In today’s digital era, individuals are increasingly looking to get paid in cryptocurrency. Many workers are looking to Bitcoin payments as the market heats up in 2024. This guide demonstrates how to get paid in Bitcoin, secure your assets in a reliable wallet, and select the right platforms for effective digital asset management.
We will offer insights into choosing the right hardware wallet and strategies to generate a sustainable income in cryptocurrency. Here’s how to receive payments in crypto, uncover the best platforms suited to your needs, and master efficient management of your crypto earnings, including ensuring tax compliance.
Methodology
To recommend a list of the best platforms to receive, store, and manage Bitcoin and other crypto, BeInCrypto conducted extensive testing for a period of six months. The following crypto platforms and wallets were chosen according to accessibility and security. Here’s a snapshot of why each made the final list.
Crypto exchanges
Coinbase was chosen for its user-friendly interface and high-security standards, making it accessible to beginners and available in over 100 countries. Its robust security measures, including two-factor authentication and insurance in the event of a breach, make it a trusted platform for receiving crypto.
BYDFi was selected for its advanced features, which cater to new and experienced traders and offer a range of cryptocurrencies for payment. Its emphasis on security, with options for cold storage and multiple security protocols, ensures the safety of assets.
Bybit is appreciated for its high liquidity and availability of various market pairs, facilitating easy conversion between cryptocurrencies. The platform’s strong commitment to security and intuitive interface enhances accessibility and safety for users worldwide.
Crypto wallets
Zengo stands out for its keyless security architecture, eliminating the risk of losing private keys or seed phrases. It’s highly accessible, thanks to a simple user interface, and supports a wide variety of cryptocurrencies, making it versatile for receiving payments.
Coca Wallet may not be widely recognized, but offers features such as multi-currency support and user-friendly design, making it suitable for a global audience seeking straightforward transactions and management.
OKX Wallet was chosen for its multi-chain support and seamless integration with the OKX platform, allowing users to manage and exchange a wide range of cryptocurrencies easily. Its emphasis on security while maintaining an accessible platform for users of all levels stands out.
Wealth management apps
YouHodler was selected for its innovative tools that allow users to earn interest on their crypto holdings, providing a form of passive income. It combines accessibility with robust security features, such as comprehensive insurance on all custodial assets.
Wirex was chosen for its combination of traditional banking features with crypto wealth management, offering easy access to spend and manage crypto in everyday transactions. The platform’s widespread availability and strong security protocols suit a global audience looking to integrate crypto into their daily lives.
Overall, these platforms were chosen as they are suitable for a wide range of individuals to get paid in Bitcoin or in any other crypto they choose. The platforms’ security records, user-friendly interfaces, and global recognition make them great options for beginners and experienced crypto investors alike.
For further details on BeInCrypto’s verification methodology, follow this link.
- How can you get paid in crypto?
- Exchanges for receiving your crypto salary
- Coinbase
- BYDFi
- Bybit
- Zengo
- Coca Wallet
- OKX Wallet
- YouHodler
- Wirex
- Why get paid in crypto?
- Benefits and drawbacks of earning in cryptocurrency
- How to get paid in crypto: Step-by-step guide
- How to accept Bitcoin as payment for goods and services
- Best jobs to have for getting paid in crypto
- How to spend your crypto salary
- Don’t forget about your crypto taxes
- Ready to start getting paid in crypto?
- Frequently asked questions
How can you get paid in crypto?
To receive your salary in Bitcoin or other cryptocurrency, you will need to use one or more of the following tools:
- Crypto exchange
- Crypto wallet
- Wealth management apps
Let’s dig into each of these options, and we’ll recommend the best tried and tested platforms for each. While most users looking to get paid in crypto will be keen to understand only the basic functionalities of each platform, this list adds further detail. We include key information around trading features and passive earning potential to ensure you choose the app most suited to you.
Whether you are looking to simply get paid in crypto and instantly withdraw these funds, or use a portion to interact with decentralized ecosystems, trade, stake or earn a yield, here’s everything you need to know, starting with the centralized exchanges (CEXS).
Crypto exchange
A crypto exchange is a platform where you can buy, sell, and store cryptocurrencies. To receive your salary in crypto, you’ll need to set up an account with a reputable crypto exchange.
