When you first bring up bitcoin to a friend or family member that isn't familiar with it yet, you'll often get some commonly asked questions. Perhaps they'll ask if you can spend bitcoin like "real money" or why don't people get paid in bitcoin. Something that may or may not surprise you is that you can get paid in bitcoin for a range of reasons, and it even has a lot of potential benefits.
Let's explore why getting paid in bitcoin can be the best way to get paid and how you can potentially increase your payment without asking for a raise by converting your bitcoin to cash using an approach that can be profitable in itself.
Is Getting Paid in Bitcoin Common?
While you may not yet be likely to receive your pay in bitcoin when working at many traditional businesses, it's a growing trend among tech, freelancers, and the cryptocurrency space as a whole. While not everyone involved in cryptocurrency gets paid in bitcoin, ethereum, or other cryptocurrencies, many do. Some people have started requesting a smaller percentage of their pay be provided in bitcoin, but this is still quite a niche request.
Some people, especially those who do freelance work from less stable regions online, getting paid in bitcoin can help protect you from hyperinflation, seizures, and work around a potential lack of access to traditional banking and financial tools.
Requesting to Get Paid in Bitcoin
If you work in a larger business where you don't have much access to management and everything is relatively disconnected, you might have issues requesting to be paid in bitcoin. However, if you work in a smaller business, you may be surprised by what is possible, especially if your employer or manager is a cryptocurrency user or enthusiast themselves.
Suppose you know of other workplace employees that would also like part or all of their pay to come in the form of bitcoin or another cryptocurrency. In that case, you could possibly come to an agreement that would work for you all and allow you to formulate a reasonable request to present to your employer. If it would benefit multiple employees, they are more likely to be open to a new idea like this one.
The Benefits of Getting Paid in Bitcoin
- Get paid by an employer anywhere in the world
- Be able to provide goods or services internationally
- No waiting for wire transfers or payments that can take days
- Have the option of keeping your bitcoin or converting to fiat
- Avoid the high fees of many payment providers
- Avoid hyperinflation or other fiat instability
Accepting Bitcoin Payments at Your Business
There's a range of ways you can accept bitcoin at your business, the extent you choose to go, and which approaches you may find suitable can vary. If your average payment is relatively low and you don't mind some exposure to bitcoin and the potential volatility, a standard bitcoin wallet and a QR code handy for customers may be sufficient. If you aren't comfortable managing your own wallet, you could use a web wallet or custodial bitcoin wallet.
However, if you expect to receive larger payments or want to provide this option without holding the bitcoin yourself, there's a range of third-party services you can use, such as BitPay or BTCPAY. Depending on the features of the payment processor you use, you may be able to have some or all of your payments converted to fiat upon receiving them, if that's your preference. Sometimes the ability to receive fiat makes accepting payments in bitcoin more approachable for businesses, at least for now. Some services even provide POS hardware, which can be more intuitive for staff unfamiliar with cryptocurrency. If speed is a concern for you, and you primarily deal with smaller transactions, you may find accepting bitcoin on the lightning network a potential avenue to explore. While the lightning network’s adoption is still growing, you may find it helps your business stand out among businesses that accept cryptocurrency.
You can also sell your bitcoin using a P2P exchange such as LocalCoinSwap, allowing you to provide a secondary service and potentially increase your revenue. Which option is right for you and your business will vary, but if you do a little research, you are bound to find the perfect solution for your circumstances.
Increasing Your Margins or Pay Rate by P2P Trading
If you have the time or have a staff member to allocate to the task, you can increase your potential revenue through P2P trading. You can take your bitcoin payments for goods and services and become a P2P vendor on LocalCoinSwap. When selling your bitcoin P2P the more in demand payment types you are comfortable providing the more potential there is to make money from P2P trading and increase your revenue by trading bitcoin P2P.
You can also trade internationally and profit from regional arbitrage. P2P trading is a powerful tool. Whether you have spare time, want a job that pays in bitcoin, or have a business that would like to accept bitcoin, LocalCoinSwap can help you explore the opportunities afforded to you by incorporating bitcoin into your business.
Do I Have to Pay Tax When I Get Paid in Bitcoin?
The specifics of cryptocurrency taxes are still frequently evolving across the world. What tax liabilities you have will also vary from country to country, and sometimes even between states. If you are concerned about the tax associated with getting paid in bitcoin there's a number of capable tax accountants that specialize in cryptocurrency tax matters you may be able to discuss your specific circumstances and local legislation with.
How Do I Pay Someone in Bitcoin?
All you would need to pay someone in bitcoin is their bitcoin wallet address, otherwise called their public key. When you have this key you can send them bitcoin at any time. It's good practice to have a set time to send payment, or check that the recipient is ready to receive your payment in case they plan to dispose of it immediately for fiat. Some people that accept bitcoin payments will sell the bitcoin as soon as they receive it, so it's always good to be considerate of this possibility, even if this turns out not to be the case. If the payment is consistent and regular, you can make this process smoother by processing the payments at a set time, ideally outside of work hours, when they would have access to manage their payments appropriately.
Receiving bitcoin payments can be incredibly fast compared to wire transfers, and even local bank transfers in many cases. Offering to pay in bitcoin can be very convenient in many situations. Whether it's a one-off payment or a full-time employee, using bitcoin to pay your invoices or salaries can be very efficient. It may even save you on payment processors depending on what you are currently using, as some charge a significant percentage to provide their services.
Bitcoin Makes Bonuses More Interesting
If you are a business owner and a cryptocurrency enthusiast you may wish to share your enthusiasm with your employees. Even if it's not practical to pay your staff with bitcoin right now in your situation, you could consider paying a surprise bonus, or some other benefit that isn't part of normal salaries or wages in bitcoin. You could provide a morale boost, incentive, or just a pleasant surprise by giving your staff some bitcoin.
Giving bitcoin to anyone can be a great way to share your enthusiasm about the subject while showing how much you appreciate the recipient. Giving the gift of bitcoin can be a useful learning experience for those new to blockchain technology and digital currency.
Cash Out Your Bitcoin Payment Anywhere in the World
If you run a business in another country (or several), work for employers internationally, or would like to pay your staff wherever they are with convenience, bitcoin can be an incredibly useful tool. When you combine bitcoin with P2P trading on LocalCoinSwap you gain access to increased flexibility and the means to access payment methods, fiat pairs, and much more. P2P trading opens the world up to cryptocurrency, and your business can be opened up to the world by embracing bitcoin and P2P trading.
Explore getting paid in bitcoin or paying in bitcoin today. Get started buying and selling bitcoin and other major cryptocurrencies in minutes by heading over to LocalCoinSwap.com and getting registered.