Do you need a last-minute gift that won’t be delayed by distribution network concerns and is simple to transfer? Gifting cryptocurrency might be the creative and entertaining last-minute thanksgiving present you’ve been needing.
As per a new BlockFi poll, cryptocurrency is the trendiest present that many people have given this year, with one in every ten Americans gifting bitcoin to relatives and friends.
Though most people know cryptocurrencies, just a tiny fraction understand how to offer them as a gift.
It is now simple to give bitcoin as a present, unlike the past. You can even gift it to someone new to the cryptocurrency platform.
Due to the availability of so many crypto trading platforms, it is easier to buy, sell, and understand blockchain technology.
You don’t necessarily need to give a whole bitcoin, which can be worth roughly $47,000 (as of 2022). You may transfer parts of your favorite cryptocurrency for as little as $1.
While there are several methods to transfer bitcoin, we’ll concentrate on the prominent, famous players that have rendered it straightforward and secure to trade in crypto.
Crypto Made Easy
A growing number of instant cash transfer apps, such as PayPal and other prominent mobile payment platforms, have made it very simple to acquire bitcoin. Albeit, some impose higher costs than crypto-focused applications and platforms.
But not all of them try to keep it simple to transfer Bitcoin as a present, particularly to persons who do not already have accounts.
In March, cash App unveiled a new function that allowed users to send cryptocurrency to anybody with an email address or phone number.
Coinbase later introduced a similar function, allowing account users to transfer bitcoin, ether, and other cryptocurrencies to anybody with an email address. You can transfer crypto on Coinbase without needing to set up a profile.
There are alternatives to utilizing a centralized exchange and financial software to offer bitcoin as a gift; these will need additional technical knowledge. And, irrespective of how you present the gift, it’s a good idea to include caution.
The bitcoin world may be a dangerous place full of frauds and misconceptions.
Which Crypto Could Make an Excellent Present?
According to reports, there are currently over 5,000 cryptocurrencies in the industry, making it more difficult than ever to choose. But suppose you or the recipient have a particular idea in mind.
In that case, it may well be preferable to go with one of the more common, well-established choices, such as Bitcoin, Luna, and Ethereum.
There has been an inflow of fresh, lower-cost competitors in recent times. Still, it needs to be seen if they will attain the same appeal and lasting appeal as the more famous currencies.
Cryptocurrencies are a heavy investment, and it is critical to weigh your choices before making a purchase. First, research the coins that interest you the most, then analyze their future possibilities to see if they are represented in the price.
Given that this is a present, it’s also a good idea to think about what the receiver could want.
Methods to Gift Crypto:
Cryptocurrencies are now more straightforward to purchase due to their growing prevalence. Here are among the most typical ways to provide these virtual assets.
- Cryptocurrency Swaps
You may give bitcoin as a gift by using an exchange. If you’re not already a crypto trader, you’ll have to select an exchange platform, open an account, and then choose a form of payment. Once you’re up and running, you may effortlessly send acquired digital currency to your wallet address.
- Gift Vouchers
Several websites provide bitcoin gift vouchers for sale. Find one that appears reputable, preferably with positive ratings, and delivers what you want. Then choose the sum you would like to present and purchase it.
After you’ve completed your payment, you’ll receive a gift card for the amount you placed. The receiver may redeem the present in the same way that regular store gift vouchers function by visiting the same webpage and entering the data printed on the card.
- The Orthodox Method
Transferring cryptocurrency is often as straightforward as logging into the wallet to retain it and sharing the desired amount to the user’s digital wallet.
This method usually includes a lengthy combination of letters comparable to general bank account details.
Thankfully, Smart cards help ease the stress of typing these symbols, which, if miswritten, might result in funds being sent to the wrong people
generally. The transfer might take somewhere from several seconds to a few minutes. However, a “fuel fee”—a fee paid to reimburse for the computer resources necessary to execute and verify transactions on the crypto blockchain—might be levied.