Provide your employer with the public address associated with your exchange account so they can direct your salary payments there. Once the payment is received, you can keep it in the exchange, convert it to another cryptocurrency, or cash it into your local currency. Here are our top recommendations for crypto exchanges suitable for receiving a crypto salary.
Exchanges for receiving your crypto salary
Coinbase
www.coinbase.com%22 loading="lazy" data-src="images/coinbase-logo-2.png">Users looking for a reliable and trustworthy platform to receive salary payments can look to Coinbase. The CEX provides high liquidity, ensuring smooth and efficient transactions. The platform facilitate seamless international transactions and operates in more the 100 countries.
Complete beginners can easily navigate the simple setup process and user-friendly interface, both of which make it easy to receive and manage a crypto salary.
For certain jurisdictions, Coinbase offers a Visa card issued by Paysafe (FCA licensed), enabling you to spend your crypto at any merchant that accepts Visa. Beyond typical exchange services, Coinbase provides staking options, mobile functionality, and a private client dashboard for high-net-worth individuals.
- Beginner-friendly interface
- Focus on security
- Compliant with regulation
- Receive salary in a range of crypto assets
- Mobile-based trading
- Staking options
- Extensive educational resources
- Higher fees on the standard plan
- Requires KYC, not the best choice for those looking for privacy
• Over 108 million registered users, indicating a popular and well-utilized platform.
• Extensive focus on security, ensuring the safety of your crypto assets.
• Operational in over 100+ countries, facilitating international access and transactions.
• Supports over 200 cryptos and trading in major cryptocurrencies like BTC, ETH, USDT, and XRP.
• Beginner-friendly interface, making it simple for anyone to get started.
• Availability of Coinbase One and Coinbase Advanced for experienced traders.
• Offers mobile functionality for trading and managing your account on the go.
• Provides extensive learning materials to help users understand crypto.
• Allows users to earn through staking and other passive income opportunities.
• Issues Visa-like debit cards, enabling spending in crypto and earning rewards.
• Offers different types of wallets, including self-custody options.
• Provides a platform to mint, buy, and sell NFTs.
• Tailors services to specific regions and user needs, enhancing the overall experience.
BYDFi
www.bydfi.com%22 loading="lazy" data-src="bydfi-logo.html">BYDFi allows users to receive a crypto salary with ease. The exchange as implemented robust security protocols to protect users’ assets and data, ensuring a safe environment. BYDFi does not charge deposit fees. Note that withdrawal fees vary. For BTC, the CEX charges 0.00025 per withdrawal (around $16 dollars as of March 15, 2024).
We also recommend BYDFi to those interested in trading, as it provides comprehensive support for spot trading across three tiers: Classical, Advanced, and Convert, catering to different levels of trading expertise and needs.
The CEX offers the option to trade perpetual futures with up to 100x leverage, allowing for significant market exposure while controlling risks. BYDFi stands out by offering leveraged tokens, which allow for spot trading with built-in leverage, offering a simplified approach to leveraged investments without manual setup.
- Robust security standards
- Extensive trading options (spot, derivatives, and leverage trades)
- Minimalist interface
- Dependable customer support
- Copy trading
- Limited educational resources
- Does not support staking
- Low liquidity for less common trading pairs
- Doesn’t declare proof-of-reserves
- Requires KYC
• Robust security standards safeguard your digital assets with top-notch security measures.
• Extensive trading options cater to various trading preferences, including spot, derivatives, and leverage.
• Copy trading functionality allows new traders to mirror the moves of seasoned professionals.
• A user-friendly interface ensures easy navigation and trading for beginners.
• No KYC is required for crypto deposits, and trading enables immediate and private transactions.
• The affiliate program offers an opportunity to earn extra income through referrals.
• A variety of deposit options are available, accommodating users from different regions.
• Welcome bonuses and offers incentivize new users to engage with the platform actively.
• Mobile app availability allows for convenient trading and account management on the go.
Bybit
www.bydfi.com%22 loading="lazy" data-src="images/bybit.png">A secure and popular global exchange, Bybit presents another enticing options for workers looking to get paid in Bitcoin.
The exchange is registered in the British Virgin Islands and operates according to Dubai’s local regulatory guidelines, ensuring a secure and compliant trading environment.
