Cryptocurrencies have become very popular, and over the past few years, and due to new applications and infrastructure they’ve become easier to spend compared to the early days. Nowadays, individuals are starting to be paid for their services in cryptocurrencies like bitcoin cash or other digital assets, and living off of cryptocurrencies is the next step towards having a stress free crypto-based income.
Living Off a Crypto-Income
Today we’re going to talk about people being paid in cryptocurrencies, and how to maintain the same lifestyle you did when you were being paid in fiat currencies. Unfortunately, right now, digital assets like bitcoin cash (BCH) haven’t seen mass adoption yet, and there aren’t as many merchants as we’d like to see all around the world. So people who opt to be paid in BCH or another cryptocurrency, need to know how to pay for everyday items with their assets and settle their monthly bills as well.
The Gift Card Method
As far as paying for things with cryptocurrencies there are a few options available. One of them is using platforms like e-Gifter and Gyft to purchase gift cards to a wide variety of stores. There are a few hundred merchants who sell their gift cards on these sites, and customers can purchase cards from places like iTunes, Amazon, Best Buy, Whole Foods, and a slew of other establishments and restaurants. There are also other sites that sell gift cards for cryptocurrencies, and our Bitcoin.com store sells Amazon cards for bitcoin cash. For years now, individuals who get paid in cryptocurrencies have purchased gift cards to buy things at their favorite stores.
Looking for Merchants Who Accept Crypto Directly
Finding merchants who accept cryptocurrencies directly is another option for buying things for everyday living, as you might find a merchant near you that fits your needs. Most of the most popular digital assets out there have online directories that show a list of merchants and their locations. For instance, bitcoin cash fans can utilize the ‘Accept Bitcoin Cash Initiative,’ which is a curated list of merchants who accept BCH directly. With a simple Google search, individuals can also find a merchant directory for cryptocurrencies like dash, monero, and bitcoin core. Some people find that purchasing items directly helps the cryptocurrency ecosystem as a whole because these merchants accepting digital assets like BCH directly are not immediately selling for fiat.
Sell the Crypto to Exchanges
Another way you can live off of cryptocurrencies is by selling them to people on peer-to-peer exchanges like Localbitcoincash.org, or the various exchanges available online. However, a large majority of online exchanges will require you to verify your identification, because they are required by law to follow KYC and AML regulatory guidelines. This means you will have to verify a few things like your phone number, a picture of your license, and some exchanges also ask for proof of your address.
This process could take as little as two minutes or it could take weeks depending on the exchange and how busy they are, and some may deny you for specific reasons. However after jumping through a few hoops with a particular exchange, selling your cryptocurrencies is very simple and most platforms are fairly intuitive. Keep in mind when you sell on an exchange you are exposing your income to another party, and they may even ask you if you have paid your taxes in order to continue using their services. There are a few decentralized exchanges, but most of them (minus a few) only swap crypto-to-crypto assets.
Crypto-Infused Debit Cards
One popular way of living off a cryptocurrency income is the use of debit cards that allow users of these cards to purchase things wherever Visa or Mastercard is accepted. There are crypto-infused debit cards provided by companies like Wagecan, Bitpay, Shift (Coinbase), Wirex, and many more. Most of these cards support a bunch of the most popular cryptocurrencies, and when using them users can pay for bills or shop virtually anywhere. Some cryptocurrency cards are used just like your debit card after loading up some of your digital assets. Some cards operate differently too, like with the Bitpay card you pretty much sell your bitcoin cash for USD or EUR, and the value doesn’t fluctuate. But the Coinbase Shift card operates differently, because it deducts the exact value of the purchased item from whatever value your holdings are at the time.
Get a Backup Method and Ask Your Co-Workers How They Live Off a Crypto-Income
There are many ways you can learn how to live off of bitcoin, and these are just a few examples of how you can get started. It’s worth noting that using multiple exchanges and cards and having a backup plan on hand is highly recommended. Sometimes things happen and your provider may not be able to process your request when you need them. So having a backup provider on hand (like another exchange, another crypto-debit card, or another idea) so you can get by if your processor or merchant experiences downtime, is a pretty good idea.
Another good avenue to take when you start getting paid in cryptocurrencies is talking to your co-workers who have been paid in digital assets for years, and ask them how they live and pay bills. They may tell you some good tricks of the crypto-trade so you can move forward towards the digital age.
What do you think about the various methods available so people can live off of a crypto income? Are there any methods that we forgot? Let us know about your methods in the comment section below.
Images via Shutterstock, Pixabay, e-Gifter, Bitpay, and Wiki Commons.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.