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How To Get Paid in Bitcoin (BTC): Everything You Need To Know

25 mins
Fact Checked
by Ish Bautista
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In today’s digital era, individuals are increasingly looking to get paid in cryptocurrency. Many workers are looking to Bitcoin payments as the market heats up in 2024. This guide demonstrates how to get paid in Bitcoin, secure your assets in a reliable wallet, and select the right platforms for effective digital asset management.

We will offer insights into choosing the right hardware wallet and strategies to generate a sustainable income in cryptocurrency. Here’s how to receive payments in crypto, uncover the best platforms suited to your needs, and master efficient management of your crypto earnings, including ensuring tax compliance.

Methodology

How can you get paid in crypto?

To receive your salary in Bitcoin or other cryptocurrency, you will need to use one or more of the following tools:

Let’s dig into each of these options, and we’ll recommend the best tried and tested platforms for each. While most users looking to get paid in crypto will be keen to understand only the basic functionalities of each platform, this list adds further detail. We include key information around trading features and passive earning potential to ensure you choose the app most suited to you.

Whether you are looking to simply get paid in crypto and instantly withdraw these funds, or use a portion to interact with decentralized ecosystems, trade, stake or earn a yield, here’s everything you need to know, starting with the centralized exchanges (CEXS).

Crypto exchange

A crypto exchange is a platform where you can buy, sell, and store cryptocurrencies. To receive your salary in crypto, you’ll need to set up an account with a reputable crypto exchange. 

Provide your employer with the public address associated with your exchange account so they can direct your salary payments there. Once the payment is received, you can keep it in the exchange, convert it to another cryptocurrency, or cash it into your local currency. Here are our top recommendations for crypto exchanges suitable for receiving a crypto salary.

Exchanges for receiving your crypto salary

Coinbase

Simple to get paid and manage your BTC
Cryptocurrencies
241
Card
Yes (Visa)
Availability
100+ countries
Fiat withdrawal fees
ACH & SEPA free

BYDFi

Multiple withdrawal options
Cryptocurrencies
282
Card
No
Availability
150+ countries
Fiat withdrawal fees
N/A

Bybit

Best crypto exchange for derivates trading
Cryptocurrencies
558
Card
Yes (Mastercard)
Availability
150+ countries
Fiat withdrawal fees
Depends on fiat

Crypto wallets

A crypto wallet provides a more personal and secure way to receive and store your cryptocurrencies. There are various crypto wallets, including software wallets (mobile or desktop) and hardware wallets (physical devices). After setting up a wallet, give your public address to your employer. When your salary is transferred, it goes directly into your wallet, providing full control over your funds.

Zengo

Best for security
Cryptocurrencies
120+
Card
No
Availability
180+ countries
Fiat withdrawal fees
1% spread + 1 or 4.5% fee

Coca Wallet

Best for non-custodial card
Cryptocurrencies
100+
Card
Yes (Mastercard)
Availability
200 countries
Fiat withdrawal fees
N/A

OKX Wallet

On-chain withdrawal fees only
Cryptocurrencies
310+
Card
No
Availability
100+ countries
Fiat withdrawal fees
N/A

Wealth management apps

Wealth management apps specializing in cryptocurrencies can be an option for those interested in receiving and growing their crypto wealth. These apps often combine the functions of a wallet with tools for investment and portfolio management.

They may offer features like automatic conversion into less volatile assets (like stablecoins) or investment in diversified crypto portfolios. Some also provide traditional financial services like interest accounts or loans based on your crypto assets. As with wallets and exchanges, you would provide your account’s public address to your employer for salary payments.

YouHodler

Best for managing your crypto salary
Cryptocurrencies
54
Card
Yes
Availability
170+ countries
Fiat withdrawal fees
Depends on fiat

Wirex

Best for crypto card and cashback offers
Cryptocurrencies
118+
Card
Yes (Mastercard)
Availability
130+ countries
Fiat withdrawal fees
Free

Why get paid in crypto?

Bitcoin target, Bitcoin, crypto liquidations, Bitcoin ETFs

Getting paid in Bitcoin or any other cryptocurrency can appeal for several reasons. Some main reasons for getting paid in crypto are fast international payments and becoming bank-independent. 

However, there are risks involved. These include the possibility of financial loss, the complexities of tax laws relating to crypto, and the challenge of managing money that only exists in digital form.

The growing interest in getting paid in Bitcoin and other digital assets isn’t just a trend spurred by its increasing popularity. It’s linked to a broader shift where employees seek greater flexibility and autonomy in their work lives. 

According to a 2022 study by SoFi, 36% of employees wanted to be paid in cryptocurrency or at least be given this option. Another October 2023 survey by Pantera Capital revealed that only 3% of the base salaries are paid in crypto in the crypto industry. 

This only proves that the desire to get paid in crypto is there, but it’s mostly limited to the crypto industry, which is still expanding. The same survey from Pantera Capital also revealed that 88% of the respondents are working remotely. This includes freelancers and digital nomads.

