Why And How To Gift NFTs
Non-fungible tokens (NFTs) are all the rage these days. People are literally bidding thousands to own these collectibles, and some are even selling for millions of dollars. If your loved ones are into digital art and cryptocurrencies and are enticed by the possibility of striking it rich with a speculative investment, then gifting them an NFT could be a great option. In this article, we will take a look at everything that you need to know if you’d like to gift someone an NFT.
We will also take a look at the Binance NFT Mini App, a mobile-friendly version of Binance NFT which offers a simple and intuitive design for users to easily access different NFT functions on the Binance App.
Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.
What Is an NFT?
An NFT is essentially a digital file that comes with ownership rights. Anything in digital format can qualify, including pieces of art, sports cards, memes, videos, and audios, and once “tokenized,” they can be bought and sold online.
If you’re new to all of this, you might be 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.
When you buy an NFT, you receive a digital token that functions as a certificate of ownership. This title is registered and stored on a shared ledger known as the blockchain, the record-keeping technology behind the Bitcoin network, so everyone knows that you are the proprietor and have the right to sell the asset. A digital file can be easily and repeatedly duplicated. However, there is only one or a limited number of NFT versions of it.
It was only in 2021 that the market for NFTs really lit up. In February 2021, the 2011 meme of a flying toaster pastry cat named Nyan Cat sold for 300 ETH or an estimated $783,402. About a month later, a JPEG of Everydays - The First 5000 Days, a digital artwork created by Mike “Beeple” Winkelmann, fetched over $69 million at Christie’s.
It’s not just regular art that gets “tokenized'' and sold for big bucks, either. In March 2021, Twitter's former 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.
Do NFTs Make Good Gifts?
NFTs, a relatively new concept for many, have gained popularity as trendy and unconventional gifts. They appeal to the tech-savvy crowd and those interested in exploring the NFT space.
Unlike traditional gifts, NFTs offer a unique and digital collectible experience. While they might be compared to giving a collectible item, their significance goes beyond that. The inherent rarity and digital nature of NFTs make them intriguing gifts that can hold sentimental value over time.
The emotional attachment to receiving a one-of-a-kind NFT can deepen as the years go by. Even if the NFT's market value fluctuates, its personal value to the recipient remains intact.
Consider gifting an NFT like the Mike Tyson Mystery Box to a fan. Regardless of the NFT's future value, the thought behind the gift and the connection to the fan's interests can bring lasting joy.
Why You Should Consider Giving NFT Gifts
NFT Art: New Gold for Gen Z Investors and Art Lovers
Whether NFT art is for Gen Z is still debatable, but we see that there are more and more Gen Z NFT art creators all around the world that have been quick to adopt the new technology and even faster to monetize their artworks via blockchain. This even before many millennial institutional investors understood what NFTs were and why investing in the metaverse is important.
NFT art is first and foremost - art. If you see the representation of the creator’s mind and find beauty in a piece, it has aesthetic value for your personal collection. And unlike traditional art that you mostly see in galleries, museums, auction houses - or on their websites - NFT art is more accessible on web 3.0 (Web3) and more tradable.
If you are an art lover and are considering investing in the future of metaverse, NFTs are definitely a good option for your personal investment and art collection. This also makes them a very unique and timely gift for Christmas 2022: to impress your existing NFT-loving friends and to introduce people that you care about to the world of metaverse via this investment option.
A Lottery Ticket to the Metaverse Future
In the “good old days”, when people selected gifts for their loved ones to celebrate important holidays or anniversaries, what they considered to really hold value were objects such as expensive jewelry, luxurious watches, or simply, diamonds and gold. It’s a big question mark whether these traditional investments of expensive and rare items as gifts still hold much value when the fiat world is already so unstable. So why not consider an alternative gift that might hold stronger value in the future, metaverse-oriented world: NFTs.
Of course, an NFT piece of jewelry or a luxurious watch in a metaverse game might not be worth a lot of money (depending on the game and the popularity of the asset), but it’s a lottery ticket that gives you a small foot in the door of the metaverse future. NFT investment can be very diverse in the metaverse, as our gift options.
If you are very rich, you can even consider gifting your loved ones a piece of land in Decentraland or The Sandbox. If you really love MMORPG games, you might want to buy a unique NFT hero from that game for your friend. If your loved ones are not interested in either metaverse games or metaverse experiences in general, an artistic and expressive NFT artwork will do.
Needless to say, those who understood the potential of NFTs and got into things like Cryptopunks early are very happy at the moment. One might be tempted to look down upon such a highly pixelated profile picture (thinking of Cryptopunks, here) which seems so basic that an average five-year-old could probably make it, and call the whole thing a scam. But many people firmly believe that this is just the infancy stage of NFTs, metaverse, and the advent of a brand new world. If there is only a ten percent chance this world will come, I wouldn’t mind spending a few hundred dollars (or even much less) on a newly-released NFT artwork that shows great potential to survive and thrive. Remember that faded old baseball card that your grandfather left in the bottom drawer? There’s a chance these “silly” pieces of art could skyrocket in value like that child’s Mickey Mantle card.
