For every business expanding its client base, multiple payment methods play an important role in the growth of the business. It not only increases convenience for the customers but also helps in lowering the additional charges. In the digital financial market, many clients prefer paying through Bitcoin as it is easy to transfer globally.
Many self-employed freelancers have now expanded their services to the globe and are open to accepting various modes of payment. Let’s see how freelancers can accept Bitcoin payments and what benefits they get to grow their businesses.
Freelancers have various options to accept Bitcoin payments. Suppose you want to accept Bitcoin payments for your business but are unaware of how to handle crypto. In that case, you can choose from the services that provide integration, invoices, and conversion of your cryptocurrency. Some services like Coinbase Commerce and Bitpay deliver these features.
Using these, freelancers can also choose the option of auto conversion. The received currency is automatically converted to a fiat currency of your choice and settled in your bank accounts. The only backdrop to this is that these service providers will charge a small fee. Despite this, these services are more convenient than other traditional services.
With the help of digital wallets, freelancers can accept Bitcoin payments all over the globe. For this, they need to set up their Bitcoin wallet. A Bitcoin wallet is a secured digital platform where one can send, receive and store their Bitcoins and other digital currencies. The foremost step to accepting Bitcoin is first to choose a Bitcoin wallet.
Bitcoin wallets are considered the safest for the one who wants to trade in Bitcoin. There are two types of wallets for Bitcoins. These are hot wallets and cold or hardware wallets. For trading purposes, hot wallets are convenient; some hot wallet providers like Speed Wallet also include various features for their users. Hardware wallets are the most secure as they are not internet-connected.
Hot wallet or software wallet
These cryptocurrency wallets are directly connected to the internet through a user interface. It can be operated over a browser or have a separate application. Software wallets are best for transactions using Bitcoin and other cryptocurrencies. There are various types of hot wallets that are prevailing in the market, like Speed wallet, coin base wallets, etc.,
Cold wallet or hardware wallet
Many companies provide hardware wallets; these wallets are pen-drive device-like structures. One does not need to connect them constantly with the network; instead, access your keys anytime and anywhere through them. Cold wallets are custodial wallets; now, Ledger and Trezor are among the best cold wallets. There are various types of cold wallets that are used for the storage of private keys and also for the seed phrase.
One must not reveal their private keys or even seed phrases with anyone, not even with the payer or employer. The reason is private keys are the only way to decide your ownership over your currency.
Some freelancers want to avoid setting up wallets and consider their security on their own. For them, it is easy to go for an exchange. This is a custodial mode of receiving Bitcoin and saving them. There are multiple crypto exchanges in the market that keep your private keys and keep your assets secured.
Exchanges take care of your asset custody, and this is a very beneficial method that reduces the chances of you losing access to your funds. The exchanges have many benefits, but some calculative risk needs to be taken to use an exchange service. If a crypto exchange platform goes bankrupt or gets hacked, there is a chance that the owner will lose all its currency entirely.
Some Bitcoin exchanges
To avoid any scenario of losing your funds, choose from the most trustworthy and advanced exchanges. This will lower some risk factors; some of the top crypto exchanges are considerable in the current market scenario.
Until and unless you don’t do marketing of the payment options you provide, no one is going to know about it. Hence it is imperative to market the payment systems to attract potential clients.
It will help you attract global clients seeking an alternative payment method. Here are a few practical ways of marketing your crypto payment options.
Some countries are tax-free and allow their residents to accept Bitcoin payments, but there are some that don’t. Regarding taxes and regulations, each country has different tax parameters for accepting Bitcoin payments. Crypto is not embedded with law, and potential charges are applied on the same. Generally, freelancers are not aware of taxes and its procedure, so using crypto tax software solutions is compelling. Freelancers should understand the rules and regulations of their country regarding the crypto trade.
Being a business owner or a freelance service provider accepting Bitcoin payments brings out many benefits for you. It will simplify the way of accepting payments from all around the world. There are infinite benefits to accepting Bitcoin payments; let’s look at some of them here.
Cryptocurrency works on the blockchain; the technology has eliminated banks and other third-party intermediaries from transactions. Blockchain performs as a decentralized network; hence it is governed by codes and managed by its decentralized participants.
The transactions are performed between the payer and the receiver; hence there are no middlemen to take their cut from this like the other traditional system.
Cryptocurrencies get settled in real time; hence, sending and receiving Bitcoin payments worldwide is easy. This also builds trust between the one transacting, there is minimal waiting time, and payments get settled without hassle. The traditional system has a long waiting period, and geographical borders bound it.
While cryptocurrency allows borderless transactions, there are no issues of payment being delayed or getting held up just because of settlement inefficiencies.
Crypto provides transparency to its users; all the transactional data gets stored in the public ledger, where anyone can check it by inserting the sender’s public address. In case of any dispute raised by any party, there is proof of every transaction publicly available. This protects the sender from any chargebacks raised by the receiver.
Ledger keeps records of all the transactions that took place. Any transaction can be seen just with the public address of it using the blockchain explorer.
Payment using crypto is the most secure; first of all, it operates over a decentralized network, and after that, the payment gets settled in the digital wallet and is protected with private keys. The network validators provide another layer of security; they validate the transactions for their authenticity and to ensure that none of the transactions is repeated.
The users need only to protect their private keys. The funds are protected as long as the keys are kept safe. Unlike banks, crypto funds are not easy to be stolen until granted access to it.
For many freelancers, covering a wide range of markets is easy when they offer a digital payment option. This attracts tech-savvy clients to be a part of their business, and it will be more accessible to the general public. Freelancers working in any field who need to expand their client base must be innovative with their payment methods so that their clients feel more connected and can easily pay for their services.
The digital financial market involves many such digital assets accessed worldwide, but crypto is a more trustworthy and easy-to-interpret currency in the global market.
Some countries have implemented capital gain taxes over cryptocurrencies as they accept their trade in their countries. In contrast, in other countries, there are still no regulations on accepting crypto payments, and hence there are no applicable charges or tax rates.
Operating in cryptocurrencies will help the individual save taxes and additional charges. This benefit depends on the country you reside in.
In cases like defaults or monetary reforms, financial crises lead to the loss of money and its currency value. At the same time, crypto remains untouched as it is not dependent on any central authority. When talking about crypto, the owner is its bank and has the sole right to his funds.
With the traditional system, there are multiple restrictions imposed by financial institutions, and they also control the amount of money to be transferred, sometimes implying high fees and many such things. On the other hand, when crypto is under the ownership of its individual, the funds can be used to pay or purchase the required item.
After the pandemic struck, there has been a rise in the freelance market. It can be due to the layoff or can be due to people being more independent, accessible, and self-sufficient. Freelancing attracts people towards them as they can work from anywhere in the world at any time. Bitcoin has proven to be an advanced benefit for freelancers, as it directly contributes to their business growth. Accepting Bitcoin payments came up with plenty of advantages. You can find customers worldwide, enhance your services and increase revenue simultaneously.