Indacoin for money transfers: review
It’s easy to buy bitcoins on Indacoin, but prices are much higher than the mid-market rate.
Using bitcoin for a money transfer can be complicated. You need to handle all of the steps for the transfer yourself – there’s no service that does it all for you. If you’re up for the challenge, you’ll need a bitcoin platform like Indacoin. Let’s take a look at Indacoin to see if it’s a good choice for a money transfer.
|Product Name||Indacoin Cryptocurrency Exchange|
|Fiat Currencies||USD, EUR, RUB|
|Cryptocurrencies||BTC, BTG, BURST, BYC, CANN, CFI, CLAM, CLOAK, CLUB, COVAL, CPC, CRB, CRW, CURE, CVC, DASH, DCR, DCT, DGB, DMD, DNT, DOGE, OMG & 140+ more|
Bank transfer (ACH)
|Trading Fee||Fees vary|
|Deposit Fees||Fees vary|
Crypto to fiat: 7%
Cryptocurrency: Fees vary
- Available in more than 200 countries.
- Accepts credit or debit, Payza and BTC-e code.
- No purchase limits for first few transfers.
- No fee to deposit cryptocurrency.
- Bitcoin rates can be high compared to exchange rate.
- Payza withdrawals can take up to 20 days.
- Fee and exchange rate calculations not transparent.
Indacoin is a London-based cryptocurrency exchange founded in 2013. It lets you buy bitcoin with a credit or debit card without having to verify your identity. Indacoin also offers a trading platform where you can buy and sell bitcoin, Litecoin and Ethereum with other users around the world.
How do I send money through Indacoin?
Here’s the process to make a money transfer through bitcoin:
- Use fiat currency – government-issued money like US dollars and euros – to buy bitcoin.
- Send the bitcoins to your recipient.
- Recipient sells the bitcoin for fiat currency.
- Recipient withdraws the fiat currency to their bank account.
You can complete most of these steps on Indacoin. The only thing you can’t do is withdraw fiat currency to your bank account – for that, you’ll need to use Payza.
A more efficient method for an Indacoin transfer
Since Payza is the only method to withdraw fiat currency on Indacoin, it may be more efficient to send your bitcoins to Payza right away. This helps you avoid Indacoin’s 12% transaction fee for withdrawing fiat currency. For example, you could do the following:
- Buy bitcoin on Indacoin, sending them directly to your recipient’s Payza account.
- Then your recipient can convert the bitcoin to fiat currency on Payza. They can also withdraw the money to their bank account or credit card.
How are Indacoin’s exchange rates?
Indacoin’s bitcoin prices are significantly higher than the mid-market rate. At the time of writing (September 2017), for example, the price of bitcoin on Indacoin was US$1,642. By comparison, one bitcoin at the mid-market rate is worth US$1,164.
What is the mid-market rate?The mid-market rate is what your money’s actually worth on the global market compared to another currency. It’s the midpoint between worldwide supply and demand for that currency – and the rate banks and transfer services use when they trade among themselves. Use it as a baseline to compare against the rates provided by your bank or transfer service.
- At the mid-market rate, US$1,000 buys you about 0.86 BTC.
- At Indacoin’s market rate (without fees), US$1,000 buys you about 0.61 BTC.
That’s a difference of 0.25 BTC, which at the mid-market rate is worth about US$289. So, if you exchanged US$1,000 for bitcoins on Indacoin, you would get US$711, losing a significant amount of money.
Why is bitcoin’s currency code sometimes BTC and sometimes XBT?Because bitcoin is a decentralised currency, the standards that dictate how to refer to it are still forming. In its earliest days, bitcoin’s currency code was BTC. With its growing acceptance as a legitimate currency, the International Standards Organization (ISO) has since designated bitcoin’s notation as XBT. As bitcoin’s legitimacy (and the general public’s interest in it) increases, you’ll continue to see references to both BTC and XBT.
