Giving a gift to a loved one is one of the most beautiful things in the world. Giving this gift in cryptocurrency is priceless! The fact that these technological currencies were known only by nerds ten years ago but have become a way of life that has been heard by almost everyone today makes cryptocurrency gifts more dazzling!
Remember that cryptocurrencies are more common than ever, and there’s nothing wrong with giving them as gifts! A certain amount of Bitcoin that you will give to your child to pave the way for their first investment experience, or ETH that you will transfer to your loved one to share a work of art on one of the NFT marketplaces are just a few of the new ways of life of the 21st century 🙂
5 Popular Ways to Gift a Cryptocurrency to Your Loved Ones!
It’s pretty good in theory, but we have a few options for you if you ask how we can put it into practice.
Crypto Gift Cards
Some websites are designed to sell cryptocurrency as gift cards. However, the most important point here is how reliable the site you will buy the gift card is. Also, many websites only offer gift cards over the most popular cryptocurrencies, such as ETH and BTC.
Find a website where you can buy one cryptocurrency as a gift card. Make the purchase based on user reviews and various signs that show how trustworthy the site is. Afterward, the website will send you the gift card containing the amount of cryptocurrency you paid and how it should be used.
Binance Gift Cards
One of the most reliable sites for cryptocurrency gift cards is Binance Gift Card, which was launched in 2021. Binance users can gift cryptocurrency to their loved ones by adding messages to the customizable card designs. These gift cards can be received via e-mail or text messages, which requires access to the Binance app.
So, you want to introduce the crypto world to your friends and family but do not know how to? Well, let us clue you in on how things work on Binance!
- First things first, you need to create an account. Thus, visit the Binance’s account-creating web page and have your account.
- Once you are done with the first step, visit here to reach the gift page offered by Binance.
- After the website is good-to-go, there is a “Send a Crypto Gift Card” button appears within an orange box. Click on it.
- As the last step, you are on the page where you are asked to select to coin that you want to gift, the amount required for the exchange, and the coin amount contained in the gift card.
- The rigid code required for accessing the gifted coins will be provided to you via either a text or to-be-sent to you by e-mail.
- After purchasing is done, you can retrieve your gift code, activating the crypto amount once entered by your family, friends, or whoever has the code!
Coinbase Gift Cards
Since Coinbase has a partnership with WeGift, Coinbase users can purchase virtual gift cards using cryptocurrency. Once connecting WeGift with a Coinbase account, anyone can buy gift cards by spending their crypto assets.
However, it should be noted that Coinbase gift cards do not contain cryptocurrencies. Nevertheless, they are spendable at more than 100 retailers.
So, you want your friends and family to meet with the crypto world but do not know how to? Well, let us clue you in on how things work on Coinbase!
- Go to the Coinbase-gifting main page.
- Create an account or log in.
- Click on “Gift Crypto” appearing on the screen.
- Enter the asset and amount you’d like to send.
- Provide the recipient’s e-mail address.
- As for the final step, the e-mail will have been sent to the recipient’s address activating the gift.
Square (Block) Cash App
Cash App, formerly Square Cash, is a mobile application designed to provide a payment service in the UK and USA, enabling users to send money to each other with a 1.5% fee. Although the application is available only in two countries, it has a great user base, resulting in approximately 70 million annual transactions.
While Cashapp was an application that allowed money transfer only with fiat currencies at first, it also enabled peer-to-peer transfer for BTC over the years.
After 2018, users have become able to gift or send BTC to one another as well as allow BTC depositing and withdrawal to another wallet.
What makes CashApp distinguishable from other cryptocurrency exchanges is that coin-trading on Cash App is instant, so no confirmation is required on the blockchain network.
Crypto Exchange Platforms (Sending Crypto as a Gift)
If you want to gift someone a cryptocurrency, you can open an account on a crypto exchange without the need for any intermediaries.
For those who don’t want to go deeper and require a quick tour, here is how it goes:
- Create an account on any crypto exchange that is centralized or decentralized.
- Then pay for the cryptocurrency you want to gift.
- Send the cryptocurrency you purchased to the person’s wallet as a final step.
Generally, if you have opted for a decentralized exchange, you will need to link your wallet to become a member here. For example, you entered Uniswap, where you linked your Metamask wallet from the top right corner. Later, you joined the protocols from which you used your assets to generate various incomes. Then, you can easily transfer your assets by accessing them with your wallet on the platform. Decentralized platforms usually support multiple wallets such as Metamask, WalletConnect, Fortmatic, Binance Chain Wallet, and Trust Wallet.
If you are going to use a centralized exchange, you already trade with the wallet that the platform offers you. From here, you can easily perform transactions by simply entering the receiver wallet ID information. But keep in mind that while subscribing to centralized platforms, you must share a number of personal information within the framework of KYC policies.
Well, we can agree that this method is not that romantic.
Hardware Wallets (Cold Wallets)
Hardware wallets are a storage method preferred by investors who want to store their coin assets in a safer offline world away from the online environment. But why shouldn’t hardware wallets be used for gifts as well?
These USB devices or credit card-like objects, which are very difficult to hack, will keep the crypto assets you will gift safe and secure.
