The last decade or so has seen a striking rise in the popularity of cryptocurrency. With more people becoming familiar with various cryptocurrencies like Bitcoin and crypto trading on online exchanges, crypto transactions have become more accessible.
Many businesses are now recognizing the many benefits of getting paid in crypto for their products. While setting up your business site to get paid in crypto is straightforward, understanding the benefits is the first step to making the change. While there are benefits there are also some loopholes but can be avoided. Check out what bitcoin-loophole has to say.
This article will outline 4 benefits of getting paid in crypto.
1. Decentralized Finance
DeFi is a term often used to talk about the world of cryptocurrency and the services that many crypto platforms provide. This term stands for Decentralized Finance and is a primary reason why so many have gravitated towards cryptocurrency in recent years.
When you pay for a product online or receive a salary from your employer, the transaction is mediated by a third party, usually a bank. Cryptocurrency transactions have no third-party mediator, making the crypto network entirely decentralized, peer-to-peer, and transparent.
This goes for crypto payments too. If you get paid in crypto, the payment is transferred directly and transparently from the buyer to the seller via their respective crypto wallets.
2. Exchange Rates
The modern economy is not only globalized; it is becoming increasingly virtual. Subsequently, many freelancers earn a major portion of their income from clients all around the world. However, this usually leads to fiat currency exchange rates eating into their earnings by a substantial degree over time.
However, if you are getting paid in crypto, this is not something you need to worry about. Transactions in cryptocurrencies are more affordable than using PayPal or a remittance service, which always includes their fees in the transaction.
Moreover, the value of the most widely used crypto, such as Bitcoin, is not tied to fiat currency exchange rates. Therefore, your crypto payments can be converted into U.S dollars upon receipt very easily.
As you probably know, receiving payments in fiat currency (the old-fashioned way) can sometimes take days or even weeks to complete. This delay is due to the mediation of the transaction by a third party. Getting paid in crypto is hence becoming necessary for businesses to keep up with the changing times, as many recognize its potential to avoid the inconvenience of slow transaction times.
Cryptocurrency transactions do not involve any third-party mediator and are therefore immediate. At most, they can take up to 10 minutes which is a huge leap ahead of the current system of getting paid in fiat currency.
4. New Clients
As the world of cryptocurrency continues to expand its capabilities and reach, more and more businesses are beginning to take notice of its vast potential. As a business owner, if you are willing to get paid in crypto, this will most likely attract many new clients who are willing and able to pay for your product or service in cryptocurrency.
Moreover, by opening up their network to startups and companies that pay their employees in cryptocurrency, both companies and freelancers could reap many new opportunities for growth.
As the popularity of cryptocurrency continues to rise, more buyers will be willing and able to pay for products and services in cryptocurrency. Therefore, it probably won’t be long before adding the option to get paid in crypto becomes a necessity for your business’s future growth.