Is Accepting Crypto Salaries Worth It?

[Smack That Ace]

It is worth it but still optional for me, as I prefer to be paid in fiat money because it was still not acceptable in my place, so I no longer spend some fees in converting my crypto salary. This is one thing I put into consideration and I know this is a common problem for us knowing that many countries are not yet accepting cryptocurrencies.

I'm also looking forward to those company owners who had this in their mind and considered paying bitcoin to their employees. It is not impossible they will support this project and adapt to the changes. But yes, until it was not officially legal in a particular place that also gives a reason why this never happened.

If I'm not in here and not joining the signature campaign, I'm sure I couldn't experience receiving a crypto salary.

You’re right there, crypto salary creates an advantage but knowing it’s not yet widely accepted in all countries particularly in my country, so I’d rather prefer to receive fiat more than crypto as a salary. At least I know I can always decide to accumulate crypto when I wanted to knowing I have sufficient amount of fiat on my bank account. Crypto is a good investment and retirement, but for now I need more fiat than crypto to sustain my daily needs for survival.

To date, there are still not too many countries that accept cryptocurrency as a payment method, not just your country, and converting from cryptocurrency to fiat currency and vice versa is not too difficult. So I think it's not a big barrier or problem when we receive salary in cryptocurrency. I think the issue we need to pay more attention to is its fluctuation because no one will feel okay if our salary suddenly decreases right after receiving it. Volatility is beneficial in investing but disadvantageous when using it as a currency to pay for daily needs.
If it's a part-time job, it wouldn't be too bad to get paid in crypto, but if it's the main source of income, I'd reconsider.

[shield132]

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

At some point in your life, you'll have to receive money via traditional payment methods and you can't avoid giving away some personal information.
The benefit of salary paid in cryptos is that as you said, payment is easy and fast. I can accept payment from any part of the world if the payment is made in cryptocurrencies. Also, I am a person who holds cryptocurrencies to combat inflation and get rich with this type of investment, so for me, it's a benefit. I only exchange the part that I need to pay for basic things, the rest is left unconverted, so I save on exchange fees.

[Salmanbrembo11]

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

In my opinion, it could be worth it because for those who have started in the crypto world, it will feel like it is worth it and in my opinion it will not be worth it for those who are just starting out, therefore, for those who are new, we have to learn a lot more so that we can receive more crypto money.

[ultrloa]

It is worth it but still optional for me, as I prefer to be paid in fiat money because it was still not acceptable in my place, so I no longer spend some fees in converting my crypto salary. This is one thing I put into consideration and I know this is a common problem for us knowing that many countries are not yet accepting cryptocurrencies.

I'm also looking forward to those company owners who had this in their mind and considered paying bitcoin to their employees. It is not impossible they will support this project and adapt to the changes. But yes, until it was not officially legal in a particular place that also gives a reason why this never happened.

If I'm not in here and not joining the signature campaign, I'm sure I couldn't experience receiving a crypto salary.

You’re right there, crypto salary creates an advantage but knowing it’s not yet widely accepted in all countries particularly in my country, so I’d rather prefer to receive fiat more than crypto as a salary. At least I know I can always decide to accumulate crypto when I wanted to knowing I have sufficient amount of fiat on my bank account. Crypto is a good investment and retirement, but for now I need more fiat than crypto to sustain my daily needs for survival.

To date, there are still not too many countries that accept cryptocurrency as a payment method, not just your country, and converting from cryptocurrency to fiat currency and vice versa is not too difficult. So I think it's not a big barrier or problem when we receive salary in cryptocurrency. I think the issue we need to pay more attention to is its fluctuation because no one will feel okay if our salary suddenly decreases right after receiving it. Volatility is beneficial in investing but disadvantageous when using it as a currency to pay for daily needs.
If it's a part-time job, it wouldn't be too bad to get paid in crypto, but if it's the main source of income, I'd reconsider.

Maybe there's something related to its volatility and the risk of losing money since bitcoin is portrayed as risky asset. Maybe that's one of the reason why they avoid to adopt it since they don't want their people to participate for adopting crypto since they are worried that these people will lose their money. If people will just know how to handle the fluctuating market of bitcoin for sure they would able to handle the risk and also accept the consequences of possible outcome of their acceptance of bitcoin. If they just look at the volatility of the market is beneficial for them on some cause then I guess adoption of bitcoin will not be a problem to anyone. So maybe for now the government and people need to know how to adjust on possible changes and see the bright side of bitcoin so that they possibly not missed out the opportunity what bitcoin could possibly give to those people who believe it. Maybe there would be negative side to happen especially when the value decrease but I believe if people will be knowledgeable on volatility they can tolerate if that events happen.

[Yatsan]

Simple. If you're after blockchain or crypto investment then it would be fine but given that not all people do, then I guess it's an answer already. But looking on the birght side, if salaries will be sent in cryptocurrencies, a typical employee will need to convert it first before actually being able to spend it on local markets unless you're in a place wherein it is widely acceptable as a mode of payment. Looking on profit chances in crypto salary, well yess it could be an advantage but given that it is a salary then it is basically a money you need for your bills and not merely an amount you can just hold for years chasing for profit alone. Taxes could be avoided indeed as its biggest pros but there are salary grades we all know about and not all people are on taxable salaries likewise in my country so there's no point for them to see its advantages.