How To Gift An NFT
When considering gifting an NFT, especially to someone who might not be familiar with the concept, there are a few steps to keep in mind:
NFT Selection: Choose an NFT that you think the recipient would appreciate. This could be related to their interests, hobbies, or favorite artists.
Acquiring Ethereum: Most NFT marketplaces primarily accept Ethereum for transactions. If you're not already involved in the cryptocurrency space, you'll need to acquire Ethereum to use as payment.
Getting a Digital Wallet: To store NFTs and the Ethereum needed for transactions, you'll need a digital wallet. This serves as a secure space to hold your digital assets.
Selecting an NFT Marketplace: There are various NFT marketplaces available online, each offering a range of NFTs and assets. Research different platforms to find one that suits your needs.
Account Setup: Create an account on your chosen NFT marketplace. This typically involves providing your details, verifying your identity, and connecting your digital wallet.
Exploring the Marketplace: Browse through the available NFTs to find the perfect gift. Depending on the marketplace, you might come across a wide variety of digital art, collectibles, music, and more.
Making a Purchase: NFT marketplaces usually operate with auction-style bidding or direct purchase options. You can place bids on items you're interested in or opt for the "buy now" feature.
Transferring the NFT: Once you've purchased the NFT, you'll need to transfer it to the recipient. This process often involves entering the recipient's wallet address and confirming the transfer.
Binance NFT Mini App Feature: If you're searching for a streamlined experience, consider using the Binance NFT Mini App Feature. This feature, available within the Binance app, simplifies the process of accessing Binance NFT's products and services.
Ultimately, gifting an NFT involves exploring the world of digital collectibles, selecting a meaningful item, and navigating the process of purchasing and transferring it to the recipient. It's a unique and innovative way to share a special gift that holds both artistic and sentimental value.
Getting Started With The Binance NFT Mini App
1. First off, download the latest version of the Binance App and log in to your Binance account.
2. Secondly, on the App homepage, drag down from the top to access [Marketplace]. You will see [Binance NFT] under [Mini Apps] at the bottom of the page.
Please note that you can also access Binance NFT by tapping on [More] - [Binance NFT]. This will allow you to view it through the website version. We recommend you to use the Binance NFT Mini App for a better user experience.
How To Gift An NFT On Binance
- First off, create a Binance account and top up your Binance spot wallet with BNB, BUSD, or ETH. These are the three accepted cryptocurrencies on the Binance NFT Marketplace.
- Now, find the NFT you want to purchase.
- Make sure to double-check that your transaction details are correct and complete your purchase.
- You can now transfer the NFT to your giftee. As we have said before, you'll need their wallet address, which will either be a long string of letters and numbers or a QR code.
- Finally, verify receipt on the blockchain to confirm that the NFT has landed in the correct wallet when the transaction completes.
Types Of NFTs On Binance NFT
There are many NFTs in the market, and the best way to find the right NFT for each of your loved ones is from the Binance NFT Marketplace.
The great thing about NFT gifts is that you can align the gift to the recipient's favorite creator or hobby.
Here are some questions to ask yourself when finding NFTs that match the interest of the recipient/your loved one on the Binance NFT Marketplace:
- What are their main interests?
- Are they a fan of a specific sports team?
- Do they into gaming?
- Does the NFT have the potential to grow in value?
- Is the NFT creator a reputable artist?
How Do You Send An NFT To Someone?
Once you are equipped with all the necessary materials, including an NFT to gift and a wallet address to send it to, the process of making a transfer is usually quite simple. Generally, it involves opening the account where the NFT is held, locating the NFT, selecting the option to transfer it, then keying in the recipient’s wallet address.
To receive your NFT gift, your recipient will obviously need to have a crypto wallet, if he does not have one yet, it's a good idea to help them set one up. Ideally, the gift recipient should have a basic understanding of how crypto wallets work.
How Much Does It Cost To Transfer An NFT?
On most platforms, every time you send an NFT to someone else, you will be charged a “gas fee.” These fees cover the computational expenses of processing and validating the transfer.
You should pay careful attention to these fees, as they can be high and eat into your profits.
Gas fees are known to fluctuate, so it’s wise not to wait until the last minute to make a transfer. Keeping tabs on fees until an opportune moment arrives could help to cut your expenses considerably. Transaction costs often have a tendency to drop over the weekend, and you may end up paying less if you opt for a slower transfer.
Some Extra Tips On Gifting NFTs
It may be difficult to put an NFT in a box and gift wrap it, but it doesn't mean you can't come up with other thoughtful ways to present the NFT to your giftee. Here are a couple of ideas to choose from:
- Gift with a hardware wallet: this is a great option if your giftee doesn't have a hardware wallet. Plus, you have the extra assurance that the hardware wallet will keep their NFT safe and secure.
- Print the NFT and frame it: for those who like to DIY or add a more personal touch to their gifts. You can print the NFT and deliver it with instructions on how to access it.
Gifting NFTs: Conclusion
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!