WTFinance: What to know about receiving payments in cryptocurrency
There is no denying that cryptocurrency has become increasingly popular lately. There Many different forms of cryptocurrency, including bitcoin, ethereum, dogecoin and many more. So while you may hear cryptocurrency and bitcoin used interchangeably, they are actually different things. Bitcoin is just one form of cryptocurrency, and other types of cryptocurrencies exist.
Taking Your Salary in Cryptocurrency
You must have seen the news of celebrities and other famous people taking their salaries in cryptocurrencies. Incoming New York City Mayor Eric Adams announced he would Get Your First Paycheck in Cryptocurrency, The NFL Also Has Aaron Rodgers and Odell Beckham Jr. Took some of his salary in the form of cryptocurrency,
If you are thinking about receiving payments in cryptocurrencies, there are a few things you will want to keep in mind. The first is that often, your employer will still pay you a salary based on US dollars (or the local currency where you live). You will instantly convert those dollars into cryptocurrency. This means that you get rewarded when your cryptocurrency rises, but you also take all the risk if the value of the cryptocurrency falls. NFL star Beckham may have found it when some analysts estimated his $750,000 salary dropped about 40% Reasons for the fall in the price of bitcoin.
The other thing is that when you read about celebrities taking their salaries in bitcoin or other cryptocurrency, they might be Sponsored by a crypto company, So Aaron Rodgers or Odell Beckham might have a sponsorship deal where they earn extra money by promoting a particular form of cryptocurrency that the everyday person would not have access to.
Investing in Cryptocurrency Through Your 401(k)
Another way that paying in cryptocurrency is becoming more popular is in terms of it being available as your investment option. 401(k), Many 401(k) administrators offer a variety of investment options, and there is a growing number of plans that now offer cryptocurrencies as an option.
Keep in mind though that cryptocurrency has historically been a very volatile investment, with wild fluctuations both up and down. Depending on your risk profile, you may not want to put all of your retirement account into cryptocurrency. A better strategy may be to invest a portion of your 401(k) or IRA in cryptocurrency and keep the balance invested in traditional asset classes such as stocks or bonds.
Using Cryptocurrency at Mint
Mint Supports cryptocurrency tracking As part of our investment tracking service. If you have crypto investments, you can easily track different types of cryptocurrencies within Mint. This will allow you to see how changes in the value of a cryptocurrency affect your overall portfolio and net worth.
Cryptocurrency has become increasingly popular over the past few years, and more and more employers are supporting paying employees in cryptocurrency. This includes the option to take some or all of your salary in cryptocurrency or allow cryptocurrency as an investment option in a company 401(k) plan. Before investing your money in cryptocurrency, make sure you understand the risks and rewards and how it fits in with your risk profile. As always, you can track your expenses, investments and net worth with Mint.