Since cryptocurrency is the new money, you can give someone cryptocurrency without them knowing, and they will be happy!
With the growing interest in cryptocurrencies, Many people think of using it in different ways And of course, gifts are also something you can create.
And what’s better than giving away something that can help your loved one earn more money in the future.
There are also apps where you can trade cryptocurrencies like Robinhood, which has been gaining popularity lately because trading is now easier than ever. You can do all this while you are safe from hackers who want to access your personal information so they can only steal money from accounts that are not password protected.
If you want to give cryptocurrency to your loved ones or help them invest in the blockchain, this blog will help you understand how to give cryptocurrency.
How to give cryptocurrency
When it comes to giving gifts, there are many different cryptocurrencies available. But one must stick to popular coins like Bitcoin and Ethereum (ETH).
There are other options to consider, such as a stablecoin. A stable cryptocurrency with lower transaction fees than cryptocurrencies.
Cryptocurrencies are an exciting new technology that has the potential to change everything we know about finance, but it comes with a lot of risks. Only time will tell which cryptocurrency will succeed and which will fail to make it through the initial wave – so proceed with caution!
Cryptocurrency gifts are very popular these days, but if you want to make sure that the recipient keeps their cryptocurrency for a longer period, It might be best to give them a fixed coin.
Learn more about how cryptocurrency gifts work. This informative video from aantonop explains well how to give cryptocurrency as a gift.
You can get cryptocurrency gift cards
Gift bitcoins or other cryptocurrencies in a thoughtful and personal way to show someone how much you care. And You can do this by giving them a cryptocurrency gift card.
You can now send bitcoins as a gift and never worry about losing the appreciation recipient’s hug! Some platforms, such as BitCard or Coinbase’s e-gift card, allow users to add dollar bills to their cards that they can redeem for cryptocurrency.
You can now gift the perfect crypto gift card for any occasion with just a few clicks. Choose from pre-set templates and write a personalized message for your loved one.
Beware of scams! You don’t want your hard earned money to go to a random person on the Internet, do you? Cryptocurrencies can be sent and received easily, which makes it an attractive payment method in today’s world where everything looks suspicious.
The best advice we can give you about these types of scams? Do not trust anyone who asks for your personal information Unless he shows evidence that his company actually exists!
The Federal Trade Commission recently issued a warning to all holders of cryptocurrency, telling them that if someone requests and pre-orders payments in your digital currency or pays with gift cards, they are likely to be scammed.
They recommend using only well-known platforms that have proven over time to be reputable companies in their fieldSo don’t fall victim!
You can use cryptocurrency exchange
This was said by Frank Kenji, chief product manager of cryptocurrency exchange Gemini Cryptocurrency exchange is one of the most reliable and secure ways to provide cryptocurrency. In addition to getting cryptocurrency, users can also send, hold and buy more cryptocurrency if they wish.
If the recipient wants to buy more cryptocurrencies in the future, they will be asked to create a crypto account with the exchange and add a payment method such as a credit or debit card or bank account.
Kengne says the recipient will share their public key with the sender – the key will act as a wallet address. The public key can be a long string of automatic characters, a string of numbers, or a QR code.
The sender will then use their encrypted wallet and scan the QR code or copy the public key and paste it into the recipient field. The recipient will then open their crypto wallet to receive the payment. That’s it; You got your cryptocurrency.
The procedure may differ for other exchanges, but You can find guides on how to send cryptocurrency to a specific exchange, such as base coins and binance.
In December, Robinhood introduced a crypto gift feature that allows users to send seven cryptocurrencies via the trading app, including Bitcoin, Ethereum, and Dogecoin. Although it is not an exchange, you can also send bitcoins as a gift on the cash app.
Cryptocurrency Storage: Cryptocurrency Wallet
To send and receive cryptocurrencies, you need a crypto wallet such as a ledger or trezor. These crypto wallets store your funds securely.
