The 2021 cash gift guide: from crypto to tungsten cubes

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Cash in small boxes wrapped or slipped inside Hallmark cards is one of the most trusted and popular gifts. But this holiday season, cash giveaways take on a new form in the form of cryptocurrencies and non-fungible tokens, or NFTs.

However, giving digital money requires planning because you can’t just buy one of these assets and send someone a link. Instead, they need someone to have already created a digital wallet, through a provider such as Rainbow, MetaMask, or Coinbase. COIN 8.99% The portfolio then holds the assets, effectively acting like a bank account.

There’s a fixed cost to get started, and there’s no way around it, said Lex Sokolin, chief economist and global co-head of fintech at ConsenSys, a blockchain software technology company. It’s like showing up at your friends’ house in 2002 and giving them an MP3 player and saying, Here’s an MP3 player, now go throw all your CDs away.

The hassle aside, many parents, kids, and even friends are embracing these new products, at least for the more digital savvy in their lives. Just as stock certificates and savings bonds were gifts for a purpose in the past, gifts of crypto art or NFT can teach the recipient financial independence, investment, and savings.

Giving money is also giving education, said Shari Greco Reiches, wealth manager and co-founder of Rappaport Reiches Capital Management.

With that in mind, here are some of the best ways to give money in 2021, not a gift card in sight.

Crypto Starter Packs

An easy way to help someone dive into the world of digital currency is to give them a makeshift crypto starter pack.

Alex Salnikov, co-founder and product manager of Rarible NFT Marketplace, said he set up wallets for friends with a promise to then give them an NFT on the other side. He also recommends products like Linkdrop, which allow the donor to send onboarding links to start setting up their own wallets.

Coinbase offers an option to share crypto assets with those who are not yet set up on their network, along with a message and a fun little greeting, said John Zettler, senior product manager at Coinbase. Setting up a wallet on Coinbase is free.

These are indeed the keys to the community, and with them you make the person a part of that community, said Salnikov.

Cash

If someone has already set up their own crypto wallet, Mr. Salnikov recommends giving them the most useful coin or cryptocurrency for their favorite pursuits, just like you could choose a gift card for their favorite store, rather than one. ” a generic Visa gift card.

Unlike the free wallet setup on many platforms, these coins don’t come cheap. The price of bitcoin has risen from $ 30,000 at the end of 2020 to almost $ 70,000 in 2021. Ethereum, another popular coin, is cheaper at almost $ 4,300. You can buy portions of cryptocurrency, however, and each bitcoin is divisible, meaning you can buy a portion of it for almost any amount you want.

Memecoins, or an internet joke-related cryptocurrency like dogecoin, won’t cost you that much. (At its peak, dogecoin hit 75 cents in May 2021.) Sending these is really like the financial equivalent of sending a funny cat photo, Sokolin said.

Photo: Jan Buchczik NFT

NFTs are best described as authenticity vouchers for digital assets, be it art, music, or anything else. They have grown in popularity this year, just a few years after their inception in 2017. Markets such as Rarible, Open Sea, and Nifty Gateway may have several NFT gift ideas, like an animated rainbow cat illustration for 0, 6 Ethereum and a GIF of Taco Bell dancing tacos for 4 Ethereum.

It’s a unique 1-1 digital item that only you can own, and can represent so many different things. It is therefore: What does the recipient of the gift like? Mr Zettler said.

Depending on the desirability and availability of the donated item, DFTs may also increase in value. NBA Top Shot allows users to purchase key moments in basketball history; legendary Christies auction house now offers original works of art for purchase in NFT form; and bands like Kings of Leon release albums as NFT.

Keep an eye on the price: these quirky collectibles can cost anywhere from a dollar to several million.

Financial products for children

Creating a custodial investment account for a child can introduce them to investing, said Jordan Wexler, co-founder and CEO of the EarlyBird donation platform.

Many brokerages and businesses offer this option. Mr. Wexlers’ product allows parents, grandparents or other gift giving adults to create custody investment accounts for children from birth, accompanied by video messages for special celebrations, such as holidays and birthdays.

There is such an interesting movement in people who no longer want waste and lean heavily on, how can you charge something emotionally, more than a toy you give away? Mr Wexler said.

Donors can give anywhere from $ 15 to $ 2,500 at any frequency, as a recurring or one-time deposit.

Ms Reiches has a more traditional recommendation: donate money to a 529 plan, which allows parents, grandparents and other adults to invest money that can be used for education expenses. eligible benefits of a beneficiary.

Photo: Jan Buchczik Memestocks

The Memestocks jumped early this year. Then they fell. Then they stood up again. Amid it all, GameStop, AMC, and other tickers have become household names.

Giving a share of these shares is an option to bet on memestocks. You can also buy a fraction of a share, Ms Reiches said. Showing your recipient how to track the progress of their investment can be their own experience.

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Photo: Jan Buchczik

Talk to the child about the businesses he loves and the businesses he follows, she says. It can teach discipline, long-term thinking, and delayed gratification.

Tungsten cubes

The Tungsten Cube has a special appeal for people who want to take the intangible world of cryptocurrency, NFTs, and decentralized finance and make it tangible. These crypto enthusiasts do it with little gray cubes of metallic tungsten, a substance almost twice as dense as lead. Cubes cost between $ 400 for a 2 inch cube and $ 3000 for a 4 inch cube.

Nic Carter, one of the first cube champions, said he had already given them to family and friends for the holidays. But for those who are out of the joke, the giveaway may not ring out the way you hope.

I would only recommend it as a gift to someone who is very, very interested in crypto and Twitter crypto. Otherwise, they’ll look at you with a blank face like, What is this? Mr Zettler said.

The recent rise and fall in value of Shiba Inu Coins is part of a growing trend for even coins that rival some of the largest digital tokens in the world. WSJ retail investment reporter Caitlin McCabe explains why investors are investing money in this memes-based cryptocurrency. Photo: Amber Bragdon / Getty Images

Write to Julia Carpenter at [email protected]

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