Regardless of the reason, gift-giving is a tricky endeavor that causes stress and takes up a lot of time. You struggle to find the right present because the person already has everything they need, unwittingly inflicting stress upon yourself that could cloud your judgment and cause you to make bad choices. Last-minute shopping can definitely lead to poor offerings that the recipient will feel compelled to use not to hurt your feelings. After all, close friends and relatives don’t define good gifts the same way you do. The question now is: What should you get that person in your life that’s nearly impossible to shop for?
Cryptocurrency is the perfect gift if you want to make your loved ones feel appreciated on their birthday or a holiday. Ethereum, for instance, is great for someone who’s into investing because they can receive a competitive rate of return, compounded daily, not to mention that ETH is a hedge against inflation. Cryptocurrency transfers work 24/7, so you can ensure your gift will reach the recipient on time, no matter their time zone. Let’s not forget that many online stores accept cryptocurrency, as Ethereum and other digital assets are more secure than most payment methods.
Here’s what to reflect on if you want to give cryptocurrency as a gift.
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The Easiest Way to Get Cryptocurrency Is to Buy It
Source: money.com
If you don’t own any digital tokens, pick an exchange that offers a good selection of tradable cryptocurrencies and streamlines the trading of cryptocurrencies for other assets, including fiat money and NFTs. And if you don’t know how to buy Ethereum, you’re probably looking for the best advice. Well, after having chosen a dedicated platform where you can buy and sell cryptocurrency, you’ll need to fund your account with USD or EUR using your debit or credit card. Of course, your bank won’t make the funds available immediately. Deposit/withdrawal transaction fees depend on the exchange, so take notice of each platform’s prices before you get started.
Its’ easy to get started buying Ethereum, thanks to the advancements in online trading. You place an order with the click of a button on the exchange’s web or mobile platform, which is routed via a computer trading network. Once a seller is matched with your order, the trade is executed. You can place several kinds of orders, like market orders, limit orders, and stop orders, so be sure to know what orders your exchange accepts. You can sell ETH pretty much in the same way you buy it. Digital assets are stored in a wallet that can be web-based or hardware-based, making it impossible for hackers to steal your coins.
What Cryptocurrency Would Make a Good Gift?
There are more than 21,000 cryptocurrencies at present, meaning that choosing one is more complicated than ever. If you or the giftee don’t have something specific in mind, it’s best to focus on mainstream options because they’re simple to buy (or sell) and have met numerous people’s needs over the years. Besides Ethereum, well-established options include but aren’t limited to Bitcoin, XRP, Tether, Cardano, Polkadot, and Dogecoin. Do some research on the coins that entice you the most and weigh the tax implications. In case you didn’t know, receiving cryptocurrency as a gift isn’t a taxable event, yet if you give digital tokens worth more than $15,000, you must report it to the tax authorities.
How To Send Someone Cryptocurrency as A Gift
Source: bitpay.com
You can send coins to a friend from another country, an amiable and beloved cousin, or anyone else you can think of. Attention must be paid to the fact that giving cryptocurrency to children can be difficult because all reputable exchanges require investors to be at least 18 years or older to invest. You can buy it for them and transfer the cryptocurrency when the kids turn 18. For a long time, giving someone money was considered rude. Still, people don’t consider it inappropriate anymore, and cryptocurrency is a unique asset owing to blockchain’s network effects, immutability, censorship resistance, and decentralization.
As far as gifting cryptocurrency to friends and loved ones is concerned, you’ll want to explore two options, each with its own pros and cons.
Offer Gift Cards
With the wide range of things available online these days, it’s difficult, if not impossible, to know what someone would like, so a gift card from a retailer is ideal for any occasion. Many websites sell cryptocurrency gift cards, so find one that looks genuine, preferably with good reviews. The receiver can pick whatever they want from the store, and this flexibility means they can choose an experience over a thing. Buying a cryptocurrency gift card isn’t going to feel different than paying for something with your smartphone. After giving the gift card, your friend or loved one has to redeem it by logging into the website. They can shop from their cozy bed.
Transfer Cryptocurrency from The Exchange to The Recipient’s Wallet
Source: paxful.com
Undoubtedly the simplest method to give cryptocurrency as a gift is to use a dedicated exchange – in other words, to send the tokens to another wallet. Log into your account, verify your holdings, and introduce the wallet details for the person receiving the gift. There are no fees involved beyond the cost of the cryptocurrency you’re forsaking. For more significant transactions, sending a small number of coins is recommended as a test to ensure the address is correct. Remember that you can’t send Ethereum to a Bitcoin address or the other way around. Equally, not all tokens on the ETH network are supported by a specific wallet or account.
All things considered, if you don’t want the hassle of using software, you can give your cryptocurrency wallet as a gift. A hardware wallet plugs into the computer via a USB port and offers access to digital assets safely from anywhere. Give the giftee your seed phrase, so they don’t lose access to the holdings. The most important thing is ensuring the recipient understands how to store the gift securely.
