Selecting the Right Cryptocurrency for Gifts

With over 27 million cryptocurrencies available by the end of 2025, selecting the right one can be a daunting task. For gifting purposes, especially to someone unfamiliar with crypto, sticking to well-established options is advisable.

Cryptocurrencies like Bitcoin (BTC), Ether (ETH), and those that are highly rated on CoinMarketCap or CoinGecko have the most substantial track records and user bases. They also benefit from broader support by crypto exchanges and wallet applications, simplifying usage for newcomers.

While newer cryptocurrencies might promise quick profits, their price volatility can be challenging for beginners.

Crypto Gift Cards and Vouchers

Since crypto values can fluctuate, consider gifting crypto as a personal gesture rather than expecting financial returns.

Crypto gift cards operate similarly to retail gift cards, representing a specific value of cryptocurrency rather than physical items. Buyers can purchase a card worth a certain sum, like $100, which can then be redeemed for cryptocurrency by the recipient.

This method is particularly suitable for those unfamiliar with wallets or recovery phrases, as the process is straightforward. However, it’s crucial to read the provider’s terms before buying as availability and supported coins differ.

Gifting with Hardware Wallets

If you’re thinking of a more substantial gift intended for long-term asset holding, consider a hardware wallet to minimize certain security risks associated with cryptocurrencies. These devices store private keys offline, significantly reducing the chance of hacks and malware attacks.

You can either preload the wallet with crypto before gifting or give it as is and guide the recipient through the setup process, allowing them to keep the recovery phrase private.

Sending Crypto Plain and Simple

For those who are well-acquainted with crypto, sending funds via an exchange or software wallet could be the most practical method. Ensure the recipient has an active wallet and double-check the address to avoid any errors that may result in irreversible fund loss.

Understanding Risks and Tax Implications

While gifting cryptocurrency is exciting, awareness of its risks is critical. The volatile nature of digital currencies means their value can change significantly. New crypto holders often face risks from phishing and scams, highlighting the importance of keeping their seed phrases secure.

In terms of taxation, laws vary by region. Generally, gifting cryptocurrency isn’t a taxable event unless the value crosses certain annual limits. In the U.S., for instance, gifts below $19,000 for 2025 are typically non-taxable events.

In closing, this article serves as a reminder that while giving crypto can be fun, it’s also essential to approach it responsibly.