“Cryptocurrencies, once the realm of tech nerds are now in the main asset stream“– Paul Ebeling
Today, even people’s grandparents know of them, as their surges in value make the news in every corner of the globe.
Opinion on whether to invest in this asset class is varied.
Many experts warn that digital money will never become entirely mainstream and are, therefore, overpriced.
Many others take a more positive view, arguing that cryptocurrencies are the future, that people buying them now can still make a fortune, and that they, as a result, should be high on our gifting shopping lists.
Regardless of which side of the street you are on, the concept of cryptocurrencies making good gifts cannot be ignored or dismissed. As, most people would agree that cryptocurrencies are exciting and growing in relevance.
An increasing number of e-Commerce companies now accept digital assets as a method of payment, meaning they can be used to shop and pay bills. Add to this the possibility that they could be worth a whole lot more in a few yrs and you have a versatile gift.
Crypto Exchanges: Gift cryptocurrency via an exchange. If you are not a crypto investor, you will need to choose an exchange, set up an account, and decide on a payment method. When you’re up and running, purchased digital currencies can then easily be sent to your donee’s wallet address. Click here to open your Crypto account.
After you bought the gift, you’ll need to find a safe place to store it. There is the option to hold it on the platform where it was purchased, it is generally advisable to move it offline to somewhere where it cannot be easily hacked and stolen.
Physical Coins: If you want the gift to be a bit fancier, it is possible to buy physical coins. These coins are quite impressive to look at and can be used to store digital currency.
Each 1 contains a unique address and a redeemable private key, which is located underneath the tamper-proof hologram. Aside from functioning as a useful storage device, these coins have also become collectibles, meaning there is that chance they will appreciate in value.
Giving cryptocurrency to loved ones is usually not a taxable event. Unless the transfer exceeds the gift tax allowance, the IRS only needs to be alerted when the asset is eventually sold by the recipient and a capital gain or loss is realized.
If the recipient sells the gift within 1 yr at a profit, they will have made a “short-term capital gain,” which is taxed as ordinary income. Beyond that date, it becomes a “long-term gain,” which is taxed at lower capital gains rates.
The size of the gainer is determined by how much the donor, paid. In other words, if a coin bought for $100 and then sold 5 yrs later for $500, the recipient of the gift would be taxed on a $400 profit.
Have a prosperous day, Keep the Faith!