Gifting Crypto in 2025: What’s Easy, What’s Not, and How Burner Fixes It

Gifting cryptocurrency sounds simple—just send some Ethereum or Bitcoin, and you’re done, right? But in practice, it can be surprisingly difficult. Choosing the right method involves questions about wallet addresses, transaction fees, digital asset security, and even potential capital gains taxes.

While this guide focuses on gifting Ethereum, the principles apply to the sharing of any crypto asset. With a robust ecosystem powering everything from decentralized finance (DeFi) to non-fungible tokens (NFTs), Ethereum is the perfect gift for anyone starting their crypto journey. But figuring out how to gift it effectively is where things get tricky.

Whether you’re sending a cryptocurrency gift to a friend or looking for the perfect gift for a crypto-curious relative, there are several ways to go about it: from centralized crypto exchanges and gift cards, to paper wallets, hardware wallets, or peer-to-peer transfers using software wallets or cold storage solutions.

This guide breaks down each major method—highlighting pros, cons, and what makes Burner the easiest, most secure way to gift Ethereum in 2025.

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TL;DR: A side-by-side comparison of crypto gifting methods—their ease of use, security, and what sets Burner apart.

Method	Difficulty	Security	Key Notes
Burner Wallet	Easy	High	Highly secure, gasless gifting (USD II), PIN-secured, no seed phrases or apps, instant self-custody, affordable, stylish form factor. Built for everyday crypto use—not just long-term storage. Physical risk if lost—but easily mitigated with backups.
Crypto Exchanges (CEX)	Moderate	Low–Medium	Easy to buy and send crypto, supports many assets, and offers account recovery—but requires KYC, fees, and offers no real self-custody.
Gift Cards & Gifting Services	Moderate	Low–Medium	Familiar and beginner-friendly, customizable themes, and simple to send—but redemption requires wallet setup, and long-term custody isn't secure.
Peer-to-Peer (P2P)	Moderate	Medium	Offers privacy and control, and is platform-free—but requires wallet setup, crypto know-how, and carries risk of sending to the wrong address.
Traditional Hardware Wallets	Hard	High	Highly secure and ideal for long-term storage, supports many assets, and offers true self-custody—but expensive, complex, and overwhelming for gifting or first-time users.
Paper Wallets	Hard	Low	Fully offline and inexpensive, with creative presentation potential—but fragile, insecure if not generated properly, and not practical for ongoing use.

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1. Cryptocurrency Exchanges

Most people’s crypto journey starts on a centralized cryptocurrency exchange (CEX) like Coinbase, Binance, or Kraken. These platforms make it easy to buy digital currencies like Ethereum with a credit card or bank transfer.

So, is it just as easy to gift crypto through an exchange? Not quite.

How It Works

To send a cryptocurrency gift using a CEX:

• You’ll first need to buy the crypto asset
• Then ask the recipient to set up a wallet (if they don’t already have one)
• And finally, transfer the digital currency to their wallet address

While some exchanges let you transfer crypto to other users within their ecosystem (e.g., Coinbase-to-Coinbase), the process still requires the recipient to create an account, complete KYC (Know Your Customer) verification, and manage their new wallet.

Why Exchanges Are Worth Considering:

• Beginner-Friendly Interface: Most exchanges offer a step-by-step experience for buying and sending digital assets.
• Liquidity and Variety: You can gift Ethereum, Bitcoin, or other popular tokens.
• Account Recovery Options: In case of lost login access, most exchanges provide recovery pathways.

Potential Downsides:

• Not Truly Self-Custodial: You don’t hold the private keys—the exchange does.
• Privacy Concerns: Recipients must share sensitive identity information due to regulatory compliance.
• Multiple Fees: Including trading fees, withdrawal fees, and gas fees.
• Onboarding Friction: First-time users must create an account, verify identity, and potentially link bank accounts just to receive a gift.
• Centralized Exchanges Are Prime Targets: CEXs are high-value targets for hackers, and history shows they’ve been vulnerable to major breaches. For more on this risk and the importance of self-custody, [check out our deep dive into crypto wallet security](https://burner.pro/blog/crypto-wallet-security-mt-gox-metamask-and-more "Crypto Wallet Security: Mt. Gox, MetaMask, and More").

Bottom Line

Exchanges make it easy to buy and send crypto—but not necessarily to gift it. They’re best suited for recipients already comfortable with crypto platforms.

2. Peer-to-Peer (P2P)

The most “pure” way to gift cryptocurrency is via a peer-to-peer (P2P) transfer. You send Ethereum directly from your wallet to the recipient’s wallet address—no platforms, no middlemen, no customer service reps.

This method embodies the decentralized nature of digital currencies but assumes that both sender and receiver are already familiar with how crypto works.

