I accepted a job paying 2 ETH per month. At the start of the month, that was $6,000. By payday (30th), ETH crashed, and my 2 ETH was worth $4,500. I effectively took a 25% pay cut. I asked if there was “Income Insurance” for this.
Key Takeaways
- Payroll is Contract Law: This isn’t an insurance issue; it’s a contract issue. If your contract says “2 ETH,” you get 2 ETH, regardless of dollar value. If it says “$6,000 paid in ETH,” you get $6,000 worth of ETH.
- Volatility is Uninsurable: No insurance company covers the volatility of your paycheck. That is a market risk you accepted by taking the job.
- Stablecoins are the Fix: Smart employees negotiate base salary in USDC/USDT, with only bonuses in volatile crypto.
- Hedging (DeFi): You can create your own “insurance” by shorting ETH on a DEX for the amount of your salary. If ETH drops, your short profits offset the salary loss.
The “Why” (The Trap)
The trap is “Denomination.”
You agreed to be paid in a commodity, not a currency. It’s like agreeing to be paid in barrels of oil. If oil crashes, you still get the barrels. Insurance doesn’t fix bad negotiation.
The Investigation (I Checked Payroll Platforms)
I looked at how Bitwage and Deel handle this.
- Bitwage: Offers “Volatile-to-Stable” conversion. You can set it to auto-convert your ETH to USD the second it hits your wallet. This minimizes the risk window.
- Contract Wording:
- Bad: “Salary: 2 ETH / month.”
- Good: “Salary: $6,000 USD / month, payable in ETH at the spot rate on the 30th.”
Comparison Table
| Payment Method | Volatility Risk | Who bears risk? |
| Fixed Crypto Amount (2 ETH) | High | Employee |
| Fixed Fiat Amount ($6k in ETH) | Low | Employer (must buy more ETH if price drops) |
| Stablecoin (USDC) | None | N/A |
Step-by-Step Action Plan
- Renegotiate: Ask for a “Fiat Peg.” “I want $X worth of token,” not “X tokens.”
- Auto-Dump: Set up a script or use an exchange feature to sell to USD immediately upon receipt.
- [IMAGE: Screenshot of a ‘Convert to USD’ auto-rule on an exchange]
- Hedge: If you are locked into a fixed ETH salary, open a 1x Short position on ETH equal to your monthly salary. This locks in the dollar value.
FAQ
Do I pay taxes on the $6,000 or the $4,500?
You pay income tax on the Fair Market Value (FMV) at the moment of receipt. If it was $4,500 when it hit your wallet, you pay tax on $4,500.
Does unemployment insurance cover this?
No. You are employed.