You provide your services to clients and you expect to be paid. And sometimes, it is tough to get paid on time or even get paid at all. So should you bother with adding yet another payment option to your current mix? Especially, one that is less in-the-know and comes with a certain degree of risk?
The answer isn’t that straightforward. Thus, let’s dig a bit deeper into the matter and take a look at the pros and cons of accepting crypto payments as a freelancer.
Pro: no currency exchange fees
The major perk of freelancing is that you can tap into the global pool of jobs and do business internationally. You can pursue jobs in locales where your expertise is in-demand and where the compensation is higher. However, the cross-border nature of freelancing also comes with certain liabilities.
There’s the whole process of figuring out how much you should charge in the foreign currency to compensate for the exchange rates and conversion fees. The Economist estimated that the average cost of sending the equivalent of $200 cross-border falls in the 4%-8% range, depending on whether you use a bank or a fintech company. And those processing fees add up, as you still have taxes to pay on top. As a result, you may end up with a much lower paycheck than originally anticipated.
Accepting cryptocurrency instead means that there would be no currency exchange fees or hidden payment fees. When you are paid in crypto, you pay a flat transaction fee only. Also, you have a choice to exchange your coins to a fiat currency when the exchange rate is good.
Con: cryptocurrencies are volatile
Cryptos, by their very nature right now, are fluctuating in worth. What you are paid today may not be worth the same amount tomorrow. Or, on the contrary, double in price overnight. For instance, at the beginning of October, a bitcoin was worth $8,333. At the end of the month, its price grew to $9,225.
If you plan to accept cryptocurrencies as a…