How to Gift Bitcoin

This page provides instructions on gifting bitcoin using the cards available in our shop.

These cards are ideal when you want to gift small amounts which do not justify purchasing an expensive hardware wallet or setting up an account on a crypto exchange. For larger amounts, however, it is strongly recommended to gift Bitcoin via a secure hardware wallet such as the Ledger Nano X.

Step 1: Generate a New Wallet

The first step is to securely generate a new Bitcoin wallet for the recipient. Bitcoin wallets have two main components:

  • A public address that is used to receive and view funds, and

  • A private key that is used to control the funds

To make this step as easy as possible, a simple wallet generation tool was created that you can run while offline. Right click on the following link and click Save As…, save it to your local machine, and then open it in your browser: Bitcoin Wallet Generator

Follow the tool directions to generate a 12 word secret passphrase and then carefully write the words into the paper card, paying attention to the order of the words and spelling. This passphrase represents the private key.

Step 2: Fund the New Wallet

The final step is to fund the new wallet by sending Bitcoin from your preferred crypto exchange or wallet to the public address of the new wallet. You can verify the wallet’s new balance by visiting a site like Cointracker.

FAQ

What is Bitcoin and why should I gift it?

Bitcoin is a type of digital money that you can send directly to someone without needing a bank. People often call it “digital gold” because there’s only a limited amount of it, and it can grow in value over time. Gifting Bitcoin is a fun and unique way to share a glimpse of the future of money and help someone start their journey with this exciting technology.

How do I gift Bitcoin using the card?

Our Bitcoin gift card includes a placeholder for a BIP39 passphrase, which is the key to accessing the gifted Bitcoin. Here’s how it works:

• Purchase Bitcoin using your preferred exchange or wallet.

• Use the instructions provided create and fund a new wallet for the recipient

• Write the passphrase in the card’s placeholder and gift it to the recipient

Is it safe to gift Bitcoin with this card?

Yes, our cards are designed with safety in mind. The included instructions guide you on how to securely manage and store the BIP39 passphrase, ensuring only the recipient can access the Bitcoin. Remember, the passphrase is the key to the Bitcoin wallet. If it’s lost or stolen, the Bitcoin cannot be recovered.

Do I need to set up an account on a Bitcoin exchange to use this card?

No. The card is compatible with any hardware or software wallet that supports the BIP39 and BIP84 standards.

What should the recipient do with their Bitcoin card and passphrase?

It depends upon the recipient. If the person already owns Bitcoin they can import the passphrase into a software/hardware wallet of their choice. If the person is brand new to Bitcoin, they can simply hang onto the card until they are ready to store it more permanently in a software/hardware wallet. Just be sure to store it in a safe place, not online. This includes avoiding taking pictures of the passphrase.

Wouldn’t a hardware wallet be more secure?

Yes, hardware wallets are a great choice when gifting a sum of money that exceeds the cost of the hardware wallet. These Bitcoin cards are ideal when gifting smaller amounts where the cost of a hardware would be >= the amount being gifted.

Why not use an exchange to gift Bitcoin?

Exchanges such as Coinbase do support gifting Bitcoin via creating a new account. If gifting to an adult this can be a good option. When gifting to children this approach can create a burden on the parents to manage.

What if the recipient doesn’t know anything about Bitcoin?

Our gift card includes simple instructions for redeeming Bitcoin and learning the basics. We’ve also made the process beginner-friendly, so even someone new to Bitcoin can easily access and understand their gift.

Can the Bitcoin gift be redeemed immediately?

Yes! Once the recipient has the passphrase and follows the instructions, they can access the Bitcoin right away.

What happens if the card is lost?

The most important part of the gift is the BIP39 passphrase written on the card. If the card and the passphrase are lost, the Bitcoin cannot be recovered. Encourage the recipient to store the passphrase securely after receiving the gift (but not online).

Is there a fee for using the gift card?

There are no additional fees from us for using the card.

How much Bitcoin should I gift?

The amount is entirely up to you! Bitcoin is divisible into smaller units called satoshis, so you can gift any amount, from a few dollars’ worth to more significant sums.

Can I buy Bitcoin directly on this site?

No, Source Code Studios doesn’t sell Bitcoin. You can use popular exchanges like Coinbase a Bitcoin wallet app to purchase Bitcoin and load it onto the new wallet.

How do I ensure the Bitcoin stays safe long-term?

We recommend the recipient transfer the gifted Bitcoin to their own secure wallet as soon as possible. The instructions on the card guide the recipient on how to do this.

What happens if the price of Bitcoin changes after I gift it?

Bitcoin prices can be volatile. The value of the Bitcoin you gift may increase or decrease over time. This is a normal part of owning Bitcoin, and many people see it as an opportunity for long-term growth.

Does the recipient need to worry about taxes?

The recipient won’t need to worry about taxes until they sell or spend their Bitcoin, where they will be responsible for reporting any gains/losses.