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How to Gift Cryptocurrency Ahead of the Holidays | Personal-finance

How to Gift Cryptocurrency Ahead of the Holidays | Personal-finance

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Money has a list of the best crypto wallets of 2021 to help you out.

Gift cryptocurrency FAQ

How can you give Bitcoin or another cryptocurrency as a gift?

As long as you and your recipient are willing to have crypto wallets, you can give cryptocurrency as a gift.

The two common ways to do so are with gift cards that can be redeemed for cryptocurrency or by sending someone the gift via an exchange.

How can you buy cryptocurrency with a gift card?

You can buy cryptocurrency via a gift card with a platform like BitCard, which allows you to add USD to the card and have your recipient redeem the card for cryptocurrency.

Some popular cryptocurrency exchanges, like Binance, also let you design a gift card and include a personalized message right in the app.

Are cryptocurrency gifts taxed?

Your cryptocurrency won’t be taxed as long as it’s below the gift tax allowance, which is $15,000 for 2021.

However, the IRS treats cryptocurrencies like property, so if your gift recipient sells the crypto you give them and makes money on it, that profit is taxable. Crypto is taxed much like stocks so the seller will owe short-term capital gains tax if they held the cryptocurrency for less than a year and long-term capital gains tax if they held it for more than a year.

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