How to accept Bitcoin for tips
No more chargebacks or refunds
Bitcoin is less complicated than you might think. This post will demystify Bitcoin and show you how to accept tips from your fans and never worry about refunds or chargebacks.
The problem with payments and sex work
Internet pornography and traditional financial services do not mix well and never have. High rates of chargebacks and fraud, along with the cultural aversion that banks have towards sex work means that sex workers would need to accept payment in cash or work with high-risk payment providers with high fees (as high as 20% per transaction and an annual fee to accept Visa and Mastercard). So simply using PayPal or Stripe is out of the question.
The solution: accept payments in Bitcoin
As a payment solution, Bitcoin offers many benefits:
- No chargebacks or refunds: Bitcoin transactions are final, so there is no need to worry about chargebacks or refunds from customers who try to commit payment fraud.
- Decentralization: Bitcoin operates on a decentralized network called the blockchain, which means it is not controlled by any central authority, financial institution, or government. This decentralization can provide greater financial autonomy and reduce reliance on traditional banking systems, making it an appealing option for businesses and individuals seeking an alternative payment solution.
- Global accessibility: Bitcoin can be sent and received by anyone with an internet connection, regardless of their location. This global accessibility makes it particularly useful for sex workers that operate internationally or want to reach customers in different countries without the need for complicated cross-border transactions.
- Lower transaction fees: Bitcoin transactions typically have lower transaction fees compared to traditional payment methods such as credit cards. This can be advantageous for creators, especially those dealing with high transaction volumes or international payments, as it can result in cost savings over time.
- Faster settlements: Bitcoin transactions can be settled almost instantly compared to traditional banking systems, which often involve delays due to processing times, intermediaries, and different time zones. Once confirmed on the blockchain, payments can be settled within minutes, providing creators with faster access to funds.
- Privacy: Bitcoin transactions offer a high level of privacy, as they do not inherently reveal personal or sensitive information about the payer. This can be more appealing to individuals who prioritize privacy and may prefer transacting with digital currencies.
How to use Bitcoin
There are a couple of concepts you need to understand before you work with Bitcoin:
- How to accept Bitcoin with a Bitcoin wallet
- How to turn Bitcoin into your local currency and deposit it into your bank account with a Bitcoin exchange
How to accept Bitcoin
To accept Bitcoin, you need a Bitcoin wallet.
A Bitcoin wallet is a software application or a hardware device that is used to securely store, send, and receive Bitcoin. Bitcoin wallets interact with the Bitcoin network and allow users to manage their Bitcoin holdings. The wallet will generate a receiving address, which is usually a QR code or a long string of characters that looks like this:
3FZbgi29cpjq2GjdwV8eyHuJJnkLtktZc5
All you need to do is send your Bitcoin address to your client, and they should be able to send you a payment in Bitcoin.
Which Bitcoin wallet should you use?
There are many different types of wallets that are meant to address the different needs of Bitcoin users. However, this post will focus on ease of use above all else.
There are two mobile apps I would recommend using if you are new to Bitcoin:
- Cashapp (if you are in the US), and
- Coinbase (if you are outside of the US).
Both companies offer built-in Bitcoin wallets and exchanges that will allow you to convert Bitcoin into your local currency (more on this later) and save it to your bank account. Additionally, both can companies provide support (most Bitcoin wallets don't) and are very easy for beginners to use.
Remember that you will need to verify your identity on both apps to transact in Bitcoin.
Cashapp
If you are an NSFW creator based in the US, you are likely familiar with Cashapp. In my opinion, it is the easiest way to transact in Bitcoin.
Here are some links to help you get started with Bitcoin on Cashapp:
Coinbase
If you are outside of the US, you will not be able to use Cashapp. The next most user-friendly option in my opinion is Coinbase.
Here are some helpful links on how to get started with Bitcoin on Coinbase:
Understanding the risks when using Bitcoin
As long as you use a reputable wallet (to receive and store Bitcoin) and exchange (to convert your Bitcoin into your local currency), you should be fine. However, there are risks you need to understand.
- Price volatility: the price of Bitcoin can fluctuate rapidly from moment to moment. Avoid having to worry
- Regulatory compliance: different countries have different regulations concerning Bitcoin. However, Bitcoin has generally gained mainstream acceptance with both consumers and governments for the most part. If you cannot get access to Coinbase from your country, you probably should not consider Bitcoin as a payment solution.
- Taxes: In the US, Bitcoin is considered an asset, and if you sell your Bitcoin for more than the amount you received, you will likely need to pay taxes on your gains. To avoid this, I recommend you withdraw your Bitcoin often (more on that later in this post). Tax implications are beyond the scope of this post, so I recommend you do further research and talk to a good tax accountant if you find yourself in this situation.
- Technical challenges: using reputable apps, like Cashapp and Coinbase will help you avoid any mistakes you might make with handling your Bitcoin funds. In the event you need support, both Cashapp and Coinbase can help you out. Another excellent resource you can use for support is the popular subreddit r/BitcoinBeginners.
Withdraw your funds often
I mentioned price volatility and taxes before. To avoid those risks, simply sell your Bitcoin funds (both Cashapp and Coinbase allow you to do so on their apps) as soon as it is convenient for you to do so. Though the price can change rapidly from day-to-day, you should be safe if you sell and withdraw on the same day.
In the event you do make some real gains on your Bitcoin funds, here are some links to help you understand your tax responsibilities (only for US residents):
Only use Bitcoin
A final word on risk - only use Bitcoin as a payment method. Avoid using any other cryptocurrencies. There are many, many cryptocurrencies, the subject of which would warrant another, very long blog post. Keep things simple for yourself and just use Bitcoin and Bitcoin only - do not overcomplicate your situation.
Trust me on this.
To summarize
You should be ready to accept tips in Bitcoin. When you want to charge a client for a webcam session or your private Snapchat, you can do so now without worrying about chargebacks, refunds, or being banned by your payment provider.
Feel free to reach out or leave a comment below if you have any questions.