Bybit supports 100k transactions per second, ensuring zero downtime and rapid order execution, crucial for immediate salary conversion and investment activities.
The platform also offers a wide range of trading solutions, including spot trading, an extensive collection of derivatives contracts, and leveraged trading up to 100x, catering to various risk appetites and investment strategies.
We also liked Bybit’s intuitive registration process and user-friendly interface. The CEX boasts a large user base, the largest marketplace for USDC options, and features including Bybit Earn and a Bybit crypto card, making it easy to spend your salary without withdrawals.
- Offers high leverage, up to 100x for specific crypto trades.
- Crypto card: spend your salary with ease
- Traders can withdraw up to 2 BTC per day without having to KYC
- A haven for crypto derivatives trades with a wide range of options.
- Robust trading and charting tools for comprehensive market analysis.
- Ultra-fast transaction speeds, capable of handling 100K transactions per second.
- Offers educational resources
- Complexity may overwhelm beginners
- Faces some regulatory concerns, particularly in the U.S.
- Requires KYC to access Earn products and higher BTC daily withdrawal limit
• Bybit offers up to 100x leverage on specific crypto trades, maximizing potential earnings.
• It specializes in crypto derivatives and provides diverse trading strategies beyond spot trading.
• Equipped with advanced trading and charting tools for detailed market analysis and informed decision-making.
• Features ultra-fast transaction speeds, capable of processing 100K transactions per second, ensuring quick and efficient trading.
• Provides a comprehensive selection of educational resources to support continuous learning and trading proficiency.
• Boasts a global presence with a user base of over 10 million, offering significant liquidity and trading volume.
• Supports a wide array of cryptocurrencies and trading pairs, allowing flexibility in receiving and managing crypto salaries.
• Offers innovative financial products like USDC options and leveraged tokens for enhanced trading experiences.
• Facilitates easy conversion between fiat and crypto with quick buy options, simplifying the process of receiving a crypto salary.
• Ensures user security with robust measures, including multi-signature wallets and two-factor authentication.
Crypto wallets
A crypto wallet provides a more personal and secure way to receive and store your cryptocurrencies. There are various crypto wallets, including software wallets (mobile or desktop) and hardware wallets (physical devices). After setting up a wallet, give your public address to your employer. When your salary is transferred, it goes directly into your wallet, providing full control over your funds.
Zengo
www.zengo.com%22 loading="lazy" data-src="images/icon_zengo_400x400%40x3.png">Security is paramount if you’re looking to receive a salary in cypto. Zengo doesn’t use seed phrases or passwords. Instead, it utilizes multi-party computation (MPC) technology, enhancing security while simplifying access. Due to its biometric verification, Zengo eliminates traditional vulnerabilities like single-point failure.
The wallet us ompatible with over 120 cryptocurrencies, catering to diverse crypto salary payment needs. It’s also designed for ease of use, making it ideal for novice as well as advanced users. It offers a quick, straightforward setup with enhanced security features like a face scan for account recovery.
The wallet also offers convenient crypto purchases through services like MoonPay and Banxa, supports Tezos staking, and provides responsive and helpful customer service.
- The multi-party computation (MPC) technology eliminates the need for seed phrases or passwords
- User-friendly interface
- Global availability
- Offers referral rewards
- Easy crypto purchases (MoonPay and Banxa)
- Staking options
- Responsive customer service
- May be complex for absolute beginners
- Does not currently support certain blockchains and layer-2 solutions
- Certain assets and features may have regional restrictions
• ZenGo utilizes multi-party computation (MPC) technology, offering advanced security without the need for seed phrases or passwords.
• Features a legacy transfer option, allowing users to set future recipients for their digital assets, enhancing long-term security and planning.
• Employs a web3 firewall that protects users from potential threats and vulnerabilities in the web3 space.
• Offers 3FA (three-factor authentication), removing the single point of failure found in traditional wallets and enhancing overall security.
• Provides a 3D face lock biometric verification system, ensuring that only the user can authorize withdrawals and transactions.
• Enables seamless asset management with a comprehensive and intuitive mobile app available for both Android and iOS platforms.
• Allows for easy conversion between cryptocurrencies within the app, facilitating quick and efficient asset management.
