I’m always a believer in diversifying as a freelance graphic designer — and that includes catering to a wider range of clients by not only accepting fiat, but cryptocurrency as well. At the moment public perception of cryptocurrency isn’t positive, and with good reason due to the many scams and frauds that has happened over the years. However, if you are able to understand the risks involved and take a careful approach to accepting crypto payments while freelancing, then you might stand to benefit in the event that the value of cryptocurrency appreciates, potentially increasing your earnings over time.
A BRIEF LOOK AT CRYPTOCURRENCY
For those who are not familiar with cryptocurrency or crypto as it’s more widely called, it’s basically a digital currency in which instead of a central regulating authority such as banks, transactions are verified and records maintained by a decentralized peer-to-peer system. This means anyone anywhere can send and receive payments, which is ideal for a freelancer who is looking to increase your market reach and work with clients from overseas.
Bitcoin is the world’s first successful cryptocurrency, launched in 2009 by a mysterious creator by the name of Satoshi Nakamoto. It remains the biggest market cap today, with Ethereum in second place. Both cryptocurrencies are widely seen as the safest out of the many other cryptocurrencies out there.
On the other hand, crypto is a highly volatile asset and its value can change drastically over a short period of time. It’s definitely not a good feeling when for example you received $100 worth of crypto after putting effort into completing a project, only to have it be worth $10 the next day. And being not subject to a central regulating authority means cryptocurrency is a hotbed for scams and frauds. You might have heard of the collapse of FTX in late 2022, which operated a fraudulent crypto exchange and hedge fund, allegedly misusing billions in consumer funds.
But while crypto has come a long way with more regulatory frameworks being put in place over the years, the fact remains that there are still many risks involved in accepting crypto as payment as a freelancer. Here I will highlight some points and advice to consider based on my own experience.
BITCOIN AND ETHEREUM ARE THE SAFEST
Over the years many cryptocurrencies have come and gone, including meme coins like SafeMoon which has lost over 99% of its value from its peak in 2021. However, despite the many ups and downs Bitcoin and Ethereum have stayed strong, and as such I would highly recommend accepting most of your crypto payments in only these 2 cryptocurrencies.
If a client insists on another cryptocurrency other than Bitcoin or Ethereum, then it’s up to you whether you want to accept or not. Cryptocurrencies like XRP and Solano are still considered relatively safe, but ones like Pepe should be treated with caution.
ALWAYS ASK FOR A DEPOSIT
The importance of asking for a deposit before starting a project couldn’t be understated — but is even more crucial when accepting crypto payments as a freelancer, since there is little to no protection for you if a client decides to ghost you.
I would recommend asking for half upfront and half upon completion, and not moving with a project forward if the client refuses to do a deposit.
