In modern social media, tipping influencers has gained tremendous momentum. X, formerly known as Twitter, stands at the forefront of this digital transformation.
X’s cryptocurrency tips feature is an integrated service that simplifies sending cryptocurrency, including Bitcoin and Ethereum, to your favorite influencers and content creators. This feature lets users securely send cryptocurrency directly to their profiles by adding links to third-party payment services, such as Bitcoin wallets and Lightning Network services.
The introduction of this tipping tool marked a significant development in X’s journey. Initially launched as an exclusive feature for selected users in May 2021, it was made available to a broader user base on September 23, 2021. Furthermore, starting from February 2022, users gained the capability to integrate their Ethereum wallets into their X profiles, enabling them to send Ether as well.
This streamlined approach eliminates the need to share third-party payment usernames through tweets, making the process seamless and user-friendly. As a result, X users can express their support and appreciation easily while also exploring how to tip your favorite influencers.
How Do Tips Work on X?
As of the latest update, Tips on X is exclusively available to Android and iOS users. Unfortunately, web users must wait longer to access this exciting feature.
For those eager to send Bitcoin to fellow users, the process begins with verifying the recipient’s eligibility to receive tips. Eligible users will display a distinctive Tips icon, resembling a fiat bill, alongside the Follow button on their X profile. You can access a comprehensive list of supported payment services by clicking on this icon.
X simplifies the process by seamlessly redirecting you to the third-party payment service you choose, where transactions can be initiated. The array of supported payment services includes popular options like Bitcoin Wallet, Strike (Bitcoin Lightning Network), Bandcamp, Cash App, Chipper, Patreon, Razorpay, Wealthsimple Cash, Venmo, GoFundMe, and PicPay.
It’s important to note that the availability of these services may vary based on the user’s location. Globally, Bitcoin and the Lightning Network options are universally accessible, ensuring a broader reach for cryptocurrency enthusiasts eager to embrace this tipping feature on X.
How to start receiving Bitcoin tips on your Twitter profile
Confirm Eligibility
– Go to your Twitter profile page.
– Click the ‘Edit Profile’ button.
– You can use this feature if you see a ‘Tips’ option.
Activate Tips
– Click on the ‘Tips’ option to activate it.
– Agree to Twitter’s General Tipping Policy to proceed.
Adjust Settings
– You’ll be directed to the settings screen.
– Toggle the ‘Allow tips’ button to activate the feature.
– Choose from the supported third-party services that enable Bitcoin tips.
Add Strike Username or Bitcoin Wallet
– If you prefer Strike, add your Strike username.
– Alternatively, you can enter a Bitcoin wallet address.
By following these steps, a ‘Tips’ icon will automatically appear on your profile, indicating that you are ready to start receiving Bitcoin tips.
Twitter Partners with Strike API for Easy Bitcoin Transactions
Twitter’s collaboration with the Strike API has made sending and receiving Bitcoin via the Strike App a breeze. Currently, this functionality is limited to iOS users worldwide, with upcoming plans for a global rollout.
Twitter has joined forces with the Strike payments gateway, introducing a groundbreaking feature known as the Strike API. This integration allows Twitter users to seamlessly link their Twitter profiles with the Strike app, enabling them to initiate payments directly through their Strike accounts.
The Strike API offers marketplaces and businesses the ability to integrate Bitcoin payments using API keys seamlessly. While some may assume that Bitcoin transfers come with high fees, the Strike API challenges this notion.
Strike leverages the power of both Bitcoin and the Lightning Network, ensuring faster and more cost-effective payments. Just as Twitter revolutionized global communication, making it faster, more affordable, and accessible, the Strike API aspires to do the same for international payments.
Understanding the Lightning Network
The Lightning Network is a secondary payment layer constructed atop the Bitcoin network, designed to facilitate swift and cost-effective transactions. It’s important to note that traditional Bitcoin transactions can take up to an hour to be confirmed on the blockchain.
The Lightning Network offers a solution to this time-consuming process. Users can bypass the delay by conducting instant transactions within the Lightning Network’s interconnected channels. These transactions occur swiftly and efficiently, eventually recording the final state on the Bitcoin blockchain.
Setting Up Tips on Your Twitter Profile Via Lightning Network
- Log in to your Twitter account and visit your profile settings.
- Look for the ‘Tips’ option, initially disabled.
- Review and accept Twitter’s General Tipping Policy when prompted.
- You’ll be redirected to Twitter’s tips settings page.
- Activate the tips feature by toggling the switch and selecting your preferred third-party payment services.
- In the Bitcoin Lightning Network section, provide your payment service username.
- With these steps completed, you’re all set to send and receive payments on Twitter effortlessly.
Understanding Strike
Strike is an innovative app that offers Lightning Network services, enabling users to conduct fast and fee-free Bitcoin transactions. It is a user-friendly payment platform, similar to Cash App and PayPal. Still, with a unique twist—it harnesses Bitcoin’s secondary layer, the Lightning Network, to facilitate seamless cross-border transactions.
One of Strike’s standout features is its commitment to not imposing additional fees on Lightning Network transactions, making it particularly well-suited for micropayments and cost-effective financial interactions.
