The rise in the popularity of crypto has created several new trends. One of them is giving cryptocurrencies as a Christmas gift. This trend was booming last year when Bitcoin was near its all-time high (ATH) and other digital assets made astonishing returns. It’s probably not as popular this year as it was in 2021, but maybe it’ll be actually a better decision.
Crypto as a gift?
Cryptocurrencies and non-fungible tokens (NFTs) made their way to a lot of millennials and Gen Z. Reportedly, you can gift crypto to your loved ones through Coinbase or Cash App, which are well-known cryptocurrency companies. But as their value declined rapidly in 2022, it may be less popular right now.
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However, it might actually be wiser as Bitcoin and Ethereum are 75% lower from their ATH, Litecoin is down 85%, and Solana even 95%! That is a serious discount compared to last year’s highs. But still, cryptocurrencies need to recover at least partially for people to get interested again.
Binance even published an article, pointing to 5 reasons why crypto was the best Christmas present in 2021. The timing was unfortunately bad, but there are some well-written facts. It’s not so trendy anymore, but crypto will never be out of stock. Cryptocurrencies do have a limited supply, yes, but unless you have tens of billions of dollars, you will always be able to get some crypto.
Budgeting will also not be a problem with crypto, as you can simply gift $50 or $100 worth of Bitcoin, Ethereum, or other digital assets. You definitely don’t need to give someone one whole Ethereum. Moreover, it’s a great present for those who plan at the last-minute and very easy to give.
Which cryptocurrencies should you pick as a Christmas gift?
It all depends on what’s your goal. If you want to give someone a relatively safe investment that should be worth more in the future, you may consider the aforementioned Bitcoin, Ethereum, and other similar large coins.
On the other hand, you may speculate on someone’s regard by gifting them an altcoin with a small market cap. For example, there are meme coins like Samoyedcoin with a $13 million market cap that could rise much more than Bitcoin in the next bull run.
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However, there is also a higher risk connected to cryptocurrencies that have a small market cap. If you want to keep it simple, stick with the most popular ones. If you want to speculate, just do your own research (DYOR) and you will surely find something worth considering.
Where to store cryptocurrencies?
If you are buying someone a digital asset and they do not own any account or wallet, make sure you help them set it up. You can help them either set up an account on a crypto exchange, create a crypto wallet, or buy a hardware wallet.
- Crypto exchanges: there’s a lot of mistrust connected with storing crypto on exchanges, as a number of them collapsed in 2022. However, investors might be somewhat safe betting on the largest exchanges like Binance, Coinbase, etc. But there’s always a little risk they may crash too. That is why you may follow these two following options.
- Software wallet: you may also create an online crypto wallet on, for example, Metamask, MyEtherWallet (MEW), or many other wallets, where only you will have access.
- Hardware wallet: the safest option is to get a hardware wallet like Trezor or Ledger. No one can hack the hardware wallet as it’s not connected to the internet. The only way to lose money is to lose the hardware.
The timing is quite nice for crypto as a Christmas gift because its price has plummeted drastically. This idea for a present is also much less popular than last year, meaning it might be a smart investment in someone else’s regard.
Furthermore, crypto as a gift is viewed as a non-taxable event, so the only cost is actually buying some cryptocurrency, and transferring it to the wallet of your loved one. Just make sure you use the right token address and network for the transfer.