Bitcoin has had an exciting run, breaking its price record in 2021 before settling back down again. Plus, it serves multiple purposes that other investment vehicles can't: it's a store of value and a medium of exchange, on top of being a great way to diversify a portfolio. For these reasons, Bitcoin makes a perfect gift for your loved ones. As we head into the holiday season, let’s explore some unique ways to gift bitcoins to your family and friends.
- Cryptocurrencies like Bitcoin are a popular holiday gift for people who might be interested in the technology but do not yet have any of their own.
- The easiest way to gift bitcoin is by making a paper wallet, printed with the owner's private and public keys.
- Many exchanges offer digital gift cards that can be redeemed for cryptocurrency.
- Hardware wallets are the most secure way to store cryptocurrency, but they are also fairly expensive.
- Using cryptocurrency requires the utmost attention to security. Never expose your private keys!
Paper Wallets are an easy way to gift bitcoins since it's literally printed on physical paper. The paper wallet contains all the relevant information needed for spending the coins. The public and private keys necessary for making bitcoin transactions are printed on the paper wallet. In addition, a paper wallet usually has a QR code that can be scanned and added to a software wallet to make quick transactions.
Bitcoin gift cards are another easy way to give bitcoins as a present to family and friends. The buyer needs to select the denomination and just fill the order form on online portals such as BitCards. Once the payment is made, the gift card or voucher is mailed to the specified address. The recipient can easily redeem the gift card against bitcoins or trade them on an exchange.
Some cryptocurrency exchanges, like Coinbase or Binance, also offer digital gift cards that are delivered to the recipient's email address. In these cases, the recipient usually has to set up an account with the exchange in order to claim the coins.
Bitcoin keys stored in a device like a USB drive or a hardware bitcoin wallet make a decent way to gift bitcoins as well. The hardware wallets are becoming a preferred choice to secure a wallet in offline mode. They are small devices that are water and virus proof and even support multi-signature transactions. They are convenient for sending and receiving virtual currency, have a micro storage device backup and QR code scan camera. Trezor and Ledger are examples of such a hardware device.
If you choose to give someone bitcoin, make sure that they understand how to store bitcoin safely. One careless mistake can make your gift disappear forever!
Additionally, physical manifestations of these virtual currencies are available, which can be gifted. These belong to the category of collectibles and make aesthetically attractive gifts; Denarium and Casascius coins are the popular ones in this category. These come in brass, silver, and gold and are issued in limited editions. They are beautiful works of art and come with an impressive casing or box. While these are more for the show, they still have very real value. They come with a bitcoin address and a private key underneath the tamper-proof hologram which can be used to redeem the funds.
The Bottom Line
Bitcoins are inherently valuable: the recipient can use them to shop, pay bills or keep to sell later at a higher price. Just like gold and cash, the value of a bitcoin gift is pretty apparent, which means no need to remove price tags. It’s a great gift for someone who has been interested to learn more about bitcoins or perhaps for someone whom you would like to introduce to bitcoins. Happy holiday shopping—the bitcoin way.
Correction—Dec. 2, 2021: A previous version of this article erroneously listed a phishing website.