Top 10 Cold Wallets to Gift Someone Crypto
After purchasing the cryptocurrencies you want to gift, you also need to choose the right cold wallet to keep your assets safe and easily perform transactions. In particular, four aspects that you need to pay attention to in this process dominantly come to the fore:
- Convenient accessibility
- Transaction speed
- Coins supported
For this reason, we have listed you the best 10 of the technology wonders cold wallets to contain your gifts, which we think meet the above features!
Ledger Nano S
Connected to your computer via USB, Ledger Nano S has an OLED display and buttons for manual management. Easy to set up and use, this device will keep your gifts tightly guarded thanks to PIN tool protection.
It also increases the variety of crypto you want to gift, as it supports close to 100 various cryptocurrencies, including Bitcoin, Bitcoin Cash, BNB, Litecoin, Ethereum, Zcash, Dogecoin, and ERC20 tokens.
The Ledger Nano S device, which has no hacking issues recorded to date and is highly aesthetic, can be considered a gift to your loved ones!
Ledger Nano X
Ledger Nano X is a more advanced upgraded version of Ledger Nano S with new features such as support for more coins and a Bluetooth connection to the phone.
Nano S supports close to 100 coins, while Nano X supports approximately 2000 coins. Also, while the Bluetooth feature is not available on the Nano S, the Nano X allows connection between the cold wallet device and the phone via Bluetooth.
Ledger Nano X is a cold wallet device that should definitely be on your list when gifting coins, as it offers a reasonable price despite its high quality and has functional features!
A popular and reliable cold wallet device. It supports and stores nearly 30 well-known cryptocurrencies with high trading volumes, such as Bitcoin, Bitcoin Cash, Ether, Litecoin, and Dogecoin.
Keeping importance to the security of the users and the future of their assets, KeepKey offers its users the features of a 12-word recovery phrase and an unlimited number of private keys storage.
One of the most important features that distinguishes the device from other competitors is that it does not have an operating system, providing almost 100% security against a possible compromise.
Trezor Model T
Trezor Model T is a highly functional cold wallet that enhances your portfolio by supporting more than 1000 cryptos and tokens and is easy to use with its touch screen.
In terms of security, it is not inferior to its competitors. Thanks to double authentication and PIN protection for transactions, it’s has a quite reliable aspect.
Another feature that makes the Trezor Model T stand out from its competitors is that it supports exchanges such as Xhangelly and Shapeshift. On top of all these features, if the person you are gifting cryptocurrency to is a stock market lover, this device can be a great gift for the gift receiver!
A cold wallet device born from the combination of minimalist design with maximum security: BitBox02. A device that functions as a plug-and-make-transaction wallet, allowing you to store over 1000 coins such as Bitcoin, Litecoin, and Ethereum.
It is very easy to use with the touch buttons, while the LED indicators make it very minimalist and stylish.
Despite its minimalist structure, BitBox02 never compromises on security and aims to maximize user trust by using two-factor authentication, secret wallets, and backups.
Sooo, maybe this is the cold wallet as a gift?
Coldcard is another easy-to-use and affordable cold wallet. This device, which resembles a small calculator, only supports the Bitcoin blockchain, so it does not support altcoins like the other wallets we mentioned.
However, in addition to this minimal feature, the device comes with an encrypted microSD card slot for backup and data storage. It offers a security chip where you can protect your private key.
As for the design, ColdCard is a cold wallet with calculator-like numeric keypads and a 128×64 OLED display
What makes this device wonderful is that it can function at full capacity without requiring a computer connection, like seed generation and transaction signing.
The Ellipal Titan is a stylish device with an easy-to-use design and interface and a 4-inch touchscreen. However, if we were to describe Ellipal we would call him “revolutionary”, and rest assured it truly deserves the name. Here are a few reasons for this:
- Thanks to its air-gapped technology, it builds an airwall and puts the device in network isolation mode, making it protected against any possible network-based attack. Thus, it becomes uncompromising with any electromagnetic and electrical network.
- Allows you to monitor transactions simultaneously
- It can connect via QR code.
- Thanks to its hardware, it destroys the special pins it has in any attack, but you can still save your assets through seed codes.
As for the supported currency, the wallet supports 33 crypto assets.
Well, seems like a good enough to be gift, what do you think?
SecuX V20 is a comprehensive cold wallet supporting over a thousand cryptocurrencies and tokens, including ERC-20 tokens. It is very easy to use as it has a large and colorful touch screen. The battery in the device allows it to work without a connection.
However, the fact that it works without a connection does not mean that it is disconnected. SecuX V20 can be connected to computers via USB or Bluetooth. Thanks to the Bluetooth feature, you can also connect to your phone.
The security measure that the device promises to its users is the CC EAL5+ certified secure component chip, which has not recorded any SecuX hacking news so far.
The QR code feature of Ellipal Titan is also available for the SecuX V20 to transfer funds easily.
True to its name, the Keystone Pro is indeed a rock-solid device. So much so that it is one of the most reliable cold wallets on the market, both in terms of security and physical durability. Physically, it has a metal frame with military-grade strength, and that’s how it protects its gear. In terms of security, the device is completely isolated, and interacts only with a QR code.