How It Works

• You ask the recipient for their Ethereum wallet address (or generate one for them)
• You send ETH or any ERC-20 token from your own wallet to that address
• The recipient confirms receipt and stores the funds in their software or hardware wallet

Why P2P Is Worth Considering:

• Fully Decentralized: No third-party custodians or centralized platforms.
• Customizable Fees: You control the transaction fee (gas) and transfer amount.
• Privacy-Preserving: No account creation or KYC required.

Potential Downsides:

• High Risk of Error: If you mistype the wallet address, your gift is unrecoverable.
• Not Beginner-Friendly: The recipient must already have or create a wallet and understand how to secure it.
• Gas Fees May Apply: Especially on Ethereum during times of network congestion.

Bottom Line

Peer-to-peer transfers offer control and independence but demand technical know-how—making them better for gifting crypto to experienced users.

3. Paper Wallets

Paper wallets were one of the earliest forms of cold storage in crypto. By generating and printing a private key and public wallet address, you could physically gift someone a digital asset without using an exchange, wallet app, or hardware device.

Today, paper wallets are mostly obsolete—but they’re still used occasionally for short-term crypto gifting or novelty purposes.

How It Works

• Use a secure wallet generator (ideally offline) to create a new wallet address and private key
• Print both onto paper, often in the form of a QR code
• Fund the wallet by sending Ethereum to the public address
• Physically give the paper to the recipient

Why Paper Wallets Are Worth Considering:

• Offline Security: No internet connection means zero risk from online hackers.
• Low Cost: No need to purchase hardware.
• Creative Presentation: You can design a visually cool and personal crypto gift.

Potential Downsides:

• Extremely Fragile: Paper can easily be destroyed, lost, or stolen.
• Manual Import Required: The recipient must input the private key into a digital wallet to access the funds.
• Security Weaknesses: If the wallet was generated online or on a compromised machine, it may already be vulnerable. Some wallet generators have been targeted by malicious actors—making it crucial to use a trusted tool and ideally generate the wallet fully offline.
• Not Ideal for Long-Term Storage: Paper wallets degrade over time and lack modern protections like PINs or encryption.

Bottom Line

Paper wallets are a creative but outdated way to gift cryptocurrency. Use them with caution—and only if you’re sure the recipient knows how to redeem the funds securely.

4. Gift Cards / Gifting Services

Several companies now offer crypto gift cards, letting you send digital currencies like Ethereum as a printable voucher or email-based code. These services are beginner-friendly and feel familiar—like giving an Amazon or Visa gift card.

But crypto gift cards aren’t wallets. They simply act as a temporary storage method until the recipient redeems the code on the platform and moves the assets to a proper crypto wallet.

How It Works

• You buy Ethereum through a gifting platform
• The platform creates a digital or physical gift card
• The recipient must redeem the card on the platform, then transfer the crypto to their own digital wallet

Why Crypto Gift Cards Are Worth Considering:

• Familiar Gifting Experience: Makes crypto more accessible for gift recipients new to digital currencies.
• Customizable Options: Some services let you choose card themes, send via email, or schedule delivery.
• No Wallet Setup Needed (Initially): Recipients can redeem without immediately setting up a wallet.

Potential Downsides:

• Not a Long-Term Storage Solution: Cards can expire, be stolen, or fail to provide true custody.
• Still Requires Wallet Setup Later: Redeemed funds need to be transferred to a secure wallet for safekeeping.
• Hidden Fees: Some platforms charge purchase, redemption, or gas fees.
• Limited Support for Certain Cryptocurrencies: Ethereum and Bitcoin are typically supported—but options vary.

Bottom Line

Crypto gift cards provide a familiar format for giving digital assets, but true self-custody isn’t immediate. Until the recipient redeems the gift and secures it in a personal wallet, the crypto remains exposed to platform risk.

5. Traditional Hardware Wallets

Brands like Ledger and Trezor have made hardware wallets the gold standard for storing crypto securely. These devices store your private keys offline and let you manage transactions without exposing sensitive information to the internet.

They’re built for long-term storage—but gifting one takes a bit of planning.

How It Works

• You purchase a hardware wallet and set it up securely (or leave setup to the recipient)
• Transfer Ethereum to the device
• Physically hand over the wallet, along with instructions

Why Hardware Wallets Are Worth Considering:

• Highly Secure: Private keys never leave the device, shielding crypto from most forms of online attack.
• Multi-Asset Support: Manage Ethereum, Bitcoin, stablecoins, and hundreds of other assets.
• Ownership & Control: Full self-custody—ideal for serious crypto investors.

Potential Downsides:

• Complex Setup: Involves seed phrase backup, firmware updates, and security settings.
• Higher Cost: Hardware wallets can be relatively expensive, with premium models exceeding $150 depending on the brand and features.
• Too Technical for Beginners: Explaining seed phrase recovery and device management may overwhelm first-time users.
• Physical Risk: The wallet can be lost or damaged—especially if not backed up.

