Want to use a gift card to buy crypto and turn it into a memorable present? This guide explains how to pick a coin, deliver it via a crypto gift card or exchange, safeguard the wallet, and handle basic tax considerations.
Key Takeaways
- A crypto present can act as a speculative asset or as spendable digital cash for online purchases and bills.
- Digital assets are simple to acquire and pass along. Common routes include a crypto gift card, a voucher, or sending from an exchange account.
- After purchase, secure the recovery phrases and keys offline unless the recipient already manages a crypto wallet.
- Gifts under the annual exclusion generally are not taxable; taxation typically arises when the recipient sells and realizes a gain or loss.
Which Cryptocurrency Would Make a Good Gift?
CoinMarketCap publicly tracks active cryptocurrencies, exchanges, and market value. As of 2026, the platform lists a vast universe of tokens, making the choice more challenging than ever.
If you do not have a specific pick, these are common starting points:
- Bitcoin (BTC): Often chosen for name recognition and high liquidity.
- Ethereum (ETH): Widely used for apps, tokens, and on-chain activity.
- Solana: Popular for fast, low-cost transactions.
- Other newer tokens: Prices may look low, but long-term adoption is uncertain.
Because cryptocurrencies are high-risk investments, evaluate options carefully. Research the projects, weigh long-term prospects against current pricing, and factor in what the recipient is most likely to appreciate.
How to Gift Cryptocurrencies
Rising popularity and speculative interest have made buying easier. Here are common ways to hand over a digital asset as a present.
- Crypto gift cards.
- Crypto vouchers.
- Direct transfer from an exchange account.
Gift Cards
Several providers sell crypto gift cards and vouchers. Choose a reputable seller with strong reviews, pick the amount, and check out.
| Provider | Supported Cryptocurrencies | Purchase Methods | Redemption Process |
|---|---|---|---|
| Exchange-issued gift card feature (where offered) | Varies by provider; often Bitcoin and Ethereum | Debit card, bank transfer, or exchange account balance | Redeem a code in an account; funds are credited to a crypto balance |
| Online voucher issuer | Often Bitcoin; some issuers support additional coins | Card payment or bank transfer | Enter the voucher details on the issuer’s site to complete delivery |
| In-store retail gift-card rack (issuer varies) | Usually a single coin or a limited menu | In-store checkout (method depends on the retailer) | Scratch-off or receipt code is redeemed online or in an app |
| Peer-to-peer marketplace trade | Depends on the seller; commonly Bitcoin, Ethereum, and dollar-pegged stablecoins such as Tether | Retailer gift cards or prepaid debit cards | Trade uses in-platform instructions; crypto is released after value is verified |
After payment, you receive a code or card for the selected value. The recipient redeems it on the issuer’s site by entering the details, similar to typical retailer gift cards.
Can you use a standard retailer gift card to buy cryptocurrency? Sometimes, but most regulated exchanges do not let you fund an account directly with closed-loop retailer cards (such as Amazon, iTunes, Steam, or Walmart). Conversions are more commonly done through peer-to-peer marketplaces or third-party services that swap gift card value for cryptocurrency.
Can gift cards be converted to Bitcoin? Yes, in many cases, but typically through a peer-to-peer listing or a service that specializes in gift-card-to-crypto conversions. You usually share the card type and balance, follow the platform’s verification steps, and receive Bitcoin after the card value is confirmed.
Can you buy Tether with a gift card? It depends on the platform and what the seller or issuer supports. Some gift-card-based marketplaces offer stablecoins directly; otherwise, a common route is to buy a widely available asset first and then swap into Tether on an exchange.
Fees can be higher than a standard exchange purchase. Depending on the route, costs may include a markup versus the market price, a service fee, and network fees if you move the crypto off-platform.
Gift-card-to-crypto deals are a common target for scams. Stick to well-known services, follow in-platform redemption steps, and avoid off-platform requests for card codes or screenshots.
Because gift cards are easy to resell and hard to reverse, scammers often push them as payment—so treat any “too-good-to-be-true” rate as a warning sign and use platforms with clear dispute and verification procedures.
Whether you need identity verification varies by provider. Regulated exchanges and many voucher issuers require account setup and identity checks, while peer-to-peer trades can vary by region, transaction size, and the platform’s rules.
Crypto Exchanges
You can also gift assets through an exchange. If you are new, select a trustworthy platform, open an account, add a payment method, and buy the desired cryptocurrency. Then send BTC, ETH, Tether, or another token to the recipient’s wallet address, confirming the transaction details carefully.
Can you buy crypto using a prepaid card? In some cases, yes: certain exchanges accept prepaid debit cards branded Visa or Mastercard, but approval depends on the issuer, the exchange, and local rules. Prepaid cards may have lower limits, higher fees, or be declined if the platform requires the card to be registered to a verified identity.
Storing Cryptocurrencies
Once purchased, choose a secure home for the asset. You can keep it on the purchase platform, but moving it to offline storage reduces hacking risk and strengthens custody.
Paper Wallets
A low-cost offline approach is a paper wallet. You generate private and public keys—often with corresponding scannable codes—and print them, giving you the information needed to access funds and initiate transactions.
Paper can be lost or damaged easily, so treat this as a temporary solution. Transfer the keys to a more durable hardware wallet as soon as practical.
Hardware Wallets
For stronger security, use a hardware wallet. These thumb-drive-like devices store private keys offline, are compact and resilient, and are widely regarded as a top choice for safeguarding access.
Because they remain disconnected, they are far harder to hack than a computer or phone.
- Entry-level hardware wallets.
- Mid-range hardware wallets.
- Premium hardware wallets.
Physical Coins
For a premium touch, some people present metal or plastic coins that conceal a private key, sometimes beneath a holographic seal. These make for impressive keepsakes.
Treat physical coins as novelty or short-term storage only. Move the funds to cold storage promptly and dispose of the coin unless it has intrinsic value as a precious-metal item.
How Are Cryptocurrency Gifts Taxed?
Transferring a crypto gift typically is not taxable by itself if it stays within the annual gift tax exclusion. Tax reporting generally comes into play when the recipient sells and realizes a capital gain or loss, which the Internal Revenue Service classifies accordingly.
Profits on sales within one year are short-term and taxed as ordinary income. Holdings sold after a year qualify for long-term capital gains rates, which are generally lower.
The recipient’s cost basis usually carries over from the donor. For example, if you bought a coin for $100 and the recipient later sells it for $500, the taxable gain is measured from that original $100 basis, assuming standard rules apply.
Capital losses are realized only if the sale price is below both the original purchase price and the fair market value at the time of the gift. If a loss occurs, filers can generally deduct up to $3,000 against ordinary income; married filing separately can typically deduct up to $1,500 each.
Can I Gift Cryptocurrency?
Yes. You can purchase a crypto gift card from participating retailers or buy assets on a regulated exchange and transfer them to the recipient’s wallet address.
How Do You Send Cryptocurrency to Someone?
In most cases, you sign in to your wallet or exchange account, enter the recipient’s wallet address, specify the amount, and confirm the transaction.
How Do I Gift a Crypto Wallet?
A popular choice is a hardware wallet. These compact devices keep keys offline and are widely considered one of the safest ways to store cryptocurrencies.
The Bottom Line
Gifting cryptocurrency can introduce someone to a new form of money while offering upside potential. Make sure your recipient knows how to access the wallet, store recovery details safely, use the asset for payments, and recognize when a taxable event might occur. Consider including simple setup and tax notes with the gift.
