What should I give to a person who has everything? The most obvious solution is money. But a more original option is a cryptocurrency: ether, a share of bitcoin or a meme token. You can get a gift remotely, and watching the growth and fall of the crypt will turn into a new hobby. We tell you what methods of giving exist and which digital currencies to choose as a gift.
- To gift a virtual crypto wallet
- To gift a cold wallet with cryptocurrency
- To gift a voucher for cryptocurrency
- Donate cryptocurrency to charity
- Which cryptocurrencies to choose as a gift
To gift a virtual crypto wallet
If the recipient of the gift already has a cryptocurrency wallet, the issue is solved: it is enough to find out the account number (or by email address) and transfer the necessary amount from their own crypto wallet to the account. Such operations are absolutely legal — individuals in Belarus can buy, sell, exchange, store and send any cryptocurrencies using crypto wallets, exchanges and exchangers. At the same time, the cryptocurrency received as a gift and the income on it is not taxed until 2023.
If a friend does not have an account, then you can create a new account, transfer cryptocurrency there and transfer access to it to the recipient.
Many popular crypto wallets, for example, exodus or mycelium, do not require an email address when registering — it is easier to transfer such an account, because it is not tied to your personal data. The role of the access key is performed by a code phrase (a mnemonic phrase, a phrase or a seed) — a set of 12-24 words that must be entered in a certain order to gain access to the wallet. This key must be passed to the recipient — for example, to rewrite the phrase in a greeting card.
There are three important nuances in this method of giving cryptocurrency:
- Don't forget to warn the recipient that the passphrase is extremely important. If the owner loses it, he will lose access to the crypto wallet and will not be able to restore it.
- You cannot change the passphrase or generate a new one for an existing wallet — the text key always remains unchanged. Therefore, in theory, the donor can use it after a while, which creates risks. The best option is to give a friend a temporary wallet (temporary wallet), from which he will transfer money to a personal account. Whether a friend wants to carry out all these manipulations is another question. And it is better to make sure in advance that a person is interested in the crypto market and trading — otherwise the gift is unlikely to please him.
- Regional restrictions. Many American and European services are not yet available in Belarus, Russia and Ukraine. For example, Coinbase does not officially work in these countries. Sometimes restrictions can be circumvented using a VPN, but the method does not always work. Therefore, you will have to choose from a limited number of services. In Belarus, it will not be possible to buy cryptocurrency without providing personal data, since crypto exchanges are required to verify each client — and this usually requires a passport scan. By the way, you can use not only wallets, but also exchanges for donation — in this case, you give access to an account that already has tokens stored on its account.
Read more: What is Bitcoin Core? A simple guide
To gift a cold wallet with cryptocurrency
A cold wallet is a hardware device for storing crypto currency, which is something like a flash drive. This is the safest, but not the most convenient option. If you forget the password or lose the carrier itself, the cryptocurrency will be lost forever. For example, an American Stefan Thomas forgot the password from a flash drive that stores more than 7000 bitcoins, and lost access to crypto accumulations — and this is not the only case. In total, about $140 billion is stored in bitcoin wallets with forgotten passwords.
When donating, the risks are about the same as in the case of an electronic wallet. When registering, you will need to create and remember a PIN code-a code and a phrase for restoring access (a phrase for restoring).
You can order a wallet only on large marketplaces: the price for the most popular models (for example, Ledger and Trezor) varies from $60 to $260. It depends on how many different accounts the device allows you to have (for example, the Ledger nano c model supports 5-6 accounts, while the Ledger nano x supports up to 100), whether the device has an information display and a battery, whether it supports Bluetooth, and so on. In any case, such a gift will cost more than a virtual wallet with cryptocurrency.
Top hardware wallets for cryptocurrencies
- Ledger Nano S
- Ledger Nano X
- Trezor Model T
To gift a voucher for cryptocurrency
A voucher is a kind of gift certificate for the purchase of a crypt. You buy a voucher for a certain amount (for example, 50 euros) and specify the email address of the gift recipient. A special code will be specified in the voucher that will be sent to the post office. The recipient must enter it on the website where the voucher was purchased and specify the wallet address to which the amount in cryptocurrency equivalent to the value of this voucher will be transferred.
One of the disadvantages of such a gift is that its recipient will eventually have to deal with the registration of the wallet himself in order to receive cryptocurrency. Also, vouchers are usually available only for the most common cryptocurrencies: Bitcoin, Ethereum, Litecoin. But this is the easiest way to give a cryptocurrency.
Where to buy cryptocurrency vouchers:
Donate cryptocurrency to charity
Cryptocurrencies can not only be given, but also donated to a charitable foundation. Therefore, if there is a desire to share ether or bitcoin with an NGO or a human rights organization, there are several options:
- Human Rights Foundation
- Save the children
- Rainforest Foundation
- The Water Project
- Tor Project
Another option with the support of charity is the creation of an NFT token and its subsequent sale on platforms, for example, Rare. But in this case, you need to create a digital object and find a specialist who knows how to work with NFT platforms. You can attract 500-1000 dollars to Ethereum, even if you do not invest in promotion. And you can transfer the collected money to the fund, if it accepts the crypt, or convert it into fiat and credit it to the organization's account.
Read more: What is NFT and why are they worth millions?
Which cryptocurrencies to choose as a gift
Giving cryptocurrency remotely resembles a long-standing trend in the United States, when people began to give shares of large companies to their loved ones. But the crypto market is not yet so popular among the mass audience. People have heard about it, but they don't quite understand how it works and what principles it works on. With this in mind, even bitcoin is still an unusual and original gift. If you look with an eye to the future, then a good gift option is Ethereum. Another popular project is the Polkado. He has revolutionary prospects and grandiose plans that are being implemented at the same time, which is rare for crypto projects. If a person understands the topic, you can give him an NFT token: for example, a picture or a meme registered as an NFT. But we must be prepared that NFT tokens are very expensive.