Got Gen Z on your holiday shopping list?
Gen Z, born generally between the mid-1990s and early 2010s, are currently in their teens to late 20s. As “digital natives,” they readily embrace technology that older generations may find confusing. This year, crypto is on their holiday wish list.
Here’s what a crypto gift might look like and how it happens.
“From the discovery of AI-powered gifts to cryptocurrency as a legitimate gift option, we’re seeing Gen Z and younger millennials drive a fundamental reimagining of commerce,” said Bruce Cundiff, vice president of consumer insights at Visa.
The report found that more than 1 in 4 shoppers (28%) would be excited to receive cryptocurrency as a gift. However, for Gen Z, the point “excited to receive crypto” increased to 45%.
The survey also found that Gen Z is leading the way in other consumer behaviors:
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They are 44% more likely than other age groups to use crypto to pay for purchases.
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More than half (55%) said they would buy from social media platforms.
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They are more likely (71%) to use biometric authentication such as fingerprints or face scans.
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And 60% are more likely to buy gifts from abroad. We’re betting that includes Shein and Rakuten.
But what if Gen Z’s storage is filled with cryptocurrency? What should they do with it?
Read more: What is bitcoin, and how does it work?
So if you received a bit of bitcoin (it’s doubtful that anyone will buy you a “full” bitcoin worth something around $90,000 – but who knows?) or another crypto, what do you do with it?
Remember, crypto is digital, so you will not receive physical currency. What you will loose depends on how the digital currency was delivered. It can be:
From a crypto exchange or broker: In that case, you will receive a statement and instructions. Your bitcoin can be held by the broker or exchange, or in one of these “wallets.”
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In a hot wallet: You have online access, but the code to open your crypto, called a private key, must be stored in a safe place, such as a safe deposit box.
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In a cold wallet: You will have a piece of hardware (or even a piece of paper) that does not have an internet connection. There is no backup, so if you lose your cold wallet, you lose your crypto.
A crypto gift can also come from:
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bitcoin ATM: You may have seen these; they look like typical cash ATMs. You will have a receipt and instructions.
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Crypto exchange traded fund: You are probably looking at a statement paper from an investment firm.
Crypto gift cards they were available a few years ago, but many have been discontinued. However, Coinbase says it will still honor any previously issued gift cards.
Read more: Can you buy crypto with a credit card? See the pros and cons.
Once you have your crypto, you’ll want to decide:
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If you want to buy more. When you get crypto as a gift, it’s someone else’s money they’re playing with. If you buy more cryptocurrency, you’ll want to make sure you’re prepared for crypto volatility.
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Spend it. This will require finding an online or brick-and-mortar merchant that accepts crypto payments.
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Keep it for a long time. Watch that crypto grow. Or not.
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Sell it for fiat currency (old style cash). How you accomplish this will depend on how your crypto is being stored.
Considering all the above options for how someone can receive a crypto gift, that’s also how to buy and gift crypto.
The easiest way to buy crypto as a gift is to use an exchange or one of the crypto-friendly trading platforms. Some of the most popular are Robinhood, Kraken, and Crypto.com.
For example, Kraken offers an app that allows you to buy and send cryptocurrencies.
“Essentially, think Venmo, but with 400 different coins and 400 different crypto assets,” Alex Cassells, communications manager at Kraken, told Yahoo Finance. Cassells says the app lets you buy crypto, like bitcoin, and send it to a recipient as a link to pay.
“You can send it as a message, and then all they have to do is click, verify their account, and then the money [crypto] be in their account. If they don’t, the money doesn’t leave your account, so it just stays with you,” he added.
Read more: How to navigate a crypto meltdown: “Be prepared to hold”