Is Accepting Crypto Salaries Worth It?

[shanhaigamefi]

A recent survey revealed 93% of freelancers around the world want to be paid in crypto or stablecoins. This surge in interest stems from the frustration many face with foreign exchange hassles. Transaction fees and exchange conversions make working with international clients a challenge. Crypto offers a potential solution, streamlining payments and eliminating these roadblocks.

What are the potential risks of receiving cryptocurrency as salary?

🔨KYC and AML Rules Pose Challenges
While crypto salaries might seem trendy, Felix Shipkevich, founder of New York-based law firm Shipkevich PLLC, warns they can be trickier than traditional methods.

The main culprit? Crypto’s notorious volatility. Unlike a steady paycheck, Bitcoin and similar currencies can swing wildly in value. This means freelancers could see their hard-earned income shrink before they convert it to usable cash.

And even though Bitcoin’s price has been on a tear, skeptics warn its future remains a gamble. Shipkevich indicated that stablecoins instead offer more stability. But their value is still tied to potentially risky reserve assets.

He also said that freelancers need to navigate a technical learning curve. They would have to understand digital wallets, blockchain, and the intricacies of crypto transactions. To top it all off, ever-changing crypto regulations throw tax compliance into a spin. These headaches can vary by location and may require specialized accounting help.

Further, KYC (know-your-customer) and AML (anti-money laundering) regulations are tightening. This requires freelancers to jump through hoops with identity verification and transaction limits. In short, crypto salaries come with a hefty dose of complexity.

🎯Tax Bill Might Burst Your Bubble
Daniel Krupka, chief research officer at Coin Bureau, said that unlike the simplicity of fiat taxes, crypto throws a wrench into the equation.
“Whereas it’s easy to calculate how much you owe in taxes with fiat payments, it’s less easy with crypto payments, particularly volatile cryptos like BTC,” he said.

Is it a capital gain, regular income, or something else entirely if you hold onto that Bitcoin and its value skyrockets? Krupka emphasizes that the tax headaches, especially with volatile cryptos, might outweigh the initial appeal of crypto payments for freelancers.

🌧️Hurdles in Crypto to Cash Conversions
Daniel Fayemi, a backend engineer at Bitvavo, said that converting crypto to cash (off-ramping) can be challenging depending on your location. For instance, in the Netherlands, strict regulations limit the amount of money you can move off an exchange without providing personal details.

📣Stablecoins Outshine Crypto for Payments
Matthew Leising, co-founder at DeCential Media, said that stablecoins offer an excellent choice for freelancers familiar with crypto and are relatively straightforward for newcomers to establish.

Stablecoins also provide an opportunity to earn a respectable yield within the crypto economy, such as the current 5.1% on USDC at Coinbase. However, a potential challenge arises with the freelancer’s bank, which may be hesitant about facilitating crypto transactions, especially when converting earnings into US dollars or other fiat currencies, Leising said.

According to Rebecca Liao, CEO of Saga, the good news is that legislators and presidential candidates are increasingly embracing crypto. She believes that once comprehensive crypto legislation is enacted in the US, freelancers will extensively receive payment in stablecoins.

This article is reproduced from cryptonews

[Reatim]

Appreciate the very extensive discussion. Just want to add that this topic has been discussed before and just recently as well.

The discussion of having crypto as your salary can be decided by your own if you are going from client to client but if you are working with a contract, like you said there has to be laws and regulations considered if this were to be implemented widely in the workforce.

[bitmover]

I love being paid in crypto. Makes things much easier, you just make the job and receive the payment. No intermediaries.

I received already some payment in crypto for services that I made in the internet, sometimes from people in other countries. This makes payments faster and easier, and even cheaper for me (because bank fees for different currencies are high where I live)

🌧️Hurdles in Crypto to Cash Conversions
Daniel Fayemi, a backend engineer at Bitvavo, said that converting crypto to cash (off-ramping) can be challenging depending on your location. For instance, in the Netherlands, strict regulations limit the amount of money you can move off an exchange without providing personal details.

If you were receiving in traditional payment methods, you would have to give much more personal information

[PhillipDe78]

A couple of my friends have recently started receiving payments in cryptocurrency, and they are very pleased. The low fees and instant delivery are great, as is the availability almost anywhere in the world. Who wouldn't be happy with that?

