Why should you consider gifting NFTs and How to gift NFTs?

Ranjan Yadav

Published in

Coinmonks

8 min readMay 26, 2022

Gift an NFT experience to last forever, with an “exclusive ownership” for the special soul!

What are NFTs?

Wondering if NFTs (digital assets) make good gifts? If yes, it’s time to learn how to discover an ideal NFT gift. Digital assets in the form of NFTs or Non-Fungible Tokens have taken the Cryptoverse enthusiasts’ craze to great heights. Celebrities and influencers have continually been flocking to launch and market their own NFT brands, reaping millions. But have you ever wondered how it would be to present your family, friends, or the special beloved with NFTs as a gift? Sounds exciting, yes? That’s what immersing in this thoughtful article would enlighten you on.

You might be wondering, what exactly are NFTs, anyway?

Well, a fine OpenSea resource explains NFTs in great detail.

Learn How to Access Binance NFT Mini App on Binance App
Also check out: Binance Launches Binance NFT Mini App Feature

Put simply, NFTs are tokenized digital files having rights of ownership. Formats that qualify to be NFTs include art pieces, sports cards, memes, videos, and audio. These NFTs are digital assets that can be bought and sold online after being tokenized.

Upon buying an NFT, a digital token in the form of a certificate of ownership is awarded to you. Its title is registered and stored on a shared ledger (or a blockchain), The record-maintaining technology used in this transaction is the Bitcoin network. This technology communicates to all your ownership as an NFT proprietor, with exclusive rights to sell the asset. Digital files could be many, but its NFT version is only one or in limited numbers. That’s the exclusive rarity of NFTs.

What You Need To Know Before Gifting An NFT?

NFTs are still somewhat new to newbies in the DeFi art world. To that novice to these trendy and unique digital collectibles, NFTs still make unconventionally special gifts.

Tech-savvy NFT newbies inclined towards exploring the NFT space might perceive gifting an NFT as identical to a unique (digital) collectible piece. But its element of art and the emotions it enlivens transcend it beyond merely a unique collectible. NFTs as unique gifts would enlighten the sentimental value of the special one, one which would only elevate as time passes.

A special gift in the form of an NFT would be remembered for years, even for a lifetime. The intrinsic value of an NFT as a gift would hold sentimentally emotional eminence for its recipient regardless of its commercial value decline.

If you were struggling with finding a unique present, NFTs could make great gifts for any time of the year. Buying one could also be the start of your journey into the world of NFTs. So get a head start on gift prep with Binance NFT today!

But first, acquaint yourselves with these vital considerations when gifting NFTs:

NFTs are digital collectibles that are essentially stored in a digital wallet. Buying and selling NFTs usually involves a cryptocurrency payment (such as Ethereum).
NFT marketplaces tend to function transactions either via a fixed price or via auctions.
Jurisdictions around the world are still in the process of tabling suitable guidance on taxing NFTs. So, give due consideration to assessing the specific tax liabilities in your case prior to deciding on gifting NFTs.
Transaction fees, sale fees, and royalties are vital NFT transaction considerations. In total, there are five different types of transaction fees payable on Binance. These are deposit fees, platform fees, withdrawal or network fees, royalty fees, and minting fees.
Setting up a blockchain network-interacting cryptocurrency (NFT) wallet is required to receive your NFT for gifting it to the special soul you adore. So, your special recipient would require setting up a cryptocurrency wallet, and know (learn) how to use it, as well. An NFT wallet, just like a cryptocurrency wallet, supports the blockchain protocol on which NFTs are built. A secured NFT wallet tends to protect and safeguard your NFT collection. A cryptocurrency wallet also generates a transaction-authorizing private key to the asset’s blockchain address. The coins, tokens, and NFTs get stored as data on the blockchain system. The wallet acts as a means of access to these digital assets.

Key NFT wallet features to ensure:

Robust security is central to safe and secure NFT transactions. Ensure 2-FA (two-factor authentication) in your NFT wallet for added security.
A user-friendly cryptocurrency wallet makes NFT buying and selling seamless.
Cross-chain and (preferred) NFT marketplace compatibility:
An NFT wallet with multiple blockchain support is advised. Your NFT wallet should also support the marketplace you opt for to mint, buy, or sell NFTs.
Multiple device support: Select a wallet that can function on two devices whilst enabling real-time synchronization.
Credit or debit card-led direct payments make NFT transactions swift.
The bank withdrawal feature allowing direct withdrawals to your bank account is a win-win.