• Offers Zengo Pro, a premium subscription service with additional security features and advanced self-custody tools.
Coca Wallet
www.coca.xyz/%22 loading="lazy" data-src="https://beincrypto.com/wp-content/uploads/2023/11/COCA_Logo_Blue_Alpha.png">Coca Wallet is a solid choice for those getting paid in crypto. The wallet is known for its innovative approach and rapid market acceptance, having acquired over 250,000 wallets within just a week of launch. Its partnership with Wirex enhances its credibility and utility in the web3 money app space.
The wallet’s adoption is largely driven by its advanced security measures, including Multi-Party Computation (MPC) technology, which eliminates the vulnerabilities of traditional seed phrases and private keys, ensuring a high-security standard for user funds. The anonymous biometric backup feature also provides a secure and private recovery system, enhancing user trust.
Coca Wallet also excels in accessibility; its on-ramp aggregator simplifies entering the crypto market, making buying, selling, and trading digital assets easier. Integrating a non-custodial debit card and IBAN bridges traditional banking with the crypto sector, allowing seamless transactions worldwide.
Its compatibility with over 40 million merchants across 200+ countries underlines its global accessibility and convenience for users receiving their salary in crypto.
- Employs Multi-Party Computation (MPC) technology to enhance security
- Anonymous biometric backup
- Global accessibility
- Non-custodial
- Competitive crypto rates
- Cross-chain swaps and DeFi access
- NFT management
- New on the market
- Learning curve
- Biometric backup might raise privacy concerns for some users
- Dependency on the Internet connectivity.
- Limited cryptocurrency support
Coca Wallet secures your assets with cutting-edge Multi-Party Computation technology, eliminating traditional vulnerabilities.
Offers a secure recovery system using facial recognition, ensuring privacy and security.
The Coca non-custodial debit card is accepted worldwide, enabling easy crypto spending.
Enjoy complete control over your cryptocurrencies with Coca’s non-custodial approach.
Automatically secures the best crypto exchange rates by scanning multiple platforms.
Engage in seamless, fee-free cross-chain swaps directly within the wallet.
Coca Wallet provides advanced protection against common crypto trading risks like sandwich attacks.
Access a wide range of DeFi protocols and DApps directly from your wallet.
Easily manage and view your NFTs across different Ethereum chains within the wallet.
Proven trust and innovation, evidenced by its rapid user growth and recognition on Product Hunt.
OKX Wallet
www.okx.com/%22 loading="lazy" data-src="https://beincrypto.com/wp-content/uploads/2021/12/OKX-logo.png">The OKX Wallet is decentralized and non-custodial. It offers full control and ownership of your funds and does not store sensitive information like seed phrases or private keys externally. As the wallet only charges for on-chain withdrawals, users can withdraw crypto salaries without paying a fee.
The wallet is linked to one of the largest and fastest-growing exchanges (OKX), with daily trading volumes around $1 billion, which ensures efficient transactions.
OKX Wallet also manages crypto assets on over 40 chains, eliminating the need to switch between wallets for different blockchains.
The wallet is suitable for all users. It offers a user-friendly interface, staking opportunities, an integrated DEX and NFT marketplace, cross-chain swaps, and acts as a web3 and DApp gateway. The OKX wallet also benefits from safety measures and the reputation of being regulated and licensed under the OKX brand.
- Full control and ownership of funds
- High liquidity and daily trading volumes (from connection to the OKX exchange)
- Supports over 40 blockchain networks
- Offers staking directly within the wallet
- Integrated access to DEX and NFT marketplace
- Cross-chain swaps
- Web3 gateway
- Global availability
- Fee free off-chain withdrawals
- Its wide range of features may overwhelm new users
- Limited educational resources
- The broad multi-chain support might be confusing
- May not support lesser-known cryptos
• The non-custodial nature ensures full control over your crypto salary.
• Supports a wide array of cryptocurrencies across more than 40 blockchains.
• Direct access to decentralized exchanges and NFT marketplaces for immediate asset utilization.
• Offers seamless cross-chain swaps with optimal exchange rates via X Routing technology.
• Enables earning through staking directly within the wallet.
• Provides easy access to a vast range of DeFi and GameFi DApps.
• Linked to the high-liquidity OKX exchange for efficient transactions.