There are many different wallets available There are many factors to consider when choosing a wallet. For example, if you are a beginner in using a crypto wallet, you want to use your wallet only for bitcoin or other cryptocurrencies, or you want to access your wallet via phone or computer.
You can have a crypto wallet as long as you have a public key and a private key; Your public key acts as an address that you can share with other users to receive cryptocurrency. The private key is proof that you are the intended recipient of the transaction and this key is only for you.
Paper wallets cannot be hacked, so they were once very secure and reliable, but currently paper wallets are not the recommended way to hold cryptocurrency.
The paper wallet consists of paper with a QR code printed on it and the keys. An online generator like WalletGenerator.net can generate these keys and QR codes.
To use the card wallet for cryptocurrency, you will be required to transfer the cryptocurrency to an exchange such as coinbase by scanning the code or typing basic information, or you can also use a wallet directly.
While the advantage of a paper wallet is that it cannot be hacked, The generators or networks on which your information is located may be compromised. Also, you can lose your cryptocurrency forever if your paper wallet is damaged or lost.
Your private key is kept offline, often on a piece of hardware such as a cold wallet USB drive.
This feature makes it difficult to hack a cold wallet Because the hacker needs your hardware wallet and password to hack your cold wallet. It also means that if you lose your cold wallet without any backup, you will lose your cryptocurrencies forever.
Hot wallets are connected to the Internet and are digital.
You can access your hot wallet via phone or computer, or from anywhere where the Internet is available This feature makes these wallets very accessible and reliable.
But the same feature of hot wallets makes them more vulnerable to hackers than cold wallets. When trading on a platform like Robinhood, You may need a custodian’s wallet, and despite this trading, the platform keeps your wallet and not you.
How are cryptocurrency gifts taxed?
It won’t be taxed as long as the cryptocurrency is below the $15,000 gift tax deductible starting in 2021.
However, if the gift recipient sells the cryptocurrency you give them and makes money from it, that profit will be taxable because the IRS treats cryptocurrencies just like property.
Just like stocks, cryptocurrencies are also taxed. Therefore, if the seller holds the cryptocurrency for less than a year, Capital gains tax should be short-term Likewise, the seller will have to pay long-term capital gains tax if he holds the cryptocurrency for more than a year.
Tell your friends and family about Crypto
You might have a few explanations if the lucky recipient of your crypto gift doesn’t recognize their blockchain from the supply chain.
The recipient must understand how to store a crypto gift securelyThis is the most important thing to consider. If your gift caught the recipient’s attention, you need to make it clear where they can find more information about it.
Remember that cryptocurrency will not be a gift for everyone. If you are a cryptocurrency enthusiast, the following steps will help you put some cryptocurrency under the Christmas tree.
Select the cryptocurrency you want to give up
Although there are thousands of different cryptocurrencies, It makes sense to select the most popular currencies Such as Bitcoin, Ethereum (ETH), Cardano (ADA), or even Solana (SOL) as a gift. Stock-linked cryptocurrencies like the US dollar, such as a stablecoin with low transaction fees, can also be considered a gift.
Conclusion: Decide how you would like to gift cryptocurrency
There are many ways to gift your cryptocurrencyJust like donating money. However, you will need to purchase a cryptocurrency before you can gift it to someone.
Use a cryptocurrency exchange if the person to whom you are sending the cryptocurrency already has a crypto wallet. Cryptocurrency exchanges also provide crypto gift card services like Coinbase and Binance, which require a crypto wallet.
You can also use a crypto gift card that is available on many cryptocurrency exchanges. Make sure to look for reviews online to avoid scams.
You can also use a paper wallet for this. A public key and a private key are required for a cryptocurrency transaction. You can think of the public key as your bank account and the private key as the PIN for that account. A paper wallet is practically a safe way to part with cryptocurrencies.
If you are shopping for crypto enthusiasts, a hardware wallet might be a good idea. Hardware wallets are small devices that are kept offline because they are less vulnerable to hacking.