Just before we start discussing about fees for transferring money using Bitcoin, let us take into consideration how these money transfer services are generating profits.
- Some are charging transaction fees when depositing, transferring or withdrawing money
- They can also generate money through the exchange rate when converting money
Here is a quick example on how money transfer services are skewing exchange rates for profits.
Is this Fair?
Say that you like to transfer 10,000 dollars to France. Your actual 10,000 dollars might just worth 9,400 in Euros but a bank might just convert the 10,000 dollars to 9,000 Euros instead. Meaning to say, on that transaction alone, you have already lost 400 Euros.
When converting fiat currency to another, expect to lose money on the exchange rate.
Should You Stick with Traditional Money Transfers?
If you are transferring money through Bitcoin on the other hand, you will lose money that is twice on exchange rate. Here is a brief explanation.
In the event that you like to convert US dollars to Euro using Bitcoin as the medium of transfer; you will have to trade US dollars to Bitcoin first wherein you might lose on exchange rate between the currencies. Then after, you need to trade your Bitcoin again to Euros wherein you would lose money on exchange rate. So before making the transfer, look at the options and analyze a little bit.