How to decide on which cryptocurrency you should give as a present
With over 27 million cryptocurrencies available at the top of 2025, selecting a cryptocurrency will be overwhelming. For a Christmas gift, especially for somebody who barely uses crypto or has never held crypto before, probably the most reliable approach is to keep on with established and well-known options.
There is not any universal “best” coin as cryptocurrencies vary in purpose, age and level of adoption. Cryptocurrencies comparable to Bitcoin (BTC), Ether (ETH) and people with high rankings on CoinMarketCap or CoinGecko typically have the longest track record, largest communities and highest visibility. They are also widely supported by crypto exchanges and wallet apps, making it easier for a brand new user to oversee or use the funds later.
While some newer or very low-cost cryptocurrencies are marketed with claims of rapid growth, they often fluctuate wildly and will be tougher to oversee or convert for beginners.
Crypto gift cards and vouchers
Crypto assets are volatile and may lose value, so gifting crypto needs to be viewed as a private gesture and never an expectation of economic gain.
Crypto gift cards and special vouchers are probably the most user-friendly entry points. They function similarly to plain retail store gift cards, but as an alternative of a credit towards physical goods, the gift represents a claim to a selected value of cryptocurrency.
The process is easy. A digital code or physical card is purchased for a set amount of traditional money, comparable to $100. This card is your gift.
The recipient receives the code and enters it on the provider's website or app. At that moment, the money value is used to buy the chosen cryptocurrency, comparable to Bitcoin, at the present market rate. The purchased digital currency is then deposited into an associated account created by the recipient.
This crypto gift idea is suitable for people who find themselves unfamiliar with wallets or recovery phrases and wish to avoid complex transaction interfaces. They simply enter a code to receive their digital asset. Availability, supported coins, and redemption steps vary by provider. It is due to this fact beneficial that you just read the terms and conditions rigorously before purchasing.
Gift crypto via hardware wallets
For a big gift that is meant to be stored long-term, a hardware wallet may help reduce certain security risks, especially if you should gift a physical item which you can wrap.
Hardware wallets are small physical devices used for secure storage as they keep private keys completely offline. These keys play a central role in security because the assets are controlled by whoever holds the important thing. And since the keys in hardware wallets never come into direct contact with the web, they assist reduce exposure to hacks and malware.
There are two ways to make use of a hardware wallet as a Christmas gift. One is to preload the crypto onto the device itself. The other, and frequently safer, approach is to gift the wallet unopened and help the recipient set it up. This ensures that the recovery phrase is understood only to them.
If the device is lost or damaged, the recovery phrase (also called seed phrase) is the one method to get well the wallet. Anyone who knows this rate can access the funds.
Hardware wallets vary of their features, prices, and supported assets. This means you’ll be able to select a wallet that matches your budget and the features you should offer the recipient, whether or not they need easy Bitcoin storage or multi-asset support. Some models have small screens, passphrase support, and companion apps.
Did you recognize? In addition to money or gift cards, you may also gift a non-fungible token (NFT), which is a singular digital item secured by the blockchain. It can transform your gift into a singular collectible and not only a mere monetary value.
How to provide away cryptocurrencies using exchanges and wallets
If the recipient is more crypto-savvy or a direct money transfer is more convenient for them, sending tokens via an exchange or self-custody software wallet is one other secure option.
Another popular method is to transfer cryptocurrencies on to the recipient's wallet. However, for this method to work, the recipient must have already got a crypto wallet. Entering the address incorrectly or sending the funds over the fallacious network may end up in an irreversible loss.
To find the wallet address, the recipient must open their wallet or cryptocurrency exchange account and choose the “Receive” or “Deposit” option for the chosen cryptocurrency. This will generate a singular public wallet address.
Then log in to your wallet or exchange, select “Send” or “Withdraw” for that coin, and enter the recipient’s address within the destination field. After confirming the quantity and checking any network fees, the transaction is distributed to the blockchain.
If you select this method, be certain the address is valid and send a small test transfer before transferring your entire gift amount.
Risks and Tax Implications of Gifting Crypto
While it’s exciting to provide away crypto in any form, it will be significant to know the risks and responsibilities involved.
Core Security Risks When Gifting Cryptocurrencies
The recipient needs to be aware that the worth of cryptocurrencies could be very volatile and the gifted amount may rise or fall sharply over time. Unlike a conventional checking account, the responsibility for security in most crypto setups lies entirely with the user.
New cryptocurrency holders are also often the goal of phishing emails and pretend links designed to steal personal information. The golden rule is straightforward: never give your seed phrase to anyone for any reason.
Donation and tax implications
Crypto tax laws vary greatly from country to country and recipients should all the time seek the advice of a certified local tax advisor.
In many jurisdictions, the overall principle is that the mere gift of cryptocurrencies or the transfer of ownership is frequently circuitously taxable to either the donor or the recipient. This applies so long as the worth stays below certain annual exclusion limits. In the United States, for instance, the brink per recipient for 2025 is $19,000.
The tax liability often arises for the recipient if he later sells, trades or sells the gifted cryptocurrency for a profit. In order to appropriately calculate future profits, the recipient must know the unique price the giver paid for the asset and the date on which it was acquired. Sharing this information may help the recipient understand the longer term tax calculation process in the event that they resolve to sell the asset later.
