Ways to Gift Cryptocurrency
Cryptocurrency has become an increasingly popular form of currency in recent years. However, cryptocurrency can be difficult to purchase for those who are not aware or don’t have the technical know-how.
The purpose of this blog post is to teach you easy ways how you can gift cryptocurrency in a variety of forms to friends and family members!
Is Cryptocurrency Gift a Good Idea?
Not only can you use digital assets to pay bills, but they may also be worth a lot more than what you bought them for in just a few years. This presents the opportunity to give an item that will continue serving its original function long after it’s been given away – making your gift even wiser and rarer!
In a world where paying with cryptocurrency is becoming more and more mainstream, you can now shop for anything on any eCommerce site using digital assets. Generated by the blockchain technology behind it all – these coins have value just like fiat currencies do!
Who knows? In two years from now, your child might be an early investor in Bitcoin or Ethereum (or both) thanks to this thoughtful gift from Mom & Dad.
Which Cryptocurrency Can Be a Good Gift?
Cryptocurrencies are becoming more popular, but it may be best to go with one of the established coins. While there’s been an influx of new cryptocurrencies in recent years, they haven’t gained as much staying power or popularity yet compared to their Mainstream counterparts such as bitcoin network, Ethereum, Ripple, Litecoin, NFT, etc. There’s still time for this trend if you’re looking forward to giving someone an exciting gift!
How to Gift Cryptocurrencies?
You can now give the gift of cryptocurrency! Simply choose an exchange, set up your account, and pick out a payment method.
Once you’re ready to purchase some digital currencies with fiat (i.e., government-backed), they will be sent directly into their recipient’s wallet address as soon as possible – no need for any extra steps or delays.
You may think that giving crypto would require complex exchanges but luckily there are many easy ways around this problem.
If you want to give the recipient of your present an experience they’ll never forget, then gifting them with cryptocurrency is one way.
There are several websites out there that sell these types of online gift cards and it’s simple:
- Find a reputable company whose products or services match what they need most in life
- Buy accordingly-replicate regular retail payment methods (like a credit card) when making purchases by selecting the amount desired plus the paid fee required upfront
- Once paid off -you’re done!
A Hardware Crypto Wallet as Gift
Cryptocurrencies can be stored on a hardware wallet. Hardware wallets are small, waterproof, and virus-proof devices that securely store your cryptocurrency in an offline location where it’s less susceptible to hacking or theft – one of the best ways imaginable!
And one of the best gift choices indeed!
Are Crypto Gifts Taxable?
Cryptocurrency as a gift is exempt from tax. As per rules, The Internal Revenue Service (IRS) only needs to be alerted when the asset is traded by the recipient and capital gains or losses are realized.
In case, the recipient sells the gift within one year and makes a profit; it will be considered short-term gain and taxed as normal income.
And if the recipient sells the gift after one year, it will be considered a long-term gain, and taxed at lower capital gains rates.
Capital losses can be used as deductions on your taxes and they work a bit differently than regular taxable income. A capital loss is only registered if the asset that caused it sells for less than both the price you bought them at (their initial price) AND their fair market value when donating/selling it off.
Cryptocurrencies can be awesome gifts. There’s still time for this trend if you’re looking forward to giving someone an exciting gift! A cryptocurrency wallet is also another good option that can hold several different types of cryptocurrencies and even allow you to buy cryptocurrency online instantly. It can be stored offline securely on a hardware device that protects against hacking and theft – making it one of the safest ways imaginable! Crypto gifts are always exempt from taxation since capital gains are not realized until the asset is sold.