You can check some names off your list this holiday season by giving the gift that keeps on giving — cryptocurrency. There are many ways the present can be used, including spending it at places that accept BTC or holding onto it as an investment. Before you make the purchases, there are several things to consider before choosing this type of gift.
Should You Give Bitcoin Or An Alt-coin?
Bitcoin (BTC) is essentially the "gold standard" of digital currency. It is the one that all the thousands of other coins and tokens are measured against. It's been around for more than a decade, and the number of BTC is finite.
The good news, though, is that you can purchase it in any amount you feel comfortable spending, which makes it easy to spend $10, $25, $50, or larger dollar amounts. If things go well, the cryptocurrency could be worth even more than you spent when you purchased it. Of course, the opposite is also true, but since this is an investment type gift, the recipient will likely hold onto it for a while.
BTC is valuable, and experts predict it will continue to remain valuable as businesses like Paypal, Square, Circle, and others invest in making it easy to send, receive, and use.
Although BTC is the most well-known digital currency, there is also Ethereum, Litecoin, Ripple, and others with potential as investments. Other considerations for which one to choose might be how readily you think the recipient might be interested in learning how to handle cryptocurrency.
How To Give Crypto As A Gift
There are many ways to give the gift of cryptocurrency.
- Create a cold storage paper wallet — This might be the simplest way to give somebody BTC or other digital currencies. The paper wallet is printed on a physical piece of paper, and it contains public and private keys, which are necessary for accessing the coins or tokens. They might also have a QR code to scan, which makes adding the details to a hardware wallet easier.
- Give a hardware wallet — Several brands sell a hardware wallet to keep digital assets on. They usually look like USB devices. A benefit of using one of these is that you have something actually to wrap up to give.
- Give a Bitcoin gift card — You can buy a card in any denomination for BTC, and the recipient receives a voucher, which can be exchanged for BTC at the current exchange rate.
Who Should I Give Cryptocurrency To
Nearly anybody could use cryptocurrency. However, those who are more tech-savvy may be more likely to appreciate this gift. Also, a person who seems to have everything might be another option because s/he may hold onto this, and it could grow as part of an investment portfolio.
If you know for sure, somebody on your list is not the type of person who would appreciate the novelty of receiving BTC or other alt-coins, this might not be a great idea for them.
This is one gift that could keep on giving well past the holidays.