Giving bitcoin as a gift

The one thing to know first

Whoever has the recovery words (the 12 or 24 backup words a wallet shows you) controls the bitcoin. If you keep a copy, you can still spend it. If they lose theirs, it may be gone for good. Decide up front who will hold the words.

Three ways to give it

Each option below has an honest upside and a catch. For most beginners, option 1 or 2 is best.

Option 1: Send it to a wallet they control

• Good: simple, and it's theirs from day one. They hold the recovery words, not you.
• Watch out: they need a wallet and a working backup first. Ask them to check their backup. Send a small test amount before the rest.

Option 2: Set up a wallet with them

• Good: a hands-on gift. You help them learn, and they write their own recovery words on paper.
• Watch out: let them write the words themselves. Don't keep a copy or take a photo. Plan about an hour together.

Option 2, step by step

1. Sit down together somewhere private, with their phone.
2. Help them install a well-known self-custody wallet app from the official app store (Apple App Store or Google Play), checking the developer's name.
3. Have them tap "create a new wallet" and write the recovery words on paper themselves.
4. Use the app's verify-backup step, if it has one.
5. Send a small test amount from your wallet or buying app to their wallet. Then send the rest.
6. Give them a printed copy of Bitcoin, the simple version to keep with the gift.

Need to buy the bitcoin first? See how to buy, which compares the major US apps (no affiliate links, not a recommendation).

Option 3: A gift card or voucher

• Good: easy to wrap, and they can redeem it later.
• Watch out: the code works like cash. The FTC warns that a gift card's number and PIN let someone take the money even if you still hold the card (FTC). Check the fees first, and know the bitcoin may land in an app account, not a wallet they control. We don't recommend a specific card or voucher.

Safety notes

• Never send recovery words by text, email or photo, even to family.
• Nobody legitimate will ever ask for their words, including support staff. Teach them the common scams.
• Bitcoin's price can rise or fall a lot. Give an amount that won't hurt anyone if it drops.
• Gifts can have tax reporting rules. The US IRS publishes digital asset guidance. This is a general note, not tax advice.

Giving bitcoin to a child

A child can't manage a wallet or an app account alone, so an adult has to hold and manage it for them, including the recovery words. Rules for minors vary by state, country and app, so check the app's terms and ask a professional if you're unsure. This is not legal advice.

One gentle idea: give the bitcoin with a card that explains what it is, and plan to set up their own wallet together when they're old enough.