How To Give Crypto As A Gift

How To Give Crypto As A Gift
October 06, 2022 Comments: 0

Giving cryptocurrencies to a loved one or friend as a gift makes sense only if they understand something in trading on stock exchanges, or they just know how to store them. Agree that for a person who does not know what to do with cryptocurrency, such a gift is, to put it mildly, useless. Therefore, we advise you to think carefully about this issue and how to gift cryptocurrency.

Can You Gift Cryptocurrency?

Today when more and more people are thinking about getting cryptocurrency, one of the ways to get coins is to gift cryptocurrency. But not everyone knows how to gift coins that don’t have a physical representation. If you want to surprise your partner with an extraordinary and at the same time practical gift, cryptocurrency is the perfect solution. In fact, you give money, and the person can decide what to do with it. Let’s see can you gift cryptocurrency?

Benefits Of Giving Crypto As A Present

Instead of worrying over nothing, here are the benefits why crypto is the perfect present:

  • crypto is just like cash letting someone pick their own gift is the perfect option
  • crypto works perfectly worldwide
  • crypto is an investment
  • crypto enables easy online shopping

How To Gift Cryptocurrency

Now an increasing number of companies accept digital assets as a method of payment. It means that cryptocurrency can be used to online shop and pay bills. If in a few years these assets could be worth a whole lot more, you will have a potentially versatile gift.

Even with the concerns that cryptocurrency transactions can’t be altered or reversed once sent, it may truly be the perfect gift for any occasion. The only thing you should know is how to give crypto as a gift. According to a recent survey by BlockFi one in 10 people gave crypto as a gift this past holiday season. Here’s a look at how to gift crypto correctly and other tips for a digital assets gift. How to gift cryptocurrency?

Gift Cards

To buy gift cards for gifting cryptocurrency we recommend finding one shop that looks trustworthy and offers what you want. The most suitable option is Baxity Store where you can select the amount that you wish to gift and easily pay for it through the available payment methods.

Once the payment is made, you’ll be sent a gift card code both to your email and personal account dashboard. After that, you just have to send the card code to the recipient who can redeem it by going on the website accepting this type of gift card and making a purchase by entering the details of the card.

Try Out Bitnovo And Crypto Voucher

As we noted above, Baxity Store offers a convenient way to buy cards and vouchers, which can later be presented to your loved one. As for vouchers, let us emphasize that some of them can be redeemed with cryptocurrency, namely Bitnovo Coupons and Crypto Voucher. Following this link you can find the article comparing Bitnovo Coupon with Crypto Voucher.

To buy Bitnovo Coupons and Crypto Voucher on Baxity Store you don’t need to open an account in each payment system separately as passing the identity verification. Just open an account on Baxity Store and purchase your Bitnovo coupon or Crypto voucher for fiat money. The voucher or coupon’s code will be activated at checkout, and sent to your email that you used to set up your Baxity Store account. One of the store benefits is the possibility to monitor all the transactions and check the codes in the personal user-friendly dashboard. Now you know how to give crypto as a gift.

Use An Exchange Or Payment App

If you want to gift crypto another option is an exchange. You need to set up an account in exchange of your choosing, and decide on a payment method. Purchased digital currencies for fiat, then easily sent them to your donee’s wallet address.

Use A Crypto Wallet

If you already use a cryptocurrency wallet, you can easily make a deposit and transfer the cryptocurrency you hold on your balance to another user. All you need is to get the recipient’s wallet address (a long string of characters, similar to a bank account number), select how much crypto you want to send, and you’re done.

Gifting Cryptocurrency: Which Currency To Choose

If you already know how to gift cryptocurrency, you need to think about the kind of cryptocurrency to give. It is better to settle on one for the popular types of digital currency, such as Bitcoin, Ethereum, Ripple, CPN.

In recent years there has been an influx of new types of digital assets more cheaper than previous coins, so we recommend assessing the likelihood of their rise in popularity and staying power.

Best Ways To Store The Coins

In order to gift crypto, both you and your recipient will need a crypto wallet used to store your money securely. The crypto wallet contains the private key that you use to authorize the crypto transaction. Although there are no cryptocurrencies in your e-wallet because they are stored on the blockchain. You use the wallet only when you want to buy, spend or exchange your coins. The type of wallet you choose depends on your preferences and goals. As you’ll learn there are several types of wallet you use to store the cryptocurrency.

Paper Wallets

A paper wallet is a piece of paper containing keys and QR codes printed on it. The keys and QR codes are generated via an online generator and when you print your keys they are removed from the network and your digital wallet. If you lose or damage that piece of paper, your crypto is gone forever. If you want to use the crypto from your paper wallet, you need to scan the QR code or type in the key information.

Cold Storage

A more secure storage solution is a cold wallet that keeps your private key offline on a physical device like USB or an app. There are also called hardware wallets for storing crypto. For hacking your cold wallet a scammer would need to get your hardware wallet and crack your password. In such a case losing your wallet without a backup means losing all of your crypto.

Hot Storage

Unlike cold wallets, hot wallets connect to the internet and run on devices like a computer, mobile phone, or tablet. Hot storage data are digital and accessible immediately, easily and from anywhere.

