How To Gift Crypto This Diwali: A Step-By-Step Guide
Crypto gifting can be both symbolic and practical. It offers your friends and family a gateway into an exciting, new, and happening financial ecosystem.
Diwali is synonymous with prosperity, wealth, and the exchange of meaningful gifts. As the world is getting wrapped up in everything digital, the concept of wealth is also moving beyond its traditional formats like cash or gold. Today, a new kind of asset is rapidly gaining popularity – crypto. Gifting crypto this Diwali is not only a modern way to pass on wealth but also an opportunity to introduce your loved ones to the burgeoning world of digital assets.
Crypto gifting can be both symbolic and practical. It offers your friends and family a gateway into an exciting, new, and happening financial ecosystem that is poised to shape the future of global markets. But for those unfamiliar with the process, gifting crypto may seem daunting. Let us go step-by-step on how to do crypto gifting this Diwali.
Step 1: Choose the Right Crypto to Gift
The first step in gifting crypto is deciding which asset to give. Some popular options include Bitcoin (BTC), Ethereum (ETH), and other well-established tokens. These are not only safe but also widely recognised, making them great options to introduce someone to the world of digital assets. Alternatively, you can explore stablecoins like USDT which offer less volatility and can be used for transactions or investments without huge price fluctuations.
For the more adventurous ones, you could explore newer altcoins or tokens with specific use cases, such as decentralised finance (DeFi) tokens or tokens linked to NFTs. However, it is important to consider the recipient’s level of understanding. If they are new to crypto, opting for more mainstream coins like BTC or ETH is often the best approach.
Step 2: Select a Secure Crypto Exchange or Wallet
Next, it is essential to choose a reputable platform for purchasing and transferring the crypto. Platforms like Giottus offer easy-to-use interfaces, regional language support, and secure transactions, making it a great choice for both beginners and seasoned traders alike. Other major exchanges with robust compliance and customer protection measures may be considered, too.
If you are already a crypto holder, transferring your assets through a trusted crypto wallet is also possible. Popular wallets such as Trust Wallet and MetaMask are user-friendly options.
Step 3: Purchase the Crypto
Once you select the preferred crypto and platform, the next step is purchasing the digital asset. If you are buying on any platform, the process is straightforward:
Create an account on the exchange and complete any necessary KYC requirements; deposit INR using your preferred payment method, such as UPI or bank transfer; and purchase the desired amount of crypto by navigating to the 'Buy' section and selecting your token of choice.
Given the fluctuating nature of crypto prices, you may want to time your purchase during a market dip to maximise the gift’s value.
Step 4: Transfer the Crypto
After purchasing the crypto, you are ready to send it to your recipient. It is a good idea to encourage the recipient to set up their own wallet or exchange profile (if they haven’t already) and explain the importance of safeguarding their private keys and wallet information.
Then, obtain the recipient’s wallet address for that particular crypto asset (the address for depositing Bitcoin will be different from the one for Ethereum for example). Double-check the wallet address to ensure there are no errors. Sending crypto to the wrong address is irreversible. Now, initiate the transfer on your exchange or wallet by selecting ‘send’ after inputting the recipient’s wallet address, and specifying the amount you wish to gift.
Most exchanges and wallets will charge a nominal transaction fee for this. The crypto should reach the recipient within minutes to a few hours, depending on network congestion. Beware of the tax implications of this gift - when it leaves your wallet to another recipient, it is considered a ‘crypto sell’ event.
Why Gifting Crypto Matters
Gifting crypto is not just a novel idea – it’s an introduction to an entirely new form of wealth. As we move further into the digital era, owning and understanding digital assets will become crucial for financial literacy. By gifting crypto, you are helping your loved ones participate in this shift, offering them a stake in the future economy.
Moreover, crypto gifts have the potential to appreciate over time. Unlike traditional gifts, which may lose value or utility, crypto has the potential to grow, providing both sentimental and financial value.
This Diwali, consider making a gift that reflects the future – a gift of crypto. With the steps outlined above, you can safely and easily introduce your friends and family to the exciting world of digital assets. In doing so, you will not only be giving them wealth but also empowering them to explore the evolving landscape of finance. Happy Diwali and happy gifting.
(The author is the CEO, Giottus Crypto Platform)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
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