Gifting cryptocurrency is becoming a common way to say “thanks,” and it can be a great way to get a friend or family member interested in the crypto space. But like other types of gifts, it’s important to think about what kind of crypto you’re giving and how it fits into the recipient’s existing portfolio.
Whether you’re gifting Bitcoin, Ethereum or any other coin, it’s important to ensure that your recipient has a wallet for the currency. If they don’t, they’ll have to open one on a crypto exchange or app before you can send them any funds.
The easiest way to gift cryptocurrency is through a crypto exchange or investment app. Depending on the exchange, you may be able to send coins directly from your account or create a wallet for the person you’re giving it to and load it with funds. Then, you can share their public address with them — it’s usually a QR code or long string of random alphanumeric text that they can scan with their smartphone.
When you’re sending a gift of crypto, it’s also important to make sure your recipient knows how to send the funds back to you if they want to withdraw them later. The best way to do that is to write down the seed phrase for the wallet, which they can then use when they need access to their funds.
Some cryptocurrency exchanges, such as Coinbase and Binance, offer a gift-card feature, which the recipient can use to receive a certain amount of the digital currency you’re sending them. It’s important to note that gift-cards are not available for all exchanges, so make sure the recipient has a valid email address and can verify their identity before sending any coins.
You can gift cryptocurrency to anyone, but it’s important to consider the person’s financial situation and how they’re using the currency. Ideally, you should only gift the recipient with a small amount of currency that they can afford to lose.
If the person you’re gifting is a beginner, you should only send them the smallest amount of cryptocurrency possible. This will allow them to get a feel for how the market works before they invest more money.
Another way to make a gift of crypto a bit fancier is to give them a physical token that has the key to their wallet printed on it. Several companies offer these products, and they are easy to purchase online or in brick-and-mortar stores.
They aren’t as secure as other storage methods, but they can be a nice addition to the gift basket or stocking. Some even come with a custom greeting card and personalized note, so they’ll feel extra special when they open it.
When it comes to determining which cryptos to buy for someone as a gift, it’s best to stick with the more well-known coins such as Bitcoin or Ethereum. These currencies are typically stable, and they often have lower transaction fees than a volatile crypto like Ripple (XRP). If you’re unsure about the person’s preferences or want to be more cautious with your gift, you might consider buying them a token from a company that’s positioned itself as a long-term picks-and-shovels solution for the wider cryptocurrency market.