I'm a Freelancer: Here's Why I Prefer To Get Paid in Crypto

Yahoo

02-05-2025

The freelance economy has undergone a seismic shift in recent years, with cryptocurrencies emerging as a preferred payment method for many independent workers.
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As traditional financial systems grapple with high fees, slow processing times and currency volatility, freelancers like Atikh Bana, co-founder of Acctual, are turning to crypto to streamline their workflows and protect their earnings.
For freelancers in emerging markets, traditional banking systems often impose burdensome costs. Bana noted that transaction fees in some regions range from 5% to 10%, significantly eroding profits for small-scale freelancers.
'On top of that, I had to deal with unfavorable exchange rates, which further reduced my earnings,' he added.
These fees compound with volatile local currencies, which can depreciate rapidly during the multi-day processing periods of international transfers. Cryptocurrencies, particularly stablecoins pegged to the U.S. dollar, bypass these challenges by eliminating intermediary banks.
The inefficiencies of conventional systems are stark. According to the International Monetary Fund, the average cost of sending $200 internationally exceeds 6%, with some corridors facing fees above 30%. Crypto transactions, by contrast, settle within minutes for a fraction of the cost.
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'One of the biggest benefits I experienced with crypto was how fast I received my money,' Bana explained.
Traditional banking systems typically take up to five days — sometimes longer — to process international transactions, causing cash flow issues for freelancers that rely on timely payments. For many freelancers, waiting days for a payment to clear can be frustrating and stressful.
But stablecoins let freelancers skip that processing time. With crypto, freelancers can get paid almost instantly, which gives them better ability to plan financially. This speed is especially helpful when working with international clients who expect quick turnarounds.
Freelancers often work with clients in different countries, and traditional payments can be a hassle. Bana explained the flexibility of having clients pay in stablecoins just makes it much easier to get paid in a fiat world.
With crypto, freelancers can work with clients from anywhere without worrying about whether their bank supports international transfers or other payment barriers.
When freelancers consider accepting crypto, they typically worry about the volatility of coins like bitcoin and ethereum.
But there are stablecoins, like USDC and USDT, that are pegged to the U.S. dollar, so there are no sudden drops in value — at least, that's the intention. These stablecoins combine the benefits of cryptocurrency — speed and low fees — with the price stability of traditional fiat. It's important to know, however, that stablecoins can fail, as evidenced by the terra crash in 2022.
But what about taxes? In the U.S., cryptocurrencies are classified as property, necessitating capital gains reporting upon disposal.
Blake Minho Kim, freelancer and co-founder of Myosin, explained, 'With stablecoins, there are no tax implications in that you have no capital gains or losses.'
In the U.S., companies track and report payments with forms like 1099s and W9s, while international freelancers may need to use forms like W8BEN. Stay organized to avoid surprises at tax time.
Self-custody wallets are central to securing crypto earnings. Freelancers should embrace platforms that allow them to control their private keys, reducing exposure to exchange hack. Kim recommends dispersing funds across multiple wallets to limit losses from potential breaches.
Freelancers must be vigilant against phishing attacks and suspicious links, which remain prevalent in the crypto space. Educational resources, such as Kraken's guide to self-custody, underscore the importance of offline storage for long-term holdings. Combining secure hardware wallets with disciplined digital hygiene can help freelancers protect their assets while enjoying crypto's transactional benefits.
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Sources
Atikh Bana, Acctual
International Monetary Fund, 'How Training and Advice Can Speed Cross-Border Payments and Cut Costs.'
Blake Minho Kim, Myosin
Kraken, 'Self-custody best practices.'
This article originally appeared on GOBankingRates.com: I'm a Freelancer: Here's Why I Prefer To Get Paid in Crypto