Crypto calculator | Avoid international transaction fees with stablecoin

This particular tool is for assisting freelancers and creators who need to deal with cross-border transactions, helping you to understand how to convert and deposit money into the desired currency for your businesses, including e-commerce stores and subscription-based platforms, using a cryptocurrency stablecoin pegged to the U.S. dollar.

Why use crypto for currency exchange?

While traditional methods often incur fees of at least 2.9% plus fixed fees for international transactions, crypto exchanges typically charge a maximum fee of around 0.6%. This significant difference in fees can lead to substantial savings, especially for non-US creators who often face higher transaction costs. Additionally, crypto exchanges offer more favorable exchange rates compared to banks. Despite concerns or unfamiliarity with cryptocurrency, leveraging this channel for currency exchange can ultimately result in more efficient and cost-effective transactions for international nomads, maximizing their earnings. Let's take the most used payment processor, PayPal, as an example.

For every international transaction to withdraw money out of the United States, PayPal charges:

• 2.9% + fixed fee for processing
• 1.5% (international transaction fee)
• 4% conversion conversion fee
• A poor conversion rate ( PayPal currency calculator )

In total, you are losing over 8.5% for converting each USD payout. For more information, check PayPal's merchant fee documentation. Remember that fees vary by region. Scroll down to the bottom of the page and click on the country flag in the bottom right corner to select your country's language.

In comparison, here are the fees to convert USD to stablecoin to your desired fiat currency.

• Crypto exchange fees:

1. Receiving fee - depends on crypto exchange
2. Buy/ sell crypto fee ( maker/ taker fee ) - under 0.6%
3. Gas/ Network fee - around 5 USDT
4. Withdrawal fee - depends on crypto exchange

• Wise fees:

5. Receiving fee ( free for ACH )
6. Deposit to local bank fee - fixed fee ( around a few cents for depositing same currency )

First and foremost, I only encourage buying stablecoins, USDT or USDC, here as we are working with your income here and stablecoin has less market fluctuations compared to other crypto currencies.

When buying and selling stablecoin to convert your income into fiat currency, you have to consider 4 fees. Since you are buying stablecoins and selling them for the desired fiat currency, the maker/ taker fee and network fees are doubled. For instance, you have to pay a total fee of 1.2 times the taker fee, network fees of around $10 USD and fees for receiving and withdrawing funds to your chosen US account, such as Wise. The specific maker and taker fees depend on the crypto exchange you use, with platforms like Coinbase charging a taker fee of 0.6%. However, if you opt for ACH transfers, you may avoid receiving and withdrawing fees altogether.

In summary, by using stablecoins to convert your income, you could potentially save over 7% compared to traditional methods. While there are alternative cryptocurrencies and methods, such as crypto layer 2 solutions, they may not offer the same level of security as stablecoins. It's crucial to weigh the benefits and risks when choosing the most suitable method for converting your funds.

How to convert fiat currencies using crypto?

Now let's how much it costs to convert your payout from USD to your desired fiat currency using crypto. Note that there are three things you need to make this work.

1. Check crypto exchange that holds your fiat currency.
2. Make sure you are able to transfer money from and to crypto exchange safely.
3. Hold a US account.

Crypto exchanges often have limitations on the fiat currencies they support, for example, with only a handful, like OKX, Binance, and Coinbase, offering CNY. Binance is on of the leading platform for exchanging fiat currency for crypto. However, it's worth noting that institutes like Payoneer and Wise don't accept payments from Binance. Coinbase emerges as a decent alternative, offering a diverse range of cryptocurrencies and fiat currencies. While its maker and taker fees are slightly higher compared to other exchanges, they remain competitive, especially when compared to traditional banks and payment processors.

If you're looking for a low-fee option for opening a US account, choices are limited. Payoneer's Terms of Service explicitly prohibit any cryptocurrency-related activities, leaving Wise as one of the few alternatives for non-US individuals. The standout advantage of Wise lies in its seamless cross-border financial management capabilities. By using Wise, you can steer clear of hefty international transaction fees and unfavorable exchange rates, making it a practical choice for those needing efficient global money management. No monthly fees; however, you won't earn interest from Wise. You do not need Social Security Number (SSN) to open a Wise account, you can provide your passport, national ID card, or driver's license.