Bitcoin has had an exciting run, breaking its price record in 2021 before settling back down again. Plus, it serves multiple purposes that other investment vehicles can't: it's a store of value and a medium of exchange, on top of being a great way to diversify a portfolio. For these reasons, Bitcoin makes a perfect gift for your loved ones. As we head into the holiday season, let’s explore some unique ways to gift bitcoins to your family and friends.
Key Takeaways
- Cryptocurrencies like Bitcoin are a popular holiday gift for people who might be interested in the technology but do not yet have any of their own.
- The easiest way to gift bitcoin is by making a paper wallet, printed with the owner's private and public keys.
- Many exchanges offer digital gift cards that can be redeemed for cryptocurrency.
- Hardware wallets are the most secure way to store cryptocurrency, but they are also fairly expensive.
- Using cryptocurrency requires the utmost attention to security. Never expose your private keys!
Paper Wallets
Paper Wallets are an easy way to gift bitcoins since it's literally printed on physical paper. The paper wallet contains all the relevant information needed for spending the coins. The public and private keys necessary for making bitcoin transactions are printed on the paper wallet. In addition, a paper wallet usually has a QR code that can be scanned and added to a software wallet to make quick transactions.
Gift Cards
Bitcoin gift cards are another easy way to give bitcoins as a present to family and friends. The buyer needs to select the denomination and just fill the order form on online portals such as BitCards. Once the payment is made, the gift card or voucher is mailed to the specified address. The recipient can easily redeem the gift card against bitcoins or trade them on an exchange.
Some cryptocurrency exchanges, like Coinbase or Binance, also offer digital gift cards that are delivered to the recipient's email address. In these cases, the recipient usually has to set up an account with the exchange in order to claim the coins.
Hardware Wallet
Bitcoin keys stored in a device like a USB drive or a hardware bitcoin wallet make a decent way to gift bitcoins as well. The hardware wallets are becoming a preferred choice to secure a wallet in offline mode. They are small devices that are water and virus proof and even support multi-signature transactions. They are convenient for sending and receiving virtual currency, have a micro storage device backup and QR code scan camera. Trezorand Ledger are examplesof such a hardware device.
If you choose to give someone bitcoin, make sure that they understand how to store bitcoin safely. One careless mistake can make your gift disappear forever!
Physical Coins
Additionally, physical manifestations of these virtual currencies are available, which can be gifted. These belong to the category of collectibles and make aesthetically attractive gifts;Denarium and Casascius coins are the popular ones in this category. These come in brass, silver, and gold and are issued in limited editions. They are beautiful works of art and come with an impressive casing or box. While these are more for the show, they still have very real value. They come with a bitcoin address and a private key underneath the tamper-proof hologram which can be used to redeem the funds.
The Bottom Line
Bitcoins are inherently valuable: the recipient can use them to shop, pay bills or keep to sell later at a higher price. Just like gold and cash, the value of a bitcoin gift is pretty apparent, which means no need to remove price tags. It’s a great gift for someone who has been interested to learn more about bitcoins or perhaps for someone whom you would like to introduce to bitcoins. Happy holiday shopping—the bitcoin way.
Correction—Dec. 2, 2021: A previous version of this article erroneously listed a phishing website.
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FAQs
Crypto exchanges, like Coinbase or Kraken, are one of the most straightforward ways to gift crypto. You can buy the coins directly from a crypto exchange and send it to the recipient's digital wallet if they have one. Some exchanges even have digital wallets built within the platform.
How do I gift Bitcoin to a friend? ›
Gifting Crypto through an Exchange
The most straightforward way to gift cryptocurrency is through a crypto exchange, such as Coinbase or Robinhood. If you don't hold any crypto, you can easily buy some on one of these crypto exchanges by paying with a credit card. Many exchanges provide a user-friendly interface.
Can I buy Bitcoin as a gift for someone? ›
Yes, cryptocurrency can generally be easily gifted to another person. If the recipient already has a compatible cryptocurrency wallet, then you can simply gift the cryptocurrency to the recipient's existing wallet.
How to physically gift Bitcoin? ›
Purchase a hardware wallet
Hardware wallets can be a bit more complicated to use, but they make for a great gift as they're physical devices that can be wrapped. Hardware wallets can also be a more secure storage method, as they're not accessible online.