Keystone Pro follows a different path than its equivalent devices for pin keys. It has a metal sheath in which a 24-word rescue pin can be formed.
If you have a very clumsy friend or loved one around, you might want to give them the crypto gift with Keystone Pro 🙂
Safepal S1 is, no doubt to say, one of the most popular cold wallets on the market. It offers support for more than 15 blockchains and allows users to store more than 1000 cryptocurrency.
SafePal is a hardware wallet for crypto investors that can blend secure asset storage, 2FA, and PIN with ultimate high security. At the same time, it really has an MP3 player-like design, as everyone has said. But, despite its surprisingly minimalistic style, it still has a big screen, QR code scanner for connectivity, and wallet navigation pad.
Paper Wallets for Gifting Crypto
Paper wallets are an offline storage method used to protect crypto assets, which do not physically store cryptocurrencies, but the passwords and information necessary to access them.
To have a paper wallet, it is necessary to generate a key from a website (sometimes delivered as a QR code) and print the generated password.
Paper wallets work by this: you are given a single private key and bitcoin address to be printed out onto a paper, granting you the BTC amount you have.
Well, which platforms to use to create a paper wallet? Here they are:
Electrum wallet is a software wallet that is easy and simple to use and only supports Bitcoin. It was very popular, especially until 2016, when Paper Wallets were used extensively.
The working logic is as follows in its simplest form: The software can store its BTC private keys locally without sharing them with third sources. Transactions take place without delay by receiving blockchain information from the server without users having to download the entire blockchain.
Bitcoin Core is a Bitcoin client developed based on Satoshi Nakamoto’s reference code, which has become the most popular of the Bitcoin full node. The software promises to verify that all bitcoin consensus rules are followed.
Bitcoin Core is designed to have RPC required for importing the private keys so that BTC within the papers can be acquired.
How to Redeem The Gifted Crypto by Paper Wallet
A gifted BTC can be redeemed by using a private key via the sweep feature offered by several wallet software to transfer the balance of the paper. Or, the private key can be imported depending on the same logic.
Here below, you can find some of the wallets that will help you to redeem gifted crypto.
After reading these, what you need to do next is to give a lucky cryptocurrency gift recipient without damaging the printed paper 🙂
Physical Coins for Crypto Geeks
A physical coin is a physically-existed token based on a complex design, utilizing a private key to be redeemed.
At first glance, they look almost the same as fiat currencies. However, whereas fiat coins hold a specific value based on their central bank, physically-existed crypto coins’ value derives from a private key printed on their back, which activates the coin’s value on a digital wallet. For example, the BTC physical coin’s value could be 0,0001 BTC, or even 50 BTC, depending on the coin’s creator.
As we said above, each physical coin has its unique value and unique material. While some are made up of gold, others might contain silver. What does not differ is mostly their design. Especially BTC and ETH coins have logos imprinted on the coin’s both sides and a private key required to redeem the amount that the coin has.
We have mentioned two different options if you consider giving your gift as a physical coin:
Denarium is a company that allows people to physically own Bitcoin with coins made with real silver and gold. The company designs different versions of coins, from low-cost to premium physical bitcoin, and both types include BTC amounts inside them.
Every coin designed by Denerium is unique and created and given a soul by graphic artists. Apart from their stylish and artistic aspect, the premium coins are made up of real metals, golden, bronze, and silver.
The Denarium coins might contain from 0.1 to 2 BTC based on the collection.
Casascius physical bitcoins are physically-existed coins containing metal, with a piece of paper involving the digital Bitcoin value. They come in different options: such as 1, 10, and even 1000 BTC increments. The BTC value can be redeemed by using a private key embedded in the coin. However, the sad thing is, they are not purchasable anymore.
Gift Taxation: Are Crypto Gifts Taxed?
Although the Crypto tax varies from country to country, we have good news for America. For 2021, tax breaks apply to cryptos gifted less than $15,000, so you don’t have to worry about giving the crypto to your loved one. However, taxation is required as the gifted amount exceeds $15,000.
Also, the person to whom you gift the crypto may still have to pay taxes in the future, even if they don’t have to pay taxes when they receive the gift. In particular, the person receiving the gift may be subject to taxation based on the amount they want to sell the amount of crypto.
Are cryptocurrencies giftable?
Yes, they are. Via several websites designed to sell cryptocurrency gift cards, you can buy a crypto gift card, which can be redeemed later.
How can I send cryptocurrency to another?
Almost all hot wallet apps and cryptocurrency exchange platforms work the same way to transfer cryptocurrency. After entering the coin and amount you want to go to the recipient’s wallet, all you have to do is press “send.” Just like sending money by entering IBAN in traditional banks 🙂
What is a hardware wallet?
A hardware wallet is used to store crypto assets completely offline, which is safer since it is almost impossible to hack them.
How can I spend a gifted cryptocurrency?
If the cryptocurrency you are gifting is an app/platform coin, you can spend it within the app. Or, you can cash out and spend in real life however you want.
How can I buy a Bitcoin gift card?
You can have a Bitcoin gift card through various websites. One of them is Binance Gift Card.