Crypto Payments and Your Business
Aug 25, 2021
Getting Paid in Crypto
Over the past few years, the value of Bitcoin and Altcoins have increased dramatically in value, such that many companies have started to recognize Bitcoin and other digital assets as legitimate means of payment. Several companies have even begun paying their employees in Bitcoin and crypto. There advantages and disadvantages to getting paid in this manner, which include:
No boundaries (Borderless payments)
Potential tax issues
Companies That Can Pay You in Crypto
Many companies involved in the blockchain and crypto space have been paying salaries in Bitcoin for years. For example, Coinbase has been funding employee salaries in Bitcoin as early as 2013.
Crypto payments are also common-place in the freelancing sector– especially international payments. With the recent Covid-19 pandemic, many companies were forced to lay off staff and turn to outsourcing instead. Considering that the majority of outsourced partners are located in different countries, businesses often turn to crypto payments as a cheaper method to avoid expensive international payments.
Some of the top companies that are paying their employees in crypto include:
GMO Group - In 2017, the internet company gave their 4,000 employees the option to have up to 100,000 yen of their salary paid in Bitcoin every month.
Purse io - Purse is a Bitcoin-focused e-commerce company founded in 2013. The company connects shoppers who wish to exchange their Amazon gift cards for Bitcoin.
SC5 - SC5 is a Finnish internet technology company that develops applications and software. It started paying employees in Bitcoin as far back as 2013.
Spot.IM - Spot is a company that offers web app conversions into mobile apps
Adapting to Crypto Payments
Giving your customers more options when it comes to payment methods can never be a bad thing. Over 15,000 businesses around the world currently accept Bitcoin, and it’s extremely likely that this number will increase over the next decade. For large companies with customers throughout the world, adoption of Bitcoin as a payment method could be crucial in avoiding long processing times and large transaction fees.
Your Business Crypto wallet
Preparing your business for crypto payments is extremely simple. To get started, all your business will need is a crypto wallet, which will allow you to buy, store, and sell cryptocurrency. Companies can sign up with a reputable crypto exchange like MEX Digital to gain access to a crypto wallet.
Some of the most popular companies accepting Bitcoin payments are:
Cashing out to Fiat, or not?
To cash out or to HODL is one of the toughest financial decisions for a person to make right now. When is the right time to liquidate your crypto holdings? For now, it may be wise to practice the adage “buy low, sell high", which is one of the most practiced ‘golden rules’ when making any form of trading.
In future, as cryptocurrencies become more widely accepted and trusted, the prices within the industry may stabilize. This may lead some to use their crypto holdings as a permanent store of value.