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.
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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