Keep It as a Spare

You don’t need to give your old Apple Watch a new use immediately; instead, you can keep it as a spare in case your new Apple Watch malfunctions.
Of course, you don’t just put your Apple Watch in a random drawer and hope for the best. Apple recommends several things if you want your old Apple Watch to last.
First, if you plan to keep it stored for more than six months, keep it charged to precisely 50% battery. Not only that but remember to recharge it to 50% every six months.
Apple also recommends that you store it in a cool, dry place. Ideally, it should be in a room with a temperature of less than 90° F (32° C).
Once you have that ready, turn off your Apple Watch and store it for when you need it again.