How To Get Paid In Cryptocurrencies: Why You Should Start Right Now
Disclaimer: This is not investment advice.
Initial adoption figures are hard to compare, let alone anticipate. Taking a global view, cryptocurrencies are now sufficiently mainstream, although their usability hasn’t improved overwhelmingly as currencies. Despite this, there is no debating investors’ taste for digital assets, with new digital currency exchanges solidifying the cryptosphere every time they make the papers.
On the one hand, there are those who cannot but compare crypto and fiat currencies – which is a fair observation – and point to vastly diminished service levels on a number of crypto fronts. Add to that specifically Bitcoin’s scaling issues and fees, and a convincing argument can be made that cryptocurrencies still haven’t a hope of usurping fiat currencies. However, simply the fact that cryptocurrencies are mainstreaming as an often nonoptimal currency idea, doesn’t obviate the fact that they are mainstreaming.
Whatever a user’s stance on the pure currency aspects of digital coins, something potentially enriching is happening right now for those willing to buy into cryptocurrency. Markets are down, bears prowl, and with a slightly longer-term view, going long makes a lot of sense at the moment – if you believe that digital assets are fundamentally sound.
Being paid in relatively flat cryptos now means that not too far down the line, those payments could have grown substantially in value. Make no mistake, the asset class is still largely boarded up in the psychiatric wing by legacy investment institutions. Crypto trading is extremely volatile, but there remain very good reasons to be avidly accepting digital currency right now.
Invest Free Of Emotional Impulsiveness
In spite of Hollywood depictions of wild stockbroking floors, a good currency trader is boring. They do the same thing over and over, if it works. Most particularly retail investors bring far too much emotion to trading. Case in point, it was Warren Buffett who said that the stock market is “a device for transferring money from the impatient to the patient.”
The typical scenario of newbie retail investors is that they chase losses fired up by an emotional inability to taste momentary defeat. Most will burst their purse in a very short while. “Greed” and “fear” might seem hard words, but the human animal buys to gain and sells to avoid losing.
Simply put, it’s an attempt to “beat the market.” With likely only one or two percent of retail investors actually winning that game, a far better strategy exists, and it’s called Dollar Cost Averaging.
What Is Dollar Cost Averaging?
In a common and often greatly effective investing system, a user will set up an “investment schedule” that sees them buy a certain USD worth of cryptocurrency every fortnight or every month. Not only does it provide just the right amount of needed distance to detach a user emotionally from their investing process, it also minimizes volatility risk.
Taking the human a little away from the interface eliminates our tendency of attempting to outsmart the markets. This is especially so in digital asset markets where volatility is off the charts for legacy concerns. It’s the unwise who point to the fact that so are profits at times. For those who would rather have a gradually growing store of wealth, dollar cost averaging is a good route to follow.
Accepting a salary in cryptocurrency is a handy method of applying dollar cost averaging. A crypto-paid user will likely a portion of his earnings to fiat in order to pay bills, but it’s easier to build on gradual digital coin gains when your base operational kitty is a crypto wallet.
Irregular payments can follow the same route too, and yield good results. The approach is sober and persistent – great attributes for any investment strategy – and with the advent of the modern exchanges, currencies are easily traded out into fiat.
While everyone stares at charts and feels driven by some bizarre obligation to “perform” as an investor, those who wish to fatten their cold wallets won’t allow themselves into the cookie jar. A scheduled, automated investing routine is a method far closer to the successful investor than constantly “playing” the markets.
Shrink Your Fees Today And Score
By being paid in crypto in the current market, users can vastly reduce or even eliminate payment processing fees. Sticking with the current bear market’s longer-term value, being paid in cryptocurrency directly into a cold wallet means zero fees in getting paid.
Further sweetening the pot, there are very low costs associated with mining at the moment. As a bull market reemerges and volumes increase, so will transaction costs.
Users investing in digital coins and buying from a company like Coinbase will pay a 1.5 percent fee. Although seemingly negligible, it adds up quickly and soon becomes a pricey option when up against simply accepting crypto in the first place. When being paid a salary, for example, the transaction fees will be for the employers account in dispatching the funds to a user’s wallet.
The Lightning Network was launched with much fanfare not too long ago, and justifiably so. It enables a vastly improved UX and employees and others can easily be paid by the hour or day and their money lands almost immediately. Fees are to the benefit of the company and usually total as way below typical payroll costs.
Another growing segment of crypto-paid employees is blossoming around the advent of widespread blockchain application. With most businesses in the world able to benefit somehow from blockchain technology, a large pool of people are now crypto-employed in a sense, and typically take their salaries in digital currencies.
Help Change The World
A final and really compelling reason to accept cryptocurrency is that each transaction is a small vote in favor of a decentralized money system. If the money we employ somehow defines us, it’s a good idea to opt for less control and more freedom at every turn.
Accepting crypto payments slowly builds a globally dominant currency one day, and the organic adoption of cryptocurrencies hinges on the user next door. As more and more people accept cryptocurrency, more and more will – a common phenomenon observes by Metcalfe’s Law.
Being paid with cryptocurrency means a user emboldens a system that operates outside of government or other vested interests’ control. Although the battle is likely to be long and bitter at times, the more people ask to be paid in crypto, the shorter the longevity of dominant fiat interests. In many ways, accepting cryptocurrency legitimizes it and makes it known.
Although individual users won’t see the growth directly or feel the weight, a critical mass can be reached from bottom-up pressure. If employees start demanding at least a percentage of their salary is paid in virtual currency, the global effect would be massive.
There are already go-between outfits like Bitwala that allow employers to pay employees in fiat, while the employee gets BTC from the transaction. From a moment’s satisfaction (and subsequent alarm) when Bitcoin hit an all-time high in December 2017 as an asset, the crypto community needs to shed the greed and apply the currency as it was intended. If a predicted shift of stable investing yet rising application takes place, the current rather smug complacency of centuries-old fiats could turn to alarm in a very short space of time.