As More Employers Offer Crypto Salaries, Should You Take Them up on It? by@techlooter

As More Employers Offer Crypto Salaries, Should You Take Them up on It?

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Employers are increasingly offering employees the option of being paid in cryptocurrency. There are several pros and cons associated with getting paid in the currency. But the tax system is a big problem when it comes to the amount of tax you'll pay based on the current rate of currency. Getting paid in crypto creates a big headache for employers and employees who have to work to keep the value of their salaries in line with their intended dollar value. The best practices are to learn about investing in the crypto market and how to make it work.

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@techlooter

Andrej Kovacevic

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Cryptocurrencies are gaining widespread acceptance at an amazing pace. And it's easy to see why. Their associated costs are relatively low, investment returns are quick, and they make it possible to transfer funds around without the need for third-party assistance. But that's not to say they don't have some problems.

Volatility and an uncertain regulatory environment make it hard for crypto users to make long-term plans. But by now it's indisputable that cryptocurrencies offer attractive long-term investment opportunities — as a hedge against inflation, as an emergency financial reserve, or simply as passive income sources. And these use cases have helped the cryptocurrency industry to thrive.

The trouble is that the average person faces a steep learning curve when it comes to crypto investing. And as such, newcomers tend to make their first foray into crypto by headline chasing — looking for short-term plays based on the crypto news of the day. That rarely works, though, and even when it does it's not a very suitable long-term investing approach.

And that lack of investing know-how is about to cause some serious real-world problems. The reason for that is the fact that employers are increasingly offering employees the option of being paid in cryptocurrency. And that means more people may soon be risking a bigger portion of their main income stream in the crypto markets. Here's what those people should know about investing, the pros and cons of being paid in crypto, and some suggestions on what's needed to make things work if you are.

Learning the Crypto Investing Ropes

Image: Yingyaipumi via Adobe Stock

Image: Yingyaipumi via Adobe Stock

Just as it is in the traditional financial industry, crypto investing requires a basic understanding of finance and persistence. While the latter is mostly a matter of motivation — in this case, your financial wellbeing — the former only comes with hard work and time.

The trouble is that the crypto market won't wait patiently while you study its intricacies to become an expert investor. Instead, it's a better idea to turn to a company like Exness. They offer inexperienced investors professional broker assistance, a vast financial toolkit, and useful tools ranging from a handy currency converterVPS hosting and statistics.

They also offer five types of accounts that allow newbies and professional investors to adjust profiles to personal needs, goals, budgets, and investment experience. That goes a long way toward smoothing out the crypto investing learning curve.

From there, it's a good idea to invest in some cryptocurrency investment courses on platforms like Udemy or the comprehensive video-based investment training offered by Dchained.

The Pros of Getting Paid in Cryptocurrency

There are several pros associated with getting paid in cryptocurrency. Among them, there is the possibility of easily dividing your finances into pools —like one for meeting basic needs and another for having some savings and investments. That makes it far easier to mitigate the risks associated with crypto's notorious volatility. And it also sets you up nicely to begin your journey of learning about the inner workings of the crypto market while gaining real-world experience along the way.

Another benefit of getting paid in crypto is transaction speed. Digital financial payments have no intermediary, so they get carried out faster. That's a big reason that cryptocurrencies are an emerging trend for business. They offer a one-to-one financial relationship with employees. All digital financial transactions are easily trackable. And if there is an argument between worker and employer — it is possible to trace all the financial operations in the system and resolve a controversy.

The Cons of Getting Paid in Cryptocurrency

The tax system is a big thing to consider when it comes to the drawbacks of getting paid in crypto. The problem is that the amount of tax you'll pay is calculated based on the current exchange rate of the currency. And volatility means your tax liability might fluctuate wildly from pay period to pay period.

That also creates a big headache for employers, who have to work hard to keep the real value of salaries in line with their intended dollar value. Business financial analysts can make predictions about it based on financial knowledge and economic factors — and experience — or by using crypto prediction software. But it's an inexact science where both employers and employees stand to lose in many cases.

Best Practices When Getting Paid in Crypto

The most important thing anyone getting paid in crypto can do is to create a reserve fund in a stable fiat currency. Then, they can divide their incoming crypto income and establish a loss curb to protect their investment account when the market is volatile. The goal is to manage your accounts according to how much risk you're willing to tolerate.

You'll also need to learn how to make careful and deliberate decisions regarding your crypto holdings. And you'll also need to get familiar with the limitations of having the majority of your assets in crypto. The list of companies that accept crypto mainly includes the most prominent firms. That means you may have trouble transacting with businesses you rely on. And the same goes for traditional banks, which may have limited facilities for funds transfers involving cryptocurrencies.

It is also necessary to calculate the costs of your investments as you begin to develop an overall strategy. Some investments may not be worth what it costs to execute them. You may wish to emulate successful investors' tactics and apply them. And last but not least, you'll want to hone your skills in market estimation and analytics. That will help you to make the most of the opportunities that lay in the crypto market.

Summary

Overall, cryptocurrencies are an excellent source of passive income and are becoming more and more popular. But making the most of them requires patience, concentration, persistence, and basic comprehension of financial concepts. And it helps to stay abreast of worldwide economic news and political events, as they influence the financial markets and cause movements of cryptocurrencies.

It's also a good idea to avoid going it alone when you begin investing in crypto. Turning to a firm that offers tools aimed at beginners and that offers professional advice isn't just prudent — it's practically required. And so is taking the time to learn the intricacies of crypto investing so you'll be able to make smart decisions with your money.

However, when it comes to getting paid in cryptocurrency, it is a good idea to split your salary into predetermined amounts of fiat currency and cryptocurrency (if your employer allows it). That will help you hedge your bets and keep you from tying your financial well-being to an industry that's still very new and liable to remain volatile for the foreseeable future.

And if you do, you'll be able to take advantage of what is assuredly a spectacular investment opportunity — and not be left behind as the crypto industry continues to make believers in more and more people.

Featured image: khosrork via Adobe Stock (licensed using contributor's account)

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