• Globally accessible, suitable for users receiving salaries from different countries.
• Adheres to high-security standards, safeguarding your assets.
• Features a user-friendly interface for straightforward crypto management.
Wealth management apps
Wealth management apps specializing in cryptocurrencies can be an option for those interested in receiving and growing their crypto wealth. These apps often combine the functions of a wallet with tools for investment and portfolio management.
They may offer features like automatic conversion into less volatile assets (like stablecoins) or investment in diversified crypto portfolios. Some also provide traditional financial services like interest accounts or loans based on your crypto assets. As with wallets and exchanges, you would provide your account’s public address to your employer for salary payments.
YouHodler
www.youhodler.com/%22 loading="lazy" data-src="https://beincrypto.com/wp-content/uploads/2023/12/unnamed.png">YouHodler is an excellent management tool and platform for receiving your crypto salary, The app offers exposure to crypto loans, savings accounts, and earning opportunities, providing a comprehensive financial toolset for crypto enthusiasts looking to receive a salary and manage their finances all in the same place.
YouHodler is also useful to those crypto users who want to borrow funds against their crypto assets, offering up to 90% LTV. The platform offers diverse services, including crypto and fiat swaps, interest-earning, and innovative financial products like Turbocharge loans and Multi HODL options, offering unique ways to leverage crypto assets for growth.
The YouHodler platform also adheres to E.U. and Swiss regulatory standards, providing a secure environment for managing and holding user funds.
- Offers multiple earning opportunities (crypto savings accounts, staking, etc.)
- All-in-one app to manage your salary and finances
- Up to 90% Loan-to-Value (LTV) ratios of their collateral’s value
- Exchange services for cryptocurrencies, fiat currencies, and stablecoins with real-time execution prices
- Regulated and approved within the E.U.
- Regulatory status varies by region
- Higher interest rates compared to traditional financial institutions.
- Lack of publicly available financial reports, attestations, or proof of reserves, affecting transparency.
- Limited regulatory oversight in Switzerland, as the entity YouHodler SA is not regulated by FINMA.
- Not available to residents of the United States, Canada, and several other countries.
• Earn interest on your crypto holdings through savings and staking.
• Offers combined services of trading, loans, and savings on one platform.
• Utilize Turbocharge and Multi HODL for enhanced investment opportunities.
• Designed for ease, catering to both novice and experienced users.
• Available globally, serving clients in over 170 countries with some exceptions.
• Access up to 90% of your crypto’s value with high Loan-to-Value ratios.
Wirex
www.wirex.com/%22 loading="lazy" data-src="https://beincrypto.com/wp-content/uploads/2023/12/unnamed-1.png">Wirex accommodates a wide array of currencies, allowing for seamless transactions in over 110 cryptocurrencies and traditional fiat currencies like USD, EUR, and GBP.
The app enables instant and fee-free transfers worldwide, enhancing the convenience for crypto enthusiasts and digital nomads looking to get paid in Bitcoin and other crypto.
Users benefit from the Wirex debit card, which offers up to 8% cashback in crypto on transactions and is accepted wherever Visa or Mastercard is accepted. This also functions as the perfect accessory for individuals looking to get paid in crypto and spend instantly, avoiding withdrawal fees. The platform also offers unique opportunities to earn interest on both crypto and fiat holdings directly within the app.
With its user-friendly interface, managing and accessing funds is straightforward. For those keen to ensure their crypto holdings are safe and secure, Wirex offers numerous measures including two-factor authentication and cold storage, ensuring users’ assets are well-protected.
- Offers a Wirex debit card with up to 8% cashback on transactions
- Earn interest on crypto and fiat holdings
- User-friendly interface
- Robust security measures
- Regulated by the Bank of Lithuania
- Regulatory status and service features may vary by region
- Customer support might have slow response times
- High exchange fees compared to other platforms
- Some features, such as X-Accounts, are only available in select countries
- Does not offer deposit insurance or protection schemes for fiat currency services
• Wirex supports over 110 cryptocurrencies and multiple traditional currencies.
• Users can send and receive cryptocurrency payments globally without fees.
• The Wirex debit card allows spending cryptocurrencies like traditional money.
• Up to 8% cashback in crypto is available on all transactions made with the Wirex card.
