Freelancers can use Bitcoin to send and receive money from anyone, in any country. The virtual currency is a viable payment method for solopreneurs and business owners to use. Whether it’s being paid for a service you provide or investing in tools and programs for your freelancing business, the digital cash can be used for a wide range of things.
As covered in our previous article, Bitcoin is a cryptocurrency gaining popularity and strength as an alternative payment method to traditional currencies. The digital cash has been around since 2008 and continues to grow and develop, both in terms of reach and also in its network structure – the blockchain.
Its decentralized system means no one authority has control over Bitcoin, meaning no single person or group can determine monetary policy or take money away from someone. Payments cannot be blocked. You can send or receive Bitcoin payments from anyone based anywhere in the world.
Benefits of using bitcoin for freelancers and business owners
Bitcoin comes with a number of benefits for both freelancers and the businesses who hire them.
Bitcoin transaction fees (anything from 1 percent to 0 percent) are typically a lot less than standard merchant transaction fees. That’s because Bitcoin doesn’t require bank verification for each transaction.
Bitcoin is fast, very fast. As a freelancer, your money arrives quickly, usually within a few minutes. With no centralized institutions checking each transaction, payment times are much faster than credit card transactions.
As a business or freelancer, you can request and send money to people in just about any country in the world. This does away with the common problem freelancers and businesses face, especially when in different countries, in trying to find a common payment method. Foreign transaction fees are vastly reduced and often made irrelevant, as are many other national restrictions.
This in turn makes cross-border collaborations a lot more attractive and feasible, especially in developing nations.
So how can freelancers accept Bitcoin payments from their clients?
The first thing you need in order to receive or send Bitcoin payments is a Bitcoin wallet. As the name suggests, it’s the cryptocurrency’s version of the wallet you have in your pocket or purse. Before accepting Bitcoin payments as a freelancer you’ll need to set up a wallet.
There are different types of wallets including online wallets, hardware wallets, and software wallets, the latter of which are downloaded to your computer or mobile device as an application.
There are also many different wallet providers which can be a daunting decision. Some of the most well-known include Coinbase and Bitpay, which can be fully integrated with Invoice Ninja.
Bitcoin address and private key
When you create a Bitcoin wallet, you’ll receive a unique address. This will take the form of an identifier composed of 26-35 alphanumeric characters together with an associated QR code. These characters – your address – will be used by your clients to send cryptocurrency payments to your Bitcoin wallet. Along with the address you’ll also receive a private key which is usually a 256-bit number containing letters and numbers.
It’s vital to keep a record of this private key somewhere secure as there’s no way – or no one – to retrieve it for you if it’s forgotten, unlike with traditional internet banking passwords.
The easiest and fastest way to acquire Bitcoin is to purchase the cryptocurrency with a credit card or debit card via an exchange. These exchanges will allow you to buy only a certain amount of the virtual currency during the first transaction and then when you prove to be reliable and are verified, these purchase limits are increased.
The process of buying Bitcoin is simple and you can receive the bitcoins within minutes. It is however important to find a trusted Bitcoin exchange. Make sure to compare the exchange’s prices to a Bitcoin price index and see that it’s close to the global average price.
Different payment methods also come with differing fees. First ensure the exchange accepts your desired payment method and then check the fee rates for methods such as credit card purchases and bank transfers.
Easy Bitcoin invoicing using Invoice Ninja
Sending a Bitcoin invoice is very similar to sending a regular invoice in dollars, euros, pounds, or any other traditional national currency. You provide all the service information, payment method instructions, and total amount due that you normally would with any other form of payment.
Before creating an invoice for Bitcoin you simply connect your Invoice Ninja account to your Bitcoin wallet, following our simple instructions. With our software you can use your wallet address as a live link for clients to send payment directly to your Bitcoin wallet from the invoice itself. Payment is simply a click away. A QR code can also be incorporated. Prices can be shown in Bitcoin or any currency of your choice.
Creating invoices and accepting payments using Bitcoin is very easy for freelancers, especially with Invoice Ninja and our payment system integrations. With just a minute or two of initial preparation, you can be sending out secure Bitcoin invoices to any client in the world. All they need to do, is press a button, which also means you get paid faster.