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How Millionaires Cheaply Transfer Large Sums in the Crypto

Cryptocurrencies are often criticized for being inconvenient to use for money transfers and various kinds of payments, because the network commissions are very high, the waiting time is long.

Cryptocurrency transfers are not convenient, you have to wait a long time, open cryptocurrency wallets and to understand the technology and how everything works.

While some people complain about the discomfort of using cryptocurrencies and say that they will never conquer the world, millionaires and billionaires are not afraid of anything. They transfer large sums around the world while paying very small commissions.

After all, everything is learned by comparison. Calculate the commissions of banks for international transfers. Especially the commissions when making transfers between different countries for large sums. 

In addition, large transfers between countries need to be justified by providing supporting documents. Verification of documents also takes time.

Moreover, international transfers between banks are not instant. They takes some time and very often they take much more time than cryptocurrency transfers. 

And millionaires know how to count and compare. So it is not surprising that there are regular stories in the press about large transfers of cryptocurrencies.

Just some examples

On October 26, 2020, 88,857 BTC were transferred from one of the largest cryptocurrency wallets with a fee of 0.00027847 BTC, that is $3.50 at the time of the transfer.

According to Blockchain.com's data, an unknown person transferred 88,857 BTC, which is $1.15 billion at the exchange rate at the time of the transaction, with a commission of just 0.00027847 BTC equal $3.5.

Now imagine what commission the sender of the money would have paid to the bank. what documents he will need to provide and how long it would have taken to receive the money.

The wallet from which the transfer was made was created on August 6, 2020 and became one of the largest in volume of coins.

According to Whale Alert, the address belongs to custodial service Xapo. It was bought in 2019 by cryptocurrency exchange Coinbase, which controls one of  the largest volume of bitcoins in circulation.

The previous record for bitcoin transfers in dollar terms was set in April 2020. At that time, the Bitfinex exchange moved 161,500 BTC worth $1.09 billion with a fee of $0.68.

The largest transaction by the number of bitcoins sent belongs to the bankrupt exchange Mt. Gox. In November 2011, it transferred 550,000 BTC worth $1.32 million.

For large cryptocurrency payments, millionaires prefer Bitcoin even in spite of the highest fees in the network. Bitcoin has the highest capitalization and liquidity.

The cheapest and fasters blockchains

But there are other much cheaper and faster blockchains.

  • Nano: $0 commission, 0.14 seconds to confirm.

  • Digibyte: $0.0005 commission, 5 minutes to confirm.

  • XRP: $0.00078 commission, 4 seconds to confirm.

  • Stellar: $0.004 commission, 4 seconds to confirm.

  • Dash: $0.0043 commission, 15 minutes to confirm.

  • Litecoin: $0.041 commission, 30 minutes to confirm.

  • Monero: $0.0696 commission, 30 minutes to confirm.

  • Doge: $0.239 commission, 20 minutes to confirm.

But everything depends on the liquidity of the blockchain.

Conclusion

Thus, cryptocurrencies are a convenient tool for fast and cheap transfer of funds between countries. They are easy to use with minimal knowledge of technology and do not require the preparation of a large number of documents, which are usually requested by banks when making money transfers between countries for large amounts.


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