[Dunamisx]

With the way things are going now, many were already looking for means to make use of crypto as their earning plan for their source of income or salary pay, if we are this inclined to that extent, then we will have to realized the need for getting a job that offers for payments in cryptocurrency, there is nothing bad i this because it will help you to make more earnings from it as well as have the opportunity of converting the little part for fiat exchange and spend for your daily needs, we only have to be mindful of the coin to be considered in making such payment.

[Cryptomultiplier]

Many jobs of the future would require not only an adequate knowledge of cryptocurrency and web3,  but also a user to have it as a receiving account for any opportunity that comes in form of a job, in the region they currently find themselves.
It's worth it for me and I would consider it any time and any day, because of my availability to the knowledge and interest in it.

[Beparanf]

As a crypto user yes since you will save some fees on converting fiat to crypto and also you can automatically invested your salary to crypto like a form of DCA instead of having a dilemma on when to buy.

This is only have cons since most of us has a regular expenses needed on fiat which consume a huge part of salary so convenience wise it’s better to have a fiat salary instead of crypto. But again it depends on what consumes more either fiat or crypto to your salary as deciding factor for this topic.

[coin-investor]

It depends on the industry where the worker belongs if you're an internet-based worker then receiving a salary through Cryptocurrency is worth it, but if you're working in a factory and you are receiving your salary in your office directly then fiat is still the best choice.

I have received my salary both in Cryptocurrency and through fiat and both have their pros and cons, salary in Cryptocurrency is subject to volatility while on fiat or your local currency, the inflation in your country is your main concern.

[MarvinHagler]

The volatility of digital currencies scares a lot of people so it depends on how bullish you are and if you truly believe in crypto.

[avikz]

The payment for a freelancing service and a salary payment are structurally very different. Freelancers will prefer crypto payments because it will help them to hide here income from the government and also they would not have to make payment towards foreign exchange fees.

For a salaried person, the proposition is very different. The employer will be reporting the income to the government so there will be no way to hide the income. Considering how volatile Bitcoin is, paying taxes on it will become pain point. Also the existing liabilities of that person will suffer due to the increased or decreased amount of money that person will be received as a salary.

Personally I will prefer fiat as my salary!

[Kelward]

Receiving salaries in cryptocurrency is worth it because it doesn't have any boundaries and the receiver don't have to worry about the location where they receive it. It's true that cryptocurrencies are volatile and a crypto like Bitcoin, is best to hodl on the long term, but the receiver will need money on the short term, that is why I'll prefer that they receive salaries in stablecoins.

With stablecoins a person can budget their salary, the ones for expenditure can be converted to fiat and the one for long term savings or investments can be converted to Bitcoin. Also Bitcoin is a good option to collect salaries with, it's a digital cash for payments and an investment asset that is a store of value.  The holder can convert Bitcoin to stablecoins for short term savings and some to fiat for payments where they don't accept Bitcoin.

[Peanutswar]

This topic has already been created many times, people can accept this due to innovation and somehow people they don't, there's a law implemented that they will use their own currencies as their payment for their salaries now it depends on the company if they will change this kind of way of having a payment, again the market of the crypto is volatile no one doesn't understand the crypto would like to risk their money with this volatile instead they will get all of their hard-earned money now they will pay the fees for making transaction converted into fiat and possible before they converted the market crash another struggle to them like they will cut cost. Its good we are heading toward the future but not everyone likes and understand the crypto.

[GideonGono]

As a freelancer I would also like to receive my salary in crypto so that it would help me save some transaction fee.
I would like to receive my extra income in crypto since I am earning Fiat in my current job.

[dunfida]

As a freelancer I would also like to receive my salary in crypto so that it would help me save some transaction fee.
I would like to receive my extra income in crypto since I am earning Fiat in my current job.

I dont think that it will save you up some transaction fee but rather it would really be more than on paying up those fees on using up those common methods like Paypal and other typical payment processors that we do have.
Im not saying about hating up Bitcoin or crypto payments in regarding into your job pay but this one would really be that depending on a certain individual on which there would really be still those people who would really be that preferring on accepting those old ways or methods. You could always be free on purchasing up some coins or crypto with your fiat salary. If there would really be some options with your company or owner been trying out to integrate crypto payment then its good for you specially if you are someone whose really that Bitcoin/crypto supporter but actually this thing doesnt really matter that much.