• Users can earn interest on both crypto and fiat deposits through the app.
• The app provides instant access to exchange between cryptocurrencies and fiat currencies.
• Wirex ensures user security with two-factor authentication and cold storage solutions.
• Available in over 130 countries, Wirex offers wide global accessibility.
Why get paid in crypto?
Getting paid in Bitcoin or any other cryptocurrency can appeal for several reasons. Some main reasons for getting paid in crypto are fast international payments and becoming bank-independent.
However, there are risks involved. These include the possibility of financial loss, the complexities of tax laws relating to crypto, and the challenge of managing money that only exists in digital form.
The growing interest in getting paid in Bitcoin and other digital assets isn’t just a trend spurred by its increasing popularity. It’s linked to a broader shift where employees seek greater flexibility and autonomy in their work lives.
According to a 2022 study by SoFi, 36% of employees wanted to be paid in cryptocurrency or at least be given this option. Another October 2023 survey by Pantera Capital revealed that only 3% of the base salaries are paid in crypto in the crypto industry.
This only proves that the desire to get paid in crypto is there, but it’s mostly limited to the crypto industry, which is still expanding. The same survey from Pantera Capital also revealed that 88% of the respondents are working remotely. This includes freelancers and digital nomads.
As a payment perk, crypto can serve as a growth investment for some workers, and more reliable, stable pay for others. Moving forward, we expect to see crypto withdrawals increase if investor confidence goes up, thanks to the rising price of coins like Bitcoin. In countries where workers have come to rely on crypto withdrawals as a workplace benefit to stabilize paychecks, we expect to see more of the same.
Deel (payroll solutions) COO: Pantera Capital
Benefits and drawbacks of earning in cryptocurrency
Exploring the field of digital currency offers a unique way to manage income. Here, we delve into the benefits and drawbacks of earning in cryptocurrency.
Pros
- Lower fees: Cryptocurrency transactions often have lower fees than traditional payment methods, making them more cost-effective.
- Transparency: Crypto fees, such as “gas” fees for blockchain transactions and “swap” fees for currency conversion, are upfront and usually less complex.
- Faster transactions: Crypto payments, especially for international transfers, are typically quicker than traditional banking methods, settling in minutes.
- Independence from banks: Crypto payments mean you can bypass traditional banking systems and their limitations.
- Future profit potential: There’s a chance to earn more due to the value of cryptocurrencies potentially increasing over time.
- Diverse financial portfolio: Having part of your income in crypto can diversify your investments and financial holdings.
Cons
- Volatility: Cryptocurrencies can be extremely volatile, leading to significant price fluctuations.
- Reliability issues: Some blockchain networks can experience outages, affecting payment reliability.
- Limited acceptance: Not all businesses or services accept crypto as payment, which can limit how you use your money.
- Tax implications: The tax treatment of cryptocurrencies can be complicated and may pose a challenge at tax time.
How to get paid in crypto: Step-by-step guide
So you’re ready to dive into the crypto world and get paid like a modern-day tech wizard? Awesome! Let’s make this as fun as a day at the beach.
1. Set up a cryptocurrency wallet
Think of a cryptocurrency wallet as a fancy digital backpack where you stash your digital coins. There are tons to choose from – some are as sleek as designer handbags, while others are tough like armored vaults. Hunt around, find your match, and get it set up.
If you don’t know where to start your crypto wallet research, start with the wallets and platforms we’ve already mentioned in this guide:
/Related
More Articles
- Crypto exchanges: Coinbase, BYDFi and Bybit
- Crypto wallets: Zengo, Coca, OKX Wallet
- Wealth management apps: YouHodler and Wirex
2. Share your public address
Once your wallet’s ready, it’ll give you a public address — it’s like your email address, but for money. Share this with your boss or clients so they can start sending you crypto. Don’t worry; it’s meant to be shared, like your Insta handle, but only for your wallet.
For instance, if you’re using Coinbase, you can get this address from your account. First, you need to go to the page of the crypto you want to receive. Then, in the top right corner, click on “Send & Receive” to reveal the address to receive crypto. Even if you are using a different exchange or wallet, the steps to reveal the receiving address are similar.
