What is a Bitcoin Gift Card, and How to Buy Them

    0
    37
    What is a Bitcoin Gift Card

    When it is the holiday season and time to give something meaningful to your friends or family members, we can’t seem to find a useful offering. Fortunately, bitcoin gift cards are here, like Amazon gift cards or Starbucks gift cards that no one will refuse to accept. Moreover, you can gift them to anyone regardless of gender and location without having to go out shopping. But the real deal is, how to buy bitcoin gift cards?

    What are Cryptocurrency Gift Cards?

    These days, people like to accept gift cards more than clothes or jewelry, and in that case, bitcoin or ethereum gift cards make a great deal. Cryptocurrency gift cards are usually available on cryptocurrency exchange platforms and anywhere where they trade cryptos. These gift cards are like any retail gift cards except, this time, instead of buying them with cash or fiat money, you use bitcoins. Some exchange platforms need you to buy the crypto coins of your choice and then turn them into gift cards. For example, you visit the Robinhood exchange platform, and you find them offering 10BTC, 50BTC, 100BTC gift cards. You buy 10BTC with your fiat currency from Robinhood, and then you buy that 10BTC gift card with that amount. Then when you meet your newly married friend, you gift him that gift card. However, before you gift someone a crypto gift card, you need to make sure that the person is familiar with cryptocurrencies and has a crypto wallet.

    If your friend does not know how to use and store bitcoins, then gifting them a bitcoin gift card won’t be useful. Other than Robinhood, you can buy bitcoin gift cards from Coinbase and Binance.

    Should You Gift Bitcoin Gift Cards to Your Friends or Family?

    Whatever exchange you buy the bitcoin gift card from, you need to make sure that the recipient has an account on the same platform. For example, you visit Coinbase, log in to your account, purchase a gift card of your preferred cryptocurrency, provide them with the email address of the beneficiary, and you send the gift. But now what? If your friend does not have a Coinbase account, he will have to create one to redeem the card. It’s like an Amazon gift card; you can only redeem it with your Amazon account and use that money to buy something from Amazon.

    This is a new way these crypto exchange platforms are gaining their user base by offering the users to purchase gift cards. Also, once a gift card has been redeemed, the person can pay the merchants or anyone using the same gift card. And that merchant also needs to have an account on the same exchange where the gift card was purchased from. Even though gifting bitcoin gift cards is a nice thing for crypto-enthusiasts, is it a safe idea to purchase gift cards? Let’s see.

    Is it Safe to Gift Bitcoin Gift Cards?

    Bitcoin gift cards don’t have any safety issues within themselves, but the uncertainty is with the price fluctuation of cryptocurrencies. As a bitcoin owner, you might already know that the price of a single bitcoin has changed tremendously in the last year. One time, it was trading at a $30,000 market cap, and the next minute, it went to a whopping $65,000 in November 2021. Even though you can make a lot of money when the bitcoin’s price rate is high, it is also just as easy to lose money. So, when you are purchasing bitcoin gift cards during the Thanksgiving season, they might lose their value when the holiday is over. So, we always recommend you to buy a small amount of bitcoin or any other cryptocurrency regardless of whether you are purchasing them as a gift or not. Also, note that, once you make a purchase, unlike other forms of money, you cannot reverse the transaction. So, think twice before purchasing a bitcoin gift card. But you can also gift NFT tokens that replace bitcoins sometimes.

    Is Gifting NFTs a Smart Idea?

    NFTs have been serving as a smart holiday gift for more than a few years. NFTs are non-fungible tokens that are irreplaceable and represent the value of a unique product or item. We obviously gift music pieces of art to our friends and families, and NFTs do serve the same purpose. NFTs represent a single unique product. For example, you want to gift The Weeping Woman (Pablo Picasso’s art) to your friend, and its value is 1NFT. You purchase 1NFT with bitcoin or any other form of money and gift it to your friend. Now, your friend can’t purchase a smartphone with that NFT because it already represents the value of The Weeping Woman. However, purchasing NFT gift cards is not as easy as purchasing bitcoin gift cards. This is true because NFTs are mostly sold on the ethereum blockchain, where the transaction fees are high, and buying the NFT token will be surprisingly costly. That’s why many people opt for purchasing bitcoin gift cards which are easy to store as well.

    How to Buy Crypto Gift Cards?

    Buying a crypto gift card is simple. Just follow the steps from this section, in case you have a doubt.

    Step 1: Visit Coinbase or any exchange that offers bitcoin gift cards; make sure the recipient also has an account on the same exchange.

    Step 2: Buy the number of bitcoins you want to gift with your fiat currency or other cryptocurrencies.

    Step 3: Buy the gift card and enter the email address of the recipient.

    Or you can gift them paper wallets with a set of unique public and private keys that secure the gift card. The public key is the bank account number, and the private key is a unique PIN that acts as a password. But paper wallets also have a QR code that the recipient can scan on the exchange platform to redeem the money.

    What are Paper Wallets?

    Paper wallets are bitcoin gift cards, except they come in the form of physical paper instead of being delivered to the email inbox. These paper wallets come with all the information required about spending the bitcoin balance. The paper wallet also contains the public and private keys and a QR code that is needed for a safe bitcoin transaction. To buy a paper wallet, the buyer can visit a website that sells it and then take its printout to send it as a gift. But anyone who gets access to the QR code will be able to get all the bitcoins in the paper wallet. So, if this option does not seem safe to you, you can opt for hardware wallets.

    What are Hardware Wallets?

    Hardware wallets are where you store your bitcoins in physical storage. These wallets are accessed by your computer because they appear like a USB drive. Hardware wallets are preferred over paper wallets or offline wallets to secure bitcoins or any kind of cryptocurrencies. These wallets support multi-signature transactions and are typically not affected by viruses and water. Hardware bitcoin wallets also have a QR code scanner and micro storage device backup in case anything goes wrong.

    Paper and hardware wallets are a great gift to a crypto-enthusiast who does not have the access to a crypto exchange or online account. But you can also manifest these digital currencies into physical wallets and send them as gifts. When it comes to physical currencies, Denarium and Casascius are the most popular ones. These coins are made with silver, gold, and brass metals and come in limited editions. These coins look beautiful and also have a real value and come with a public and private key that you can use to redeem their funds online from exchange platforms.

    Conclusion

    If you buy gift cards from Coinbase, you can also cancel their transaction anytime until the recipient redeems the fund. But if the person does not claim the gift, it will be automatically canceled within 30 days. That’s what you need to tell the person before you send them the gift card. Some crypto exchange platforms even have a smaller duration, like 14 days for redeeming the coins like the Cash App. Once this period is over, that bitcoin will be credited to your account. But if you don’t want to gift bitcoin gift cards, then wallets are great alternatives.