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Cryptocurrency: How to add money (or send crypto) to international wallets

Indian Cryptocurrency apps gain popularity

Indian wallets like Zebpay and WazirX have opened avenues for Indian investors to be a part of the global cryptocurrency phenomenon. With a basic KYC, easy to load money feature and an interface similar to a stock broking application, they have played a pivotal role in introducing a lot of Indian investors to crypto. Funds can be added via bank transfers or even UPI (though in some wallets UPI option has been temporarily disabled). Most of these wallets even display the prices in Indian rupees to make it easier for an average investor to understand the price movement. Several advanced features like trading view, chart trading, and stop limit orders make it easier to manage the trades. With modern smartphones, most wallets use finger print authentication to allow easy access and quick trade.

Limitations of Indian Crypto-Wallets

Even though, these wallets are relatively easy to use, they have some limitations as well. If you are already using Indian wallets like Zebpay and WazirX, you have probably realized that there are limited number of cryptocurrency options available on these platforms. In order to access the ever-growing number of currencies, one may need to reach out to an international option like Binance.

New opportunities to earn extra via cryptocurrencies

International wallets/exchanges also offer different Decentralized Finance (De-Fi) investment options. One of them is flexible saving rate (similar to a bank savings account, but for cryptos), where you can invest your crypto with a facility to redeem anytime. Another popular option is Staking (similar to Fixed Deposits), where the currency stays locked for a fixed period, and gives you returns usually in the same currency. These amazing options often boost the returns from crypto assets even further.

How to add Money to international wallet? – a work-around

As exciting as it sounds, direct access to such wallets is not that easy. Most wallets do not allow users to directly add money in Indian rupees. A quick work-around to this is to add money via Indian wallets. In this method, the user first adds money to the Indian wallet (likes of Zebpay and WazirX). This money is then used to purchase a crypto-currency, which is then transferred to the international wallet address. But this method may also entail a high cost. Let me explain.

When you are new to the crypto-world (which most of us are, considering the entire concept is quite recent), one is likely to start with a small amount, to try it out. Dip the toe in pool a bit, see what’s out there. First step is to open an account with a local wallet like Zebpay or WazirX. Say you decide to start with an amount of Rs. 20,000. As you load the money into bank, a small bank fee maybe deducted before the amount reaches your wallet. You go ahead and purchase a prominent currency Ether from the Ethereum blockchain. Now you want to transfer this money to your international wallet.

Wallets incur charges to transfer your crypto-assets from their wallet to an external wallet. These charges are recovered from you, in form of fee. As per the fee mentioned on Zebpay website, one has to pay 0.01 ETH fee for transfer of Ether from one wallet to another. At 2,00,000 INR/ETH that translates to roughly Rs. 2000. Now, as a newbie investor, losing 10% of your capital (2,000 out of an investment of 20,000) even before you have invested, doesn’t make a lot of sense. It seems outrageous and rightly so. Let us explore a possible solution.

Comparing different cryptocurrencies for cheaper alternatives

A simple study of various currency options available and fee associated with them tells us that not all cryptos have similar charges. Some enjoy much lower transfer expense. For example, in case of XRP (Ripple), fee is 0.15 XRP only. At 100 INR/XRP this translates to just Rs. 15. Another example is TRX (TRON) which has a fee of 10 TRX. At 11 INR/TRX, the transfer fee would be Rs. 110. (Actual fee will depend on prevailing prices at the time transfer is done.) Hence, using such currencies makes more sense when transferring money from one wallet to another. For this article, we will use Ripple as an example.

Now, transfer is a bit tricky. Even though you are transferring from one wallet to another, you need the wallet details corresponding to a particular currency. So, for transferring Ripple, you need wallet details for Ripple, from the receiving wallet (international wallet in our example). If we transfer it to another currency wallet address, or use the wrong address, our investments may be lost forever.

How to transfer crypto at low cost?

