Finance

How to Gift Cryptocurrencies

What to give the person who has everything? The most obvious solution is money. But a more original version is a cryptocurrency: ether, a share of bitcoin, or a meme token. You can receive a gift remotely, and watching the growth and fall of the crypto will turn into a new hobby. We tell you what methods of donation exist and which digital currencies to choose as a gift.

Cryptocurrencies can not only be given but also donated to a charitable foundation. Therefore, if there is a desire to share ether or bitcoin with an NGO or a human rights organization.

Another charitable-supported option is to create an NFT token and then sell it on platforms like Rarible. But in this case, you need to create a digital object and find a specialist who knows how to work with NFT platforms. It is possible to attract $500-1000 to Ethereum even if you do not invest in a promotion or online casinos. And you can transfer the collected money to the fund if it accepts crypto, or convert it into fiat and credit it to the account of the organization.

What cryptocurrency will be a good gift?

In short, the best cryptocurrencies for a gift for the new year, birthday, etc. this:

  • bitcoin
  • Ethereum
  • USDT

If you are at least slightly familiar with cryptocurrency, then there is no need to explain Bitcoin in this list – it is the first largest cryptocurrency and the most popular!

Gifting cryptocurrency is vaguely reminiscent of a long-standing trend in the United States when people began to give shares of large companies to loved ones. But the crypto market is not yet so popular among the mass audience. People have heard about it, but do not quite understand how it works and on what principles it works. With this in mind, even bitcoin is still an unusual and original gift. If you look at the future, then a good gift option is Ethereum. Another popular project is Polkadot. He has revolutionary prospects and grandiose plans, which are being implemented at the same time, which is rare for crypto projects. If a person understands the topic, you can give him an NFT token: for example, some kind of picture or meme registered as an NFT. But one must be prepared that NFT tokens are very expensive.

How to give cryptocurrency: ways?

Give a virtual crypto wallet

If the recipient of the gift already has a cryptocurrency wallet, the issue is resolved: just find out the account number (or email address) and transfer the required amount to the account from your own crypto wallet. Such operations are absolutely legal – individuals can buy, sell, exchange, store and send any cryptocurrencies using crypto wallets, exchanges, and exchangers. At the same time, the cryptocurrency received as a gift and income from it is not taxed until 2023.

If a friend does not have an account, then you can create a new account, credit cryptocurrency there, and transfer access to it to the recipient.

Many popular crypto wallets, such as Exodus or Mycelium, do not require an email address when registering – such an account is easier to transfer because it is not tied to your personal data. The role of the access key is performed by a code phrase (mnemonic phrase, or seed phrase) – a set of 12-24 words that must be entered in a certain order in order to gain access to the wallet. This key must be passed to the recipient – for example, to rewrite the phrase in a greeting card.

In this way of donating cryptocurrency, there are two important nuances:

  1. Remember to warn the recipient that the passphrase is extremely important. If the owner loses it, he will lose access to the crypto wallet and will no longer be able to restore it.
  2. You cannot change the passphrase or generate a new one for an existing wallet — the text key always remains the same. Therefore, in theory, the donor can use it after a while, which creates risks. The best option is to give a friend a temporary wallet (temporary wallet), from which he will transfer money to a personal account. Whether a friend wants to carry out all these manipulations is another question. And it’s better to make sure in advance that a person is interested in the crypto market and trading, otherwise the gift will hardly please him.

Give a cold wallet with cryptocurrency

A cold wallet is a hardware device for storing cryptocurrencies, which is something like a flash drive. This is the safest, but not the most convenient option. If you forget the password or lose the carrier itself, then the cryptocurrency will be forever lost. For example, the American Stefan Thomas forgot the password from a flash drive that stores more than 7,000 bitcoins and lost access to crypto-accumulations – and this is not the only case. In total, about $140 billion is stored in bitcoin wallets with forgotten passwords.

When donating, the risks are about the same as in the case of an electronic wallet. When registering, you will need to create and remember a PIN-code and a phrase to restore access (recovery phrase).

You can order a cold wallet on large marketplaces: the price of the most popular models (for example, Ledger and Trezor) varies from $60 to $260. It depends on how many different accounts the device allows you to have (for example, the Ledger Nano S model supports 5-6 accounts, while the Ledger Nano X supports up to 100), whether the device has an information display and a battery, whether it supports Bluetooth, etc. Further. In any case, such a gift will cost more than a virtual wallet with cryptocurrency.

Give a voucher for cryptocurrency

A voucher is like a gift certificate for buying crypto. You buy a voucher for a certain amount (for example, 50 euros) and indicate the email address of the recipient of the gift. The voucher that will be sent to the mail will contain a special code. The recipient must enter it on the site where the voucher was purchased and indicate the wallet address to which the amount in cryptocurrency equivalent to the value of this voucher will be transferred.

One of the disadvantages of such a gift is that its recipient will eventually have to deal with registering a wallet in order to receive cryptocurrency. Also, vouchers, as a rule, are available only for the most common cryptocurrencies: Bitcoin, Ethereum, Litecoin. But on the other hand, this is the easiest way to donate cryptocurrency.

What to Consider

Obviously, we are talking about noukiners, that is, those who do not have bitcoins, but to whom we want to give them AND who we want to introduce to a world that they may not know anything about.

If someone is already using bitcoin, then just get their address and send the coins. It’s easy like using casinos that accept bitcoin, but not as exciting as opening an old-fashioned gift.

Since nocoiners have nowhere to store bitcoins and nowhere to send them, you must solve both problems for them at the same time.

Depending on the amount, some people talk about buying a hardware wallet, setting it up, and giving it as a gift, but I think for new users this creates more problems than it solves. As a rule, it takes some time to understand and reach the stage where you understand why cold storage wallets are needed and how they are used.

However, it is worth thinking about security and making sure that the person receiving the gift also understands its importance. Fortunately, all this can be done in a simple way that retains some of the excitement of the “old days”.

Editor

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