How to Send Invoices in Crypto: a Freelancer's Guide
As a freelancer, you may have clients who prefer to pay you in cryptocurrency. Here's how you can make it happen.
As a freelancer, you may have clients who prefer to pay you in cryptocurrency. Especially if you plan on working for the rapidly growing number of Web3 organizations, who typically prefer to pay freelancers and contractors in crypto.
While this can seem daunting at first, there are several tools available that make it easy to send invoices and receive payments in crypto. In this article, we will explore the various options available to freelancers for sending invoices in crypto.
1. PDF Invoices
The first, most common but perhaps least recommended way is PDF invoices. There are hundreds of free online invoice templates available in Word and Excel. The great thing about them is that they are often free to use, and the invoice fields and layouts are customizable.
But the drawbacks of using these templates are also clear. For one, that means that each time the billing cycle comes due, you must manually fill out the templates, save them as different PDF files, and send them to your clients as individual email attachments.
Not only does this make sending invoices laborious for you, but it also makes paying the invoice incredibly tiresome and error-prone for your clients. Paying a PDF invoice in crypto involves your client needing to manually copy-paste your wallet address, and input the right amount.
Additionally, you have to state a fixed exchange rate, or a fixed sum of a particular crypto you want to receive, regardless of the market value at the time. For instance, if you have an invoice for 10 ETH issued at the start of the month, when it comes due at the end of the month, it may be worth less in USD terms.
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2. Fiat payment processors
Another option is to use a fiat payment processor that also supports crypto payments. PayPal, Square, and Stripe all have options for accepting crypto payments. This can be a great option if you already use one of these platforms for other payments, as it allows you to receive payments in crypto without having to set up a separate account.
However, this option is only ideal if you are living in a country where they permit users to use crypto payments, are highly limited in the cryptocurrencies you can use, and if you are comfortable with their fee structure.
For instance PayPal customers in the U.S. and U.S. Territories (excluding Hawaii) can transact with 4 different Cryptocurrencies on PayPal: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Stripe only permits its US users to access crypto payouts in only USDC (excluding New York or Hawaii), and payments to companies and non-profits in crypto is not currently supported.
Many freelancers, especially those already working, or looking for opportunities in Web3 will find that these legacy fintech payment processors are ill-suited for invoicing in crypto.
Crypto invoicing apps
A third option is to use a crypto invoicing platform. These platforms allow you to create and send invoices in a wide variety of cryptocurrencies. For instance, Request Finance allows freelancers to send crypto invoices in over a hundred different token types, and blockchain networks. Your clients can connect their wallets, and pay your invoices in crypto with just a few clicks.
Compared to other methods, crypto invoicing tools can also allow you to denominate an invoice in fiat currencies like USD, so you get paid the amount of tokens at prevailing exchange rates. For example, you can elect to have your client pay your invoice of $1,000 USD in ETH. Whatever the current exchange rate is, you will receive $1,000 worth of crypto when the invoice is paid.
Not only do purpose-built crypto invoicing apps like Request Finance make it easy to send invoices in crypto, they also automate other manual tasks for you. For one, they also allow you to set up recurring payments, so you can easily invoice your clients on a regular basis automatically. To further simplify billing your clients in crypto, Request Finance also monitors the blockchain and provides you with live payment confirmations.
There are several tools available to freelancers for sending invoices in crypto. From crypto invoicing platforms to payment processors, there are a growing number of options for every freelancer. Choose the best tool for your needs, to simplify accepting payments in crypto from your clients.
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