It is important to highlight that the private keys on devices connected to the internet can’t be considered 100% secure. And besides, they are not intended for the secure storage of large amounts of cryptocurrency.

How Is Gifting Crypto Taxed

In order not to go into complex mathematical calculations and quote gifting cryptocurrency tax laws, here’re simple examples on how gifting crypto is taxed. Through this link you can find the related Crypto Taxes Guide.

Sending A Crypto Gift

When you give cryptocurrency to your loved one this process is usually considered as a non-taxable event unless the amount exceeds the gift tax allowance, which is $15 000.

Receiving A Crypto Gift

Your gift recipient should definitely be aware of the tax implications of owning cryptocurrency. The Internal Revenue Service treats cryptocurrencies like property, which means that when the asset is sold within one year by the recipient making a profit selling it, he/she needs to pay taxes.

Other Things To Consider

Gifting cryptocurrencies isn’t the last step. Of course, it is worth knowing some important points such as crypto transaction costs, errors and asset security.

Transaction Costs

Usually exchanges may not charge fees for sending crypto when you and your recipient you’re both using the same wallet. But they do charge fees for trading. The recipient will be charged a fee if he/she sells or moves that cryptocurrency off of the platform you used for transaction of the gifted amount.

Transaction Errors

Just as sending a regular email requires entering the correct recipient address, cryptocurrency must also be sent to an accurately specified wallet address. Any incorrectly entered letter or number can lead to the fact that your crypto will go to a stranger and you will eventually lose it. Remember, that the nature of crypto makes the transactions basically irreversible.

Storage Security

Of course, when you give someone an envelope of cash, there is a risk that it could be stolen or lost without warranty of the money being returned. But digital cryptocurrencies are much harder to lose, as you can choose the type of wallet, store it safely in a piggy bank and protect them. As already mentioned, hot and cold wallets have their pros and cons, be sure to keep them in mind when choosing.

So Is Crypto A Good Gift?

Now giving cryptocurrency to loved ones is easier than you thought. This is a question that has a very simple answer – yes, it is. Cryptocurrencies can be a good and profitable gift because they both entertain and give a chance to make good money. This is very convenient for those who find it difficult to gift something to their loved one. You may consider gifting cryptocurrency after completing several steps. Naturally, they depend on how you plan to do it or how to gift crypto but there is one general step to get started – select an exchange to buy crypto, select the type of crypto and make sure the recipient has a crypto wallet. Or, follow the guide we have compiled below.

Choose Your Perfect Gift At The Baxity Store

The easiest way to donate or gift cryptocurrency is to buy a voucher from the Baxity Store. On our website we recommend purchasing two types of vouchers for gift crypto – Crypto Voucher or Bitnovo.

How to buy Crypto Voucher or Bitnovo Coupons for giving crypto as a gift?

  1. Go to Baxity Store  and click on the right upper corner icon.
  2. Choose the “Sign up” button, enter your email address and phone number, аgree to the data processing rules, click “Sign up”.
  3. Receive a confirmation email along with a password and log into your account.
  4. Verify your phone number.
  5. Go to the Crypto Voucher category, choose the denomination and quantity you want, click “Add to cart”.
  6. Go to the cart with the order, click “Checkout”, choose the safe payment method and pay for the purchase.
  7. Receive the Crypto Voucher digital code via email or to a personal account and gift it to your loved one who can redeem it for cryptocurrency.

It should be emphasized that all goods in the store can be the subject of a useful and convenient gift. Just buy it online with express delivery and give it away!

Frequently Asked Questions

Can I Gift Cryptocurrency?

Yes, you can – the different cryptocurrency can generally be easily gifted to another person as they gain mainstream acceptance and are being created every day. If the recipient does not have a cryptocurrency wallet, you can simply assist the recipient with opening a compatible wallet or gift the voucher from Baxity Store.

Why Give Cryptocurrency As A Gift?

Here we are giving the most persuasive reasons why it is better to gift cryptocurrency:

  • This is an uncommon and original gift.
  • Тhe recipient decides himself what to spend the cryptocurrency on.
  • Giving crypto as a gift is capable of meeting the expectations of the recipient.
  • Cryptocurrency is a profitable way to invest.
  • You don’t need to waste a lot of time searching for the best gift.
  • You don’t need to waste money wrapping your gift.
  • You can donate as much cryptocurrency as your budget allows
How Do I Gift Cryptocurrency?

We recommend two common ways to give crypto:

  • buy a prepaid cards on Baxity Store that can be redeemed for crypto;
  • sending crypto directly to someone via an exchange from one wallet to another.
Is Gifting Crypto Taxable

Starting from 2022, you can gift up to $16,000 in cash, cryptocurrencies, or other assets to anyone without any tax liability. If you donate more than $16,000 in 2022, you will need to report the excess amount on your tax return.

Is Receiving Crypto As A Gift Taxable

A gift usually does not result in a taxable event, however, giving crypto as a gift could impact the recipient’s taxes later. If the recipient of the gift makes money from cryptocurrencies, they may need to include the gain in their taxable income for the year.

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