Gifting Cryptocurrency As A Gift

One of the misunderstandings surrounding cryptocurrency is that it is just a field for people interested in finance, trade, or investments. Despite its erratic nature and value fluctuations, everyone is becoming more knowledgeable about bitcoin up live site in the ground of cryptocurrencies.

The cryptocurrency industry is currently split in two. One is the group of those who have predicted that cryptocurrencies will eventually collapse. Digital money will soon lose its allure due to its volatility and high price tag. However, the opposing side has a different perspective; in their view, crypto will soon surpass fiat currency, and the financial system will change. People can also trade, invest, and purchase products and services using cryptocurrencies.

While cryptos are already being used in buying products and services, the idea of giving cryptocurrency as a present is one of the intriguing ideas that has been raised. Additionally, given how hyped up and significant crypto is in the market, cryptocurrency may make a wonderful gift.

Businesses like McDonald’s and Starbucks have already accepted cryptocurrencies as a form of payment for goods. Similar to how many businesses have begun embracing cryptocurrencies, so has e-commerce. Customers may now easily use cryptos to make purchases and pay bills. Given how companies are embracing cryptocurrency, there is a greater likelihood than ever that it will grow, which would significantly increase its value. Cryptocurrency with good value can be given as a gift, and why not.

Which Cryptocurrency to Choose for a Gift?

There are multiple platforms that list the number of cryptocurrencies on their website with market cap and trading volume. However, considering the number of cryptocurrencies available nowadays, picking the right cryptocurrency can be challenging.

Note: Currently, to this day (26th July 2022), there are 20,002 cryptocurrencies available. Source: CoinMarketCap

If you’ve already decided on which cryptocurrency to gift, great. However, consider a well-known and valuable cryptocurrency if you are unsure which one to give as a present. The likes of Bitcoin, DogeCoin, and Ethereum are the best ones to gift.

There are also other new cryptocurrencies that you can consider, but giving such coins as gifts might not be a wise move given their inexperience and low value.

Currently, one of the sensitive industries is cryptocurrency. Investing in cryptocurrencies without completing any research can be risky due to its volatile nature. Because of this, it’s crucial to conduct thorough research and comprehend everything before purchasing any cryptocurrencies. Additionally, if you plan to give someone cryptocurrency as a gift, asking them for advice or what they want may make your life easier.

Several Ways to Gift Cryptocurrencies

Nowadays, buying and selling cryptocurrency is quite easy. Similarly, the following are some ways you can give someone cryptocurrency as a present.

Crypto Gift Cards

Gift card services are now available on several cryptocurrency websites. However, it can be difficult to determine whether a website is legitimate — because of this, it’s crucial to search for reliable websites.

Once you have located the appropriate website, purchase a gift card by paying the desired amount for the card. Also, these gift cards can be redeemed by visiting the website and entering the required details.

Send Crypto Gift Via Exchanges

Using a crypto exchange, you can gift cryptocurrency to someone else. However, you must create an account on the exchange and configure the parameters in order to send cryptocurrency to another person’s wallet address.

Multiple Ways to Store Crypto Gifts

It’s crucial for the recipient to store your crypto gift safely when you send it to them. Storing on the same platform where it was received can also be a good solution, but there is always a risk of hacking.

Here are various methods for storing cryptocurrency that take risk into account.

• Paper wallets
• Hard wallets
• Physical coins

Are You Supposed to Pay Tax on Crypto Gift?

Crypto gifts are not taxable until and unless the amount of the gift is higher than the policies set by the IRS. Also, the tax should imply if the receiver sells the digital assets.

There are certain policies regarding selling the assets. For example, if the assets are sold within a one-year period of time, then an ordinary amount is being taxed. However, beyond that, the tax is applied considering lower capital gains standards.

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