As the mainstream financial system grows ever more hostile to sex workers, regardless of legality, cryptocurrencies have emerged as a means of making and receiving uncensorable payments. For independent escorts and sex workers, navigating the complexities of the cryptocurrency world can open up new opportunities for conducting safe and discrete transactions, without the limitations and risks associated with traditional banking systems. Much like handing over cash, payments are peer-to-peer rather than through a middleman.

In this guide, we’ll equip you with the knowledge and resources needed to use cryptocurrencies in adult industries. We’ll explore the benefits and challenges to provide a balanced understanding of how cryptocurrency can fit into your business. Despite its limitations and complexities, cryptocurrency can empower you with more control over your money.

This guide was put together by Cara Lorelei, a sex worker based in Germany with prior experience in the cryptocurrency industry, with help and oversight from dxo, a cryptocurrency security specialist passionate about making this technology more accessible. 

We understand there is tremendous variation within sex work. It’s impossible to address every possible use case for every possible type of sex worker. Our focus is on the essentials you’ll need to start receiving and sending payments independent of mainstream payment processors. As our focus is on payments, you won’t find any advice relating to investing and speculation. 

Please bear in mind the cryptocurrency landscape is ever-changing. While we’ve tried to focus on fundamentals, the information in this guide could become outdated. Any products or services mentioned are not outright endorsements, but rather suggestions. Cryptocurrency is not for the faint-hearted. But if anyone’s equipped with the smarts and instinct to leverage it, it’s sex workers.

Introduction to Bitcoin and Cryptocurrency

The original cryptocurrency (and the one we’ll focus on in this guide) is Bitcoin. Created by a mysterious figure using the pseudonym ‘Satoshi Nakamoto’ in 2009, Bitcoin pioneered a new form of money. Its decentralised design presented the first serious challenge to government-issued fiat currencies. 

The key innovation which enabled this paradigm shift is the ‘blockchain’. While you don’t need to know the full technical details of how blockchain works to use cryptocurrency, it’s useful to understand this is an accounting technology distributed across many independent computers and not controlled by any single entity. The blockchain allows for transparent, immutable, and uncensorable transactions. Since the launch of Bitcoin, cryptocurrency has gained incremental traction. Despite its many pitfalls, Bitcoin opened up a means to empower individuals. There are now thousands of alternative cryptocurrencies. Yet, Bitcoin remains the most used cryptocurrency and is what we’ll focus on in this guide. 

Cryptocurrency offers advantages to sex workers, making it a useful and practical payment method. By embracing cryptocurrency, you can gain greater control over your finances while safeguarding your privacy and autonomy. It may never be superior to cash. But it’s a valuable tool in your kit as many countries are moving away from easy cash usage. 

Benefits of Using Bitcoin for Sex Workers

1. Longevity of Bitcoin since its launch in January 2009. Payment options come and go with little warning in adult industries. Bitcoin stands out as a far more reliable and stable choice. For sex workers, a proven track record of resilience is invaluable. It has demonstrated staying power, weathering market fluctuations, regulatory challenges, and technological advancements. While there is always the risk it could lose all value and fall out of use, this becomes less probable as the years pass. Bitcoin is far more dependable than transient options which lack staying power due to their reliance on mainstream systems.
2. Lower transaction fees compared to traditional SW payment platforms. Traditional payment platforms often impose high transaction fees for adult-oriented businesses (as much as 20%!). Cryptocurrency transactions involve lower typical fees. This allows you to keep more of your earnings. 
3. Faster transaction processing times compared to conventional methods. While Bitcoin transactions may be slower than mainstream payment methods, they’re faster on average than most options available to SWs. Bitcoin transactions process fast, usually within minutes. This ensures sex workers receive prompt payments, enhancing their financial flexibility. 
4. Built-in privacy features.  Cryptocurrency transactions are pseudonymous, meaning they do not need personal information. If you prioritize privacy and discretion, it can help protect your identity and personal safety. However, it is important to note it is pseudonymous rather than anonymous.
5. Decentralization, offering autonomy from centralized authorities. Bitcoin’s great innovation is a means of exchange that isn’t owned or controlled by any single entity. Even state actors are unlikely to be able to afford the steep cost of shutting it down. Decentralization almost eliminates the risk of censorship you face with traditional payment methods. 
6. Irreversibility of transactions, minimizing chargeback risks. Once a transaction is sent, it is irreversible, unlike payment processors such as PayPal. However, you can refund a client if needed by sending the money back. For example, to refund a deposit if you have to cancel.This is an advantage over reversible payment options such as Cash App. It’s also an advantage over options such as wishlist sites where it can be difficult to issue refunds.
7. Global accessibility. Cryptocurrency transcends geographical boundaries. You can accept payments from clients globally without conversion or international transaction fees. This is ideal in an often international industry.

