Why didn’t I see this coming? Why am I still holding bags? Why didn’t I take profits?
Let’s face it. We’re in a bear market. How long will it last? I have no idea and neither do your favorite “influencers.”
Bear markets are emotionally taxing, which leads to many investors making poor decisions. Don’t be that guy.
Bear markets are also the perfect time to start getting paid in crypto. Be this guy instead.
(Disclaimer: this article was inspired by the following tweet by @meeDamian.)
So instead of wasting energy obsessing over the market, use this time to do something productive.
Besides, if you’re confident the market will eventually recover, then getting paid during a bear market also means you’re “buying” crypto for a steep discount.
In this article, I’m going to cover 3 reasons why it’s worthwhile getting paid in crypto and finish with some practical tips on how to get started.
1. Removes Emotional Investing From the Equation
Human beings are bad at managing our emotions, especially when it comes to investing. We easily succumb to greed and fear, thus creating bubbles.
The shortcomings of our “reptile brain” can be witnessed in real-time by following the price action. This is called market psychology and it’s extremely powerful. As a market, we chase rising prices (greed) and then panic sell (fear) at the first sign of weakness. We buy high and sell low.
The stock market is a device for transferring money from the impatient to the patient.
– Warren Buffett
Trying to manage your emotions is a noble goal, but most people fail miserably. What if you didn’t have to rely on willpower and emotional fortitude?
Dollar Cost Averaging
You’ve probably heard recommendations to set up an investment schedule where you automatically purchase $X worth of crypto each month, regardless of the price. This is called “Dollar Cost Averaging,” and it’s a good way to minimize price volatility risk while simultaneously reducing the effects of our self-sabotaging human emotions.
For 99.9% of us, Dollar Cost Averaging is a better strategy than trying to “beat the market.”
(No, you are not in the 0.1%. Sorry. Neither am I)
Getting paid a salary in crypto is a form of dollar cost averaging, as you’re automatically making $X purchases each month in the form of your paycheck. Or if you get paid irregularly, let’s say on a project/client basis, at least you’re not the only one who controls the keys to the nuclear launch code.
Risk Management: Stay Disciplined To Prevent Catastrophes
When you’re getting paid in crypto, you can cash out your required monthly fiat expenses and (ideally) leave the rest in cold storage as an investment. This is a sober, sensible approach to investing in crypto, and if followed may minimize the risk of our self destructive tendencies such as maxing out credit cards or taking a second mortgage out so you can bet on Bitcoin.
Instead of letting your emotional willpower drive your investment decisions, build a system of rules/constraints to guide you. For example: “I invest 10% of my monthly income,” or “I only invest what I earn from my side hustle.”
A prudent option that still increases your crypto holdings: get a part-time job earning crypto
Stop staring at charts, trying to “beat the market,” or getting into Twitter fights about “why TRON (TRX) is going to be even bigger than the movie.”
Instead, gain some peace of mind, and focus that energy somewhere more productive. Start earning crypto.
2. Getting Paid in Crypto = Spending Less on Fees
If you purchase crypto as an investment from somewhere like Coinbase, you’re paying ~1.5% in fees. That might not sound like a lot, but it is. And over time this “small fee” becomes significant.
After making your initial purchase, you move your crypto off the exchange and onto a wallet (preferably cold storage). This transfer incurs an on-chain transaction fee. Today these fees are very low (around 50 cents for Bitcoin), but when demand for on-chain transactions increases, so will the price of these fees.
Alternatively, there are no fees when you get paid in crypto.
When your employer/customers pay you in the form of crypto, it goes straight into your wallet/cold storage. No 1.5% fee and no transaction/miner fee required for you!
(Caveat: If you need to sell your crypto for fiat in order to pay bills, then you will still incur the fees mentioned above. Also your employer/customer will incur an on-chain transaction fee for sending you the paycheck.)
Lightning Network is well suited for payroll.
The Lightning Network can enable employees to get paid by the hour/day/week due to near-instant transactions and sub-satoshi fees. This saves the company money (payroll process is expensive) and it’s more convenient for the employee (paid directly, more frequently). Sign me up for that!
3. Help Spread the Movement
The currency you get paid in is a subtle vote for the system in which you support. Whether you get paid in fiat or crypto, you’re sending a message. Which system do you support? Fiat monopoly money? Or censorship-resistant sound money?
Whatever your decision, I encourage you to choose consciously, because it matters.
Getting paid in crypto means you’re participating in a parallel economic system outside of the “government-controlled fiat monopoly game.”
The more people who get paid in crypto, the more it becomes legitimized. If enough employees start asking to be paid in crypto, eventually companies will respond.
Imagine if major employers started offering salaries in Bitcoin? Even if they allowed up to 10% of your salary in crypto, this could be enough to cause a tipping point. Bitwala is a service that lets companies pay there employees in fiat, but the employee receives Bitcoin.
In order to reach “mainstream adoption” (whatever that means), the early majority (you and I) need to start participating. If the hardcore crypto people aren’t participating in a “crypto economy” then why would anyone else? Let’s set an example.
Practical Stuff: How To Get Paid in Crypto
While the price of Bitcoin has been declining since the start of 2018, the industry is booming. Blockchain job openings are increasing every month. Large banks, governments, and corporations are racing to get in on the action. Not to mention, top-tier talent is leaving traditional industries in favor of blockchain-related companies.
If you want to participate in the “blockchain brain drain,” below are a few tips on where to start.
4 Ways To Get Paid in Crypto
- Work in the crypto industry (many, but not all organizations pay in crypto)
- Start accepting crypto from your clients/customers
- Write for a platform like Steemit
- Complete tasks/gigs in exchange for crypto (ex: BitGigs or Coinality)
Working in the crypto space is different from working in the “real world” in many ways. Be sure to understand the world you’re stepping into before looking for a job.
What if I’m not a developer?
That’s OK, neither am I. First off, it’s not too late to learn. And second, there are countless non-technical options. The industry is always looking for good researchers, community managers, writers, marketers, designers, and of course engineers of all kinds.
In terms of finding a job, start by familiarizing yourself with the opportunities. I recommend browsing CryptoJobsList.com, CryptoJobs, CryptoCurrencyJobs, etc.
Also, if you’re looking for a writing gig and have a passion for the latest crypto news, we’re hiring a couple more staff writers here at Invest In Blockchain… you can apply here.
Lastly, if you want more in-depth advice on working in the crypto industry, check out this article by Meltem Demirors.
Let’s Build a More Decentralized Future
If you want to see a more decentralized world, getting paid in crypto is an excellent way to be a part of the movement. Affecting the macroeconomic trends of our planet is no small feat, but if we all make changes in our personal lives it just might be enough to move the needle.
All these little steps can add up to a massive shift in the ecosystem. Everyone complains about “no use cases” or “no one actually uses crypto” yet.
Well, here’s your chance….
Get off Reddit, Telegram, and Tradingview. We’ve all been stuck there, it sucks. Stop refreshing Blockfolio and complaining about manipulation.
Instead, turn that energy into something productive.
Ask your boss to get paid in crypto, get a second job that pays in crypto, build tools to support the industry, invite your clients to pay in crypto, or find a job in the industry where you’re both getting paid in crypto and helping to build the future.
When this bear cycles concludes, who do you want to be?
The emotional wreck who wasted all 8,760 hours in 2018?
Or the person who accepted their circumstances and decided to do something about it. Be part of the solution. Get paid in crypto. See ya out there!
Related: What Can You Buy With Bitcoin?
