Selecting the Right Cryptocurrency to Gift
With more than 27 million cryptocurrencies available as of late 2025, making a choice can be daunting. For holiday gifts, especially for those new to crypto, it’s best to opt for established and reputable options.
There isn’t a universal “best” coin since cryptocurrencies vary in their functions, ages, and adoption levels. Coins like Bitcoin (BTC) and Ether (ETH), as well as those that rank highly on CoinMarketCap or CoinGecko, typically boast the most solid histories, robust communities, and high visibility. They also have broad support from crypto exchanges and wallet applications, simplifying fund management for newcomers.
Some newer or lower-priced cryptocurrencies might tout the potential for rapid growth, but they are often highly volatile and can be cumbersome for beginners to handle or convert.
Crypto Gift Cards and Vouchers
Given the volatility of crypto assets, gifting them should be seen as a thoughtful gesture rather than an expectation of financial gain.
Crypto gift cards and specialized vouchers serve as a user-friendly introduction. Similar to standard retail gift cards, they represent a claim to a certain value of cryptocurrency instead of physical goods.
The process is simple. A digital code or physical card is purchased for a set amount of traditional currency—say, $100. This card is your gift.
The recipient redeems the code on the service provider’s website or app. The cash value is then used to buy the selected cryptocurrency, like Bitcoin, at the current market rate, and the acquired digital currency is deposited into an account created by the recipient.
This gifting option is ideal for those unfamiliar with wallets or recovery phrases, as they only need to enter a code to receive their digital asset. Availability, supported coins, and redemption processes vary by provider, so it’s wise to read the terms carefully before purchasing.
Gifting Cryptocurrency via Hardware Wallets
For a meaningful gift intended for long-term storage, a hardware wallet can mitigate certain security risks, especially if you’re looking to present a tangible item.
Hardware wallets are compact physical devices designed for secure storage, keeping private keys completely offline. These keys are crucial for security since the assets are controlled by the individual in possession of the key. Because these keys never connect to the internet, they significantly lower the risk of hacks and malware.
You can use a hardware wallet in one of two ways as a Christmas gift: preload the cryptocurrency onto the device yourself or gift the unopened wallet and guide the recipient through the setup process. The latter ensures the recovery phrase is known only by them.
If the device gets lost or damaged, the recovery phrase (also known as a seed phrase) is the sole method for restoring the wallet. Anyone who knows that phrase has access to the funds.
Hardware wallets come with a variety of features, prices, and supported assets, allowing you to select one that fits your budget and the necessary functionality for the recipient, whether they require basic Bitcoin storage or support for multiple assets. Some models even include small screens, passphrase options, and companion applications.
Did you know? Beyond cash or gift cards, you can also gift a non-fungible token (NFT), which is a unique digital item secured by the blockchain, transforming your gift into a distinctive collector’s piece instead of just a monetary asset.
How to Gift Cryptocurrency via Exchanges and Wallets
If the recipient is more knowledgeable about crypto or prefers a direct money transfer, sending tokens through an exchange or self-custody software wallet is another reliable choice.
A popular method is to directly transfer cryptocurrency to the recipient’s wallet. Note that this requires the recipient to possess a crypto wallet. Incorrectly entering the address or sending funds on an incompatible network can lead to irreversible losses.
The recipient must access their wallet or cryptocurrency exchange account, selecting the “Receive” or “Deposit” option for the desired cryptocurrency to find their wallet address. This action generates a unique public wallet address.
Next, you log in to your wallet or exchange, select “Send” or “Withdraw” for the designated coin, and enter the recipient’s address. After confirming the amount and reviewing any network fees, the transaction is submitted to the blockchain.
If you opt for this method, ensure the address is correct and consider sending a small test transfer before proceeding with the full gift amount.
Risks and Tax Implications of Gifting Cryptocurrency
While giving crypto is exciting, it’s crucial to understand the associated risks and responsibilities.
Key Security Risks of Gifting Crypto
Recipients should recognize the high volatility of cryptocurrency values; the amount gifted may fluctuate dramatically over time. Unlike traditional bank accounts, most crypto setups place the onus of security squarely on the user.
New cryptocurrency owners are often targets for phishing attacks and fake links intended to steal personal information. The golden rule remains: Never disclose your seed phrase to anyone for any reason.
Gifting and Tax Considerations
Crypto tax laws vary significantly across different countries, and recipients should always consult a local qualified tax expert.
A general principle in many jurisdictions is that merely gifting cryptocurrency does not usually trigger immediate tax obligations for either the giver or the receiver, provided the value remains below certain annual exclusion limits. For example, in the US, the annual threshold is $19,000 per recipient for 2025.
Typically, the tax responsibility arises for the recipient when they sell, trade, or otherwise dispose of the gifted crypto for profit. To calculate future profits accurately, the recipient should know the original purchase price the giver paid for the asset and the acquisition date. Sharing this information can aid the recipient in understanding the future tax implications should they decide to liquidate the asset.
