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What Are Crypto Gift Cards and How Do They Work?

Cryptocurrencies are possibly everywhere today! Investors of all shapes and sizes are flocking in to seize the maximum returns off these digital tokens.

However, it doesn’t hide the fact that cryptos are volatile, and investors have always had their queries concerning the nature of these tokens. This, in turn, has forced many companies to drop the idea and focus only on accepting fiat currencies as a legal tender. 

Being a crypto investor, we understand how disappointing it can become when you can’t use your profits to buy products and services in the real world. 

Interestingly, there’s a simple and hassle-free solution to your situation! Continue reading as we walk you through the single most effortless ways to make the most of your crypto tokens in the real world.

What Are Crypto Gift Cards?       

As the name suggests, crypto gift cards are similar to retail gift cards! A gift token, these cards allow buyers to swap these cards for services worth their current value. 

The entire concept is simple; you get to choose the denomination of cryptos and fill out the form online. Once done, you’ll be receiving a gift card in a digital format or getting it shipped to your address. 

Upon receiving, the recipient can quickly swap these gift cards for cryptos, products, or services of the same value. 

How Does A Crypto Gift Card Works?

Consider your crypto gift card to be a digital wallet preloaded with a said sum of crypto tokens (depending on the token you’ve bought). 

Upon receiving the crypto gift card, you’ll need either a new crypto wallet or your existing desktop or mobile wallet to utilize the QR Code feature. While the choice of wallet is on you, the technique is the same for every type of crypto gift card. 

To initiate the process, you’ll need access to both the keys (public and private) that your crypto gift card comes with. Once you’ve entered the keys correctly, you’ll be able to transfer the pre-loaded tokens to your wallet. 

So that’s a wrap on the what and how of crypto gift cards! Now that you have an idea of using them let’s look at the perks of availing of such an option to liquidate your crypto earnings in the following section. 

Pros Of Crypto Gift Cards

  1. Potential To Increase In Value: We’re all well aware of the volatility surrounding the crypto markets. However, when using gift cards, you’re at a chance of using this volatility to your advantage. For instance, when you buy crypto gift coins using tokens like BTC, you’re at a better chance of increasing the value of your purchased gift card over time. 

However, before you plan to buy a crypto gift card, we suggest you do your own research around the market and use specific tokens to buy them. This way, you can later exchange their value at the current market price later in the future. Given the different crypto options presently available in the market, it’s always wise to first seek technical assistance from experts who analyze the performance of tokens. 

  1. Ease Of Sharing Anywhere Around The World: One of the most excellent perks of crypto gift cards is that they don’t attract any fees to redeem them. Therefore, if you’re buying crypto in the UK and saving it somewhere in Ireland, you won’t be attracting any conversion fees. 

You can also leverage the borderless functionality to transfer payments to your far-off relatives. This saves you taxes and conversion fees, but it is a great way to maintain the anonymity of transactions. 

  1. Seamless Online Shopping Experience: Thanks to the boom, crypto is gradually becoming one of the most prominent offerings among online retailers. Therefore, if you want to present your gift card to an online shopper, it might be the perfect gift for them. 

With crypto gift cards from prominent payment processors like Coingate, the recipient will have better chances of shopping from different brands & companies. The platform brings you thousands of options, ranging from the Flipkart eCommerce store to Starbucks, covering all your gifting needs.  

  1. Acts As A Store Of Value: We’ve all come across moderate-risk investors who like to seize their profits when their investments reach a given target. Interestingly, a crypto gift card could be of use here too!

When exchanging your crypto tokens for a given gift card, you store their current value in those cards. This way, you’ll be better able to lock in your crypto investments at a specific value, no matter how the market moves. 

Buying Gift Cards Using Cryptocurrencies 

Spending your crypto earnings on conventional purchases can be a significant challenge! However, since many businesses are yet to accept cryptos as a legal tender, the idea of using crypto gift cards might just be the perfect solution for you. 

Now that you have all the details around using these tokens to your leverage, we hope you make the most of it. All the best! 

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