06/04/2024
Mmmk. I just got off the phone with someone who thought she was being paid in crypto by a friend for doing some work for her over the past few years:
🚩Red Flag 1. This person did not have access to the wallet or exchange in which the crypto was supposedly being deposited.
🚩Red Flag 2. The "employer" would not give this person access to the wallet/exchange when asked.
🚩Red Flag 3. I was told she could keep track of her crypto on Coinmarketcap.com, which is partially true because it is a wallet TRACKER but not an exchange.
This type of thing infuriates me every time it comes across my desk.
If someone wants to pay you for work in cryptocurrency, here are the key steps you should take:
✅1. Agree on the terms:
Discuss and agree upon the scope of work, deadlines, and the amount of cryptocurrency you will receive as payment.
Clarify which specific cryptocurrency will be used (e.g., Bitcoin, Ethereum, etc.).
📱2. Set up a cryptocurrency wallet:
To receive payment, you'll need a digital wallet that supports the agreed-upon cryptocurrency.
Popular wallet options include Coinbase Wallet, MetaMask, and Exodus, among others.
Make sure to follow best practices for wallet security, such as enabling two-factor authentication and securely backing up your private keys.
📧3. Provide your wallet address:
Share your cryptocurrency wallet's public address with the person who will be paying you.
Double-check the address to ensure accuracy, as transactions cannot be reversed once sent.
🔑4. Confirm the transaction:
After the payer sends the cryptocurrency, confirm that the agreed-upon amount has been received in your wallet.
Keep in mind that transactions may take some time to be confirmed on the blockchain network, depending on network congestion and transaction fees.
💰5. Convert to fiat currency (optional):
If you prefer to convert the cryptocurrency to traditional fiat currency (e.g., USD), you can use a cryptocurrency exchange like Coinbase, Gemini, or Kraken.
Follow the exchange's verification process and link a bank account to facilitate the conversion and withdrawal of funds.
💥Remember to be cautious when dealing with cryptocurrency transactions, as they are irreversible and can be subject to significant price fluctuations. Additionally, ensure that you comply with any applicable tax regulations related to receiving cryptocurrency as payment for work.💥