Keep an Eye Out For Guidelines, Rules, and Affirmations
Cryptocurrency is indeed a young industry with unique legislation and requirements. Here are a few short pointers to keep in mind when delivering bitcoin as a gift:
Revenue Repercussions
For tax reasons, the IRS considers virtual currencies assets. If you present a significant sum of money, it may be liable to gift taxes.
There is a defined yearly limitation, $12,000 for 2022, above which you can offer tax-free donations.
When the individual you sent the bitcoin to sells, exchanges, or uses it to make payments, they might well be required to pay taxes.
Purse Protection
While sharing your public key wallet address is typically OK, you must never reveal your secret keys with anybody.
Employ a hardware or cold bitcoin wallet to protect your wallet’s private keys.
A hardware wallet, also known as a cold wallet, is a crypto wallet that is not linked to the web, which minimizes the likelihood of it being compromised.
Nevertheless, if you misplace or damage your hardware wallet, you could lose access to your crypto investments.
Payment Errors
If you transmit to the incorrect address, you may permanently lose the cash.
Before sealing in a transfer, always double-check account credentials and ensure no mistakes.
The Best Cryptocurrencies to Gift in 2022
As we near the end of 2022, it’s worth looking at the top cryptocurrencies, significantly how the top ten have altered in the last year.
Some currencies have dropped totally from the list, while others have reached new highs and other old favorites have maintained their position
1. Bitcoin
The first virtual currency remains at the top of the cryptocurrency rankings, strengthening its influence.
Bitcoin’s global worth was about $560 billion a year back, accounting for more than 50% of the whole cryptocurrency industry.
With a market worth of about $1 trillion presently, Bitcoin accounts for only around 35% of the entire industry.
Ranking as of December 1, 2022: 1
2. Ethereum
Ethereum has maintained its 2nd ranking on the rankings.
Ethereum, often regarded as the gold to Bitcoin’s platinum, was the first cryptocurrency to implement decentralized applications.
These tiny chunks of code exist on the network and allow other programs or cryptos to be built.
Initially, Ethereum housed the majority of exchange apps. However, it suffers from network problems and expensive transaction costs.
It is scheduled to finish an update to Ether 2 this year or next, which will address some of these concerns.
However, numerous other customizable cryptocurrencies are gaining traction in the meanwhile.
Ranking as of December 1, 2022: 2
3. XRP
It’s remarkable that XRP, or Ripple, hasn’t dropped any more this year while facing an SEC complaint.
Many cryptocurrency exchanges in the United States no longer deal in XRP. However, the coin is still traded overseas.
Xrp is a virtual payment system based on blockchain directed at the financial services sector.
The SEC acted quickly against Ripple towards the end of 2022, alleging it to function as an unlicensed commodity.
The outcome of the litigation will have ramifications for the whole cryptocurrency industry.
Stocks are regulated by the SEC and must adhere to different standards than most cryptocurrencies that are currently categorized as commodities.
If the SEC succeeds, it may go after a host of other cryptocurrencies that it thinks should be listed as commodities.
Ranking As of December 1, 2022: 4
4. Binance Token
This year has seen significant growth for the Binance trading cryptocurrency, BNB.
It’s a convenience token that allows Binance clients to save money on trading fees.
Still, it also powers the Binance Intelligent Blockchain, among many other customizable blockchain systems.
Binance has faced some regulatory challenges this year, but it hopes to put them behind by 2022.
9th Place as of December 1, 2022
5. Tether
Tether, the cryptocurrency exchange, has shed some popularity this year. The New York State Attorney general prohibited USDT in the State in February.
Its research revealed that Tether, which should have sufficient cash on hand to fund all of the USDT it produced, was not always willing to support the token.
Authorities remain skeptical about Tether’s resources, notably the amount stored in short-term loans.
This skepticism might be one of the reasons why we would likely see more regulations next year.
