Coinbase digital gift card art.
Coinbase
In a context of persistent economic uncertainty, rising inflation, and global supply chain problems, what if you could find a holiday gift that is highly available and easy to give? What if that gift also stretched between the strategic and the bizarre? Yes, we are talking about cryptocurrencies.
Although most americans know about cryptocurrencies, only a small percentage of them have crypto. If you are one of the few, this is your chance to lead the way for your friends and family.
Unlike in the past, it is now easy to give away cryptocurrency, even to those who do not know the difference between a hardware and software wallet or you don't have an account on a cryptocurrency exchange. And you don't even have to give a full bitcoin, which currently costs more than $ 50,000. You can send fractional minutes of a cryptocurrency, starting at less than $ 1.
We'll focus here on the big and popular players who have made it easy to safely deliver cryptocurrency to friends and family, even if you or the recipient have never dabbled in digital money before.
Simplified cryptocurrency
An increasing number of mainstream financial applications, including PayPal and Venmo, they have already made it relatively easy buy and send cryptocurrencies - although some charge higher fees than crypto-focused apps and exchanges. And not all make it easy to send cryptocurrencies as gifts, especially to people who don't have accounts yet.
In March, Cash App introduced a new feature which made it possible for users to send bitcoins to anyone with a phone number or an email address. Today, Coinbase introduced a similar feature, making it easy for account holders to send bitcoin, ether, and various other cryptocurrencies to anyone with an email address, regardless of whether they already have a Coinbase account.
There are other ways to give away cryptocurrencies without using a centralized trading and financial app. Those will require more technical knowledge. And regardless of how you give the gift, it's worth providing your recipient with a disclaimer - the world of cryptocurrencies can be a wild place where scams and misinformation They are common.
How to send cryptocurrencies on Coinbase
To send crypto as a gift, you will need a Coinbase account. Starting today, you will be able to access the giveaway feature in the app and the company website. In the menu on the left side of the screen, select "send a gift".
The new giveaway feature allows you to send five different assets (bitcoin, ether, litecoin, bitcoin cash, stellar lumen) to anyone, including people who don't have a coinbase account yet. All you need is your email address. The email contains instructions on how to set up a Coinbase account and claim the gift. The email also includes a digital card with "cryptographic works of art." There are no fees beyond the cost of the cryptocurrency you are giving away. If the recipient already has an account, you can send them any of the assets that Coinbase supports (there are more than 100).
Coinbase allows you to cancel the transaction at any time, until the recipient creates their account and claims the cryptocurrency. If the person does not create an account within 30 days, the transaction is automatically canceled.
Giving cryptocurrencies with the Cash application
Cash App is a popular money transfer service owned by Square, the same company that owns Twitter. One of the features of Cash App is the ability to send bitcoins to other people. This app makes giving cryptocurrencies fast and easy.
However, your choice of cryptocurrency is limited to bitcoin. At the moment, Cash App does not support any other assets, which makes the platform somewhat restrictive for crypto enthusiasts. But if the recipient is new to digital currency, bitcoin is likely the only asset they might know about.
To send bitcoins to another user of the Cash application, you will need the address of the person in the Cash application, which is called $ CashTag. Once you have the $ CashTag in hand, navigate to the bitcoin tab from the home screen. Then tap on the plane button and select the amount you want to send and the person you want to send it to.
If the person you are sending to doesn't have a cash app account, you can send them bitcoins using their phone number or email address. The person who receives your gift will be asked to create an account and accept the bitcoin. If the recipient does not create an account within 14 days, the bitcoin will return to their account.
You can send as little as $ 1 in bitcoins using this service. You can find the full addresses on the Cash app website.
Give a cryptocurrency wallet as a gift
Alternatively, or in addition, you can gift someone a cryptocurrency wallet, with or without anything in it. These are hardware wallets that connect to your computer through the USB port. If you decide to set up a hardware wallet for someone as a gift, be sure to follow the manufacturer's instructions closely and keep track of the keyphrases once you set up the wallet. Safe and Ledger are two reputable manufacturers that offer models ranging from $ 60 to $ 200.
A note about taxes
Generally, the IRS focuses its interest on gifts of $ 15,000 or more. So, if you're only sending $ 50 worth of bitcoin to your cousin, you shouldn't have to worry about the tax implications. The IRS has helpful pages on gift taxes and virtual currencies to help you navigate the details. And when it comes to reporting your transactions in April, taxes generally apply only when you sell or trade.
Real risks and potential rewards
This year alone, the price of a single bitcoin It has fluctuated wildly, from a low of around $ 30,000 to an all-time high of more than $ 65,000 in November. Many people have made money through cryptocurrency speculation, but losing money is just as easy. While it could be a fun holiday gift, keep in mind that crypto assets are highly speculative, and if you buy them, a good rule of thumb is to not invest more than you are comfortable losing. It is also worth noting that cryptocurrency is a common tool in online scams and that cryptocurrency transactions, once completed, are generally final and irreversible. Once you send out a few cryptocurrencies, it's as good as He is gone forever. Do your homework, be skeptical, and have fun.
