If you’re looking to surprise your family or friends this holiday season with something truly unique—beyond the usual sweaters, gadgets, or a bottle of wine—why not think outside the box? Consider gifting cryptocurrencies. It’s a surprising and meaningful gift that opens the door to an entirely new financial world.

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Key takeaways

• Crypto gifts are more than just a present—they’re an introduction to an exciting financial world. 
• From direct wallet transfers to preloaded hardware wallets, crypto gift cards, or collectible physical coins, there’s a gifting option for everyone. 
• In many places, like the U.S., gifting crypto isn’t taxed unless you exceed specific thresholds. But it’s not just about the coins—it’s about introducing someone to a new perspective on money, making the experience fun and meaningful.

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Why gift crypto for the holidays?

Picture this: instead of a gift they might forget, you’re handing over something with real worth and potential to grow in value and possibly open doors to new opportunities. Plus, it’s a chance to inspire curiosity and spark conversations about blockchain technology and possible use cases away from conventional ways. 

Whether you’re a crypto pro who has watched the industry grow from the Satoshi era or just getting started yourself, there are simple and creative ways to make this a memorable gift. 

How to gift crypto in 4 ways

1. Direct wallet transfer

A wallet-to-wallet transfer is the most straightforward way to gift crypto. It’s like sending money, but you’re sending crypto straight into their wallet instead of cash. 

The catch?

 They’ll need a wallet set up, as you can’t create one for them. If they don’t have a wallet yet, this could be an excellent opportunity for you to show them how to set one up.

Sure, it might feel a little techy at first, but once you get the hang of it, you’ll see how simple it really is. But don’t worry—once you know how you’ll wonder why you didn’t start sooner.

2. Purchasing a hardware wallet

Are you looking for the wow factor? 

If yes, a hardware wallet is the way to go. These sleek devices securely store crypto offline. The best part? You can preload it with Bitcoin, Ethereum, or another favorite token. It’s like handing someone a modern treasure chest, complete with the treasure inside!

It’s a gift with layers—first, the cool factor of the device itself, and second, the potential for their crypto to grow in value. It’s the perfect blend of tangible and digital—a sort of modern treasure chest packed with future potential.

3. Giving crypto gift cards

Are you looking for a more straightforward option? 

Crypto gift cards are the way to go. These are vouchers that you can buy online and give to the recipient. There is no need to worry about wallet addresses, transfers, or any of the complexities of crypto. It’s an easy, beginner-friendly option for anyone new to crypto. Think of it as giving a store a gift card, but this one lets them shop for crypto.

4. Giving physical crypto coins

Physical crypto coins are a unique twist on the usual digital assets. They’re like collectible keepsakes that represent real cryptocurrency. These metal coins usually come with a QR code or private key that can be scanned to access their crypto. The cool part? The person you gift it to can redeem the crypto later, making it a fun and tangible way to give digital money.

These coins merge the best of both worlds—traditional gifting and the excitement of the digital age. Not only do they look cool, but they also spark interesting conversations about crypto and tech. It’s a gift that’s sure to stand out and be remembered!

Types of crypto to gift

Now that you know how to gift crypto, what should you gift? There are tons of options, but here are a few that are always popular:

1. Bitcoin (BTC)

 Bitcoin is the most recognized cryptocurrency. It’s widely accepted and has proven itself over time. If you’re looking to introduce someone to crypto, Bitcoin is like giving them a ticket to the future of finance.

2. Ethereum (ETH)

 Ethereum isn’t just another cryptocurrency—it’s the backbone for decentralized apps and smart contracts. Do you know someone curious about the tech side of crypto? Ethereum might be the way to go. As a versatile platform, it opens up a world of possibilities, especially in decentralized finance (DeFi).

3. Dogecoin (DOGE)

 The meme coin that went mainstream is all about fun. It’s affordable and always a conversation starter—perfect for someone dipping their toes into crypto for the first time.

4. Stablecoins (USDT or USDC)

If you’re concerned about crypto’s ups and downs, stablecoins like USDT or USDC are a great choice. They’re tied to the value of a traditional currency, like the US dollar, making them stable and practical—almost like giving someone digital cash they can use.

5. Other rising crypto

 Feeling adventurous? Solana (SOL) and Polkadot (DOT) are exciting newer options with tons of potential. Sure, they’re riskier, but they could be a fun way to help someone get in on the ground floor of something big.

Are crypto gifts taxed?

No, cryptocurrency gifts are not taxed at the time of gifting in many jurisdictions, including the United States, as long as the value does not exceed certain thresholds (e.g., $17,000 per recipient in 2023). 

The good news? The recipient doesn’t owe taxes when they receive crypto—only when they sell or use it later; they will be responsible for reporting any gains when they eventually sell or dispose of the cryptocurrency. 

More than just coins

Gifting crypto isn’t just about the coins—it’s about sharing a new way of thinking about money. Whether you go with a wallet transfer, a hardware wallet, or a crypto gift card, the experience can be a fun learning moment for you and the recipient. Plus, it’s a unique and thoughtful gift that can last long after the holidays are over.

And don’t forget—if you’re looking to save even more, gift cards might be your best bet for an easy, no-hassle way to get started with gifting crypto.

Happy gifting!

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Important Note: Paxful does not provide investment, tax, or legal advice, and you are solely responsible for determining whether any financial transaction strategy or related transaction is appropriate for you based on your personal investment objectives, economic circumstances, and risk tolerance. Paxful may provide information including but not limited to blog posts, articles, podcasts, tutorials, and videos. The information contained therein does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the content as such. Paxful does not recommend that any digital asset should be bought, earned, sold, lent out, or held by you, and will not be held responsible for the decisions you make to buy, sell, trade, lend, or hold digital assets based on the information provided by us.