There are a diverse reasons why you might wish to give cryptocurrency as a present. Maybe you’re otchestrating a surprise party for a family member and have convinced them to invest in your favorite cryptocurrency.
Whatever the reason, sending crypto as a gift is not as difficult as it may seem. So let’s break down the process of sending crypto to help you understand how to get started.
How to Send Crypto as a Gift
If you know someone into crypto or someone you know would appreciate some virtual currency, gifting them crypto can be a little more complicated. Luckily, there are many ways to send cryptocurrency as a gift.
1. As Gift Cards
Gift cards have become a fact of life. Whether it’s for a birthday or the holidays, gift cards are a great way to give someone exactly what they want.
If you’re looking for distinct way to give someone a gift but still want them to have the freedom of choice, then giving cryptocurrency may be the perfect solution. With just a few clicks, you can gift anyone with Bitcoin or any other cryptocurrency.
Here’s how:
- Log in to your hi account or sign up
- Select your preferred Gift Card package.
- Complete the form with your order information.
- Pay with crypto – make sure you have enough BUSD, USDC, or USDT in your flexible account!
- Your Gift Card will be sent out once payment has been received.
2. Via a Crypto Exchange
When you send crypto as a gift, it’s usually known as a “crypto gift card.” Some crypto exchanges like Coinbase have made it possible for users to send crypto to anyone as a gift.
Here’s how to send crypto gift cards on Coinbase.
- Go to your Coinbase account and use the app or website’s gift option.
- Select Send a Gift from the menu on the left side of the screen. You can send up to five different cryptocurrencies to anyone, even if they don’t have a Coinbase account. You only require their email address. You can send any of the cryptocurrencies supported by Coinbase to the receiver if they already have an account.
- Your recipient will be notified with instructions for creating a Coinbase account and redeeming the gift. The gift card will be canceled if the recipient does not create an account within 30 days.
3. Via Cash App
It’s easy enough to gift someone crypto using a cash app. Here’s how to send crypto as a gift on Cash App.
- To begin, you’ll need the person’s Cash App address, which is known as a $CashTag. Now, from the app’s home screen, go to the bitcoin tab.
- Decide on the crypto amount you want to send and the person you want to send it to by tapping the aircraft button.
- You can send bitcoin to someone who doesn’t have a Cash App account by providing their phone number or email address. They’ll get the gift along with instructions for setting up an account and claiming the cryptocurrency. The bitcoin will be returned to your account if the receiver does not register an account within 14 days.
Which Cryptocurrency Would Make a Good Gift?
Cryptocurrency is not as esoteric as it used to be. Many people have started embracing this asset class to transact money online and off. Because of this, some want to send cryptocurrency as a gift.
Here are some of the best options for gifting cryptocurrency:
Bitcoin
Bitcoin is arguably the king of cryptocurrencies. This is probably the first one people will think about when they hear about cryptocurrency regarding name recognition. However, it’s not just based on name recognition alone, but Bitcoin’s technology has stood the test of time over multiple years, and it has retained value.
Bitcoin Cash
This offshoot of Bitcoin was created to make the network more scalable by increasing block sizes. It has proven to be successful in that regard, but another benefit is that its price per coin is much lower than Bitcoin (or other cryptocurrencies), making it ideal for those who don’t have too much or want to spend a lot on a gift but still want to give something special.
Ethereum
This type of cryptocurrency has gained popularity over time because it was created using smart contracts that allow users to create their terms for transactions. One of its main features is that anyone can participate in the network without having any technical knowledge.
Are cryptocurrency gifts taxed?
One of the advantages of using cryptocurrencies as a gift is that they can be transferred without third parties like banks interfering. This makes them a great gift to friends and family. But are crypto gifts taxed?
The answer is yes; crypto gifts are taxed. In most jurisdictions, cryptocurrencies are deemed as property, not currency. That means that crypto is treated the same way as stocks or real estate, which are also taxable when given away as gifts.
When you give cryptocurrency to someone as a gift, you are supposed to establish the current market value at the time you are sending the gift, just like you would if you were giving them stock. You can do this by simply looking up the price at that time on an exchange like Coinbase. If you give someone a $1,000 Bitcoin for a birthday, then its value shoots to $1,500; they will need to pay tax on that $500 profit if it’s not a qualified charitable distribution (QCD).
Send Crypto Gift Cards on Hi.com
Hi.com makes it easier to send anyone crypto as a gift card even if they have little to no knowledge about crypto. You can gift them Bitcoin, Ethereum, HI, and other cryptocurrencies supported by the network. To gift your friends crypto on Hi.com, simply buy a HI Crypto Giftcard using crypto or credit card, then add the recipient’s email address so they can claim it.
To purchase a Crypto Gift Card, go to giftcard.hi.com and complete these three simple steps:
- Select your preferred Gift Card package.
- Complete the form with your order information.
- Make sure you have enough BUSD, USDC, or USDT in your flexible account! You will receive an email confirmation almost instantly with your order details after completing the form. “Confirm” is all you have to say.
- Your Gift Card will be sent out once payment has been received. Please anticipate up to 14 days for a physical Gift Card to arrive if you choose that option.