How remote workers can accept payment in crypto’s stablecoins

Millions of people all over the Earth have benefited from remote working. You may be a freelance writer residing in Lagos, a software developer in Buenos Aires, or a designer in Manila, and the internet will forge a connection between you and any client in the world. Of several challenges that remote workers face, one that is particularly daunting and paramount to their careers is how to get paid fairly, quickly, and without losing a large chunk of their earnings to fees. 

Traditional methods, such as bank transfers, PayPal, or money transfer services, have their own set of challenges, like the rather elevated fees, notorious length of time they take, and sometimes the restrictions. Hence, a lot of remote workers have been prompted to explore alternatives. To this end, cryptocurrency stablecoins have been increasing in popularity. 

In this article, we discuss cryptocurrency stablecoins and how you can get paid using them. 

What are stablecoins?

Everyone is familiar with coins such as Bitcoin and Ethereum, but not everybody understands how volatile they are. According to supporters and loyal fans, these coins lack stability because of their prices; prices can go very high or very low at any time. In other words, the existence of stablecoins was to take care of this problem.

Stablecoin is a cryptocurrency designed to maintain its value by being pegged or closely linked to known entities or some external value preserver or assets, for example, the US Dollar, Euro, or almost anything, including commodities such as gold, with some attribute of immunity. In other words, 1 USDT (Tether) or 1 USDC (USD Coin) would always equal one U.S. dollar.

That makes them great for payments. A remote worker doesn’t want his $500 paycheck to suddenly fall in value to $400 overnight because of fluctuations in crypto value. Instead, stablecoins offer the best currency stability needed in payments alongside crypto’s fast speed and global reach.

Why are stablecoins perfect for remote work payments?

A little comparison of stablecoins with conventional payment systems quickly proves their strength.

• Borderless payment: Regardless of where your client is located, sending money in stablecoins is as easy as sending an email. There are no rules tied to either geographical or banking systems. 
• Reduced fees: PayPal can take up to 5% from your income, and international bank transfers can be both expensive and slow. And still, a stablecoin transaction might barely take an hour on average, depending on the country, and might cost even less than a dollar regardless of the amount being transacted. 
• Speed: Speed is another key advantage. While bank transfers can take a number of days, transactions with stablecoins usually just take a few minutes. This may mean the world to a freelancer in need of those timely payments. 
• Accessible to all: In places where banks can be unreliable or where platforms like PayPal might not be functional, one can receive and hold stablecoins regardless. For those under inflation with unstable currencies, normalizing the adoption of such stablecoins could serve as a means to store value in a more solid form.

Popular stablecoins that remote workers can use

• USDT (Tether): It is the most used stablecoin and works across all exchanges and wallets.
• USDC (USD Coin): Backed by regulated financial associations in the US, USDC is one of the most transparent stablecoins.
• BUSD (Binance USD): This coin is pegged to the dollar and is linked to Binance, which happens to be one of the world’s largest exchanges.
• DAI: This decentralized stablecoin is managed by smart contracts and is popular among users who want to use less of the centralized network.

Each of these coins has its own strengths. Yet USDT and USDC are the most popular among remote workers, primarily because both are supported worldwide.

Step-by-step: how remote workers can accept payment in stablecoins

The prospect of receiving payment in stablecoins might sound intimidating, but the process is actually easier than most imagine. Here’s a step-by-step walk-through to guide you.

Step 1: Choose a wallet

You need a crypto wallet before you can receive stablecoins. Think of this as your digital bank account, wherein you are the one in charge.

There are different types of wallets:

• Exchange wallets for Binance, Bybit, and Bitget are among the most popular. These are easier to set up and manage than others; however, they come with the disadvantage of your funds being held by exchanges on your behalf.
• Non-custodial wallet like Trust Wallet, MetaMask, or Exodus offers more control. Each has its own private key. 
• The third option is a hardware wallet, such as Ledger or Trezor. They are physical devices storing your cryptos offline, hence they are the safest option.

Step 2: Understand networks and fees

Stablecoins are transferred from wallets across various blockchain networks. For example, USDT can be sent on the Ethereum (ERC-20), Tron (TRC-20), or Binance Smart Chain (BEP-20).

Understanding the differences between various networks is important because fees can vary significantly depending on the network. An Ethereum transaction may range up to hundreds of dollars; conversely, a transfer on Tron’s network or Binance Smart Chain may only fluctuate by a few cents. Always discuss the network with a client before they send payment.

Step 3: Share your wallet address

The wallet address, which is a unique public address of your wallet, in effect works as an account number. All you need to do is simply copy the address and email it to your client. 

Always be careful to look closely at the address and verify that it corresponds to the correct network: should an address meant for Ethereum be sent USDT, there will be zero chance of recourse over this lost amount.

Step 4: Receiving and signing off payment

The moment the client sends payment, it should appear within minutes in your wallet. Most wallets will show the crypto balance with an equivalent value in USD, so you can ascertain exactly what amount you’ve received.

Before you finalize and deliver your work, it’s wise to confirm payment. Payment, just like through PayPal or bank transfer, has to be confirmed before handing over deliverables.

Step 5: Convert stablecoins to local currency

For some remote workers, holding stablecoins is enough; they can continue to exchange them for other services, or they may keep them as a hedge against inflation. But for many, these would eventually need to be converted into the local currency at some point.

The two most popular ways to convert your stablecoin earnings are:

• Exchanges: Several exchanges, such as Binance, Coinbase, and Kraken, will allow you to sell stablecoins and withdraw the equivalent in local currency. This is usually the most straightforward way.
• Peer-to-peer (P2P) platforms: These platforms connect you directly with buyers willing to buy your stablecoins with local money using bank transfer or mobile payment. Binance and OKX, among others, have P2P marketplaces that are famous in regions where direct crypto-to-bank services are limited.

Step 6: Tax record keeping

Even if it flies under the crypto radar, for most governments, it is still considered income, and some taxes must be paid on it. It is very important to have records for each payment you receive, with relevant data including date, amount, and equivalent in foreign currency as of that date.

Some apps will help with this, but usually, a simple spreadsheet can even do the trick. With all the things organized, you don’t have to worry much if one day you need it while filing taxes or proving income.

Risks and challenges

Many more problems can be solved with stablecoins, but still, some level of risk exists.

• Regulation: Because some countries accept cryptocurrencies while others restrict them or ban them altogether, it would be wise to check crypto laws within your jurisdiction before undertaking full adoption of stablecoins.
• Loss of funds: Unlike banks, where you can reverse payments if errors occur, crypto payments cannot be reversed. If you or your client sends to the wrong address or network, it often cannot be reversed.

• Volatility: There are rare instances where the coins will lose their peg, even though they are designed to maintain value. If you choose reputable coins such as USDT, USDC, or BUSD, the risk is minimized.
• Scams and fraud: Always make sure that you are dealing with a legitimate customer before you accept cryptocurrency payments.
• Private key security: You lose your money if you lose your private keys. Keep them safe.
• Conversion hurdles: Exchanging stablecoins for local currency may be a challenge in some countries.

Conclusion 

For remote workers, obtaining payment is usually as big a challenge as finding clients. High fees, slow transfers, and the limited availability of platforms such as PayPal erect significant barriers to earning a living. Stablecoins easily deliver a practical, fast, and affordable solution. 

Although there are risks involved, with a little bit of caution and the right understanding about stablecoins, the payment systems of remote workers will change dramatically.