As a payment perk, crypto can serve as a growth investment for some workers, and more reliable, stable pay for others. Moving forward, we expect to see crypto withdrawals increase if investor confidence goes up, thanks to the rising price of coins like Bitcoin. In countries where workers have come to rely on crypto withdrawals as a workplace benefit to stabilize paychecks, we expect to see more of the same.

Deel (payroll solutions) COO: Pantera Capital

Benefits and drawbacks of earning in cryptocurrency ​​

Exploring the field of digital currency offers a unique way to manage income. Here, we delve into the benefits and drawbacks of earning in cryptocurrency.

Pros

  • Lower fees: Cryptocurrency transactions often have lower fees than traditional payment methods, making them more cost-effective.
  • Transparency: Crypto fees, such as “gas” fees for blockchain transactions and “swap” fees for currency conversion, are upfront and usually less complex.
  • Faster transactions: Crypto payments, especially for international transfers, are typically quicker than traditional banking methods, settling in minutes.
  • Independence from banks: Crypto payments mean you can bypass traditional banking systems and their limitations.
  • Future profit potential: There’s a chance to earn more due to the value of cryptocurrencies potentially increasing over time.
  • Diverse financial portfolio: Having part of your income in crypto can diversify your investments and financial holdings.

Cons

  • Volatility: Cryptocurrencies can be extremely volatile, leading to significant price fluctuations.
  • Reliability issues: Some blockchain networks can experience outages, affecting payment reliability.
  • Limited acceptance: Not all businesses or services accept crypto as payment, which can limit how you use your money.
  • Tax implications: The tax treatment of cryptocurrencies can be complicated and may pose a challenge at tax time.

How to get paid in crypto: Step-by-step guide

So you’re ready to dive into the crypto world and get paid like a modern-day tech wizard? Awesome! Let’s make this as fun as a day at the beach.

1. Set up a cryptocurrency wallet

Think of a cryptocurrency wallet as a fancy digital backpack where you stash your digital coins. There are tons to choose from – some are as sleek as designer handbags, while others are tough like armored vaults. Hunt around, find your match, and get it set up. 

If you don’t know where to start your crypto wallet research, start with the wallets and platforms we’ve already mentioned in this guide:

2. Share your public address

Once your wallet’s ready, it’ll give you a public address — it’s like your email address, but for money. Share this with your boss or clients so they can start sending you crypto. Don’t worry; it’s meant to be shared, like your Insta handle, but only for your wallet.

For instance, if you’re using Coinbase, you can get this address from your account. First, you need to go to the page of the crypto you want to receive. Then, in the top right corner, click on “Send & Receive” to reveal the address to receive crypto. Even if you are using a different exchange or wallet, the steps to reveal the receiving address are similar.

paid in bitcoin

3. Track your payments

Tracking your crypto payments is like keeping score in a video game — it’s crucial! Keeping a close eye on transactions is important, especially as some custodial platforms might get hacked. That’s why it’s already recommended to keep larger sums in non-custodial wallets, such as Zengo, Coca, or OKX Wallet.

You might also consider getting a crypto portfolio tracker to make life easier. It’s like having a personal finance assistant who loves math. 

4. Understand tax obligations

When you get paid in crypto, it’s just like getting paid in your local currency, at least tax-wise. So, how do you calculate tax? Convert your crypto salary to its fair market value on the day you receive it. This is what you’ll base your Income Tax on. For instance, if you sell Bitcoin and end up with a profit worth $5,000, that’s your taxable amount.

And don’t forget to keep an eye on your crypto transactions. Sold some Bitcoin after a price jump? Result! But remember, this could mean you are liable to pay Capital Gains Tax. Calculate the profit from your buy and sell points — that’s what gets taxed next. There are nifty tools like CoinTracking, TokenTax, and BearTax that are basically like having a tax-savvy best friend. They’ll help you figure out what you owe by keeping track of all your crypto dealings.

Heads up — declaring your crypto riches to the IRS and FinCen isn’t just polite; it’s going to be the law in the U.S. from 2024. 

Whether you’re sunbathing in the U.S., sipping tea in the U.K., catching waves in Australia, or trekking through Canada, tax rules vary. Dive into your local guidelines to avoid any surprises. Try out a crypto invoicing tool like Request Finance or Koinly. These tools take your crypto earnings and organize them into neat, tax-friendly records using the exchange rates from the times of your trades.

5. Consider a payment processor

Running a business and want to accept crypto without the headache? Consider hooking up with a payment processor. It’s like hiring a super-efficient cashier who works for digital tips and converts them into your local currency.

