Paying your employees in Digital Tokens is easier than I expected


Demand for digital payments is surging

Sending money outside the IBAN system is challenging

The solution is obvious but not easy to use

Regulatory challenges to overcome

Step-by-step guide

  1. Buy crypto as a private individual at your favorite exchange. I usually use or (Bitcoin only) because they require no KYC for customers in the European Union.
  2. Sell the crypto to your company at market price. You can use a standard template for purchase agreements to document the acquisition in your books.
  3. You can use a self custody wallet like Meta Mask to hold the coins for your company for smaller amounts. For larger sums, I recommend using a hardware wallet like BitBox (about EUR 100). Please be careful: Always buy hardware wallets directly from the manufacturers’ website, not from resellers like Amazon.
  4. Pay your employee in the digital token they desire. Typically, stablecoins like USDC are an excellent option.
  5. Document the value at the time of payment in your local fiat currency and keep it for later tax reporting.

Things to keep an eye on

  • If your wallet does not track the data, you should keep a record of all your crypto holdings, purchases and sales and the respective fiat value at the time of the transaction (you can take the average price from big exchanges that you find on
  • The invoice that your employee sends you should be denominated in the correct token, i.e. USDC on Ethereum. It is important to specify not just the token you want to pay in, but also the Network it is transacted on. At, we use the information from ITSA, which does a great job of providing clarity in this matter.
  • If your payment invoice is denominated in US-Dollar and you pay with a stable coin like USDC, there might be a slight price difference, and this can become a problem in your books later. Make sure to track the exact price at the time of the transaction.
  • Last but not least, you should store the coins of your company safely. Think about setting up a multi-signature wallet with your co-founders if you intend to hold more considerable sums.
  • If you want to offer your freelance employees to get paid in crypto, check out We take care of the bookkeeping and the invoicing process, and our service is completely free.





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The easy-to-use portfolio tracker and crypto accounting solution for freelancers