But as of today, it’s still a very popular cryptocurrency. Just keep up to date on the latest rules.
3rd Place as of January 1, 2022
6. Litecoin
Litecoin (LTC), which debuted in 2010, was one of the first cryptocurrencies to tread on Bitcoin’s shoes.
Charlie Lee, an MIT student and ex – google developer, designed it.
Litecoin is built on a comprehensive worldwide payments system that is not centralized and uses Scrypt as a PoW that can be deciphered by consumer-grade CPUs (CPUs).
Litecoin is similar to Bitcoin in many aspects, except it has a quicker block creation frequency and thus offers fast processing verification speed.
Aside from developers, many shops take Litecoin.
Litecoin has a market valuation of $9 billion and a per-unit value of roughly $150 as of December 2022, making it the world’s 18th largest cryptocurrency.
18th Place as of December 1, 2022.
7. Polkadot
Polkadot (DOT) is a one-of-a-kind PoS coin compatible with other blockchain systems.
Its framework connects authorized and permissionless blockchains and prophecies, allowing organizations to collaborate under one umbrella.
Polkadot’s essential component is its relaying chain, which enables network interconnection.
Polkadot differs from Ethereum in that instead of only establishing apps on Polkadot; programmers may design their chain while still benefiting from the security that Polkadot’s chain currently possesses.
Developers may develop new blockchains with Ethereum, but they must create security mechanisms.
This phenomenon might leave fresh and smaller enterprises susceptible to abuse. The more significant a blockchain, the more secure it is.
14th Place as of December 1, 2022.
8.DogeCoin
In 2012, two computer programmers, Billy Marcus and Jack Palmer, invented Dogecoin.
Markus and Palmer designed the coin as a spoof, reflecting on the crypto market’s endless speculation.
During the week that Musk was set to appear on “Saturday Night,” the price of DOGE reached an all-time high of $0.67.
Dogecoin has a market valuation of $21 billion as of December 2022, and one DOGE is worth roughly $0.18, making it the 12th-largest cryptocurrency.
12th Place as of December 1, 2022
9. Monero
Monero (XMR) is a safe, secret, and undetectable cryptocurrency.
The open-source cryptocurrency debuted in 2014 and quickly gained prominence in the crypto industry and fans.
This cryptocurrency’s growth is entirely contribution-based.
Monero was created with a heavy emphasis on decentralization and efficiency in mind.
It provides perfect secrecy by using a specific technology known as “ring signatures.”
A collection of cryptographic identities appear with this strategy, each with one genuine contributor.
Still, one cannot identify the genuine ones because they all look identical.
20th Place as of December 1, 2022
10. Avalanche
Avalanche was founded in 2020 by a group of Cornell College computer programming experts and is financed by premier venture capital company Andreessen Horowitz.
The AVAX currency opened the year selling for $2.78 and is now worth over $70 as its system rapidly gained market share.
Avalanche has publicly said that it intends to overtake Ethereum as one of the most popular cryptocurrencies.
What Avalanche needs in short-term resiliency – AVAX failed during one of the latest market slumps – it more than makes up for increasing popularity.
Avalanche is becoming more compatible with popular Ethereum projects such as SushiSwap, which lets users transfer cryptocurrency from one chain to another.
13th Place as of December 1, 2022
Conclusion
The rise of Cryptocurrencies such as bitcoin has generated a discussion over their future, but their popularity and mainstream interest continues to rise, making gifting cryptocurrency a great gift idea today.
Despite recent challenges, Bitcoin’s popularity since its inception in 2008 has encouraged the development of rival cryptocurrencies such as Etherium, Monero, and Xrp.
A cryptocurrency that seeks to be a part of the mainstream financial system would meet various requirements.
While that is unlikely, there is no question that the market heavyweights’ success in dealing with the problems of the blockchain market will influence the fate of other cryptocurrencies in the upcoming years.
