If you are unsure on what to give a particularly challenging family member this Christmas, maybe cryptocurrency is the way to go!
With cryptocurrency being the talk of the town, it's market value briefly surpassed $3 trillion in November, with Ethereum hitting an all-time high.
Other digital assets, like non fungible tokens, or NFTs, jumped in value as well. Also in November, NFT marketplace OpenSea surpassed $10 billion in total volume.
The demand for NFTs of art, music and in-game assets, like digital plots of land in the metaverse, have risen greatly.
Young investors are particularly keen on NFT’S and cryptocurrency, with the next year of cryptocurrency growth riding on this generation's youngsters.
Also read: Shiba Inu: Fad or worthy of your attention?
So, if you’ve decided you want to gift cryptocurrency, here’s the steps you need to take to make it happen.
Decide on which cryptocurrency you want to give. This is perhaps the most challenging step since there are so many cryptocurrencies on the market. However, try to stick to the better known coins such as Bitcoin, Ethereum (ETH), Cardano (ADA), or even Solana (SOL) as a gift. You might also consider a stablecoin (a crypto that's pegged to a commodity like the U.S. dollar ) which has lower transaction fees. Given that the lucky beneficiary of your crypto gift may not want to actively trade it, a more-established coin or stablecoin is a better bet. Tether and USD Coin are great choices. Always stick with your budget.
Decide how you want to gift your crypto
There are several ways to gift crypto. You'll need to buy the cryptocurrency before you gift it:
First off, you can use a crypto exchange. This only works If the person you are buying for already has a crypto wallet. You'll need to ask them for the address, so it may not work if you want to surprise them. Some crypto exchanges like Coinbase and Binance also have gift cards, but the recipient will need to open an account to use the gift.
You can get a crypto gift card. There are a few different platforms that sell crypto gift cards. Make sure you research them properly so you don’t get frauded. When researching, look for reviews online and only buy from a site you trust. Here are two of the best ones:
Binance Gift Cards- On July 2021, Binance launched their Gift Card product for Binance users to easily send cryptocurrencies as gifts to their friends and family. This gift cards can be sent through email or text messages, and can be accessed on the Binance app.Binance users can create gift cards with their preferred card design, and add a personalized message. Recipients can redeem the gift cards through the unique card code. On Binance's 4th anniversary on July 31, 2021, they launched a special commemorative gift card.
Coinbase Gift Cards- While Coinbase does not have an official gift card, it has partnered with London-based startup WeGift to allow users to buy virtual gift cards using cryptocurrency. Users can go to the WeGift site and authorize the app to access their Coinbase account. From there, they can purchase gift cards using their crypto assets. While these gift cards do not contain cryptocurrencies, it can be used at over 120 retailers, making it a perfect gift when you are not sure what to get.
Alternatively, you can also use a paper wallet. Cryptocurrency transactions involve a public and private key. The public key is like your bank account number, and the private key is a bit like your PIN. A paper wallet is a secure way of printing the key on a piece of paper (often using a QR code). The recipient can scan the code and move the crypto into a wallet of their choosing.
If you are buying for a crypto enthusiast, use a hardware wallet.
A physical hardware wallet could be a great gift in itself. These are small devices that are kept offline, so they're less likely to get hacked.
Always remember to do your own research!