Selecting a Cryptocurrency Gift
With more than 27 million cryptocurrencies in existence by late 2025, choosing the right one can be daunting. For a Christmas gift, especially for someone who isn’t familiar with crypto or has never owned any, opting for established and popular options is the safest bet.
There’s no definitive “best” coin, as cryptocurrencies vary in purpose, age, and adoption levels. Well-known cryptocurrencies like Bitcoin (BTC), Ether (ETH), and those with top ratings on platforms like CoinMarketCap or CoinGecko generally have the longest histories, broad communities, and high visibility. They’re also widely supported by crypto exchanges and wallet applications, making it simpler for a novice user to manage or utilize the funds later on.
While some newer or lower-priced cryptocurrencies promote rapid growth potential, they often see significant price volatility and can be trickier for beginners to navigate or convert.
Crypto Gift Cards and Vouchers
Given the volatility of crypto assets, gifting cryptocurrency should be considered a personal gesture rather than a financial investment expectation.
Crypto gift cards and specialized vouchers provide a user-friendly entry point. They function similarly to traditional gift cards but represent a claim to a specific value of cryptocurrency instead of credit for tangible goods.
The process is simple. You purchase a digital code or physical card for a set amount of traditional currency, say $100. This card serves as your gift.
The recipient enters the code on the provider’s website or app. At that moment, the cash value is used to purchase the selected cryptocurrency, like Bitcoin, at the market rate. The acquired digital currency is then transferred into an account linked to the recipient.
This gifting method is ideal for those unacquainted with wallets or recovery phrases, as it avoids complicated transaction processes. They just need to enter a code to receive their digital asset. As availability, supported coins, and redemption procedures can vary by provider, it’s wise to thoroughly read the terms before making a purchase.
Gifting Crypto via Hardware Wallets
For a significant gift intended for long-term storage, a hardware wallet can mitigate certain security risks, especially if you want to present a physical item that can be wrapped.
Hardware wallets are compact physical devices designed for secure storage, as they keep private keys completely offline. These keys are crucial for security since asset control lies with the key holder. Because these keys in hardware wallets do not connect to the internet, they significantly reduce exposure to hacking and malware.
There are two main approaches to gifting a hardware wallet for Christmas. One option is to preload the cryptocurrency onto the device yourself. The alternative, often safer option, is to gift the wallet unopened and guide the recipient through the setup process, ensuring that the recovery phrase remains known only to them.
If the device is lost or damaged, the recovery phrase (also known as a seed phrase) is the sole method to recover the wallet. The individual who possesses that phrase can access the funds.
Hardware wallets differ in features, pricing, and supported assets, allowing you to select a wallet that aligns with your budget and the required features for the recipient, whether they need basic Bitcoin storage or multi-asset capabilities. Some models include small screens, passphrase support, and companion applications.
Fun Fact? In addition to money or gift cards, you can gift a non-fungible token (NFT), a unique digital item secured by the blockchain. This can transform your gift into a distinct collector’s item rather than merely a monetary asset.
Giving Crypto as a Gift via Exchanges and Wallets
If the gift recipient possesses more crypto knowledge, or if a direct money transfer is more suitable for them, sending tokens through an exchange or a self-custody software wallet is another secure method.
A commonly used approach is to transfer cryptocurrency directly to the recipient’s wallet. However, this requires the recipient to have an existing crypto wallet. Incorrectly entering the address or sending funds on the wrong network may lead to permanent loss.
To retrieve the wallet address, the recipient must open their wallet or cryptocurrency exchange account and select the “Receive” or “Deposit” option for the desired cryptocurrency, which will generate a unique public wallet address.
Then, you log in to your wallet or exchange, select “Send” or “Withdraw” for that coin, and enter the recipient’s address in the destination field. After confirming the amount and reviewing any network fees, the transaction is sent to the blockchain.
If you opt for this method, ensure the address is accurate and consider sending a small test transfer before sending the complete gift amount.
Risks and Tax Considerations of Gifting Crypto
While giving crypto can be thrilling, it’s crucial to understand the associated risks and responsibilities.
Essential Security Risks of Gifting Crypto
Recipients should be aware that cryptocurrency values can be extremely volatile, and the amount gifted may fluctuate significantly. Unlike a traditional bank account, most crypto setups place the onus of security entirely on the user.
New crypto holders are often prime targets for phishing attempts and fake links aimed at stealing personal information. The main guideline is clear: Never share your seed phrase with anyone for any reason.
Gifting and Tax Considerations
Crypto tax regulations differ greatly depending on the country, and recipients should always consult a local qualified tax advisor.
Generally, in many jurisdictions, merely gifting cryptocurrency—transferring ownership—is not considered an immediate taxable event for either the giver or the receiver, as long as the value remains below certain annual exclusion limits. In the US, for instance, the threshold per recipient is set at $19,000 for 2025.
The tax liability typically arises for the recipient when they later sell, trade, or dispose of the gifted crypto for a profit. To calculate potential gains accurately, the recipient must know the original price the giver paid for the asset and its acquisition date. Sharing this information can aid the recipient in understanding future tax implications if they decide to sell the asset later.
