How to select a cryptocurrency for gifting
With over 27 million cryptocurrencies available as of late 2025, making a selection can be daunting. For a Christmas gift, particularly for someone who is not well-versed in crypto, the safest strategy is to opt for established and reputable options.
There isn’t a one-size-fits-all “best” coin, as cryptocurrencies vary in purpose, maturity, and adoption levels. Cryptocurrencies like Bitcoin (BTC) and Ether (ETH), along with those ranked highly on CoinMarketCap or CoinGecko, typically have the most extensive histories, large communities, and maximum visibility. They are also widely accessible via crypto exchanges and wallet apps, simplifying future management or utilization for new users.
Although some emerging or low-cost cryptocurrencies tout rapid appreciation, they can exhibit sharp fluctuations and may be difficult for newcomers to handle or convert.
Crypto gift cards and vouchers
Cryptocurrency assets are volatile and may decrease in value, so gifting crypto should be seen as a personal gesture rather than a financial investment.
Crypto gift cards and specialized vouchers serve as one of the most user-friendly entry points. They function similarly to traditional gift cards for retail, but instead of representing credit for physical goods, the gift signifies a specific value of cryptocurrency.
The process is simple. A digital code or physical card is purchased for a fixed sum of traditional money, say $100. This card acts as your gift.
The recipient uses the code on the provider’s website or app. At that point, the cash amount is converted into the chosen cryptocurrency, like Bitcoin, at the current market price. The acquired digital asset is then placed into an account associated with the recipient.
This gifting method is ideal for individuals unfamiliar with wallets or recovery phrases, as it avoids complex transaction interfaces. They only need to input a code to receive their digital asset. Availability, supported coins, and redemption processes differ by provider, so it’s wise to read the terms thoroughly before buying.
Gifting crypto via hardware wallets
For a significant, long-term gift, 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 designed for secure storage as they keep private keys entirely offline. These keys are crucial for security since the assets are only controlled by those holding the keys. Because hardware wallet keys never connect to the internet directly, they help minimize vulnerability to hacking and malware.
There are two main methods to use a hardware wallet as a Christmas gift. One is preloading the crypto onto the device beforehand. The other, usually safer option, is to gift the wallet unopened and assist the recipient in setting it up. This ensures that the recovery phrase is known solely to them.
In the event of loss or damage, the recovery phrase (also known as a seed phrase) is the only means to restore the wallet. Whoever possesses that phrase can access the funds.
Hardware wallets vary in features, cost, and supported assets, allowing you to select a wallet that meets your budget and the features you wish to provide, whether they require basic Bitcoin storage or multi-asset support. Some models may come with small screens, passphrase support, and companion apps.
Did you know? Besides cash or gift cards, you can also gift a non-fungible token (NFT), which is a unique digital item secured on the blockchain, turning your gift into a collectible rather than just a monetary asset.
How to give crypto using exchanges and wallets
If the recipient is more knowledgeable about crypto or if a direct money transfer is more suitable, sending tokens through an exchange or a self-custody software wallet is a secure alternative.
Another common approach is transferring cryptocurrency directly to the recipient’s wallet. However, this method requires the recipient to already have a crypto wallet. If the address is entered incorrectly or if the funds are sent on the wrong network, it could result in permanent loss.
To obtain the wallet address, the recipient should open their wallet or crypto exchange account and select the “Receive” or “Deposit” option for the desired cryptocurrency. This will generate a unique public wallet address.
Then, you log into your wallet or exchange, select “Send” or “Withdraw” for that coin, and input the recipient’s address in the destination field. After confirming the amount and checking 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 full gifting amount.
Risks and tax considerations of gifting crypto
Though presenting crypto in any form can be exciting, it’s vital to understand the associated risks and responsibilities.
Core security risks of gifting crypto
The recipient should recognize that the value of cryptocurrencies is highly volatile, and the gifted amount may experience substantial increases or decreases over time. Unlike conventional bank accounts, most crypto setups place the entire security responsibility on the user.
New cryptocurrency holders are often targets of phishing emails and fraudulent links aimed at stealing personal information. The golden rule is straightforward: Never disclose your seed phrase to anyone under any circumstances.
Gifting and tax ramifications
Cryptocurrency tax regulations widely differ depending on the country, and recipients should always seek advice from a local qualified tax expert.
A general principle in many jurisdictions is that simply gifting cryptocurrency or transferring ownership typically is not an immediate taxable event for either party, as long as the value remains under certain annual exclusion limits. In the US, for instance, the threshold per recipient stands at $19,000 for 2025.
The tax obligation usually arises for the recipient upon selling, trading, or disposing of the gifted crypto for a profit. To accurately calculate future gains, the recipient needs to know the original purchase price the giver paid for the asset and the acquisition date. Sharing this information can assist the recipient in understanding how to approach potential tax obligations if they decide to dispose of the asset at a later time.