 

Downsides of Using Bitcoin for Sex Workers

1. Variability in transaction fees due to network activity. The cost varies depending on network activity. During periods of high activity (usually when the price increases fast), fees can become too high for smaller transactions. Many alternative digital currencies offer much lower fees. If Bitcoin is too expensive for you, they are a good option to explore.
2. Price volatility, leading to uncertain payment values. The price of any cryptocurrency varies depending on supply and demand. This can lead to rapid, substantial fluctuations in the fiat value. A payment you receive may be more or less than what was sent. If you choose to hold a cryptocurrency instead of converting it into fiat, the amount may change. ‘Stablecoins’—alternative cryptocurrencies focused on maintaining a stable price—reduce this volatility. So they are a good option to explore if you care about long-term price stability.
3. Fluctuating transaction times based on network congestion. When people are making lots of transactions (often when the price increases), processing times increase. Many alternative digital currencies focus on speed and process transactions almost instantly. Once again, these may be worth exploring once you get to grips with Bitcoin.
4. Risks associated with mistyped addresses leading to irreversible losses. Unlike traditional banking systems, where transactions can be reversed or disputed, cryptocurrency transactions are immutable once confirmed. While this has advantages, it also means you can lose funds due to human error with no way to recover them. This is true even if the mistyped address doesn’t exist.
5. Challenges in building trust due to digital currency’s negative reputation. Cryptocurrency has a negative reputation among the general public. Media coverage tends to focus on its use for illicit activities and speculation. You may find clients reluctant to start using it. Less privileged sex workers may fear being tainted by association. Educating clients on the benefits of adopting cryptocurrency requires additional effort.
6. Time and effort required for setup and onboarding both for SWs and clients. Adopting cryptocurrency as a payment method requires time-consuming setup and onboarding. Getting started with cryptocurrency is daunting even for the most tech-savvy among us. The initial setup and onboarding phase may deter clients, even if they understand the benefits.

 

Considerations When Using Cryptocurrencies Other Than Bitcoin

Why focus on Bitcoin when there are thousands of cryptocurrencies, including ones claiming to be designed for sex workers? 

We’ve chosen to focus on Bitcoin as the most established cryptocurrency and a household name. Its widespread adoption, robust infrastructure, and established reputation make it an ideal starting point. We recommend getting to grips with Bitcoin first before considering alternative cryptocurrencies. However, these can be worth exploring at a later date. Reputable options offer benefits such as more stable pricing or enhanced privacy.

The cryptocurrency market is rife with scams, pump-and-dump schemes, and volatile price fluctuations. Lesser-known alternatives are especially vulnerable. The newer and less established a cryptocurrency is, the greater the risk of accepting it. While we think it’s improbable Bitcoin will lose its entire value, countless alternatives have done so. 

If you accept payment in an alternative cryptocurrency, you should understand its underlying technology, market history, and reputation within the community. We do not recommend holding more money than you can afford to lose in any cryptocurrency. All the more so for unestablished alternatives.

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Stay tuned for part 2 where we’ll delve into how to actually use cryptocurrency in your work as an independent escort and sex worker and how to protect yourself while doing so.