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.
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 are still fairly new to most, so they make trendy, unique, and unconventional gifts. Especially for those who are a bit more tech-savvy and want to dip their toes into the NFT space.
Some might compare gifting an NFT to giving someone a unique collectible item, but it can be much more than that.
The sentimental value of such a unique gift will only grow as time goes on, as people may still remember their first NFT gift for years to come. As long as the NFT holds value for your gift recipient, it won't matter as much if it declines in value.
For example, if you get a Mike Tyson Mystery Box for a fan, they might be happy regardless of what happens to the price.
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
If you don’t already have an NFT collection to gift, then you’ll need to buy one. For non-cryptocurrency enthusiasts, this requires picking up a few key items first. Most NFT marketplaces only accept Ethereum, a digital coin, so you may have to purchase some of that virtual currency before bidding. You’ll also need a digital wallet to store NFTs and the cryptocurrency used to acquire them.
There are several NFT marketplaces online, and each functions slightly differently, including in terms of what assets they trade. Some sell a bit of everything, while others specialize in certain niches, such as sports and gaming.
Once you’ve found a suitable marketplace and obtained all the right tools to trade, it’s time to set up an account and start buying. NFT marketplaces operate similarly to eBay. Usually, there are auctions where the highest bidder wins, although some offer “buy now” options where NFTs are sold for a fixed price.
After you’ve made your purchase, the next step is to transfer the NFT to the person to whom you want to gift it. Many NFT marketplaces now offer this option, and it can usually be achieved by a few clicks of a button. Generally, you’ll need to select the item you want to gift, choose the option to transfer it, then key in the recipient’s wallet address.
Although there are many options for buying and gifting NFTs, there is a great new way of doing it, Binance NFT Marketplace has recently introduced the Binance NFT Mini App Feature, a mobile-friendly version of the Binance NFT website, to elevate users’ NFT experience. With the new feature, users can now access Binance NFT’s products and services conveniently within the Binance app, with a simple and intuitive design that allows users to navigate and access different NFT functions more efficiently and seamlessly.
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!