Sending Bitcoin Tips on Twitter Via Strike
- Start by downloading the Strike app, creating an account, and depositing Bitcoin.
- Visit the Twitter profile of the person you wish to tip.
- Look for the small money icon on their profile and click it.
- Choose the tip amount.
- Click ‘Next’ and optionally include a message.
- Click ‘Open Wallet,’ which will take you to your non-custodial wallet.
- Confirm the payment, and your funds will be swiftly transferred.
Tax Considerations for Twitter Bitcoin Tips
Although Twitter Bitcoin tips offer an appealing way to promote cryptocurrency adoption, it’s crucial to understand the potential tax implications.
If you’ve received a Bitcoin tip on Twitter, you might wonder about its taxation. Existing laws suggest that Bitcoin payments on Twitter could be subject to varying tax treatments, depending on whether you are an average user or a professional content creator.
Receiving Bitcoin Tips as an Average User
When someone gives Bitcoin to another person as an act of genuine generosity, with no expectation of receiving a product or service in return, it is categorized as a gift. Importantly, receiving a Bitcoin gift is not subject to taxation.
Since Bitcoin tips on Twitter are typically given without obligations or expectations, they can reasonably be classified as gifts. In this scenario, your cost basis for the Bitcoin received in tips will likely be equivalent to the coins’ fair market value at the time of receipt. This aligns with the standard approach to taxing cryptocurrency gifts, especially when the original cost basis of the gifted coins is unknown.
Receiving Bitcoin Tips as a Professional Content Creator
For professional content creators, the taxation of Twitter tips can be ambiguous. Historically, content creators have treated ‘tipped’ income from platforms like Twitch as personal income, liable to income tax.
Nevertheless, there is room for debate, as some creators may contend that their followers are providing Twitter tips purely as acts of ‘detached and disinterested generosity’ without anticipating any specific product or service in return.
Sending a Bitcoin Tip to an Average User
When sending Bitcoin tips to most users, these transactions will likely be regarded as gifts. Currently, giving cryptocurrency as a gift is not subject to taxation.
Generally, Bitcoin gifts are exempt from taxes. Nevertheless, it’s essential to note that if the total fair market value of your gifts to a single individual exceeds $15,000 within a calendar year, you must file a gift tax return. Filing this gift tax return is typically a reporting requirement and does not necessarily result in any tax liability; it mainly serves as a tracking measure.
Sending a Bitcoin Tip to a Professional Content Creator
The taxation of sending a Bitcoin tip to a professional content creator remains to be determined. While giving Bitcoin as a gift is generally not subject to taxation, exchanging Bitcoin for goods or services is typically considered a taxable event. In such cases, you may be liable for capital gains taxes.
Sending and Receiving XRP on Twitter: XRPL TipBot Back in Action
Forex Cadet, the creator of the XRPL TipBot xApp, shared an exciting update via Twitter, marking the return of the XRP TipBot to the cryptocurrency community. This tipping service, operating on the XRP Ledger (XRPL), had been temporarily inactive due to Twitter’s policy adjustments that impacted developer access to their API.
Forex Cadet shared his delight over the return of the TipBot, albeit not without some minor challenges. The developer highlighted that Twitter’s changes required certain adjustments to the TipBot, which regrettably took longer than expected to implement fully.
Consequently, users may delay detecting their tweets slightly, but the overall functionality remains unaffected.
Forex Cadet offered a word of caution to users, advising them to remain patient as unforeseen challenges may still emerge. The cryptocurrency community is encouraged to show understanding and patience as the TipBot’s performance stabilizes.
Twitter Joins Forces with eToro for Stock and Crypto Trading
Twitter is entering the world of finance through a collaboration with eToro, a prominent social trading company. This partnership will introduce a novel feature to the Twitter app, enabling users to access stocks, cryptocurrencies, and various financial assets.
Users can view comprehensive market charts and engage in buying and selling activities for stocks and other assets directly through eToro, all within the Twitter platform.
Twitter can access real-time trading data from TradingView for various financial instruments. This includes index funds like the S&P 500 and shares of companies like Tesla. To utilize this feature, users can employ Twitter’s ‘cashtags. The app seamlessly displays price information sourced from TradingView via an API by searching for a specific ticker symbol and adding a dollar sign before it.
Through the collaboration with eToro, Twitter’s cashtags will extend their coverage to encompass a broader spectrum of instruments and asset classes.
Additionally, users will have the convenience of a ‘view on eToro’ button, facilitating a seamless transition to eToro’s platform for buying and selling assets. eToro leverages TradingView as its market data partner, ensuring reliable and comprehensive market information.
Conclusion
X (formerly Twitter) has introduced a groundbreaking feature that allows users to tip their favorite influencers using Bitcoin and other cryptocurrencies. This feature, powered by the Strike API, provides a seamless and secure way to support content creators. Users can activate it, link their preferred payment service, and send tips with just a few clicks.
Supporting your favorite influencers on X is not only a way to express appreciation but also a means to help them continue producing valuable content. The introduction of X’s tipping feature has revolutionized how we engage with content creators, making it easier than ever to show support.