How do I send someone Bitcoin? ›
How To Send Bitcoin in 3 Simple Steps
- Retrieve and Enter the Recipient's Bitcoin Address. To send BTC you'll need to have a bitcoin wallet address to send it to. ...
- Enter the Amount of Bitcoin To Transfer. Sending Bitcoin also requires you to specify the amount of BTC that you wish to send. ...
- Confirm and Send Your Bitcoin.
How to create a Bitcoin wallet to gift someone crypto. If the person you want to gift crypto to already has a Bitcoin wallet, and you know the address of this wallet, gifting Bitcoin is easy. You simply need to send the Bitcoin from your own wallet to the address given to you. Done.
Is there a Bitcoin gift card? ›
Is there a Bitcoin gift card? Yes, you may choose to send Bitcoin via Binance Gift Card.
Is Bitcoin a good gift? ›
Gifting BTC works better with people who don't have previous experience with crypto. Otherwise, it will be just a regular crypto transaction without the wow-effect. And, of course, you don't have to give them an entire Bitcoin since it's a bit pricey these days.
How can I buy Bitcoin for someone else? ›
How to Buy Bitcoin and Send it to Someone
- Step 1: Choose a Cryptocurrency Exchange. The first step in buying bitcoin is to choose a reputable cryptocurrency exchange. ...
- Step 2: Deposit Funds. ...
- Step 3: Buy Bitcoin. ...
- Step 4: Send Bitcoin to Someone. ...
- Step 5: Confirm the Transaction. ...
- Step 6: Wait for Confirmation.
Giving a crypto gift
Gifts under $15,000 in crypto: No tax implications for gifter. Gifts above $15,000: Gifter must report gift to the IRS, using Form 709. Gifts above $15,000 count toward to a lifetime gift exemption of $11.7 million ($12.06 million in 2022)
Because you generally need an account with a crypto exchange to buy or sell cryptocurrencies, it's hard to gift crypto to kids until they're over 18. It is possible to both gift crypto or transfer crypto to a child — it's just a fairly involved process. Open a crypto wallet for your kid and modernize their investments.
How much money do you put in a wallet as a gift? ›
Not sure how much money to include inside? Many cultures, such as certain communities in India or those who practice Judaism, believe that odd numbers are luckier than even numbers, meaning that slipping $101 into the wallet instead of $100 would be more favorable.
Can someone give you a Bitcoin? ›
Receiving Bitcoin. To receive bitcoin, simply provide the sender with your Bitcoin address, which you can find in your Bitcoin wallet. Use the multichain Bitcoin.com Wallet app, trusted by millions to safely and easily send, receive, buy, sell, trade, use, and manage Bitcoin and the most popular cryptocurrencies.
How much does it cost to send bitcoin to someone? ›
Bitcoin Average Transaction Fee is at a current level of 0.8671, down from 0.9205 yesterday and down from 1.586 one year ago. This is a change of -5.80% from yesterday and -45.31% from one year ago.
What happens when you send bitcoin to someone? ›
Creating a Transaction: When you send bitcoin, you create a transaction from your digital wallet. This transaction includes the sender's address (public key), the recipient's address (public key), the amount of Bitcoin to be sent, and a transaction fee that you're willing to pay to the miners.
How do I send bitcoin to family? ›
Sending and Receiving Bitcoin
- Navigate to Cash App payment pad.
- Tap the USD toggle and select BTC.
- Enter at least $1 and tap Pay.
- Find your recipient's $cashtag, current phone number, or email address.
- Tap Pay.
To send bitcoins with confidence, first obtain a Bitcoin wallet. Next, acquire the recipient's public address and choose an amount to send. Look over the transaction details, then hit 'Send'.
Is sending Bitcoin to a friend taxable? ›
Is sending Bitcoin to someone else taxable? Sending BTC to another person may or may not be considered a taxable event depending on the circ*mstances. While sending crypto as a gift is not taxable in most cases, sending BTC in exchange for goods or services is subject to tax.
Can I buy Bitcoin and send it to someone else? ›
To send bitcoin to another individual, you will need their bitcoin address. This is a unique string of letters and numbers that serves as their wallet identifier. Simply enter their address in the designated field on the exchange, along with the amount of bitcoin you wish to send.
Can I send Bitcoin to someone without a wallet? ›
To send or receive bitcoin, a user will need to have a wallet.