How to accept Bitcoin as payment for goods and services

Are you ready to join the Bitcoin bandwagon and accept it for your business? Here are the basic steps you must follow to accept Bitcoin as payment:

  1. Get a Bitcoin wallet. This is your digital pocket for storing Bitcoin. Remember, it’s mainly for BTC and might not hold other cryptos unless specified.
  2. Share your Bitcoin address. This comes with your wallet, which acts like your account number for receiving Bitcoin. You can even turn this address into a scannable QR code for easy payments at your shop.
  3. Guard your private key. This key is the gateway to your Bitcoin treasure. Lose it, and you’re locked out forever. Keep it safe, maybe on a USB stick or another secure spot.
  4. Check local laws. Before hanging that cool “Bitcoin Accepted Here” sign, make sure you are complying with local law, too. Some countries might have strict crypto rules.
  5. Pick a wallet. Online, app-based, or even physical point-of-sale machines — choose what fits your business style. Just be sure it’s from a reputable source.
  6. Consider payment processors. If you’re an online business, platforms like Coinbase can smooth out Bitcoin transactions on your website.
  7. Keep records. Bitcoin’s value jumps around like a kangaroo. Keep invoices noting the value of Bitcoin at the time of each transaction to track your real earnings.
  8. Understand taxes. The tax man sees Bitcoin differently worldwide. In the U.S., it’s treated as property, but places like Portugal view it as currency. Ensure you are clued up on the tax implications of receiving payments for goods and services in BTC.

Best jobs to have for getting paid in crypto 

Dive into the crypto payment wave with these top job picks:

  • Freelancing: Tap into digital nomad life by offering your skills — think writing, coding, or designing — on platforms that let you cash out in crypto. Keep in mind that you might need a digital nomad visa in order to start freelancing in certain countries. Familiarize yourself with the highest-paying freelance jobs to identify the most profitable avenues.
  • Crypto mining: Got some tech skills and gear? Start mining cryptocurrencies to earn new coins by validating transactions and contributing to the blockchain.
  • Join a crypto company: Ride the blockchain wave and snag a job at a cryptocurrency firm where you can often opt to get paid in Bitcoin or other crypto.
  • Sell online: Use crypto-friendly marketplaces like Bitify and OpenBazaar to sell your products or services and get paid in Bitcoin or other cryptocurrencies.
  • Try crypto faucets: Test the waters with crypto faucets — websites that sprinkle small amounts of free crypto for completing easy tasks.
  • Staking and yield farming: If you’re holding onto some coins, look into staking or yield farming to earn more crypto while supporting network security and operations.
  • Business owners: Stand out by accepting cryptocurrencies as payment and tap into a growing, tech-savvy customer base.

How to spend your crypto salary

get paid in bitcoin

If you are getting paid in crypto, you will find many shops and companies that will either accept your crypto as payment for goods and services.

Big online retailers like Overstock and Shopify stores now happily take Bitcoin and other cryptocurrencies. Plus, increasing numbers of brick-and-mortar shops are getting on board with crypto payments.

There’s a handy solution for places still warming up to the idea: crypto payment cards. They work just like your regular debit or credit cards. Load them with some cryptocurrency, and they’ll convert it into local cash when you need to make a purchase, allowing you to use your crypto riches for everyday shopping.

Then there are stablecoins, special cryptocurrencies pegged to more stable assets, such as the U.S. dollar, helping dodge the wild price swings typical of the crypto market. Stablecoins are perfect for using crypto in day-to-day life without the usual volatility.

However, it’s worth noting that not everywhere is crypto-friendly. So, embracing a salary in cryptocurrency might mean juggling direct crypto payments, using a crypto payment card, and sometimes converting crypto into local currency to navigate areas where digital money is still a no-go zone.

Don’t forget about your crypto taxes

Receiving your salary in crypto brings its unique set of tax challenges. Tax rules for cryptocurrencies can significantly differ across various countries and regions. If you’re exploring passive income with crypto, it’s crucial to understand the tax implications associated with these earnings.

You should maintain precise records of all your crypto transactions, noting when you received the crypto, how much you got, and its value in your local currency at that time. This data is crucial for figuring out any taxes on capital gains you might owe.

Don’t forget to use a crypto portfolio tracker to monitor your dealings. Also, remember that getting your salary in crypto could count as taxable income in some places, making it subject to income tax. This depends on how your local tax authority views crypto earnings. The best thing to do is to search for your country’s specific crypto tax guidelines to better understand how your crypto transactions may impact your taxes.

Want to learn more about crypto taxes? Check out our ultimate guide to U.S. crypto tax if you are based in the United States, or our U.K. crypto tax explainer if you are based in Britain.

Ready to start getting paid in crypto?

Getting paid in Bitcoin and other crypto is becoming a more accessible option for everyone, from digital nomads to traditional employees seeking passive income opportunities. As you dive into this new financial frontier, consider the implications of selling Bitcoin or any other cryptocurrency. Ensure you choose the right wallet to minimize transaction fees and understand the regulations in your jurisdiction regarding tax. Whether you opt for a versatile service provider, an all-encompassing crypto platform, or the added security of a hardware wallet, safeguarding your assets and your seed phrase is paramount.

Frequently asked questions

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Iulia Vasile
Iulia Vasile is a seasoned professional in the cryptocurrency and blockchain industry, working full-time in the field since 2017. With a background in computer engineering, she has the unique ability to write about complicated topics, including DeFi, NFTs, trading, and AI, in a way that is easy to understand. Iulia learned multiple programming languages while completing her Software Engineering degree in Bucharest at Politehnica University. Iulia brings her expertise and personal...
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