Types of NFT wallets

Software wallets or hot wallets are operated via mobile or desktop apps, and browser extensions. Security of software wallets is ensured via a password, seed phrase, and 2-FA. The user-friendliness of software wallets increases their utility. Software wallets enable swift access to your funds virtually (24/7) from anywhere.
Hardware wallets or cold wallets are highly secure wallets, fitting for long-term funds storage as they create and store a private key on the device. A cold wallet stays offline until the time you intend to access your digital assets for a transfer or a transaction. The feature of digital assets being stored offline in a hardware wallet protects them from hacking. The seed phrase devised by a cold wallet lets you access its contents in case you misplace the device.
A hybrid wallet brings the best and the finest of software or hardware wallets in itself. A hybrid wallet elevates the convenience of a software wallet whilst boosting the security of a hardware wallet to the next level.

What are the best ways to store NFTs?

A custodial hot wallet or a non-custodial cold wallet, which one would you opt for to store your valued assets? A non-custodial cold wallet grants you absolute control of your private keys. But this also puts the entire onus of ensuring the safety of your digital assets and the private keys on you. Your seed number and 2-FA should be cautiously dealt with in the case of a hot wallet.

In the case of a hot wallet or a custodial wallet, a third party assumes the security of your funds. The third-party returns your funds as and when you intend to transfer or transact. In the hot wallet, you are not directly responsible for the safety of your funds. But it still needs you to trust the third party for your funds.

A Binance account or Binance NFT Marketplace are both custodial wallets. Some of the popularly dependable wallets are listed below:

Binance Wallet is the official Binance cryptocurrency wallet. Binance Wallet enables access to the BNB Smart Chain (BSC), BNB Beacon Chain, and Ethereum. Regardless of whether you aiming to buy, sell, or mint NFTs, using the Binance Wallet to store your digital assets securely is safe. It also lets you connect to thousands of projects across blockchains.
MetaMask Wallet is primarily a quite popular Ethereum wallet. The MetaMask wallet enables you to buy or sell NFTs on the Ethereum blockchain. An exciting feature of the MetaMask wallet is that it gets synced with the browser extension and the mobile app, enabling seamless funds access. MetaMask also allows users to register multiple addresses, enabling categorically organized cryptocurrency and NFT storage. MetaMask supports debit cards and bank transfers in over 60 countries.

Tip: Connect your software wallet to your Binance account via WalletConnect, if already having a MetaMask wallet.

The Trezor Wallet is compatible with several wallet apps. It’s highly acclaimed for its high-level security. A non-custodial hardware wallet, Trezor is easy to set up and operate. The Trezor wallet can connect only to Android devices.
The Ledger Wallet is a popular non-custodial hardware wallet used by millions of cryptocurrency enthusiasts. Thanks to Ledger’s high security and robust compatibility across various mobile apps, it connects seamlessly with iOS and Android devices.

Types of NFTs on Binance NFT

A variety of NFTs are available today in the market. To discover the finest NFT for your loved ones, you can access the Binance NFT Marketplace.

What’s enticing is that on the Binance NFT Marketplace, it’s quite possible to customize the NFT by the giftee’s favorite creator or hobby. Even beyond that, you can also opt for an NFT gift that matches the interest of your beloved or special soul:

■ Premium

■ Art

■ Sports

■ Entertainment

■ Gaming

■ Collectibles

■ Esports

■ NFT for Good (social causes)

■ Music

How To Gift An NFT

First, register a Binance account of yours (if you haven’t already). Then, top-up your Binance spot wallet with either of the three Binance NFT Marketplace-accepted cryptocurrencies, viz. BNB, BUSD, or ETH.
Discover the NFT of your dreams that you believe your beloved would equally adore.
Ensure that you have enough BNB, BUSD, or ETH to cover the transaction fees.
Verify twice the transaction details’ correctness and finish the buying process.
To transfer the NFT to your giftee, their wallet address (in the form of letters and numbers or simply a QR code) would be required. Ensure acquiring the correct wallet address as once the NFT is sent to the wrong address, it’s unrecoverable. The NFT can be sent from and to a compatible wallet only, be it ETH to ETH or BNB to BNB.
Verify blockchain records to ensure correct wallet receipt of the NFT upon transaction completion.

Thoughtful Ways You Can Present Your NFT Gift

You will need to be creative while gifting an NFT as it can’t be boxed and gift-wrapped. But there are thoughtful ways to present the special NFT gift to your beloved, friend, or family. Some ideas worth consideration are presented below:

Gifting your special NFT with a hardware wallet is advised in case your giftee has no hardware wallet ownership. Doing so also gives assurance that the hardware wallet would secure the soon-to-be-gifted NFT.
You can also print the NFT and frame it if DIY is your fondness. By doing so you can also give a personal touch to the special NFT gift. Simply print the NFT and deliver it with access instructions.

For more information on how to purchase NFTs, check out:

How to buy NFTs on Binance NFT Marketplace

How to Buy And Sell NFTs With Cash On Binance NFT

New to Binance? Register now!

Disclaimer: This article is meant for educational purposes only and should not be construed as investment advice.

Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing

Coinmonks

Why should you consider gifting NFTs and How to gift NFTs?

Also, Read

Published in Coinmonks

Written by Ranjan Yadav

Responses (1)