How much will I pay to send money with Indacoin?
A debit or credit card is the most convenient way to buy bitcoins on Indacoin. You can also use Payza, a payment processor.
|Debit or credit cards||4% ($2 minimum)|
|Payza||2.9% + US$0.3|
You’ll pay a fee for each transaction you make on Indacoin’s trading platform.
- Market fee: 3%
The only option to withdraw fiat currency is through Payza.
- Percentage fee: 12% (US$2 minimum)
These are a few of Payza’s fees.
|Receive funds||2.9% + $0.30|
|Withdraw funds – bank transfer||US$0.50|
|Withdraw funds – credit card||US$8 for withdrawals that are less than US$5,000|
Now, let’s look at an entire money transfer from US dollars to euros through Indacoin and Payza.
Transferring US$1,000 to Italy
Step Result Buy US$1,000 from Indacoin’s purchase page and enter recipient’s bitcoin address Recipient receives 0.48 BTC Recipient sells 0.48 BTC on Indacoin trading platform Sells at rate of 1 BTC = US$1,600; with market fee, receives US$745 Withdraws fiat currency to Payza (12% fee) Recipient sends US$656 to Payza Recipient pays Payza receiving fees (2.9% + US$0.30) Recipient receives US$637 in Payza Recipient withdraws funds from Payza via bank transfer (US$0.50 fee) Recipient receives 636.50 euros in bank account
Minimum transfer amounts and available countries
If you’re new to Indacoin, there are limits to how much you can spend on your initial transactions:
- US$50 for the first transaction, with a US$15 minimum.
- US$200 for the second transaction (four days after first purchase).
- US$500 after seven days from the first purchase.
For the first month, you’ll have a buy limit of US$5,000. After this, there is no limit.
How much can you send?
The amount you can transfer is capped by Indacoin’s monthly limit. For example, in the first month you can buy as much as US$5,000 in bitcoins, even though you may have to make small purchases to get up to that amount.
You can use Indacoin in more than 200 countries. It’s possible to use currencies other than US dollars, but they’ll be converted at your bank’s exchange rate.
What types of transfers does Indacoin support?
You can transfer fiat currency and bitcoin through Indacoin using these methods:
- Credit card
- BTC-e code
What is a BTC-e code?A BTC-e code is a redeemable code through which you can access the value of your cryptocurrency. Think of it like a gift card that allows you to become the owner of your funds.
What to look out for
- High bitcoin prices compared to the exchange rate. You’ll often lose around 40% of your money’s value when you buy bitcoins on Indacoin’s homepage.
- Withdrawing fiat currency takes a long time. Processing time for a Payza fiat withdrawal is 20 business days.
- No explanation of fee and exchange rate calculations. When you buy bitcoins from Indacoin’s homepage, you can calculate how many you’ll receive. But Indacoin doesn’t tell you how it makes its calculations.
Benefits and drawbacks
|Global services||Available in over 200 countries||Uses US dollars only|
|Transfer options||Credit card, Payza, BTC-e code||No bank transfer|
|Pickup options||Payza, BTC-e code||No cash pickup, bank transfer or credit card withdrawal|
|Competitive fees||No fees to deposit cryptocurrencies||High withdrawal fees|
|Minimum and maximum transfer amounts||No purchase limit after first few transactions and first month||Purchase limits for first few transactions|
|Convenient||Buy bitcoins with a credit card – no account needed||Selling and withdrawing is a hassle|
|Customer service options||Phone, email||No live chat|
You can get started on Indacoin without creating an account. Just go to Indacoin’s Buy Bitcoin page and make a purchase with your credit card. If you want an Indacoin wallet or access to the Indacoin trading platform, create a free account. All you’ll need is an email address.
The bottom line: It’s convenient – but expensive – to buy bitcoins on Indacoin. Withdrawals come with high fees. Ultimately, you’ll need to compare your options to find a money transfer service that’s right for you.