Though for decades the idea of remote work seemed unsustainable, it has moved to be a regular business practice over the past few years. Many major companies in an array of industries now have vast remote teams. When you work remotely, most companies offer you the option to be paid in various ways, including cryptocurrencies.
Cryptocurrency is a relatively new payment method, and we want to make sure you understand the ins and outs of using this payment option. We want you, as a member of a remote team, to feel confident when working with crypto.
What are Cryptocurrencies?
No matter what industry you are in, whether you are a remote engineer or a programmer, you may find yourself having the option to purchase cryptocurrency like a stock-like option or even being paid in it. So, what exactly is cryptocurrency? The short definition is that it is a digital currency that is decentralized and is founded on the computer science of cryptography.
Let us break that down a little further so you can have a more comprehensive understanding of the currency. All cryptocurrency is decentralized, however, it does not that all cryptocurrencies have not been issued by any government or bank. The cryptocurrency is controlled from beginning to end by those that use it.
On top of this, the currency is digital. Many of them are not based on any traditional monetary scale, like dollars or gold. It is created using math and a network of computers, making it the same process no matter where you are in the world.
Why Use Cryptocurrencies?
When it comes to remote work and having teams distributed around the world, there are a lot of reasons cryptocurrency can be advantageous. Here are a few we think might pertain to you as tech talent:
- The process of payment is fast and easy. The company will be able to transfer your money straight from their wallet to yours, no matter where they are, and with just a phone or computer.
- All transactions are recorded on the blockchain (which is a public list). This makes it easy and secure to keep track of the transaction.
- Because there is no middle man (like a bank), there are no additional fees, which means you get your full pay.
Types of Cryptocurrencies
More and more cryptocurrencies are being put on the market all the time, but a few are more dependable than others. These, for the most part, are cryptocurrencies that have been around for a while. Some of the most trustworthy options include:
- Bitcoin – This is the granddaddy of cryptocurrency. It was founded in 2009 and is one of the cryptocurrencies accepted by retailers across the globe.
- Altcoin – These types of cryptocurrencies are one of the most popular alternatives to Bitcoin, and a large number of remote teams and people use them. The most popular ones are Ethereum, Cardano, and Litecoin.
- Stablecoin – These cryptocurrencies are backed by an asset. This asset can be commodities or fiat currencies. Some well-known stablecoins are USDT, USDC, and DAI
There is a wide range of other options; these are just the most popular, reliable, and stable.
What are the Risks of Cryptocurrency?
Like with anything in life, there are always risks when using cryptocurrency. We know that you won’t feel comfortable diving into this pool if you don’t understand those and the benefits.
So here are the most significant risks when it comes to cryptocurrency:
- Because everything is in the digital world, you can lose your wallet or accidentally delete your currency. This also means that you can be a victim of cyber-attacks and lose all your funds this way.
- Because it is not based on dollars or gold, the scale fluctuates rapidly. For this reason, many people choose to turn their crypto into traditional currency as the value is changing so quickly and could affect the cash you have available.
- Many cryptocurrencies are decentralized, which also means that there is no regulatory committee to govern them. Because of this, there are no laws in place to protect a consumer or business when using them. To offset this risk, you can use stablecoins or other types of cryptocurrencies that are regulated by an entity.
So is it safe? Blockchain technology can actually be very safe and secure and the volatility of cryptocurrency can be offset with stablecoins. Some say it is even safer than online banking with a traditional bank. Because of the ability to track the transactions so easily, it is often simple to find issues that can arise and fix them. There are risks, though, as we just mentioned, and you have to be vigilant.
What is USDT and Its Benefits?
USDT is what the crypto word called a stablecoin. This type of cryptocurrency keeps a fixed value according to a fiat currency, crypto active, or commodity. No matter what currency the coin is tethered to, the coin will keep the value it started with. This makes the price fluctuation more predictable and not as volatile.
Like with all cryptocurrencies, USDT can be sent anywhere and at any time. It can also be used to shore up your investments with other cryptocurrencies. You can trade in one and then convert to a USDT to maintain better stability of your bottom line.
USDT has an almost 1:1 relation with the dollar, making it safe and stable to use.
What are the Three USDT Chains?
When you use USDT, you will find yourself confronted upon transfer with three chain options. Each has its own features, and we wanted to give you a look at some of the biggest, so you will understand which one will be the best for you:
- OMNI (Bitcoin Network) – This option has a slow transfer speed but is the best when it comes to safety. You can expect a 35 USDT fee attached to each transaction. This option is ideal for those remote teams that get fewer payments that are larger amounts.
- ERC20 (Ethereum Network) – This chain will allow for a transfer relatively quickly (2 – 10 minutes on average) and has a good level of security. When making transactions with this chain, you will see a 30 USDT fee. If you are a remote engineer that gets paid bi-weekly, this might be a good choice. It also works well with trading options.
- TRC20 (Tron Network) – When it comes to this USDT chain, you will have a lightning-fast transfer speed while still being able to take advantage of moderate security. The transaction fee for this chain is 2 USDT. If your remote team gets paid weekly, then this could be a suitable chain for you.
At Nexton, we use TRC20 to do crypto payments to our team members and interviewers. We assume this cost, so whatever you bill us will be accredited in your wallet.
What Wallets to Use When Trading USDT?
When dealing with digital currency, you will need an excellent virtual wallet. Several options will work well with trading USDT and TRC20. Find one with a wide range of USDT options while also handling a variety of other cryptocurrencies, so you have choices.
Here are a few of the best wallets:
- Binance – While it is not a wallet, Binance is one of the most popular exchanges worldwide. It offers the possibility to store and trade many cryptocurrencies including USDT. It is free and supports the three main networks (OMNI, ERC20, and TRC20)
- CryptoWallet – This may well be the most popular option because it is packed with amazing features. The wallet has excellent customer support, comes with a debit card, an IBAN, and an exchange built into the system. The wallet comes with a user-friendly app too. When it comes to safety, it is outfitted with a 2 step authentication system. You can store a wide range of cryptocurrencies which can all be exchanged in-app.
- Tether Wallet – This is the wallet provided by the founding company of USDT. It comes with a free app. For those new to cryptocurrency, this is a great choice. It has a 2-step authentication system.
- MyEtherWallet – This wallet can be used both on mobile and desktop. For those working on distributed teams around the world, this versatility could be helpful. The wallet is free and is open source. However, there is a limitation though to what coins you can trade-in.
- OmniWallet – This is a web-based wallet. It is hosted on the Omni blockchain. This is specifically designed to support USDT but is not ideal for trading but a great place to store your USDT.
How Do You Turn Your USDT Into Cash?
This depends on the third-party app you choose. You can sign up for several accounts that can help you transfer these funds into your traditional bank account.
The first step will always be to sign up for the service and set up your account. Then you will send the request to redeem your USDT to the exchange. After which, once approved, these USDT coins will be transferred to your bank account.
How Nexton Uses Crypto Payments with Their Team Members and External Interviewers
Whether you are a remote team member or an external interviewer, we know you want security when it comes to receiving your money, which is why we have added the USDT crypto payment option for our team and our external interviewers.
Hopefully, this quick guide to cryptocurrency has helped you understand the benefits and how to use this form of currency. Now you have an idea of what cryptocurrency is and so much more. It is a viable option for trading and getting paid for your work. If you are interested in switching to this method reach out to your point of contact at Nexton.