Topic: Is Accepting Crypto Salaries Worth It? (Read 520 times)

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.

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.

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.

~snip~

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.


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

What are the potential risks of receiving cryptocurrency as salary?

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)


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

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.

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

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

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.

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.

What if costs are high, will your company still transfer it? I don't think the company will transfer it, of course it will wait really cheap to transfer your crypto assets. Are you really patient in this matter? How can you make a profit, will you save for a certain period of time, don't you think about your daily needs that require money? I think you are quite ridiculous in this case

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

Cryptocurrency is an innovation, so if someone is willing to pay a salary or receive a salary with crypto, then that person has fully supported the adoption of this innovation. I was once an employee and to be honest, if I were still an employee, I would be willing to receive a salary in crypto currency, but I prefer bitcoin because the price of bitcoin fluctuates so the profits received can be greater than just receiving stable coins.