Ways to Give Crypto as a Gift

There are several different ways to give crypto as a gift. Below I explain two of them and the advantage and disadvantages of each:

 

Gift Crypto Using a Paper Wallet

A paper wallet is exactly what it sounds like, a piece of paper that contains the information needed to access cryptocurrency.

 

Like cash, you can transfer the funds associated with the paper just by giving it to someone else. I’ll explain why this is the case as we get into the process.

The advantages of a paper wallet are: 

• A paper wallet is tangible and it’s always nice to give someone a physical object.
• Crypto can be transferred just by handing the wallet to another person.
• It is generally considered to be a secure way to store small amounts of crypto. If you are giving a large gift (say $500+), I wouldn’t recommend a paper wallet. I’ll shortly be writing a series of articles on what to do in that case.
• It is easy for the recipient to store a paper wallet. To increase security, it can be put into a safe or kept in a safety deposit box.

The disadvantages are:

• Paper wallet generators may not create the most secure private keys.
• Paper can be destroyed easily.
• If the wallet is destroyed or lost, the crypto is lost with it unless you have a copy.

get started – Gift Crypto using a paper wallet

 

Gift Crypto Using a Software Wallet

Software wallets are, as the name implies, software that you install on your computer that holds your private and public keys. Through the magic of crypto, they can be created by one person and easily transferred to another, making them an ideal way to gift.

The advantages of a software wallet are:

• They can be generated online.
• The private key is created from a series of words called a seed or recovery phrase and is usually very secure.
• They can be installed on multiple devices in case one device fails.

Disadvantages of a software wallet include:

• If your device is hacked, someone could gain access to your wallet and empty it.
• You still need to store your seed phrase/recovery phrase somewhere secure.

get started – Gift Crypto using a Software wallet

 

Other Ways to Gift Crypto

There are other ways to gift crypto using pre-paid cards and hardware wallets. I’ll be adding sections on each of those options in the future. But for most, I recommend the paper or software wallet route.