If you’re looking for a special and practical gift, cryptocurrency might be a great option. Currently, more than 29% of Americans own cryptocurrency, and as the world evolves, the adoption of digital cryptocurrencies will become much more common.
People who wish to promote cryptocurrency to others (friends or family) and save a lot of money on taxes may find it to be a nice present. There are several ways you can donate Bitcoin or another cryptocurrency. Let’s examine why it can be more beneficial to donate crypto than credit cards.
- Donating cryptocurrency can yield significant tax savings.
- Compared to fiat transactions, cryptocurrency is remarkably fast.
- Cryptocurrency donations can serve as speculative investments that have the potential to significantly appreciate in value.
Why donate crypto?
One of the biggest goals of the cryptocurrency business is to build a more balanced financial system by enabling low-cost cross-border value transfers that will assist more individuals to join the global economy and pull the unbanked out of poverty.
The following are just a few of the various explanations for why people and businesses donate cryptocurrency worldwide:
- Crypto donations are safe and efficient.
Donating using crypto assets is more secure than doing it with a cheque, credit, or debit card. Due to the high level of security surrounding blockchain transactions, you, your gift, and the organization you are supporting are all protected.
- Donating cryptocurrency increases cryptocurrency adoption.
For cryptocurrency to become widely accepted and used, it has to be supported by regular people and businesses. It’s better for the common goal to share rather than merely HODL. The usage of cryptocurrencies grows in popularity as more organizations begin to accept them. By giving to charitable organizations, you can be confident that they are supporting the cryptocurrency ecosystem and have active cryptocurrency wallets.
- Speed of execution.
Cryptocurrency transactions are tremendously quicker than credit card transactions since credit cards have a drawn-out procedure that can cause transfers to take days or even weeks to complete. A cryptocurrency transaction can be executed quickly and easily from the comfort of your home, unlike fiat transactions that usually call for completing paperwork or even needing to visit a financial institution in person.
- You can donate crypto at any time, every day.
The operating days and hours for banks, credit unions, and stock markets are fixed. Comparatively, crypto markets are open for business every day of the year, 24 hours a day, seven days a week. The only rare “interrupters” that crypto must contend with are power or internet outages, which would also impact any financial institutions.
- Donating crypto can be beneficial once the tax season comes.
Donations made in cryptocurrency are treated like stock donations because the IRS views cryptocurrency as property for tax purposes. Because of this, crypto donors frequently can deduct their donations as charitable contributions while not having to pay capital gains taxes on them.
Crypto donations vs credit card donations
The majority of individuals can donate with a credit card, but some also have access to cryptocurrencies. If you have both, which one should you use? To assist you to decide which of the two donation options is best for you, we will compare donating using credit cards and cryptocurrencies in this section.
- Crypto donation: No Intermediary.
- Credit card donation: Goes through financial middlemen.
- Crypto donation: Cryptocurrency’s public and private keys are extremely hard to hack, although they can be lost or accidentally deleted.
- Credit card donation: Although credit cards and their associated numbers can be stolen or misplaced, the issuer often protects against fraud.
- Crypto donation: Not possible.
- Credit card donation: Possible.
- Crypto donation: Depending on the network, crypto transactions can take up to or less than a minute.
- Credit card donation: Funds can be deposited within one to five business days.
- Crypto donation: Depending on the currency, low or no fees.
- Credit card donation: Depending on donations, 2.2 to 7.5% per transaction.
According to a new Give.org poll, the majority of Americans across all age categories are concerned about their data privacy. Donating cryptocurrency is a great way to keep your donation confidential, unlike credit cards, which expose the donor’s identity.
How to accept crypto donations with NOWPayments?
Prior to accepting donations in cryptocurrency, you must decide which currency you want to use. It’s best to pay attention to factors such as speed, transaction fees, and popularity among your supporters. You’ll need to create a dedicated or multi-currency wallet to hold your funds. There are plenty of options for every popular coin, both custodial and non-custodial, online and offline. Once you have a wallet address, go to the NOWPayments website and create an account using your email address and wallet.
You can begin using the donation tools as soon as your account is created.
- Donation widgets enable you to input your API key and embed the code into your website in order to accept donations.
- Easily add donation buttons in the form of a code to your website, blog, and forum signature.
- Share donation links with people anywhere, including on social media, in case the code doesn’t work.
NOWPayments is also offering custom solutions if none of these options are suitable.
To use one of these tools, for example, creating a donation link, go to your account dashboard. In the menu on the left, open Payment Tools and choose Donations.
Customize your link by picking a name and inputting it in the top field. Choose which fields are shown or required from the donor to make the donation or select none. After completing these simple steps, your link is now operational and available for use.
Just a few years ago, cryptocurrency might have seemed like a passing trend, but the blockchain’s private nature makes it the perfect tool for payments and donations. Cryptocurrency investors are now eager to contribute to a worthy cause while maintaining their privacy and security.
Cryptocurrency can be a part of whatever you need to do on your typical day, whether it’s paying for a coffee, giving to your church, or supporting friends, family, or charities through crypto donations.