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As the global economy becomes increasingly digital and therefore mobile, freelance work has become a popular option for those who want to take advantage of this growing international connectedness. Doing business with international clients while still receiving pay through traditional means is often overly complicated. However, this is pushing more freelancers to examine information concerning Bitcoin price USD, which can be referenced on various cryptocurrency exchanges, including Binance, Coinbase and Gemini, among others, and turn to Bitcoin for faster, cheaper, and more secure payments.
A rising demand for new services
A part of why many freelancers have begun to gravitate toward Bitcoin and other cryptocurrencies is the rising costs of using traditional global payment platforms. Many of them have started introducing fees and restrictions on transactions that noticeably cut into a freelancer’s bottom line.
Despite these complications, remote freelance work is surging globally, creating demand for alternative payment solutions. Bitcoin seems to serve effectively as a substitute. This is largely because it is inherently decentralized and can therefore circumvent traditional banking systems and other tools that make international transactions needlessly expensive/time-consuming.
Increasing price awareness
While Bitcoin and other cryptocurrencies offer several important conveniences, there are some notable complications that come with their use. For instance, freelancers have to routinely track Bitcoin prices to maximize conversion timing and avoid high fiat exchange fees.
The most straightforward method of monitoring prices is through popular exchange platforms, many of which display exchange rates in real time. Cryptocurrencies are notoriously prone to dramatic short-term price shifts due to their inherent volatility. However, it can be worth looking for patterns and other sources of information (news outlets, social media, macroeconomic indicators, etc.) that could shed light on the direction prices may move.
Improving transaction speeds
Traditional cross-border payments via central banks or centralized payment apps can take up to several business days to process, placing unnecessary pressure on freelancers when their finances experience needless delays.
Bitcoin transactions, on the other hand, can be settled in minutes because they do not need to go through middlemen. Freelancers can get their money quickly because of this short transfer time. Still, it is important to remember that there are tax and regulatory issues to think about when you get paid in crypto.
For example, in some countries, freelancers must report Bitcoin payments as regular income based on the fair market value (FMV) at the time of receipt. Elsewhere, freelancers may have their profits from virtual digital assets taxed directly. When it comes to regulations, freelancers have to routinely manage Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. These processes tend to prove challenging given that cryptocurrencies are decentralized.
Cryptocurrencies lower fees
Since crypto transactions eliminate intermediaries like banks and centralized payment apps, freelancers are often able to retain more of their earnings. There are still some fees that come with changing currencies and using crypto to make purchases, but these fees are usually much lower than the fees that come with using regular payment methods.
In this case, crypto exchange platforms will often be different from each other, with some charging more for some processes than others. Because of this, it is a good idea to look around at different platforms to find the one that best meets your needs and budget. Freelancers should bear in mind that some exchanges are more reputable than others, so it is good practice to stick with more popular platforms, at least until they gain a better understanding of how platforms work and which features they prefer.
Accessing financial autonomy
Bitcoin has been shown to be especially useful in jurisdictions with restricted markets. It can also be useful in emerging economies where fiat currencies may be experiencing high inflation or other macroeconomic challenges.
Through cryptocurrency, freelancers can access their funds without needing to depend on local banks or payment gateways, both of which may not be available in some locales. Access to one’s crypto still relies on a stable internet connection, however, so it helps to convert some of it into fiat in instances where internet access could become sparse or nonexistent.
Security and transparency
Bitcoin and other cryptocurrencies use blockchain technology as the backbone for their networks, making them both secure and transparent. Blockchain has a built-in public ledger that reduces the risk of fraud and chargebacks, issues that are fairly common with fiat transactions.
Still, hacking and breaches of privacy remain risks that should be accounted for to prevent the loss of one’s funds and sensitive information. Therefore, freelancers should remain vigilant when it comes to securing their crypto wallets and private keys so as to avoid unwanted access. It also helps to use wallets that generate new addresses for each transaction to prevent observers from tracing their transactions back to their wallet addresses.
Navigating a new digital world
Technology has rapidly progressed in recent years, and with this progression has come the demand for new ways to send and receive payments globally without needing to pass through the obstacle course that is traditional banking.
Bitcoin and other cryptocurrencies provide a fairly tidy solution to this issue, and although there are still plenty of complications to work through, freelancers who opt to receive pay with crypto can rest a little easier knowing they can receive their funds from almost anywhere at any time.
Investing involves risk and your investment may lose value. Past performance gives no indication of future results. These statements do not constitute and cannot replace investment advice.
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