Thinking you don’t want to delve into the “deep” waters of crypto transfers yet? Here are some interesting statistics you should think about:
The cryptocurrency market now has a value of over $1 trillion and a user-base of over 100 million. So, quite a number of people are already using it. However, you are right to be cautious about rushing into it.
There are some top dos and don’ts that you should follow to stay safe, compliant with regulations, and make a meaningful impact in the world of crypto donations. Let’s get right into them.
The Dos of Crypto Donations
Confirm the legitimacy of the charity, non-profit, or platform
Do your due diligence to confirm that the organization is a registered one. It should have good reviews and be transparent about fund usage. CryptoDonateNow.org is a great choice because of its reputation and professionalism.
Use of secure and trusted wallets
It is so important that you go with digital wallets or hardware that have strong security. Great examples are Coinbase Wallet, MetaMask, and Trust Wallet. This same precaution applies to desktop wallets. Whatever one you choose should be registered and transparent about the usage of funds. Also remember to enable two-factor authentication. While at it, keep a safe hard copy of your seed phrases.
Confirm wallet addresses before executing transactions
Check and double-check the destination wallet. One wrong character can cause an irreversible loss.
Research tax implications and keep transaction records
One of the advantages of crypto donations is that they can be tax-deductible in many jurisdictions. However, you need to ensure that your donation goes to registered organizations or charities. You also need to save wallet addresses. You never know when you will need transaction IDs and confirmation receipts. These can help ease transparency and reporting.
The Don’ts of Crypto Donations
Don’t take every crypto project at face value
Dig deeper to confirm that there are verifiable impacts from so-called “charity token projects” before you donate. Don’t fall for marketing gimmicks.
Don’t store your wallet details on your device
Saving wallet addresses or seed phrases on devices such as laptops and phones can compromise them. Your devices may be hacked and your funds stolen. Keep a hard copy that only you have access to or that only you can understand.
Don’t ignore transaction fees and conversion costs
While transaction and other fees may be relatively lower compared to traditional banking, you do need to factor them in to understand how much likely gets to the recipient.
Don’t use unstable or little-known tokens
It should be easy to convert the tokens you use for donations. Sticking to popular and liquid assets like BTC, ETH, or USDC makes the conversion process easier for charities.
Don’t forget privacy and data protection
Don’t share private or sensitive data with anyone. This applies to charity organizations.
Keep Being Cautious
Following these dos and don’ts can help you reap the advantages of speed, transparency, and accessibility that crypto donations offer while ensuring that your donations have the greatest impact.
At CryptoDonateNow.org, you can donate wisely. Start your donation here.
Disclosure: This article is part of the CryptoDonateNow paid Contributor Program.
