3 facts about crypto gift giving

Look for some facts about crypto gift-giving? Gifting crypto has become an increasingly popular choice for younger generations excited about digital assets. Crypto makes the perfect gift whether someone is looking to invest or spend it. 

And the good news is that giving crypto as a gift isn’t complicated! Check out these three things you need to know about how it works:

3 facts about crypto gift giving

1. Gift cards are one of the easiest ways to give crypto as a gift

Giving crypto as a gift can be done in several ways, but the easiest is through crypto gift cards. This option is best when neither the gifter nor the recipient has their own crypto wallets. 

The gifter will have to first sign up for an account on an exchange that offers gift cards. From there, they just select the coin and the amount they’d like to send. The recipient will receive the card through email, and if they don’t have a wallet already, they’ll be prompted to create an account on the exchange.  

There are some crypto gift card sites where you can buy crypto without creating an account. These will send a voucher code over email that the recipient can redeem for the crypto. But to do this, they will need their own wallet address.

2. You don’t have to pay taxes on your crypto gift as long as it’s below a certain amount

Luckily, crypto gifts are not taxable unless they’re over the $15,000 gift tax allowance. So unless you plan on giving a gift larger than this, you won’t have to pay any taxes. The gift tax allowance increases every few years, so be sure to double-check what it is when giving your gift.

The recipient won’t have to pay taxes until they sell their crypto and realize a capital gain or loss. To help the recipient accurately calculate their taxes, be sure to keep track of how much you spent on the gift and what the crypto’s market value was when you gifted it. 

3. According to a survey from BlockFi, 1 in 10 Americans gave crypto as a gift for the 2021 holiday season

The fact that one in ten Americans chose to give crypto as a gift shows how popular crypto has become and that more people are interested in learning about it. Additionally, the survey found that one in four people planned to purchase crypto at some point in the new year. 

Giving crypto as a gift is an excellent way for someone to start exploring the world of crypto, especially if they’ve been curious about it and expressed a desire to learn more. These facts about crypto gift-giving point towards gifting crypto as a trend that is only likely to keep growing.

The future of crypto gift-giving 

There are many ways someone can make use of their crypto gift, whether they decide to simply “hodl” it, lend it out or stake it to earn some passive income, or just spend it. 

If there’s anyone curious about crypto in your life, giving them crypto as a gift is a great way to introduce them to the world of digital assets and give them some hands-on experience learning more about blockchain technology and the benefits of cryptocurrency.