On the first day of Christmas, my true love gave to me...a Partridge Punk NFT?
This Christmas, as growing stress mounts on supply chains, it seems appropriate to resort to virtual presents, such as NFTs. And people have made NFTs of just about everything in the last year, including a burned Banksy, Taco Bell gifs, and Jack Dorsey's first tweet. One artist even attempted to sell her human eggs as an NFT, another sold a collection of Lockdown farts.
Many of those celebrating the Lunar New Year under quarantine in Asia this year resorted to gifting cash using e-wallets as part of the ritual. E-wallet adoption and interest in cryptocurrencies increased across Asia as a result of the shift.
In this article we’ll talk about how and why to gift an NFT for the holidays.
The Rising Popularity of Holiday NFTs
NFTs, which include things like avatars, sport cards and digital art, are non-fungible digital tokens that have their ownership validated on a blockchain.
According to Brandessence Market Research, NFT transactions increased by 328% in the first three quarters of 2021, bringing the entire transaction volume to $2.5 billion. The pandemic and the emergence of blockchain games has accelerated the mainstream adoption of non-fungible tokens, bringing their total worldwide market capitalization to USD 7 billion and counting.
Crypto gifts appear to be a popular gift option for the 2021 holidays. According to a recent poll by BlockFi, one out of every ten Americans plans to donate cryptocurrency this year.
NFTs can be bought on NFT marketplaces like Rarible, Foundation, OpenSea and Binance. The largest NFT marketplace is now OpenSea. Non-custodial crypto wallets (like Metmask for Ethereum) can be used to purchase NFTs.
Why buy an NFT gift?
An obvious benefit of an NFT gift is that it can provide a user with a more multifaceted experience than a traditional gift, and can give those who are inexperienced with crypto a fun way to enter the blockchain space.
NFTs can also be sent out to friends and family all over the world, without the need to pay for postage, or the risk of it being lost in the Christmas mail frenzy. NFTs are the gifts that keep on giving. Once your chosen recipient has the NFT in their wallet, they can demonstrate true ownership of your gift, using the blockchain.
The value of NFTs, like that of art, is highly subjective though. If your aim is to pick an NFT that appreciates in value over time, take care to choose not just a great-looking NFT, but also a strong project that interacts frequently with their community and has many interesting objectives on the roadmap.
How To Gift An NFT
If buying an NFT sounds like the perfect gift but you've never done it before, don't worry; we've got you covered. This is how to buy, store, and give an NFT:
1. Find the NFT you want to buy and create an account:
Rarible, OpenSea, Nifty Gateway, and Mintable are some of the NFT marketplaces available. When you initially get on, it can be intimidating, so try looking for certain topics that suit your recipients' hobbies.
Be aware that different NFTs are hosted on different blokchains, such as Ethereum, Solana and Stacks; and that these different blockchains have different cryptocurrencies. Ethereum for example uses ETH, whereas Solana uses SOL.
To buy the NFT and store it safely, you'll need to open a non-custodial wallet (like Metamask on Ethereum) and top it up with some of that blockchain’s native cryptocurrency. Then you simply click “buy” and the NFT wil appear in your wallet!
2. Get the recipient address:
Get the recipient's wallet address and double-check. If an NFT is sent to the incorrect or incompatible address, it may be permanently lost. A string of alphanumeric text or a QR code is used to share wallet addresses.
If the recipients doesn't have their own wallet or isn't familiar with crypto, you can set up the wallet for them, transfer the NFT, and supply them with the details after you've delivered the gift. Be careful not to leave passwords or seed phrases in documents on your computer. Write them down on a piece of paper and store them in a safe, and create backups!
3. Confirm Gas Fees:
The purchase of an NFT necessitates a Blockchain transaction, for which you will be charged a gas price. You're ready to go if you send some Ether to your Metamask. The transactional fees that users pay for minting their smart contracts onto the blockchain are known as “gas fees.”
The fee's value fluctuates depending on the market's demand for that particular coin.
4. Double-check the information and send it:
Because blockchain transactions do not have a reversal option, double-check that your transaction details are valid. Click the button to send the NFT only once you're sure everything is correct. This sends the transaction out to the blockchain's network of computers for confirmation.
If the thought of wallets and transferring assets seems daunting, consider giving someone their own coin so they can purchase the NFT on their own.
There are other possibilities if you're shopping for an NFT fan but don't know much about the NFT market. They might appreciate a digital frame to display their NFT collection, or a hardware wallet to hold their valuables in safely.
But if you have the knowledge or the patience to make it work, you can be that cool relative or friend that gives trendy NFT gifts for the holidays!
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.