Making up integration would really be something that needing up that kind of confirmation about laws and regulations specially if its been that applied on those companies which does have permits
and licenses. If they do able to apply such option then it simply means that your country is really that considering crypto adoption which is really that good to hear on.

[Agbamoni]

So glad that there are online jobs and i am into the field. I receive my salary either in my local currency or USDT depending on the clients. Yeah, i don't have a fixed salary and i don't work for on site for any company. I work remotely which makes me meet several kinds of client willing to pay with the fastest available means of payment.

Accepting crypto payment is truly worth it depending on your nature of job. And if were your working supports crypto payment. The reason is because there are several things you can do with your salary like investing or storing it in Stabe coin so that inflation won't caught up your fiat. The most important thing is that if you convert your pay from the crypto t local fiat you will find out that you earned more than when you receive in fiat. Crypto payment is mostly larger than fiat payment.

[mindrust]

It is definitely worth it as long as both parties trust each other. Otherwise they will have to use a mediator like upwork that protects the rights of both the employer and the freelancer.

Crypto solves something very important (permissionless payments) but it doesn’t solve human behavior problem. Because of that we will always have to depend on a third party service I am afraid.

If you want to get paid in crypto, you’ll always have to provide the best quality work and the employers should want to hire you specifically. You shouldn’t be looking for work. That’s the only way.

[kentrolla]

I remember responding to similar topic in the past but regardless I would say it depends on individual I wouldn't prefer my entire salary in Bitcoin or crypto due to volatility but I would prefer 60% in Fiat and 40% in crypto.  It makes sense not to have everything in crypto because just one market correction or dump we will be in soup with reduced balance or either way around its either payer or receiver who will have deficit and looking at the transfer charges it wouldn't be considered as salary payment when payer has to borne the transfer fees which is huge.

[Antotena]

All you have said is not satisfactory in so many ways, they kind of contradict and doesn't make sense. For example, if a freelancer want to receive his payment in crypto form, I don't think the transaction fees is such a big deal, most companies will want to send you payment to exchange using the exchange ID because they know that you can't use the platform with kyc, that means you were identified before you were allowed to generate the ID and such eliminate the need for transaction fees even though it's been paid in Bitcoin or any out coin that us high transaction fee.

Conversion to fiat is also not a problem at all, there are many exchanges that has option where you can use the exchange P2P to convert your payment to fiat. The only challenge I see in receiving crypto as form of payment as freelancer is tax, the amount of tax been allocated to crypto is very heavy and not low compare to when you receive the payments with popular platforms like PayPal, paying 30% for tax is already taking all the money you have worked.

[electronicash]

stablecoin is probably the most worth receiving as a salary, but freelancers will likely not welcome tokens or crypto. unless they are really a fan of that token which is highly not recommended, they can only be great if the bull market is ongoing.

but there is a job site that actually allows its freelancers to accept BTC and stablecoins which is the seoclerks.com, i can see many bitcointalk users offering services on this freelance site.

[coolcoinz]

The main culprit? Crypto’s notorious volatility. Unlike a steady paycheck, Bitcoin and similar currencies can swing wildly in value. This means freelancers could see their hard-earned income shrink before they convert it to usable cash.

You can use a payment processor, send coins directly to an exchange, or get in touch with a physical exchange. I know a guy who works at such exchange and they generate addresses for clients that an exchange bot empties the moment they receive a deposit.

I can give you an example of how this would work. Your employer is supposed to pay you on the first of every month and the agreed amount is $1k. You give him the address from a payment processor or your local physical exchange and he sends you $1k in BTC at 8 and that transaction has 1 confirmation at 8:10 and at 8:12 it's already automatically converted to your local currency. There's no volatility and chances that bitcoin will dump more than 1% in 10 minutes aren't very high.

And even though Bitcoin’s price has been on a tear, skeptics warn its future remains a gamble.

Skeptics don't want to be paid in bitcoin, bitcoin enthusiasts do.