The Gift That Keeps Giving: Five Ways To Give Bitcoin And Its Advantages
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Bitcoin can be an excellent gift for those attempting to introduce people to technology who may not have done so on their own.
Koa Frederick, Senior Vice President of SaaS strategy at Accelerate Agency, has written an opinion piece.
Giving gifts can be difficult. Simple cash appears to require little effort. Socks are referred to as unmentionables for a reason. Personal care products may be misconstrued as unsolicited advice.
What should you get for a friend or loved one who has everything?
Even better, you don't have to give people the entire bitcoin. Instead, buy a fraction — a much more manageable gift!
1. Exchanges of cryptocurrencies
It's a vexing perennial question, to say the least.
Does this sound familiar? Why not give them bitcoin instead?
Bitcoin is no longer the exclusive domain of tech nerds; it is gaining popularity as an alternative to traditional and uninspiring gifts.
It can also serve as a gateway for young people to learn about bitcoin and begin investing.
Bitcoin is like a never-ending gift.
What Are the Advantages of Gifting Bitcoin?
True, bitcoin is notorious for its wild price swings. However, bitcoin is a deflationary asset with a finite supply. Many people believe that as more people use bitcoin, its value will rise relative to fiat currency. For some, bitcoin is superior to fiat money. This means that the recipient of your bitcoin gift can profit simply by keeping this valuable digital asset.
If you value online privacy, bitcoin is also synonymous with, well, anonymity. This means that, unlike traditional bank accounts, a bitcoin wallet and address do not even require a real name to be attached — even children can receive and manage their own bitcoin.
Furthermore, because bitcoin is a global asset, it can be used — and, of course, gifted — across borders.
Another advantage becomes clear when we consider e-commerce businesses. They are frequently more willing to adopt new technology to support their hybrid workforces. Many e-commerce businesses now accept bitcoin as a form of payment in order to benefit from lower transaction costs. As a result, bitcoin can be a useful gift for shopping and paying bills.
Even better, you don't have to give people the entire bitcoin. Instead, buy a fraction — a much more manageable gift!
1. Exchanges of cryptocurrencies
A regulated and reputable cryptocurrency exchange is one way to provide users with bitcoin. Even better, bitcoin-only exchanges such as Binance, Coinbase , and crypto.com are now available.
Buying Bitcoin from exchanges is now easier than ever. Bitcoin is ideal if you are a beginner yourself or are gifting to someone who is.
To begin:
Create an account and sign up.
Add a payment method, such as a debit or credit card or a bank account.
Select the buy/sell tab.
Enter the amount you wish to purchase, and the bitcoin will be credited to the wallet associated with your account.
Okay, you're up and running now. If the person isn't already an investor, now is the time to open their own exchange account. Perhaps you could assist them? You can transfer bitcoin to them directly using their wallet after they've signed up.
Cash App is also heavily integrated with Bitcoin, which could be a quick way to transfer funds when you're just getting started, especially if the person already has it installed on their phone.
Receivers will be required to complete some basic security measures, such as "Know Your Customer" (KYC) compliance, which will vary depending on the exchange.
It is possible to store bitcoin on the exchanges where it is purchased, but it is not recommended in the long run. Still, for a small amount of value, it's a good starting point for gifting bitcoin to new users.
2. Gift Cards in Bitcoin
Another appealing way to give bitcoin as a gift is through gift cards. You can send bitcoin gift cards from some exchanges' platforms or apps. Binance, for example, allows you to design your own card and send a personalized message.
Simply find a reputable bitcoin gift card provider, place your order, and pay for it. When the payment is completed, a gift card for the amount deposited will be emailed to the address you provided. To redeem the card, the recipient simply enters the code printed on the card into the website.
However, proceed with caution and select a well-known provider with positive reviews; many people fall victim to gift card scams.
3. Warm Wallets
You can also give someone Bitcoin by providing them with a bitcoin wallet solution. Hot wallets on phones are the simplest and least expensive way to give someone sovereign control over their bitcoin.
Users should conduct their own research and examine the solutions that best meet their needs for hot wallet solutions on both Android and iOS. Once you've found a good match, you can introduce the recipient of your gift to the same app and walk them through the setup process.A hot wallet should allow the user to store their own private keys in the form of a seed phrase without the need for any kind of account to be set up.
However, keep in mind that hot wallets are not as trusted as hardware wallets because their existence on your cellphone exposes them to the internet and software exploits. However, they are a step up from simply holding bitcoin on an exchange.
If you're giving a large sum of money to someone who is about to make a fortune, it makes sense to give them a secure device.
4. Hardware Wallets
The hardware wallet, according to industry experts, is one of the best and most secure storage solutions. These are virus-proof USB devices that always keep private keys safe, secure, and offline.
They safeguard your private key with a dedicated hack-resistant chip. Some examples include Ledger.
Never buy or give away a hardware wallet that has been removed from its packaging. The hardware wallet's entire purpose is to be tamper-resistant, and any indication that the wallet has been modified could spell trouble. It could be a dedicated theft device if, for example, someone opened the wallet and replaced the internals.
When the hardware wallet is delivered, the recipient should follow the setup instructions. Keep the recovery seed somewhere safe. Then you can safely and securely send them bitcoin.
5. Actual Coins
Purchasing physical coins, such as the Goldavenue Coins, makes for a much more impressive gift.
They have a lovely design, come in a stylish package, and, most importantly, can be used to store your bitcoin.
Each physical coin has a distinct address and private key hidden beneath a secure hologram. In addition to being a unique way to store bitcoin, these coins are stunning collectibles in their own right, with the potential for value appreciation.
One alternative is to give an Ledger, a USB stick that allows users to physically transfer custody of bitcoin.
With Bitcoin, you can begin investing in someone's future today.
Many no-coiners are put off by the technical difficulties of getting started with bitcoin. You can help complete novices with the heavy lifting of starting their bitcoin journey by gifting to them.
Aside from minor inconveniences like researching your jurisdiction's tax requirements, it's no surprise that many people are embracing bitcoin as an exciting and modern gift idea.
Regardless of where you stand on bitcoin's prospects, allowing someone to dip their toe into the world of bitcoin is a wise gift.
By giving bitcoin to the next generation, you are teaching them about saving and financial independence.
DISCLAIMER
The author's or anyone else's views or opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading in crypto assets carries a financial risk.
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