Selecting a cryptocurrency to gift
With over 27 million cryptocurrencies in existence as of late 2025, making a selection can be daunting. For a Christmas present, particularly for someone unfamiliar with crypto, it’s best to opt for established and reputable options.
There isn’t a single “best” cryptocurrency since each serves different purposes, varies in age, and has different adoption levels. Well-known cryptocurrencies like Bitcoin (BTC) and Ether (ETH), along with those highly rated on platforms like CoinMarketCap or CoinGecko, generally boast the longest histories, largest communities, and most visibility. They are also widely supported by exchanges and wallet applications, making it easier for newcomers to manage or utilize the funds later.
While newer or low-priced cryptocurrencies often advertise rapid growth, they can experience significant volatility and may prove challenging for beginners to manage or convert.
Cryptocurrency gift cards and vouchers
Cryptocurrency values can fluctuate, so consider gifting crypto as a thoughtful gesture rather than a path to financial gain.
Crypto gift cards and vouchers offer a user-friendly entry point into digital currency. They function similarly to standard retail gift cards, but instead of being redeemable for physical goods, they represent a claim to a specific amount of cryptocurrency.
The process is simple. You purchase a digital code or a physical card for a fixed amount, say $100. This card becomes your gift.
The recipient enters the code on the service provider’s website or app. At that point, the cash value is converted into the selected cryptocurrency, like Bitcoin, at the current market rate. The acquired digital currency is then deposited into an account created by the recipient.
This gifting method is ideal for those who are not familiar with wallets or recovery phrases and wish to avoid complex transaction interfaces. They simply input a code to access their digital asset. Availability, supported currencies, and redemption processes may vary by provider, so it’s advisable to read the terms carefully before purchase.
Gifting cryptocurrency via hardware wallets
For a substantial present intended for long-term holding, a hardware wallet can mitigate certain security risks, especially if you prefer to give a physical item that can be wrapped.
Hardware wallets are compact physical devices used for secure storage as they keep private keys offline. These keys are crucial for security since possession of the key allows control over the assets. Because keys in hardware wallets are never exposed to the internet, they reduce vulnerability to hacks and malware.
You can gift a hardware wallet in two main ways: preloading cryptocurrency onto the device or gifting it unopened and letting the recipient set it up themselves. The latter is usually safer, ensuring that the recovery phrase is known only to the recipient.
If the device is lost or damaged, the recovery phrase (commonly referred to as a seed phrase) is the only means to restore access to the wallet. Whoever possesses that phrase can access the funds.
Hardware wallets differ in features, pricing, and supported cryptocurrencies. This allows you to choose a wallet that aligns with your budget and the recipient’s needs, whether they require basic Bitcoin storage or support for multiple assets. Some models include small displays, passphrase options, and companion applications.
Did you know? In addition to cash or gift cards, you can also give a non-fungible token (NFT), which is a unique digital asset secured on the blockchain. This can make your gift more distinctive and collectible rather than merely financial.
How to gift cryptocurrency via exchanges and wallets
If the recipient is more experienced with cryptocurrency, or if a money transfer is more straightforward for them, sending tokens using an exchange or a self-custody software wallet is another secure option.
A common method is to transfer cryptocurrency directly to the recipient’s wallet. However, for this to work, the recipient must have a crypto wallet already. Mistakes in entering the address or sending funds on an incompatible network can result in irreversible loss.
To obtain the wallet address, the recipient must open their wallet or cryptocurrency exchange account and select the “Receive” or “Deposit” option for the chosen cryptocurrency, which will generate a unique public wallet address.
Next, log into your wallet or exchange, select “Send” or “Withdraw” for that specific coin, and input the recipient’s address in the destination field. After confirming the amount and reviewing any network fees, the transaction is processed on the blockchain.
If you opt for this method, ensure the address is correct and consider sending a small test transfer before sending the full gift amount.
Risks and tax considerations of gifting crypto
While gifting cryptocurrency can be exciting, it’s crucial to understand the associated risks and responsibilities.
Key security risks in gifting crypto
Recipients must be aware of the inherent volatility of cryptocurrencies, as their value can rise or fall dramatically. Unlike traditional bank accounts, most crypto systems hold the user solely responsible for security.
New holders of cryptocurrency are often targeted by phishing emails and fraudulent links that aim to steal personal information. The fundamental principle is simple: never disclose your seed phrase to anyone, for any reason.
Tax implications of gifting
Cryptocurrency tax regulations differ significantly worldwide, and recipients should always seek guidance from a local tax professional.
Generally, in many jurisdictions, simply gifting cryptocurrency or transferring ownership is not an immediate taxable event for either party, provided the value remains below certain annual exclusion limits. In the US, for instance, the threshold per recipient is $19,000 for the year 2025.
Typically, the tax obligation arises for the recipient when they sell, trade, or otherwise dispose of the gifted crypto for profit. To accurately calculate future gains, the recipient needs to know the original cost basis and the date of acquisition. Sharing this information can assist the recipient in understanding potential tax implications if they decide to sell the asset later.
