Gifting Bitcoin via Crypto Exchange
Gifting cryptocurrency via an exchange is one option. You start by creating an account on a crypto exchange of your choice, which allows you to buy cryptocurrencies. Once you have an account, you will be asked to complete your KYC Verification. There are some exchanges which allow deposits, withdrawals, and trading to a certain limit for customers who don’t wish to verify their KYC.
Once you have your account set up, you will be asked to add a payment method. You can link your bank account or directly buy Bitcoin or any other listed tokens using debit or credit card. You can later send these cryptocurrencies to your friend’s wallet address but for this, you will need the public address of your friend’s wallet. Exchanges like Coinbase also allow you to send cryptos using email ids if your friend also has an account on Coinbase.
Choosing a Wallet
You need wallets to store your cryptocurrencies and now, these wallets are available in all digital and physical forms like cold storages, hardware, browser extensions, desktop, paper, and many more. You can directly gift BTC to your friend’s wallet as long as it can accept the crypto of choice.
Hardware wallets are most commonly available in the form of a pendrive. Compared to others, they are quite secure. Hardware wallets are offline and hence, completely disconnected from a possibility of an online cyber attack. Additionally, they are virus-protected and support multi-signatures as well. Hardware wallets are used by investors around the world to keep their long term investments secure. You can buy small, portable, and multicoin hardware wallets like Ledger Nano S or Trezor Model T for less than 100 EUR.
Paper wallets are the easiest wallet to gift Bitcoin if you want your wallet to be tangible and cheap. Paper wallet is a paper in which all the necessary details which a user needs to access the wallet like public address, private keys and QR codes are printed. Paper wallets were used in the initial years of Bitcoin but seen their application reduced because they were deemed unsafe by the experts. However, there are precautions you can take to keep your private information and keys printed on the paper wallet secure.