Gifting an NFT is a fantastic idea, especially for crypto-savvy friends or family members. This can be a great present for their birthday, the holidays, or any other time of year. Continue reading to learn more about NFTs and how you can give one to someone else.
Things to know before gifting NFT
Before you buy NFTs as a gift, please remember that they aren’t for everyone. NFTs can depreciate in value. However, that is just one of the important factors that you must keep in mind. There are in fact other issues that one must consider before gifting NFTs.
- Transaction charges: One must be aware of transaction and gas fees when gifting NFTs. Please note that most of the NFTs are minted on the Ethereum (ETH) blockchain network which incurs high gas fees. Although NFT experts opine that there are ways to reduce high gas fees, there might be other charges that interfere with overall transaction costs.
Apart from transaction charges, there are artist and platform fees to list NFTs which may range between 2% – 12%.
- Copyrights and fraud: NFT copyright laws must be considered before transferring NFT gifts. There are some copyright laws and license issues that the sender must be aware of. For instance, buying an NFT will not get you the copyrights of the same if it is not included in the smart contract. Furthermore, the original creator will always retain copyrights over their creation unless they exclusively transfer it over the sale.
In short, you must understand the copyright laws and be aware of the fraud committed by unscrupulous players to steer clear of problems in the future. Additionally, the buyer must research the NFT creator, the creation (art), and the NFT platform to ensure it is genuine.
- Wallet requirements: The one receiving the NFT gift must possess a wallet; thus the sender must consider wallet requirements before sending the non-fungible tokens. Moreover, having a wallet signifies that the sender is aware of NFT and its value,
In addition to wallet requirements, one must also understand the NFT platforms since some of them do not allow transferring NFTs to other sites. Also, possessing a wallet comes with age restrictions, so if you want to gift an NFT to someone under 18, it might not be possible.
- Environmental issues: Non-fungible tokens possibly come with a sizable carbon footprint. So, it is prudent to understand if the receiver of your gift is concerned about the environment and carbon footprint. However, you can also find a few NFTs that are eco-friendly.
Furthermore, there are platforms that have partnered with energy-efficient blockchain networks that minimize carbon footprint. Therefore, you can look for sustainable platforms that limit energy emissions and gift an NFT from that platform.
- NFT varieties: One essential factor to remember is that every NFT is unique and no two tokens are the same. You can find a wide range of tokens that are video clips, sports moments, digital art, memes, and metaverse lands.
Thus you must consider only those tokens that resonate with the receiver. For instance, there is no point in gifting music NFT to someone who doesn’t enjoy music. Personalization of NFT gifts is a fantastic possibility, to send an appropriate collectible that corresponds to the recipient’s favorite creator or pastime.
These are some of the essential factors that you must consider when sending NFT gifts.
Can you gift an NFT for free?
Yes, you can gift NFTs for free. However, you have to pay some NFT transaction charges. Every transaction on the blockchain incurs a certain amount of transaction charge and gifting an NFT is no exception. The transaction charge depends on the current gas price and demand on the blockchain.
Furthermore, the transaction speed will also affect the charge – for instance, a slow transaction may be inexpensive. It may take up to 15 minutes for a slow transaction to complete whereas, a fast transaction may take just 5 minutes or lesser. Fast transactions are expensive but quickest and the sender must choose the speed and pay the gas fee.
How to gift an NFT?
Gifting NFTs is similar to giving cryptocurrency since both involve the use of blockchain technology. To gift NFT, you must first:
- Select an appropriate collectible
- Have sufficient cryptocurrency to pay transaction fees
- Recipient’s public wallet address
The general steps to gifting an NFT are as follows:
- Select an NFT to send: If you have the NFT in your wallet, first choose the account that contains the NFT you would like to send. Simply select the desired NFT and click Send. However, if you are using an NFT platform, select the collectible you want to send and click on ‘Transfer.’
- Get the recipient’s wallet address: Obtain the correct recipient’s public wallet address and verify the information. Ensure the address is correct as sending the NFT to an incorrect or incompatible address may lead to the loss of NFT.
Begin by obtaining the recipient’s public wallet address and verifying the information. If an NFT is sent to an incorrect or incompatible address, it may be permanently lost. Wallet addresses are distributed in the form of a string of alphanumeric text or a QR code.
- Pay transaction fees: Once the recipient’s public wallet is confirmed and verified, you must pay the transaction charge. The transaction cost is not fixed and depends on factors such as the type of NFT and the speed of the transaction.
Usually, you can choose either a slow transaction or a fast transaction. While the slow option is inexpensive, the fast option is expensive but quickest. Sometimes slower transactions may lead to failed transactions as well.
The transaction may not complete instantly depending on the transaction speed you select. A transfer can take several minutes to complete, so don’t be alarmed if you don’t receive a confirmation notification right away.
- Send the gift and verify the receipt: Double-check all the details and send the selected NFT. Doing so sends the transaction details to the blockchain’s network of computers for confirmation. After sending the gift, you can view and verify the NFT that was transferred through blockchain explorer such as Etherscan.io.
The quickest way to see your most recent transfer is to go to your wallet and select the Activity tab. You’ll find a rundown of your most recent activities here. Choose whatever transaction you want to verify and then click View on Etherscan. This will bring you to The Ethereum Blockchain Explorer, where you may examine all of your Transaction Details, including the current status of your transaction.
If you see a green Success for the status, it means the transaction was completed successfully. Furthermore, if you need to double-check any extra information about your transfer, like the timestamp, fees, recipient address, or value, Etherscan will simply give that information to you.
Overall, NFTs could be excellent holiday gifts that people will remember for years. Purchasing one as a present might be the beginning of your own journey into crypto treasures which might prove to be addictive!
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
Subscribe to UPYO Blog Newsletter to deliver emerging technology updates straight to your inbox.