How to choose what cryptocurrency to gift
With over 27 million cryptocurrencies available as of late 2025, choosing one can feel overwhelming. For a Christmas gift, especially for someone who barely uses crypto or has never held it before, the most reliable approach is to stick with established and well-known options.
There is no universal “best” coin since cryptocurrencies differ in purpose, age and level of adoption. Cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and those rated highly on CoinMarketCap or CoinGecko typically have the longest track records, the largest communities and the highest visibility. They are also widely supported by crypto exchanges and wallet apps, which makes it easier for a new user to manage or use the funds later.
While some newer or very low-priced cryptocurrencies are marketed with claims of rapid growth, they often fluctuate sharply and can be harder for beginners to manage or convert.
Crypto gift cards and vouchers
Crypto assets are volatile and can lose value, so gifting crypto should be viewed as a personal gesture rather than an expectation of financial gain.
Crypto gift cards and specialized vouchers are one of the most user-friendly entry points. They work much like standard gift cards for a retail store, but instead of credit for physical goods, the gift represents a claim on a specific value of cryptocurrency.
The process is straightforward. A digital code or physical card is bought for a fixed amount of traditional money, $100, for example. This card is your gift.
The recipient takes the code and enters it on the provider’s website or app. At that moment, the cash value is used to buy the chosen cryptocurrency, such as Bitcoin, at the current 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 are not familiar with wallets or recovery phrases and want to avoid complex transaction interfaces. They simply enter a code to receive their digital asset. Availability, supported coins and redemption steps differ by provider, so reading the terms carefully before purchasing is advised.
Gifting crypto through hardware wallets
For a significant gift meant for long-term holding, a hardware wallet can help reduce certain security risks, especially if you want to give a physical item you can wrap.
Hardware wallets are small physical devices used for secure storage because they keep private keys completely offline. These keys play a central role in security since the assets are controlled by whoever holds the key. And because the keys in hardware wallets never come into direct contact with the internet, they help reduce exposure to hacks and malware.
There are two primary ways to use a hardware wallet as a Christmas gift. One is to preload the crypto onto the device yourself. The other, and usually safer, approach is to gift the wallet unopened and guide the recipient through setting it up. This ensures that the recovery phrase is known only to them.
If the device is lost or damaged, the recovery phrase (also known as a seed phrase) is the only method to restore the wallet. Whoever knows that phrase can access the funds.
Hardware wallets vary in features, pricing and supported assets. This means you can choose a wallet that fits your budget and the features you want to give the recipient, whether they need basic Bitcoin storage or multi-asset support. Some models include small screens, passphrase support and companion apps.
Did you know? Aside from money or gift cards, you can give a non-fungible token (NFT), which is a one-of-a-kind digital item secured by the blockchain. It can turn your gift into a unique collector’s item rather than a simple monetary asset.
How to give crypto as a gift using exchanges and wallets
If the gift recipient is more crypto savvy, or if a direct money transfer is more convenient for them, sending tokens through an exchange or a self-custody software wallet is another secure option.
Another popular method is to transfer cryptocurrency directly to the recipient’s wallet. However, for this method to work, the recipient must already have a crypto wallet. Entering the address incorrectly or sending the funds on the wrong network can lead to irreversible loss.
To find the wallet address, the recipient needs to open their wallet or cryptocurrency exchange account and select the “Receive” or “Deposit” option for the chosen cryptocurrency. This will generate a unique public wallet address.
Then you log in to your wallet or exchange, select “Send” or “Withdraw” for that coin and enter 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 choose this method, make sure the address is valid and send a small test transfer before sending the full gift amount.
Risks and tax implications of gifting crypto
While gifting crypto in any form is exciting, knowing the associated risks and responsibilities is essential.
Core security risks of gifting crypto
The recipient should be aware that the value of cryptocurrencies is highly volatile and the amount gifted may rise or fall sharply over time. Unlike a traditional bank account, most crypto setups place the responsibility for security entirely on the user.
New cryptocurrency holders are also frequent targets of phishing emails and fake links designed to steal personal information. The golden rule is simple: Never reveal your seed phrase to anyone for any reason.
Gifting and tax implications
Crypto tax laws vary widely from country to country, and recipients should always consult a local qualified tax professional.
A general principle in many jurisdictions is that simply gifting cryptocurrency, or transferring ownership, is not usually an immediate taxable event for either the giver or the receiver. This applies as long as the value stays below certain annual exclusion limits. In the US, for example, the threshold per recipient is $19,000 for 2025.
The tax obligation usually arises for the recipient when they later sell, trade or dispose of the gifted crypto for a profit. To calculate future gains correctly, the recipient needs to know the original price the giver paid for the asset and the date it was acquired. Sharing this information can help the recipient understand the future tax calculation process if they choose to dispose of the asset later.
