Are you wondering why bitcoin gifts cards are so popular nowadays? It can be noticed that in most parts of the world, the bitcoin gift card style has been embraced widely. It’s now the new way of gifting your family, friends, and dear ones.
Besides gifting clothes, food, or other valuable things, cryptocurrency gift cards are becoming more popular, mostly among crypto enthusiasts. Most individuals would go for financial gifts rather than conventional physical gift products in today’s world.
With the rise in digital currencies, people have known the crypto gifts and crypto coins as wealth creation. Therefore, you can buy cryptocurrencies and gift your loved ones.
Crypto gift cards
Crypto gift cards can be compared to retail gift cards. An individual interested in buying gift cards can visit a site that trades Bitcoin gift cards. The first step is to buy Bitcoin of his preference and pay the cash. He will obtain a gift card that he can share with the individual who is gifting.
One thing to note is that the person who is receiving the gift should have a cryptocurrency wallet. It’s easy to buy cryptocurrencies. Companies such as Binance, Robinhood, CashApp, and Coinbase allow their clients to buy gift cards with cryptocurrencies.
How can you redeem a cryptocurrency gift card?
The primary requirement to redeem cryptocurrency gift cards is that the person receiving the gift should set up first digital wallets and crypto exchange if they do not have one.
Two kinds of wallets include:
- Paper wallet
- Hardware wallet
A paper wallet is a piece of paper that is printed, and it contains QR codes and keys for cryptocurrency transactions. These wallets are made from specialized websites.
One can utilize a paper wallet that contains private and public keys. Visit a site, create a paper wallet, and send it to your loved ones as gifts. The cryptocurrency you buy can be received by anyone by scanning the QR code.
The receiver can use the QR code to scan the piece of code offered for purchasing crypto.
A hardware wallet can also be termed an offline wallet. The information can be kept in a portable device like a USB stick. One can purchase these wallets on the website(online) from crypto exchanges.
After purchasing BTC, the individual needs to write down the private key and any other information needed to authorize the transaction. The device is handed over to the recipient. By the use of the key, the recipient can be able to unlock and authorize the transaction and get the gift.
Tips for gifting cryptocurrencies
You gift recipient to be aware of the implication of tax associated with owning cryptocurrency. The IRS treats BTC and other cryptocurrencies the same way they treat property. This implies that by making a profit after selling it, you should pay taxes. Crypto is taxed more like stocks.
It’s good to note that trading might not charge a fee if you are sending cryptocurrency to your recipient from your wallet using a similar platform, but they charge for the trading fee.
For instance, Coinbase cannot charge you any fee for keeping or transferring cryptocurrency from one Coinbase account to another, but you can be charged a fee for selling, buying, and converting cryptocurrency.
Where you are sending cryptocurrency, it’s crucial to be keen on the details that are getting into a transaction since it’s the crypto nature that transactions are irreversible once they are done.
Confusing one letter or number in an individual’s BTC address could imply that the BTC is sent to a stranger’s account as a gift, and it’s gone forever.
It’s advisable to set up a number of wallets and practice sending transactions to yourself back and forth. You can utilize a phone and a computer, two phones, or use two mobile wallets on the same mobile phone.
When gifting someone with a birthday card with money in it, the risk is losing it or being stolen if they do not keep it close.
Since crypto is digital, you can have it stored safely in a wallet. It’s also very important for you and your receiver to decide which kind of wallet is good for them.