We will break it down the transfer process for you in easy-to-follow steps:

Go to the receiving wallet (e.g., Binance) and click on Deposit Option. (This is generally available in the wallet section)
Under deposit, choose the sub-option as Crypto. In the list that follows, locate the currency you wish to transfer. (in our example, that is Ripple)
Obtain the Deposit Address and Deposit tag. Usually there is a copy option available. Do take advantage of that, to avoid mistakes.
Open the Indian wallet and open the currency you want to transfer (Ripple in our case). Check the withdrawal limits, before you click on Send Option. Your current balance should be at least equal to the total of withdrawal limit and fee amount. For e.g., if the withdrawal limit for Ripple is 25 XRP and fee is 0.15 XRP, then minimum balance required is 25.15 XRP.
Once you ensure that the minimum balance is available, proceed to click on send (or withdraw). You will be required to enter the deposit address and deposit tag, identified in Step 3 above. The process also asks for a name, which is primarily for your personal reference. (So, you can keep whatever name you want)
The transferred currency will reflect in the other wallet (e.g. Binance) in a while.

What to do after crypto transfer?

On transfer, you may want to convert this Ripple directly into the currency you want to invest in. If that option is not available, you may check the crypto pairs your target crypto currency is available in. For example, if you want to invest in DOT (Polkadot), check possible crypto-currency combinations available with DOT, which are common with XRP. If there is a direct match available with XRP and any of the paired currency, you may convert to that currency and then use that to buy your desired investment.

If you do not have an immediate investment option, you may want to hold on for a while. However, Ripple is also a volatile currency. It may not be prudent to keep your assets parked in Ripple (unless that’s your investment choice). In such a case, you may convert it to a stablecoin like USDT or BUSD. These coins are pegged to a dollar and usually do not show heavy volatility (except in event of massive moves in the market).

To Sum Up..

In this article we discussed how to transfer cryptocurrencies from one wallet to another at very low costs. Use XRP(Ripple) or TRX(TRON) to reduce costs significantly. Ensure minimum balance is available (min. withdrawal limits + fee). Carefully enter the deposit address and tag of appropriate cryptocurrency. Once the transfer is complete, you can invest in other crypto-currency options and even Decentralized Finance applications.

Happy Investing!

Create Crypto Account using Referral Codes:
Binance (Save 10% on Fees: ML0XS2TK),
Zebpay (RFR81106888),
WazirX (m3kn7k4h)

Cryptocurrencies are highly volatile and involve high risk. The content shared here is only for educational purpose. Please consult your financial advisor before making any investment related decisions. The author or the website will not be liable for any loss incurred by you. The article contains referral links to wallets, which may benefit the author/website at no additional cost to you.

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Option to choose from two tax regimes

The previous budget has introduced a new tax regime, where an individual tax payer has an option to opt for a lower tax rate (but with fewer deductions and exemptions) instead of the regular tax regime (with all deductions and exemptions available). This is the first year when this option will be exercised.

Salaried employees may choose between the two options on a yearly basis. In fact, even after opting for a particular option with their employer, they may opt for another option while filing their ITR. For assessee with business income however, new tax regime is a one way road. Once opted for the new tax regime, you cannot go back to old regime.

Less time for Belated or revised ITR

Before the amendment, an assessee failing to file ITR by the due date of 31st July could still file it by 31st March, with late fee. Similarly, any changes/revisions in the return could be made till 31st March of the same year.

With Finance Bill for 2021-22, this time limit has been reduced by three months and therefore till 31st December of the same financial year.

Dividend Income to be taxed

Dividend (from domestic companies and equity mutual fund) was tax free for majority of small investors as tax was paid by the company/mutual fund at the time of distribution of dividend. However, this exemption has been removed. Now, dividend income will also form a part of the taxable income.

Further, if the amount of dividend exceeds Rs. 5000, the company or mutual fund house would deduct TDS on the same. This TDS would also be reflected in Form No. 26AS.

How to re-start your studies?

Ready to begin again? But not sure where to start? This will help..

One question students often ask is, whether to opt for one group or both? That’s a fair question, considering we don’t want to bite more than what we can chew. Another related question is, within each subject where should I start from? Which topic/subject should get more time allocation? I am going to share an interesting technique with you to evaluate how to get started.

To understand how to achieve our goals and what steps to take, we need to have some information. For example, if you search for directions to Mumbai Airport on Google Maps, you need to enter the starting point. Hence, the first step would be to know where you currently are (i.e. your current position) and how far is your destination from here. That will help you decide how to make it happen.

