How to Gift NFTs This Holiday Season
Giving an NFT as a gift to your loved one that is excited or curious about NFTs could be a unique, trendy, and fun choice for their birthday or the holidays.
Non-fungible tokens (NFTs) are delving into the mainstream culture enabling users to own rare digital artifacts through the blockchain network that backs cryptocurrencies. NFTs can be in the form of tweets, music, GIFs and more, and people spend thousands and even millions to own these collectibles. According to Chainalysis, users have spent around $26.9 billion worth of cryptocurrency on NFT marketplaces in 2021.
NFTs can be an unforgettable and extremely trendy gift to surprise your loved ones this holiday season. They will open doors for an altogether new world for the ones who are nascent to the crypto industry and will impress the ones who are already into crypto and love the idea of NFTs.
What are NFTs?
NFTs (non-fungible tokens) are digital collectibles that live on the blockchain. These original, unique, and non-interchangeable tokens can be almost anything, from pieces of digital art to gaming assets to music to sports trading cards. You cannot physically touch the items, as they’re 100% virtual.
The tokens are stored using blockchain database that securely stores information in digital format. If you are wondering why people are spending thousands or even millions of dollars on files that they could probably quite easily view and download for free. The answer is exclusive ownership – a digital token functions as a certificate of ownership.
When you buy an NFT, you become the proprietor and have the right to sell the asset. As a digital file can be easily and repeatedly duplicated there is only one or a limited number of NFT versions of it. In March 2021, Twitter CEO Jack Dorsey put up for auction an image of his first tweet as an NFT and ended up collecting more than $2.9 million for charity.
How To Gift NFTs
Giving an NFT is like giving someone cryptocurrency. To get started, you’ll need the NFT, a cryptocurrency balance to pay transaction fees, and the recipient’s public wallet address.
1. Get the Recipient’s Public Wallet Address
You should start by getting the recipient’s public wallet address. If an NFT is sent to the wrong address or an incompatible address, it may be lost forever. Wallet addresses are shared as either a string of alphanumeric text or a QR code.
2. Open Your Cryptocurrency Wallet That Holds the NFT
After that you should log into your cryptocurrency wallet that holds the NFT you want to gift. Always keep your wallet information private and secure, so that no one can access your currency and NFTs you own. Don’t forget about gas or transaction costs. So you will also need enough currency in your wallet to send the NFT.
3. Prepare the NFT Sending Transaction
Once logged into your wallet, navigate to the NFT and choose the option to send the asset to another wallet. Enter the recipient’s wallet address in the correct box. Send the transaction only if your wallet software confirms for you that the wallet is compatible.
For example, if you’re sending an ethereum-based NFT, you can only send it to an ethereum wallet. You can’t send to a bitcoin or other wallet directly. Depending on the wallet and network, you may have an option to pay higher fees for a faster transaction or lower fees for a slower transaction.
4. Double Check the Details and Send
Always double-check that your transaction details are correct. Maybe even triple-check to be safe. Once you’re certain everything is accurate, click the button to send the NFT. This broadcasts the transaction to the network of computers supporting the blockchain for confirmation.
5. Verify Receipt on the Blockchain
Blockchain transactions are public and allow you to view the transfer while it’s in progress and confirm that the NFT has landed in the correct wallet when the transaction completes. You can do this using a free blockchain explorer, such as Etherscan. The recipient may not get a notification that the NFT landed in their wallet, and you can do the fun part of letting them know they have a new NFT.
5 Reasons Why NFTs Make the Perfect Gift
1. NFTs Reflect Our Lives
As we live in the digital realm our gifts can be digital too. People can take these digital gifts with them wherever they go — on their phones, social media, and beyond.
2. They Don't Take up Any Space
They won’t ever be in the way as they won’t take up extra closet space or clutter up your coffee table. NFTs can be minimalist or maximalist, colorful or subtle.
3. It's as Easy as Purchasing Any Other Artwork on Spacey
Collecting NFTs is simple and speedy on Spacey. No crypto knowledge necessary. Add to cart and complete checkout in USD (with a credit card) or using cryptocurrency — your choice!
4. They are a True Unique Gift
You can choose the piece that best represents yourself, or your giftee, and give them something personal and personalized.
5. You can Also Receive a High-Quality Physical Print
Giving an NFT doesn’t mean you have to give up on the unwrapping experience. You (or your giftee) can also get an original print of your NFT, so you can enjoy it in the metaverse and in your physical space.
NFTs could make great gifts this holiday season that people will never forget. However, before gifting NFTs to your loved ones, it is important to understand the gift tax implications that come with giving during the holiday season and beyond. Understanding the risks associated with giving your loved ones digital assets is equally important. Therefore, consider doing your due diligence and proper research before diving deep into the world of crypto and NFTs.
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