I have the option to get paid completely in bitcoin at work, but I am wondering if from a DCA perspective it isn't better to get paid in fiat and have more recurrent purchases going on to closer align to bitcoin's price.
I might be also be able to negotiate with my employer to have the salary split into two payments a month, which could partially alleviate this. What would you do in my place? It would also help me avoid the many transaction and exchange fees which add up with time.
What would you do in my place? It would also help me avoid the many transaction and exchange fees which add up with time.
Fiat money is earned to spend, Bitcoin is earned to save - I'd choose being paid in BTC, as it changes the way of your spending; Then exchange the amount of fiat you really need monthly, and do it in one go ( save time ) and slowly pilling the people and businesses around you, then maybe no longer need to deal with fiat eventually.
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I recommend inverse DCA. Get paid fully in bitcoin and exchange p2p monthly amount that you need for living. Then you can from month to month try to lower this fiat need.
It’s very simple to find someone who wants bitcoin. Or try https://vexl.it/ to find peers based on your contact network.
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Get all in Bitcoin and then exchange for fiat when needed...
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This is also works very well
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Go 50/50 and DCA the fiat portion into BTC along the way? Gives you two different types of exposure to BTC if you don't need to use the fiat for anything else.
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100% agree
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Dependent on your situation. Really up to you. I do like the forcing function of getting paid some in bitcoin. It's forced savings and it is also a forcing function for your employer and payroll employees to understand bitcoin. If you work for a bitcoin company this is less relevant but I like the idea of forcing folks to take a look at bitcoin. I am semi retired and do some contract work. I always ask if they will be willing to pay in bitcoin even if I know they won't just to plant the seed and get them thinking. (if this person we see as smart and skilled would rather get paid in bitcoin maybe we should take a look at it). Thus far only a couple people have taken me up on paying me in Bitcoin but I think asking and putting bitcoin top of people's minds is good.
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I'd choose the 100% bitcoin option, and try to embrace the volititly. Not sure if it makes financial sense, but ideologically it seems right. I'd be electing to leave the fiat world, and try living on a bitcoin standard regardless of the consequences.....reckless, but pretty cool
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If you're getting paid in Bitcoin every two/four weeks, and not spending all of it, you're dollar-cost-averaging every two/four weeks.
Surely that's good enough! Sure, maybe you could DCA every day. But that smells more like trading. And you'll lose more money due to having more UTXOs.
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Getting paid in BTC is better because the sender pays the fees, you would be maximizing your sats.
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If you get paid in btc, make sure to provide a xpub, so they don't transfer it to the same address. And make sure that this xpub is clean and doesn't have past transactions. Perhaps a new account in the derivation path is enough. Furthermore, make sure to log the amount in btc and the fiat value each time for taxing purposes (if applicable). Later you can show this as proof if they want to get you.
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make sure that this xpub is clean and doesn't have past transaction
I use Bitwage and set up a new public address on their site before each paycheck, pointing to cold storage.
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I did the Salary in BTC for a bit but then I stopped because selling BTC for dollars to meet monthly bills was a pain in the butt. But fold and base app are trying to develop services that allow access to ACH network from your BTC stash.
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I go with Fiat to DCA
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You get paid per month?
It most likely averages out at a similar rate. I'd take the BTC in salary
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Salary in BTC would be great, but also i can DCA fiat to BTC
1 SAT = 1 SAT
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See if you can get paid daily via lightning?
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Personally, paid in fiat. not because of price action, don't care about the price. But because all my expenses are in fiat, then all that remains, i convert to bitcoin, no matter the price. Use lightning to avoid fees.
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I guess it depends on your situation, if you can ride the vol and still meet all your obligations that require fiat, then 100% bitcoin shouldn't be a problem for you and you can just get that one lump sum and swap out for cash when needed
If you don't have that, the cash buffer, be it 20%,30%,50% you'll have to do the math might come in handy since you cover your expenses and then the bitcoin is just for savings
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I think you will save more money in bitcoin if you get fully paid in bitcoin and only exchange what you really need in Fiat. Psychologically it just makes you think about your monthly expenses differently and calculate better.
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I would recommend get salary in Bitcoin. I would do the same if I could get salary in BTC. You also support the bitcoin only salary therefore you are contributing to adaption. Looking forward to your experience about how easy or difficult to live on BTC salary.
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Dca is for pussies. All in BTC.
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Either way ur still stacking
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Congratulations for having such a choice. Kudos to your employer.
If I do not take into account taxes, I'd decide based on how much effort you want to invest into dealing with your money. If you do % split fiat vs btc, then you are worry free and no need to try to find p2p people etc. etc. And your % in fiat could just be the bare minimum you need to live on + 10% for some unforseen circumstances.
If you have plenty of time on your hands to monitor the market and want to be more hands on, then getting paid in FIAT and DCAing during the dips is could be more profitable.
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on a practical level you should also consider (if you plan to comply) local regulation in terms on what generates the least amount of capital gains overhead etc, for example are you creating taxable event for every time you need to sell some btc to cover your fiat expenses
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Honestly I preferred Fiat to DCA. That would be a great opportunity.
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Do you need to pay capital gain if you get paid in btc then sell it to get fiat to pay stuff during the month?
Probably not if you do it the day you receive btc but at that point it would be just easier to get paid in fiat and then buy btc.