Bitcoin and other cryptocurrencies aren’t any more the sole domain of mathematicians and economists. Even for the non-technical public, the wild price swings and exponential growth of cryptocurrencies have been major news stories. This article would entail the principle of How to Give Cryptocurrency as a Gift, as such is not common to many within the space.
While some may dismiss Bitcoin, others see it as the future of exchange. They insist we put them near the top of our shopping lists since there is still time for early adopters to make a killing. Because of this consequence, many people are curious about the practical applications of cryptocurrencies, including whether or not they can be used for buying and selling, exchanging, and, most importantly, “How to Give Cryptocurrency as a Gift”.
Factors Pertinent To The Object Of Our Evaluation:
No matter where you stand on the cryptocurrency debate, you can’t deny the idea that some people would find cryptocurrency to be a welcome present. They could lose value soon, that’s true. Cryptocurrencies, however, are a topic that has broad consensus as being both interesting and important. Digital assets can be used to make purchases and settle invoices at an expanding number of online retailers. When you consider that value may increase dramatically shortly, you have a present to use in variety of situations.
Which Cryptocurrency Would Make a Good Gift?
CoinMarketCap’s homepage shows the number of cryptocurrencies, their market cap, and their exchanges. As of November 2022, choosing from over 21,000 coins is harder than ever.
If you or the recipient have a preference, choose Bitcoin, Ethereum, or Solana. In succeeding years, new, lesser coins have appeared, but whether they will become as famous and long-lived as the more famous ones is unknown. Before buying cryptocurrency, consider the risks. Analyze the currencies that interest you to see if their pricing reflects their potential. As a gift, consider the recipient’s tastes. Cryptocurrencies are hazardous. Don’t panic prices might change daily.
How to Give Cryptocurrency as a Gift
The rising popularity of cryptocurrencies has made them more accessible to investors. Such could be due to the high degree of speculation surrounding them. Some typical presentation options for these digital assets are listed below.
#1. Gift Cards
There are several places online to buy gift cards that can be used to purchase cryptocurrencies. Look for one that seems reliable, ideally with positive ratings, and provides the services you require; next, decide how much you want to give as a present and make a purchase.
Gift cards in the amount of your deposit will be given to you after the payment has been processed. The receiver can claim the gift by visiting the same website as the shop and entering the information printed on the card.
#2. Crypto Exchanges
A further alternative would be to gift cryptocurrency through an agency. To start investing in cryptocurrencies, you must first select an exchange, register for an account, and settle on a setup option. Once you’re set-up, purchasing digital currencies and sending them to a recipient’s wallet address is a breeze.
#3. Storing Cryptocurrencies
You’ll need to find a secure location to keep the present after you’ve purchased it. You can store it on the site where you made the purchase, but it’s safer to take it offline to a location that is not easily accessible to hackers.
#4. Through Paper Wallets
Offline, paper wallets are the most cost-effective way to store cryptocurrency. A paper wallet is just a sheet of paper on which you write your private key. You can make your own, however, by going to a website that produces keys and QR codes at random. This process yields a physical piece of paper on which is printed all of the information necessary to access and transact with one’s cryptocurrency holdings. When using a paper wallet, care must be taken to prevent its loss or destruction after it has been produced. You should only use a paper wallet as a stopgap measure while you convert the keys to a cryptocurrency wallet, as paper wallets are frequently damaged.
#5. Hardware Wallets
The hardware wallet is a safer alternative to traditional wallets. Cryptographic hardware wallets resemble flash drives in many ways. They are compact, impervious to water and viruses, and widely regarded as the most reliable location to store your private keys.
These offline wallets may be purchased in a short amount of time and range in price according to the capabilities they offer, but are more secure than those stored on a computer or mobile device.
#6. Physical Coins
Physical coins having the code written on them can be purchased or made if you want to make the present look finer. It’s been seen that some people put a reflective logo on the back that has the code printed on it. Custom-created on a 3D printer from metal or plastic, these coins could be rather spectacular. Store money in physical coins is not as safe as using other techniques. If the cryptocurrency is not printed on precious metal, the gift recipient should use the keys. These keys are used to send the cryptocurrency into a long-term storage device and burn the coin.
How Do You Send Cryptocurrency to Someone?
Logging into your cryptocurrency account and sending the desired amount to the recipient’s wallet address is usually all that’s required to send digital currency.
How Do I Give Cryptocurrency Wallet As A Gift?
Purchasing a hardware wallet is a good choice. These commonly accessible USB drive gadgets are tiny, waterproof, virus-proof, and usually regarded as the finest way to store cryptocurrency.
However, do not recommend people put their investments, due to the high risk and speculative nature of these investments. Since everyone’s financial position is different, it’s best to talk to an expert before making any major moves. Investopedia does not guarantee or promise that the information provided herein is correct or up-to-date.
Frequently Asked Questions
What about giving bitcoin as a present?
If the total value of all cryptocurrency gifts made in 2021 is less than $15,000. The gift will not result in any tax liability for you. “There are no tax implications if you give me cryptocurrency valued at $15,000 or less,” says Chen.
Is there a tax on cryptocurrency gifts?
A person who gives you cryptocurrency as a present is lucky for 2 purposes. You have just acquired some cryptocurrency and will incur no taxes as a result. The receipt of cryptocurrency as a gift does not trigger any tax consequences. However, you should document the cryptocurrency’s worth at the time of your receipt.
Is it possible to send someone $100 in Bitcoin?
When giving Bitcoin as a present, you don’t have to offer the complete amount. Consider the fiat currency. Sending $100 in Bitcoin is an excellent option because there will be no transaction fees incurred if you use Coinbase to do so via email. The final cost will be calculated by adding the current value of one Bitcoin to the applicable transaction fees.
Conclusion
In today’s post, we’ll discuss whether or not it’s wise to give cryptocurrency as a present, and we’ll also discuss the potential downsides of doing so. Giving cryptocurrency as a present, on the other hand, is a good idea because you don’t have to look out for the cryptocurrency’s erratic price movement but rather for the significance of gifting that cryptocurrency.