How about gifting cryptos for Christmas?

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How about gifting cryptos for Christmas?

 How about gifting cryptos for Christmas?
Image source: Volodymyr_Shtun, Shutterstock

Highlights

  • Many experts believe that cryptocurrencies are the future, and you may consider gifting cryptocurrency in Christmas.
  • The major cryptocurrency app and exchange allow buying a fraction of a digital coin in which you want to invest.
  • But investors need to know about fees you will be charged and any account minimums. 

As the global supply chain crisis has impacted the availability of Christmas gifts and products, many investors are considering about gifting stocks and cryptocurrencies as an alternative as cryptocurrencies have seen a spectacular year so far and the future growth prospective also looks promising in most cases.  

According to CoinMarketCap, as per the latest buying trends investors may invest in over 14,000 coins this festive season.  However, if you think investing in digital currencies is not for you due to reasons such as high volatility and scrutiny from regulators and policymakers, you can always go for stocks instead.

Cryptocurrencies are now easy to buy and gift, but you should find a place to store the necessary information needed for it. The digital gifts purchased by an individual worth less than US $15,000 are not taxable, until the recipient decides to sell and many businesses around the world are now also accepting digital currencies as legitimate means of payments.   

Also read: 5 best cryptos to watch in 2022

Can you invest in portions?

Investing a huge amount in cryptocurrencies is not possible and also it is not advisable. So, buying a portion of cryptocurrency can be a good option. There are thousands of options to invest in cryptocurrencies. But investing in smaller cryptos or lesser-known ones can be riskier.

So, it would be best to select some well-established digital currencies such as Bitcoin and Ethereum, but the prices of these coins are higher and most probably out of many people’s budgets.

Buying a portion of cryptocurrency can be a good and affordable option.

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According to Coinmarketcap, the price of Bitcoin is down by 0.80% over the past 24 hours, and trading at US $46,795.88, while the price of Ethereum is down by 1.2% over the past 24 hours, trading at US $3,784.60, as of 17 December.

As the cryptocurrencies are highly volatile assets and some of them are overvalued, you may instead invest in a fraction of the coin. Most major cryptocurrency apps and exchanges will allow you to buy a fraction of the coins to start with. But you need to know about fees you will be charged for such transactions.

You need to specify the dollar value of trade and also you need to be aware about the minimum deposit. It won’t be smart to invest US$50 in a crypto and shell out US$10 as exchange fees.        

Also read: Which cryptocurrencies are experiencing price surge?

Can you gift stock in Christmas?

Cryptocurrencies are highly volatile in nature so gifting them could be risky. Instead, you can invest in some good stocks and gift someone as future asset. A study by IG has revealed that the investors are very keen on gifting stocks to their family members, and it is a popular trend around the Christmas.

One should choose shares of companies whose business models are future looking, managed by experienced managers, and have sound balance sheet, cash generation and dividend stream.

Best Cryptocurrencies to gift this Christmas

Here are the five best cryptocurrencies that you may consider gifting this Christmas:

  1. Bitcoin (BTC)

If you genuinely want to gift your friend and family cryptocurrency with long-term future potential consider Bitcoin, but you need to make sure that the person to whom you are transferring has a crypto account and you are transferring the bitcoin to his BTC wallet. As Cryptocurrency is a decentralized market and any mistake may lead to loss of your assets.

At the time of writing, the price of Bitcoin is down by 0.80% over the past 24 hours, and trading at US $46,795.88, and its market capitalization stood at US $884.598 billion, as of 17 December, and is currently the most established cryptocurrency.

  1. Ethereum (ETH)

Ethereum is the second largest cryptocurrency by market capitalization that is an open-source blockchain with wide use in the cryptomarket and is based on smart contracts.  Its native cryptocurrency is Ether and is widely used decentralized finance (DeFi). The main goal of the Ethereum is to become a leading global decentralized application platform with higher security.

At the time of writing, the price of Ethereum was down by 1.2% over the past 24 hours, trading at US $3,784.60, as of 17 December, and its market capitalization stood at US$ $449.524 billion.

  1. Filecoin (FIL)

Launched in October 2020, Filecoin is one of the most intriguing digital currencies and is a decentralized storage system, which aims to store most important information.  It is an open source cloud storage marketplace, protocol and incentive layer, instead of storing information in one place it split up the data and saves it around the world on various computers.

At the time of writing, the prices of Filecoin were down by 4.72% over the past 24 hours, was trading at US$35.98, and its market capitalization stood at US$ $5,018,030,422, as of 17 December.  

  1. Dogecoin (DOGE)

Launched in 2013 by Jackson Palmer, Billy Markus and Shibetoshi Nakamoto, Dogecoin is a meme cryptocurrency that turned into a full-fledged cryptocurrency and is now a decentralized, peer-to-peer digital currency that allows users to easily transfer money online.

At the time of writing, the price of Dogecoin was down by 8.54% over the past 24 hours, trading for US$0.1636, and its market capitalization stood at US$21,665,812,365, as of 17 December.

  1. Axie Infinity (AXS)

Launched in 2018 by Sky Mavis, a technology focused game developer, Axie Infinity is Pokémon and Tamagotchi inspired digital currency that is built on Ethereum, with aim to blockchain technology to the masses in a fun way.  Through skilled game play and contribution to the ecosystem the user can earn Axie Infinity Shard token.

At the time of writing, the price of Axie Infinity was down by 8.9% over the past 24 hours, trading for US $94.10 and its market capitalization stood at US$6,249,002,134, as of 17 December.

Also read: How can taxing of crypto exchanges change things in UK?

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