushed the blue card, right? This is what the interface will look like once you open the new window. Easy! You just need to add the credit card! It’s a pity, though, that this kind of user experience comes with such a high price.
It’s time to send BTC to your dad. Tell him to go to finance page and press the deposit button to get his wallet address. Where is your little brother? He could be of a use! Then, press “withdraw” and paste your dad’s address in the box. Double check the address string!
Now, you’ve done your part. You’ve transacted BTC for the first time ever. YES! All your dad needs to do next is to trade your BTC on the exchange and withdraw dollars to his MasterCard. Not so sure he will manage? Right. That’s the deal with BTC, it’s complicated. But if your dad wants to learn, the CEX.IO will be easy enough. It’s really user-friendly and a good option to feel what they call a zeitgeist.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice!
Do you enjoy the first-timers series? Please click the button and keep on reading these other articles!
How to make an ETH transaction for the first time ← P R E V I O U S
N E X T → How to buy ETH (for the first time ever)