[Briankimp1]

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

I think it’s just a simple decision made easier depending on personal priorities, as a salary earner, I’ll always prefer getting paid the traditional way but looking through a freelancers lenses you’ll see various positives receiving payments through Bitcoin.
Although due to the volatility of Bitcoin you can easily loose some money but you could also gain some depending on the movement of the current price of Bitcoin. So in other words the choice varies depending on each individual position.

[YOSHIE]

What are the potential risks of receiving cryptocurrency as salary?

The signature campaign has been paying salaries with Bitcoin, it has been going on for years with different managers and companies, that is one proof of salary payments with crypto/Bitcoin, At this time I see no potential risks or problems occurring, they accept it without any problems, if you don't believe it, go to the service department.

I think it's not much different if you want to pay employee salaries with crypto/Bitcoin, only you have to bear the burden of shipping costs, that's the only risk you face, maybe if you pay your salary in fiat of course you don't need to pay fees, crypto requires fees for your transactions in sending, of course you adjust the salary you pay to the dollar value in the form of Bitcoin.

Point, if you want to pay your employees' salaries or provide ideas for paying salaries, you don't need to post the content of the article, you just ask here, they will give you suggestions and you can use calculations from your own thoughts, not the article's thoughts.

[chigo]

If we talk about freelancers, maybe receiving a salary in crypto is better, the reason is because cryptocurrency was developed as an alternative payment that makes it easier for people to make transactions across regions, minimize fees, and waiting times that are usually quite long on digital payment platforms. Freelancers no longer need to worry that their payments will be delayed or cut very much by the payment platform, because by using stablecoins from the Tron or Binance network, the sender is only charged a very low fee and the process is faster.

However, if workers are still in the same country as their employers, then receiving payment via bank makes more sense, because they are still in the same country and the payment process via bank is quite fast and workers can immediately withdraw their money at the nearest ATM.

[fugued09]

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.

In my opinion, the notorious volatility of cryptocurrencies, especially Bitcoin, is a major problem for freelancers. This volatility means the value of crypto can change drastically in a short period of time. As a result, freelancers paid in crypto may run the risk of losing the value of their earnings before they have a chance to convert them into usable cash. This can be a serious challenge as their income is unstable and can take a toll on their personal finances. Therefore, although crypto offers some advantages, its volatility makes it less than ideal as a means of paying stable income.

[Casdinyard]

~snip~

There's nuances to accepting crypto payments. There will be some people who would stand by it, and there are people who would swear against it, and I think everyone who loves or hates crypto payments have basis for why they do this so you can't just say that the other one is trash or whatnot. Like personally, since working in the crypto industry as a writer and a project manager I stood by getting paid in cryptocurrencies, doesn't matter if its native coins or if it's USDT, although of course for new clients, to make sure I don't get scammed I asked to be paid in USDT.

But getting paid in fiat isn't so bad as well, you get the added benefit of not having to convert your crypto into cash anymore, which is still surprisingly cumbersome nowadays despite the advances in the crypto industry.

So yeah, no way of getting paid is "bad" or "not worth it". What's bad though is if you don't get paid LMAO.

[goldkingcoiner]

If your crypto loses value before you can convert it, you might be able to write it off in your taxes. I see no problem there.

Crypto salaries are totally awesome. That way, you don't have to do the extra work of converting fiat to crypto.

[GxSTxV]

What about the freelancers who get paid with crypto and never paid taxes before, I live in a country where crypto isn't allowed and dealing with it in public isn't yet clear for us. In 2018, we had the one and only law announced to prohibit Bitcoin, without any clear reasons or more details published later up this day, we as freelancers are dealing with crypto but with cautious.
Personally, getting paid in crypto is a great advantage, with lower fees to exchange the assets to our local currency, fast transactions and various choices of stable coins, I say it is very worth it for me.

[hyudien]

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.

If you look at the inflation situation in your own country, of course payments using crypto are considered profitable, let's say
stablecoins, exchanging them on local exchanges or P2P withdrawals via bank accounts in the end we are subject to a few percent tax. But at least we still have the difference that with stablecoins the value is maintained for a monthly period of time when receiving a salary.
If you work with a foreign company, of course the crypto payment option will be chosen because the payment process is fast and for me so far crypto payment is the best option for receiving a salary as long as we really understand how to disburse it, especially if we understand how to avoid paying taxes.

[moneystery]

but honestly it is natural that freelancers prefer to receive payments in crypto because it is much easier and usually the waiting time is much faster compared to what is offered by paypal or western union. the claim process is also not complicated because the recipient only needs to provide their wallet address and then they will be able to receive payment immediately without having to worry that the payment will be blocked or intervened for some reason.

the problem of unstable prices or kyc is another problem and i don't think it is a serious enough problem to discuss since freelancers are used to doing kyc and are smart enough to receive payments in usdt or directly convert their income.

employees still have to convert the crypto to local currencies. sending tokens to buy something from stores will require transaction fees, which hinders the adoption of crypto locally. this is still what the employers have to consider when sending crypto tokens to several employees as salary, they would have to pay transaction fees while they are not if they just use the local currency.

crypto salaries are likely just for online freelancers while professionals like doctors, and teachers will still be the local currency.

it makes sense. especially for companies that already use an automatic bankroll system, they usually prefer to use bank payments that will automatically send salaries to employees and that will cut the time for delivery since the bankroll system will handle it automatically. and the reason for the regulation also makes employees prefer to receive payments in their local currency because tax calculations will be much easier and they can receive salaries in their accounts and use them for their various needs.