3. Track your payments
Tracking your crypto payments is like keeping score in a video game — it’s crucial! Keeping a close eye on transactions is important, especially as some custodial platforms might get hacked. That’s why it’s already recommended to keep larger sums in non-custodial wallets, such as Zengo, Coca, or OKX Wallet.
You might also consider getting a crypto portfolio tracker to make life easier. It’s like having a personal finance assistant who loves math.
4. Understand tax obligations
When you get paid in crypto, it’s just like getting paid in your local currency, at least tax-wise. So, how do you calculate tax? Convert your crypto salary to its fair market value on the day you receive it. This is what you’ll base your Income Tax on. For instance, if you sell Bitcoin and end up with a profit worth $5,000, that’s your taxable amount.
And don’t forget to keep an eye on your crypto transactions. Sold some Bitcoin after a price jump? Result! But remember, this could mean you are liable to pay Capital Gains Tax. Calculate the profit from your buy and sell points — that’s what gets taxed next. There are nifty tools like CoinTracking, TokenTax, and BearTax that are basically like having a tax-savvy best friend. They’ll help you figure out what you owe by keeping track of all your crypto dealings.
Heads up — declaring your crypto riches to the IRS and FinCen isn’t just polite; it’s going to be the law in the U.S. from 2024.
Whether you’re sunbathing in the U.S., sipping tea in the U.K., catching waves in Australia, or trekking through Canada, tax rules vary. Dive into your local guidelines to avoid any surprises. Try out a crypto invoicing tool like Request Finance or Koinly. These tools take your crypto earnings and organize them into neat, tax-friendly records using the exchange rates from the times of your trades.
5. Consider a payment processor
Running a business and want to accept crypto without the headache? Consider hooking up with a payment processor. It’s like hiring a super-efficient cashier who works for digital tips and converts them into your local currency.
How to accept Bitcoin as payment for goods and services
Are you ready to join the Bitcoin bandwagon and accept it for your business? Here are the basic steps you must follow to accept Bitcoin as payment:
- Get a Bitcoin wallet. This is your digital pocket for storing Bitcoin. Remember, it’s mainly for BTC and might not hold other cryptos unless specified.
- Share your Bitcoin address. This comes with your wallet, which acts like your account number for receiving Bitcoin. You can even turn this address into a scannable QR code for easy payments at your shop.
- Guard your private key. This key is the gateway to your Bitcoin treasure. Lose it, and you’re locked out forever. Keep it safe, maybe on a USB stick or another secure spot.
- Check local laws. Before hanging that cool “Bitcoin Accepted Here” sign, make sure you are complying with local law, too. Some countries might have strict crypto rules.
- Pick a wallet. Online, app-based, or even physical point-of-sale machines — choose what fits your business style. Just be sure it’s from a reputable source.
- Consider payment processors. If you’re an online business, platforms like Coinbase can smooth out Bitcoin transactions on your website.
- Keep records. Bitcoin’s value jumps around like a kangaroo. Keep invoices noting the value of Bitcoin at the time of each transaction to track your real earnings.
- Understand taxes. The tax man sees Bitcoin differently worldwide. In the U.S., it’s treated as property, but places like Portugal view it as currency. Ensure you are clued up on the tax implications of receiving payments for goods and services in BTC.
Best jobs to have for getting paid in crypto
Dive into the crypto payment wave with these top job picks:
- Freelancing: Tap into digital nomad life by offering your skills — think writing, coding, or designing — on platforms that let you cash out in crypto. Keep in mind that you might need a digital nomad visa in order to start freelancing in certain countries. Familiarize yourself with the highest-paying freelance jobs to identify the most profitable avenues.
- Crypto mining: Got some tech skills and gear? Start mining cryptocurrencies to earn new coins by validating transactions and contributing to the blockchain.
- Join a crypto company: Ride the blockchain wave and snag a job at a cryptocurrency firm where you can often opt to get paid in Bitcoin or other crypto.
- Sell online: Use crypto-friendly marketplaces like Bitify and OpenBazaar to sell your products or services and get paid in Bitcoin or other cryptocurrencies.
- Try crypto faucets: Test the waters with crypto faucets — websites that sprinkle small amounts of free crypto for completing easy tasks.
- Staking and yield farming: If you’re holding onto some coins, look into staking or yield farming to earn more crypto while supporting network security and operations.
