This walk-through covers how you can use bitcoin, as a contractor, to get paid faster and lower fees on both ends.
The intended audience is contractors and service providers who have clients overseas or who provide services internationally. It covers not only how to accept bitcoin (that bit is easy), but how you can show your client the easiest way to take advantage of the Bitcoin network as well.
I contract out as a writer, and was asked to cover the Inside Bitcoins conference. They had the option of international wire, PayPal or bitcoin. I chose bitcoin. I sent them my invoice (we denominated in USD), they sent me my fee in bitcoin at the market rate, and I had the money in my CoinJar instantly. No $25.00 wire fee, no international transfer delays. I invoiced then had the money that day. Because I use CoinJar I was also able to spend it on dinner that night using my Swipe card.
Step 1 – Get a wallet
For this example I’m using CoinJar, but there are plenty of services that do the same thing. The key aspects are that you can convert bitcoin to cash, instantly, and the bitcoin to cash exchange rate is better than the foreign exchange rates (CoinJar is 1%, so no problem).
Step 2 – Show your client
This is the tricky part, because it may be a conceptual leap for them. But if they’re interested then walking them through it is pretty easy.
First explain the benefits:
- 5% – 10% cost saving (perhaps offer a discount)
- Instant settlement
If you like you can help them find an exchange, making sure it:
- Is reputable
- Allows them to hold a cash balance
- Allows them to buy bitcoin and transfer out
- Offers a competitive exchange rate
Step 3 – make the transfer
Here the client simply needs to:
- Top up their exchange account with cash on their end
- Convert their local currency to the agreed bitcoin amount
- Transfer to your bitcoin address
Bonus points if they use a service like CoinJar, which offers hedged accounts, so they don’t need to worry about price fluctuations in between conversion and sending.
It really is that simple. Set up your wallet, help them set up theirs, store the money as dollars and just use bitcoin as the plumbing. You’ll save time and money, and learn something new.
Want to learn more? Read our guide about using bitcoin as a cash backup overseas.