Many people fantasize about the prospect of location independence. They enjoy the idea of not being tied down to one location because of their job. More people have chosen this lifestyle over the past few years, with a sub-culture growing around working remotely while traveling the world. There is an obvious attraction for this so-called ‘digital nomadism’, where individuals work remotely while living a nomadic, independent lifestyle.
The rise of the blockchain and cryptocurrency has also played a role in the ability to travel while working from a remote location. While this can involve working in the notoriously open startup ecosystem of blockchain projects, there are other ways in which crypto allow for this lifestyle.
What Is The Digital Nomad Lifestyle?
Digital Nomad is the name given to a person/lifestyle where an individual works one or more remote positions and travels around rather than staying in a fixed location. Improvements in technology and the internet have made this opportunity viable.
Remote work can, to an extent, consist of a wide variety of industries but generally, IT, copywriting, blogging, and customer support are some of the more common areas of work, as they generally lend themselves better to be done remotely or individually. Similarly, due to the location independence, remote working provides, digital nomads could theoretically work from anywhere. However, countries with a cheaper cost of living are generally favored. Similarly, places with a reliable internet connection and with access to co-working spaces may also be sought after.
The freedom to work from anywhere continues to be the biggest influence on the decision to be a digital nomad. The potential for a reduced cost of living and not having to commute to an office also add to the appeal. Then there is the ability to travel for long periods of time, supported by the funds made by working simultaneously. There are many other reasons that make this lifestyle ideal.
Cryptocurrency has clear advantages for these individuals, leading to the new wave of crypto nomads. There is a close link between the desire for decentralization and the freedom to work from anywhere, which is why there are some clear parallels between this community and the crypto community. There are many reasons to be a crypto nomad, and these are just a few ways in which cryptocurrencies have improved working as a digital nomad and how blockchain-based services can help facilitate this lifestyle.
Fast And Cheap International Transactions
Everyone who has had to deal with sending money internationally knows it can be a long and expensive process. Not only are there high transaction fees, but fluctuating exchange rates and processing times, which can take days, will also need to be dealt with. Payment is, of course, necessary to sustain this lifestyle so any delays and additional fees can be devastating.
For those who receive their salary in cryptocurrency, this is no longer a significant issue. These are decentralized, peer to peer currencies, meaning that banks are not necessary for the process, greatly reducing the associated fees.
Some countries also have Bitcoin ATMs which can be used to send money abroad, amongst other things. This makes the process even easier for those new to the crypto scene, but finding one of the over 4000 worldwide can be an issue.
In summary, cryptocurrencies make this process faster, cheaper, safer, and more convenient.
Paying Expenses With Crypto
So now these crypto nomads are being paid in the digital currency and enjoying all the benefits that come with that. What happens when it comes time to pay for food or rent? This is probably one of the biggest hurdles faced when it comes to living a fully crypto-based, decentralized lifestyle. Ideally, this step would be as easy as sending some Bitcoin to a company’s wallet. However, adoption of blockchain-based currency still isn’t widespread enough to make this viable.
Crypto can, of course, be exchanged into fiat to help fund travel and work as needed. Bitcoin ATMs are, once again, a convenient tool for withdrawing crypto in fiat currency. Though fees may be slightly higher for the convenience, it is a viable option for crypto nomads if they know where to find them.
There are also some high-profile OTC services available for crypto. Acting as a broker, these OTC services connect those looking to sell crypto for local currencies and vice versa. There are many other similar services that offer a range of different payment options, whether paying to a bank account or other digital payment services. While the use of these can lead to fees and added costs, they are certainly an option for exchanging crypto for fiat money.
Is It Possible To Live Off Crypto?
There have been some developments however that make living off crypto easier and, as more services begin to accept these decentralized currencies, this step will no longer be necessary. Every day, more and more businesses are adding crypto as a payment option on their platform. Some major e-commerce platforms are now allowing cryptocurrencies to be added by stores as a method of payment, for example.
KuCoin has recently worked with Aave Pay to bring KCS to the platform, allowing users to pay private expenses using the token. Similarly, those looking to buy crypto with fiat currency are able to use Simplex on KuCoin as a way to enter the crypto market.
Ultimately, these digital nomad salaries paid in crypto will face some inconveniences when it comes to everyday expenses, but it definitely appears that things are shifting. In the future, this will certainly become easier as demand grows and adoption continues to spread.
Other Considerations For Digital Nomads
There are some downsides of being paid in crypto. Firstly, there is the volatility of the cryptocurrency market that needs to be contended with. The market can see sudden spikes and sudden falls in value, meaning that what a person is being paid can suddenly be worth less over the space of a week or even less.
This is where more recent developments such as stablecoins come in. As mentioned previously, stablecoins were developed to maintain a stable value. Using a variety of different mechanisms, they are able to hold their value despite any changes or volatility in the crypto market. What this means for crypto nomads is the ability to hold crypto without the worry of a sudden drop in its value.
Legal Issues For Crypto Nomads
Another issue is the need for visas. Remote working typically occupies a gray area legally when it comes to traveling. If caught, digital nomads and their crypto nomad counterparts will likely get into some trouble for working without a proper work visa. While there are some options to circumvent this, it is not easy to do.
The legality of cryptocurrencies will also need to be considered when deciding on countries to visit. Exchanging crypto in these countries will be much more difficult, not to mention that getting caught will lead to a lot of trouble. Taxes can be another issue, as they can differ from country to country. These are considerations that need to be made when planning.
Making The Most Of The Lifestyle
Productivity is important when working and traveling. There are likely many distractions that wouldn’t be encountered in the workplace, so crypto nomads will need to ensure they are able to focus on work as much as possible to get everything done. Then there is the need to adjust to the decentralized lifestyle that crypto offers. While not particularly difficult, those who are only starting to receive a salary in crypto will have to learn how to account for that in their lifestyle, including the ways mentioned above.
There are also plenty of opportunities within the cryptosphere that can enable crypto nomads to supplement their crypto income. There is the option to stake crypto, which can lead to earning more in the long run. This all depends on the individuals’ views on the risks that are associated with this.
Then there are some people who prefer to receive their salary in a mixture of fiat and crypto, helping to balance the need for cash and digital currency. This combination may be more ideal for those starting out.
Living The Dream Life Of A Crypto Nomad
It is easy to see the attraction for the digital nomad lifestyle. Now, with the help of cryptocurrencies, it is becoming easier and cheaper to adopt this lifestyle. Not only are international transfers now instantaneous, but they also cost a fraction of the price compared to other methods. Things are becoming easier as the adoption of cryptocurrency increases, allowing payment for services directly in crypto.
As remote working becomes more common, more people will be able to take part and, as they discover the benefits of crypto, they will likely continue to improve their lifestyle.
See if you can make it as a Crypto Nomad.
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