Cryptocurrency payment for freelancers is now an option; Here’s how it works
With crypto adoption growing at such a rapid rate, it was only a matter of time before digital assets made their way into the indie industry. Today, several platforms have sprung up that offer consultants and individual traders the opportunity to receive payments in cryptocurrencies. This gives freelancers several advantages, but it also exposes them to a few risks. Here are all the essential details you need to know before accepting crypto payments for your next freelance gig:
Getting paid in cryptocurrency – the basics
Things to know and checkboxes before you can accept crypto payments.
Crypto Wallet: A crypto wallet is like your physical wallet; the only difference is that it is digital and stores cryptocurrencies. Without a crypto wallet, one cannot accept crypto payments.
Public address: Each wallet has a unique public address. Several wallets also allow you to convert this address into a QR code. Only once you have shared this address/QR code with the sender can they initiate your payment. Be sure to share the correct address as payments once made cannot be reversed or cancelled.
Private key: A private key is a gateway to your reserves. It’s like the password to your wallet. Therefore, it is always recommended to store it somewhere safe or use a password manager as a backup. If you lose your private key, you lose access to your wallet and assets.
Local regulations: In some geographies, accepting crypto payments may be illegal or involve heavy charges in the form of taxes. Therefore, you might want to double-check this aspect before accepting crypto payments.
Platforms that pay freelancers in crypto
1. WorkX: It’s a global online marketplace that hosts everything from freelance gigs to full-time jobs. It’s built on the Ethereum blockchain and uses smart contracts to ensure clients get their work on time and freelancers receive prompt payments. The platform charges a standard commission of 5% per gig for freelancers and 1% per gig for clients.
2. CoinGig: This is a portal that pays freelancers in Bitcoin or Bitcoin Cash. It does not require any knowledge of cryptocurrency or blockchain; all you have to do is sign up, search for gigs, and start working. The platform also has the option of an escrow account that helps automate payments. Although there is no registration or registration fee, the portal charges an 8% commission per gig.
3. Ethlance: This is another platform built on the Ethereum blockchain. It offers payments in Ether and does not charge a commission – it is free for its customers and freelancers. However, you have to pay Ethereum gas fees, which are usually very minimal and rarely exceed a few cents. The only downside here is that it does not provide dispute resolution support for non-payment or non-delivery.
4. Cryptogigs: This platform allows you to earn in any cryptocurrency – from Bitcoin to Ripple. All you have to do is sign up for the portal to start earning. However, since the platform is still new, it does not offer many jobs. And it offers no protection if your payment is not made or the work is not delivered.
Types of work
Most portals offer freelance, short-term and full-time jobs in several different industries. These usually include graphic design, web development, copywriting and translation, accounting, etc. They usually display all available opportunities and list the skills required for each gig. So, whatever your skills, you should be able to find freelance work to take on.
Benefits of Crypto Payments
-Crypto payments are made almost instantly.
-For traditional payments, fees for transferring funds abroad can reach 25%. On the other hand, these fees can be as low as 0.25% in the case of crypto payments.
-It brings international gigs into the fold and makes them more viable.
-The use of blockchain also leaves very little room for payment fraud.
-Finally, smart contracts automate payments and ensure that clients don’t have to chase work and freelancers don’t have to chase payments.
Crypto Payments Challenges:
– Cryptos are volatile. A payment of 10 BTC could be worth one thing today and something completely different tomorrow. This could be a problem if a large portion of your income comes from cryptocurrency.
-Then there are the tax implications of crypto payments. In India, crypto payments are hit with a 30% tax.