We all love receiving gifts on birthdays, holidays, anniversaries, and other special occasions. But as the famous maxim goes, there’s a different kind of feeling when you’re the one giving. If this holds true for you, then here’s a great idea: you can now give cryptocurrency as a gift to the one you dearly love. Head on to some of the popular crypto trading sites with expert help such as Coinbase and Bitcoin Evolution.
This is good news among crypto holders as they don’t have to look anywhere else to make someone feel loved and appreciated. They could simply credit or transfer their virtual money to another, and, voila, it makes the whole celebration a lot easier and more meaningful.
Once the recipient gets a certain amount of crypto as a gift, they can use this to shop for items online. The asset may also be used to start crypto trading if that’s what they wish to do. There are plenty of choices that anyone can make out of crypto gifts.
No more extra expenses on gift wraps, just little fees in money transfer transactions. While this is just beginning to become a trend nowadays, many people are now doing it on one or more occasions. The blockchain technology that operates crypto networks offers broad possibilities, and allowing virtual currency as a form of gift is a life-changing development.
Common Ways to Give Crypto as a Gift
There’s now an increasing number of e-commerce companies that accept cryptocurrencies as a method of payment. This allows consumers to shop and pay bills using virtual currencies or digital assets. In the near future, gift-giving cryptos might become a trend in many societies. Here are some of the common ways that you can give cryptos as a gift to your loved ones.
Various websites are now selling cryptocurrency as gift cards. If you prefer this option, you can look for a reliable company that offers advantages to their customers. A provider with good consumer reviews and allows secure and convenient transactions is usually preferable. The process would normally include paying a certain amount of gift cards, and you’ll be given a corresponding product. The recipient can redeem the gift by going to the same company and entering the details displayed on the card.
Another way to give cryptocurrency as a gift is through an exchange. But before you can make use of this choice, you’ll first need to choose a specific platform, register an account, and decide on a payment method. When you’re already part of it, the digital assets that you bought and hold can then be sent to the recipient’s wallet address. It’s that simple, but choosing an ideal exchange that suits your needs is important. You might be able to earn some practical advantages with the right choice in the market.
Choosing the Best Cryptocurrency as a Gift
Over 6,000 cryptocurrencies are now circulating in the market, which makes choosing one more challenging than ever. It helps to consider what experts think about the matter if you’re clueless or confused. As general advice, it is ideal to opt for the mainstream choice that has an established reputation, like Bitcoin, Ripple, or Ethereum. These cryptos may be more expensive than other variations, but they are nonetheless more popular and stable.
Likewise, you have to bear in mind that cryptocurrencies are high-risk investments. It is only crucial to review your options before buying one. When you do some research, you’ll be able to evaluate your prospects accordingly. You can check the white paper that contains all the essential information that you need to know about crypto projects. But if there’s a more valid basis, it’s probably the preference of the recipient of your gift. Try to know what the person wants to fulfill their wishes.
Are there Taxes Associated with Crypto Gifts?
Giving cryptocurrency as a gift to recipients is not usually a taxable transaction. The exception is when the transfer exceeds the gift tax allowance, in which case the Internal Revenue Service has to be notified when the asset is sold by the recipient who might earn capital gains or a capital loss. For instance, when the crypto gift is sold within one year at a profit, there is a short-term capital gain that will be taxed as an ordinary income. Beyond that period, however, it is considered as a long-term gain with lower tax rates.
In calculating the size of the gain, the amount paid by the donor is used. That means if crypto was purchased for $200 and then sold five years later for $600, then the recipient of the gift will have to pay taxes on $400 profit. On the other hand, losses can be used as deductions on the inverter’s tax return. However, a capital loss is only accepted if the asset was sold less than what it was originally valued. The IRS may also take the lower of the two amounts when there are issues on tax deductions.
How to Send Cryptocurrency to the Recipient
Generally, sending cryptos as gifts only requires pretty simple and easy steps. All you need to do is to log into your account, where you hold the virtual asset and then send a chosen amount to the recipient’s wallet address. Because QR codes are used in the process, you no longer have to worry about inputting the characters and bank account numbers. This eliminates the risk of making typo errors. The transaction can only take from seconds to a few minutes to complete. However, this may entail some transaction fees, which are imposed to cover the expenses in validating information on the blockchain.
As technology is evolving in various industries, so too are consumer preferences. With the crypto market now allowing users to give their assets as a gift, many people can now enjoy quicker and more convenient transactions. Before going through the process, however, make sure that you understand the procedures and other information that entails some fees. This experience might prove advantageous to both the givers and recipients. You’ll know when you give it a try.