THE STUDY SIGNAL TECHNIQUE

Its a very simple but scientific method of assessment of your current position. Remember those traffic signals with Red, Yellow and Green lights? A Red lights asks the driver to stop, a Yellow light requests the driver to be careful, while the Green light is a Go Ahead. We are going to use something similar to evaluate our status. Get your colored pencils out, for we are getting started!

We will conduct this study across all the subjects and will broadly cover all the chapters/topics. Whether to do this on a topic level or chapter level is your choice. Once decided, prepare an assessment sheet with all subjects and chapters/topics in one place. You may also use the index of the book(for convenience sake). You have to rank every topic/chapter based on your comfort level. Now, the comfort level maybe hard to access. Sometimes, our perception makes us feel one thing, while the truth lies elsewhere. That’s guesswork and not a very scientific approach.

To get a ‘true and fair view’, you have to attempt one or two random questions from each topic/chapter and based on familiarity with those, decide your comfort level. Here is an idea to get started. Were you able to understand what the question is asking you? Are you familiar with the concept being tested? Are you able to begin the solution? Did your final answer match with the one provided in the book?

Based on how many of the above answers are in affirmative, you can decide the relative comfort with the topic. If the answer to all the questions is a yes, it signals a high comfort. This is one of the relatively easier topics for you. Code this topic in Green on your assessment sheet. If you are using the book index, you may just mark a small Green circle in front of the topic/chapter.

If you are able to understand the concept being tested, get started on the solution, but not able to arrive at final answer, the topic belongs to second category. This is where are have some familiarity and comfort, but needs work before we can call is a comfort topic. Mark these topics with a Yellow circle.

The last category is a tough one. These are topics you could not identify, or questions you could not begin. This is where maximum effort is required to build comfort and familiarity. Mark these topics with a Red circle.

Once the assessment is completed on topic/chapter level, you can use it to give an overall ranking to the subject. You may decide the colour code for a subject, based on where maximum topics/chapters lie. This exercise may seem time consuming, but is very important to start in the right direction. Let me explain further.

Once you know exactly where you stand, you can arrive at a rough estimate of time required to complete all the topics. When we get started with a ‘red’ topic and build some comfort, we re-code it to a ‘Yellow’. Similarly, once we have properly studied a ‘Yellow’ topic, it moves to ‘Green’. You need to take a rough estimate of time required to convert all codes to Green.

How many groups should I appear for?

Based on the above analysis, you have an approximation of time required for completing your portion. Compare that with time available to you. Please keep some margin of safety in time availability, to account for the bad health days or other disruptions. (May allow 5-10% depending on your circumstances)

If you feel that both groups study, revision and tests can be completed within the time available, please opt for both groups. Else, apply for both groups, prepare for the first one and appear both (just in case). Alternatively, you may also focus on the group you are more comfortable with and leave out the other one entirely.

Subject & time allocation

All subjects carry equal marks and its equally important to pass in all subjects. By this logic, all subjects should get equal time allocation. However, that may not be a very practical solution considering the syllabus and relative comfort differs per subject. You may dedicate more time to topics in red, especially ones carrying higher mark weightage traditionally. But, please ensure that this is not at the cost of relatively easier topics.

All the Best

Aditya Puri sells 74 lakh shares worth Rs 842.9 crore in HDFC Bank

HDFC Bank CEO & MD Aditya Puri sold approx 74 Lakh shares amounting to Rs 842.87 crore as per regulatory filings. The share sale has brought down Puri’s holding to 0.01 per cent from the earlier 0.14 per cent.

The sale comes months ahead of Puri’s retirement from the bank. His term is set to end in October when he attains the age of 70.

Puri had emerged as the highest-paid Indian banker in FY2019-20 with a 20 per cent growth in gross earnings at Rs 18.92 crore. He had also earned an additional Rs 161.56 crore in FY2019-20 and Rs 42.20 crore in FY2019 by exercising his stock options, as per the bank’s earlier disclosures.

Source: https://www.business-standard.com/article/companies/aditya-puri-sells-7-42-million-shares-worth-rs-842-9-crore-in-hdfc-bank-120072600388_1.html

Category: Blog