Christmas is approaching fast, and the hunt for the perfect gift for your friends and family is on. If your family and friends are crypto enthusiasts, gifting them cryptocurrency will definitely hit it out of the park. So, let’s make this Christmas a crypto Christmas, as it is a gift that might just keep on giving.
4 Reasons Why You Should Give Crypto As a Christmas Present
Now let’s look at a few reasons why you should gift cryptocurrency this Christmas:
Never Out of Stock
If you couldn’t get the gift you wanted for your loved ones, you don’t have to worry about it. Unlike other gift items that run out of stock quickly, you don’t have to struggle to purchase crypto. Unless you are trying to buy a limited edition NFT, you don’t have to worry about the mad rush of buying a Christmas crypto gift.
Always in Your Budget
One of the best things about gifting crypto is that you find coins that can easily fit your budget. You can gift a stablecoin, a Bitcoin if your budget is quite high, or any other cryptocurrency that’s within your budget. Gifting crypto for Christmas is sort of the perfect gift, whether you are giving it as a casual gift or as a more thoughtful gift.
Perfect as last-minute gifts
If you have been super busy and didn’t have time for gift shopping this Christmas, crypto has got you covered. You can purchase and send cryptocurrency all over the world on Christmas Day, and they can receive it instantly. Crypto exchanges such as Binance allow you to send crypto anywhere in the world and to anyone, even if they are non-Binance users.
Extremely simple to give
You don’t have to stand in lines or worry about the delivery fees. You can buy and send crypto instantly to even your non-crypto friends using exchanges such as Binance and their apps. You can also attach a written note to give it a personal touch.
How to Give Cryptocurrency As a Gift?
Thanks to their soaring popularity, cryptocurrencies are now much easier to purchase and gift. Here’s how you can gift cryptocurrency:
Christmas crypto gift cards are a convenient way to give cryptocurrency. A lot of crypto exchanges offer crypto gift cards, and they function just like traditional retail gift cards.
First, find a crypto exchange that allows you to send gift cards. When you pay them in fiat currency, you’ll receive a gift card similar to the amount you paid. The recipient of the gift can claim it by logging into the same gift card site or exchange. Also, do your homework before buying one. Find a crypto gift card that has good reviews and looks trustworthy.
A crypto gift card is an excellent way to give someone who does not have a crypto exchange account. However, if an individual has a crypto exchange account, giving a Christmas crypto gift becomes much easier.
You can purchase the coin you want to gift to the individual and send it to their wallet address. The coins will appear on the recipient's account and they can keep/sell/exchange them as per their wish.
Gifting cryptocurrencies on its ownis not a taxable event unless you exceed the gift tax allowance. According to the Internal Revenue Service (IRS), the yearly gift tax allowance is $15,000.
When the recipient of the gift decides to sell the cryptocurrency, they have to pay capital gains or loss tax on the proceeds. Moreover, if the receiver sells the gifted cryptocurrency within a year, they have to pay short-term capital gains tax and if they sell it after a year, they have to pay long-term capital gains tax.
If the receiver sells that cryptocurrency and books a loss, it can be termed a capital loss. However, a capital loss can only be registered if its sale value is less than its fair market value at the time it was gifted. People who file the tax report separately can deduct losses up to $1,500 and married people can deduct losses up to $3,000.
Final Thoughts on Crypto Christmas Gifts
Cryptocurrencies can be excellent Christmas gifts. There’s a huge selection of cryptocurrencies for you to choose from, and you can easily present a crypto Christmas gift to anyone using a crypto gift card or a crypto exchange. However, do your research before you gift crypto to anyone, and keep a record of the fair market value of the coin so that the receiver can easily file their taxes.
Disclaimer: The above is for general information purposes only and should not be interpreted as professional advice. Please seek independent legal, financial, tax, or other advice specific to your particular situation.