The holiday season is here, bringing with it the familiar question: what’s the perfect gift for loved ones? You might be surprised to learn that cryptocurrencies like Bitcoin, Ether, and others can be gifted to someone. By gifting cryptocurrency, you can introduce someone to the exciting world of digital assets, giving them not just a gift but also a potential investment and a chance to explore the future of finance.
Here are some ways to give cryptocurrency as a gift.
You can send crypto to someone through crypto exchanges like Coinbase (COIN), Kraken, etc. To do so, you first need to have an account with the crypto exchange. Second, you need to have cryptocurrency to send as a gift. If you don’t have a specific cryptocurrency to gift, you’ll need to buy it from a crypto exchange and then transfer it to the recipient.
Another important thing to know is that the recipient should also have an account with the same crypto exchange. Before making a transfer, it is important to know the recipient’s wallet address, which functions similarly to a bank account number. The wallet address consists of a series of alphanumeric characters. Once you have this address, you can send the cryptocurrency of your choice to your loved ones.
Various mobile applications, such as Venmo (PYPL) and PayPal, facilitate money transfers. In addition to traditional currency, these platforms support the transfer of certain cryptocurrencies, although not all. For example, Venmo supports Bitcoin, Ether, Litecoin, and Bitcoin Cash.
The process of transferring cryptocurrency is similar to sending dollars, allowing you to send crypto to your loved ones easily. However, be aware that transaction fees may vary by app, which can increase if transactions take longer than expected.
If you don’t have a crypto exchange or mobile app account, you can still gift cryptocurrency through crypto gift cards. Platforms like Binance offer this option, allowing you to share the gift of digital currency without needing a personal account.
It’s important to do your research before purchasing a crypto gift card. Review the terms, conditions, and available cryptocurrencies, then select the amount you wish to gift.
An alternative way to gift cryptocurrency is to send hardware wallets to your loved ones. Hardware wallets are devices that look like USB drives and can be purchased at retail shops or online. Once you obtain one, connect it to your computer, follow the instructions, and download the necessary software. You will be prompted to write down a 12- or 24-word seed phrase, which you should keep in a safe place. Seed phrases are similar to passwords for banking and must be stored securely.
Next, buy the cryptocurrency you want to gift. After adding it to the hardware wallet, place it in a box. Record the seed phrase on a piece of paper and make a secure backup copy—this is crucial, as the recipient will need the seed phrase to access the gifted cryptocurrency. Finally, wrap the box in nice wrapping paper and present the crypto gift in person.
Another way to gift cryptocurrency is to download software wallets and create a crypto wallet. The most important step is to write down the seed or recovery phrase the wallet creates. You can write it on paper or save it on your computer. Next, purchase the cryptocurrency you want to gift and share the seed phrase along with the wallet information with the recipient.