Bottom Line

Hardware wallets are excellent for experienced crypto holders, but they’re expensive and complex for gifting—especially to someone just starting out.

6. Burner Wallet

Burner is a modern, affordable hardware wallet built specifically for gifting cryptocurrency—without the usual complexity of setting up a seed phrase, downloading apps, or paying gas fees.

Unlike traditional hardware wallets that overwhelm beginners, Burner is designed for simplicity, style, and security—making it the most accessible way to gift Ethereum and USD II, Burner’s own stablecoin backed 1:1 by U.S. dollar and treasury reserves.

How It Works

• Burner uses a secure NFC-enabled chip to store private keys offline
• You fund the wallet with Ethereum or USD II, then gift the card
• The recipient taps the card with an NFC-enabled phone and accesses the wallet via BurnerOS, a lightweight browser-based platform
• A custom PIN code is used for access—no seed phrase required

Why Burner Wallet Is Worth Considering:

• No Seed Phrases: PIN-based access eliminates confusion and reduces phishing risk.
• Gasless Gifting (with USD II): When gifting USD II, Burner covers gas fees so recipients can use their funds without needing ETH.
• No App Downloads Required: BurnerOS runs in the browser, so there’s no need to install any software.
• Modern Form Factor: Looks and feels like a sleek credit card—portable, stylish, and discreet.
• Affordable: Burner Wallet is priced to make backups and gifting practical.
• Self-Custody: Recipients truly own their crypto—no exchanges, apps, or intermediaries required.

Potential Downsides:

• Ethereum-Only for now: Currently supports the Ethereum and Base networks, not Bitcoin (yet).
• Requires Internet Access: BurnerOS runs in the browser, so a connection is needed to view balances and send funds.
• Physical Risk: Like any hardware wallet, losing the card means losing access—though affordable backups help mitigate that.

Bottom Line

Burner Wallet is the most beginner-friendly way to gift crypto securely. No seed phrases, no confusing setup—just a modern, gasless, tap-to-use Ethereum wallet.

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Final Thoughts

Gifting crypto in 2025 can still feel harder than it should—but with the right tools, it’s easier than ever. Whether you’re sending Ethereum or stablecoins like USD II your options range from complex (hardware wallets) to fragile (paper wallets) to simple and secure (Burner Wallet).

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Additional Considerations When Gifting Cryptocurrency

Gifting cryptocurrency involves more than just sending coins or tokens—it also comes with educational, financial, and legal considerations.

Understanding the Recipient’s Crypto Literacy

• Onboarding Matters: If the recipient is new to crypto, choose a gifting method that eliminates friction (like Burner Wallet or gift cards).
• Education Helps: Consider including a basic guide on how to access, manage, and secure digital assets.

Tax Implications of Crypto Gifts

• Non-Taxable in Most Cases: In the U.S., gifting crypto is generally not a taxable event if it falls under the annual gift tax exclusion.
• Capital Gains Apply Later: Recipients are responsible for taxes if and when they sell the gifted crypto and realize gains.
• Track Fair Market Value: Document the gift’s fair market value at the time of transfer to help determine the original cost basis.
• When in Doubt, Ask: Consult a tax advisor—especially when gifting larger amounts.

Long-Term Value and Volatility

• Crypto Is Volatile: The value of your gift could fluctuate significantly, so it’s important to set expectations with recipients.
• Think Long-Term: Holding the asset for more than a year may qualify the recipient for lower long-term capital gains tax.
• Emphasize Security: Remind recipients to store assets securely and be cautious of high-risk platforms, scams, and phishing attempts.

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FAQ: Gifting Cryptocurrency in 2025

❓ What is the best way to gift Ethereum?

The best way to gift Ethereum in 2025 is with a hardware wallet like Burner. It offers PIN-based security, gasless USD II transfers and swaps, and a beginner-friendly setup—without requiring seed phrases or app installs.

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❓ Are crypto gift cards safe?

Crypto gift cards are convenient but not a secure long-term storage method. They often require redemption on third-party platforms and still rely on the recipient to set up a wallet afterward.

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❓ Can I gift Bitcoin the same way as Ethereum?

Most gifting methods work similarly for Bitcoin and Ethereum, including exchanges, gift cards, and P2P transfers.

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❓ Do I have to pay taxes on gifted cryptocurrency?

In the U.S., gifting crypto is typically not a taxable event if it falls under the annual gift tax exclusion. However, the recipient may owe capital gains tax if they later sell the asset for a profit.

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❓ Is Burner Wallet better than Ledger or Trezor for gifting?

For experienced users, Ledger and Trezor offer deep control—but they require technical setup and seed phrase management. For beginners and gifting use cases, Burner is simpler, more affordable, and easier to use. It also uses the same secure chip technology found in Ledger and Trezor devices, so you’re getting hardware-grade security without the complexity.