- Business owners: Stand out by accepting cryptocurrencies as payment and tap into a growing, tech-savvy customer base.
How to spend your crypto salary
If you are getting paid in crypto, you will find many shops and companies that will either accept your crypto as payment for goods and services.
Big online retailers like Overstock and Shopify stores now happily take Bitcoin and other cryptocurrencies. Plus, increasing numbers of brick-and-mortar shops are getting on board with crypto payments.
There’s a handy solution for places still warming up to the idea: crypto payment cards. They work just like your regular debit or credit cards. Load them with some cryptocurrency, and they’ll convert it into local cash when you need to make a purchase, allowing you to use your crypto riches for everyday shopping.
Then there are stablecoins, special cryptocurrencies pegged to more stable assets, such as the U.S. dollar, helping dodge the wild price swings typical of the crypto market. Stablecoins are perfect for using crypto in day-to-day life without the usual volatility.
However, it’s worth noting that not everywhere is crypto-friendly. So, embracing a salary in cryptocurrency might mean juggling direct crypto payments, using a crypto payment card, and sometimes converting crypto into local currency to navigate areas where digital money is still a no-go zone.
Don’t forget about your crypto taxes
Receiving your salary in crypto brings its unique set of tax challenges. Tax rules for cryptocurrencies can significantly differ across various countries and regions. If you’re exploring passive income with crypto, it’s crucial to understand the tax implications associated with these earnings.
You should maintain precise records of all your crypto transactions, noting when you received the crypto, how much you got, and its value in your local currency at that time. This data is crucial for figuring out any taxes on capital gains you might owe.
Don’t forget to use a crypto portfolio tracker to monitor your dealings. Also, remember that getting your salary in crypto could count as taxable income in some places, making it subject to income tax. This depends on how your local tax authority views crypto earnings. The best thing to do is to search for your country’s specific crypto tax guidelines to better understand how your crypto transactions may impact your taxes.
Want to learn more about crypto taxes? Check out our ultimate guide to U.S. crypto tax if you are based in the United States, or our U.K. crypto tax explainer if you are based in Britain.
Ready to start getting paid in crypto?
Getting paid in Bitcoin and other crypto is becoming a more accessible option for everyone, from digital nomads to traditional employees seeking passive income opportunities. As you dive into this new financial frontier, consider the implications of selling Bitcoin or any other cryptocurrency. Ensure you choose the right wallet to minimize transaction fees and understand the regulations in your jurisdiction regarding tax. Whether you opt for a versatile service provider, an all-encompassing crypto platform, or the added security of a hardware wallet, safeguarding your assets and your seed phrase is paramount.
Frequently asked questions
You can earn real money in crypto through various methods like trading, mining, or staking. The amount you earn can fluctuate due to market volatility. Always research and understand the risks before investing.
To get your money in crypto, create an account on a cryptocurrency exchange, buy your desired cryptocurrency, and store it in a digital wallet. You can transfer funds from your bank to the exchange to start. Withdrawals can be made back to your bank or kept as digital assets.
Crypto is earned through methods such as mining, staking, or providing services in return for cryptocurrency payments. The earnings are usually deposited directly into your digital wallet. Keep track of these transactions for tax purposes.
Making $100 a day with crypto is possible through trading, mining, or earning interest, but it’s not guaranteed. Market knowledge, investment strategy, and risk management are crucial. Be prepared for the possibility of loss as well as gains.
Getting paid in Bitcoin can offer growth potential and ease of digital transactions. However, it comes with risks like price volatility and tax implications. Evaluate your personal and financial situation before accepting Bitcoin as payment.
You can earn money using Bitcoin through trading, mining, and providing services or goods in exchange for Bitcoin. The profitability varies based on market conditions and your investment strategy. Always exercise caution and conduct thorough research.
Bitcoin can be safe for beginners if they use secure wallets, choose reputable exchanges, and learn about safe transaction practices. However, it’s important to understand the risks and start with small amounts. Education and caution are key for safe Bitcoin use.
The person who owns the most Bitcoin is not publicly confirmed due to the anonymous nature of transactions. Some speculate that Satoshi Nakamoto, the creator of Bitcoin, holds a large amount. Large entities and early adopters also hold significant amounts of Bitcoin.
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