Hello there! Are you:
- An international student in Indonesia?
- An entrepreneur with overseas suppliers?
- Or an expatriate with a family back home?
If you fit into one of these categories, you’re likely familiar with remittance services. Sending and receiving assets abroad is a regular part of your financial routine.
Which remittance services are you currently using? If you’re still searching for the best way to send assets abroad, consider using crypto. What are the advantages compared to conventional services?
Let’s find out!
Send Assets Overseas: Conventional Services Vs. Crypto
Crypto is more than just an investment asset.
These days, the term crypto might sound familiar. Bitcoin, Ethereum, and Solana are frequently discussed on podcasts and even during coffee shop conversations.
If you think crypto is only for investment, think again. You can use crypto for fast, cheap, and flexible global transfers.
The following is an example of a case:
Mr. Andrew Smith, a 35-year-old US expatriate, has lived in Bali for ten years. He regularly sends US$1,000 each month to his family in his hometown. Let’s compare conventional services with crypto for sending assets abroad.
Send Assets to the US with Conventional Services
If Mr. Smith wants to use a conventional service to send it, he has to pay fees of around 0.97% of the total transaction amount.
So, if Mr. Smith wants his family to get the full amount of US$1,000, he has to prepare US$1,009.7 so that the amount can cover the fees.
Furthermore, some conventional services are limited in their reach and the transfer process takes time as it could take up to 3 business days for the receiver to get it.
Global Transfer Using Crypto
Consider if Mr. Smith used crypto to send US$1,000 or IDR 16,282,000 to his family in the US.
Using the Luno app, he can deposit IDR 16,282,000 into his IDR wallet and then exchange it for USDT. This transaction incurs a fee starting from 0%.
After the exchange, Mr. Smith’s funds would still be IDR 16,282,000 or US$1,000. USDT (Tether) is a stablecoin that maintains a stable value by being pegged to a fiat currency like the US dollar. One USDT typically equals USD 1, making it more stable than other crypto. Therefore, Mr. Smith can obtain USDT at IDR 16,282 per USD and keep his funds stable at US$1,000.
He can then send the USDT to his family’s USDT address in the US. Luno charges a fee starting from US$1.8 for sending USDT, the fee is dynamic and depends on the network traffic.
Generally, these fees are lower than those of conventional services, especially for larger transfers, as the cost of sending crypto is relatively constant regardless of the amount.
Furthermore, crypto allows for secure, real-time transactions that can be conducted anytime and anywhere, often at more affordable rates. Remember that learning about crypto’s benefits means staying within conventional services. The comparison above will offer more flexible and cost-effective options for international asset transfers.
Embrace the Future of Digital Assets with Luno
In financial terms, an asset is anything that holds economic value, such as cash, property, or art. While crypto doesn’t have a physical form, it possesses significant monetary value, making it a digital asset.
The real innovation of crypto is its underlying technology: blockchain.
Blockchain is the core technology behind crypto. It functions as a distributed digital ledger, securely and transparently recording and validating all transactions.
For international transfers, blockchain enables peer-to-peer (P2P) transactions without needing third-party intermediaries. This capability reduces costs and speeds up transaction times, making crypto a highly advantageous option.
Start your journey into digital assets today! With Luno, you can easily, quickly, and securely buy your first Bitcoin, Ethereum, or USDT.
Download the Luno app, available on Google Play and the App Store. Use promo code LUNOEZPZ while registering on Luno to get free Bitcoin worth Rp100,000.
Luno is registered and supervised by the Commodity Futures Trading Regulatory Agency (Bappebti). Trading and investing in crypto assets is a high-risk activity. Read more on our Terms of Use here: www.luno.com.