Buying gift cards with crypto – all you need to know!
Why should you buy gift cards with crypto?
Although cryptocurrencies have been all the rage for quite some time now, they’re still in the process of further integration, which would make them viable as a payment option for all types of goods, just like fiat money. But it is quite uncertain when we will be able to spend our crypto funds on whatever we want – from clothes to even paying communal bills. However, there is a great way to use your crypto in the real world without dealing with confusing and bureaucratic models imposed by traditional trade institutions. You can now purchase gift cards with Bitcoin or other cryptocurrencies, which could then be used as a payment option for various services and products.
According to a gift card gauge survey by Fiserv, 27% of U.S. consumers plan to spend more on gifts this season compared to the previous year, and 57% of the consumers prefer multivendor gift cards.
It may sound amazing on paper, and it really does live up to the hype, but only when completed in the proper manner. Learning more about the perks of selling crypto for gift cards and the ways you can utilize these vouchers is crucial for making the right decisions when going forward with any trade deals.
We’ve compiled a few of the most significant benefits of using gift cards obtained with crypto assets.
Gift cards enable borderless transfer of value
Whether you work abroad or your family members and friends reside outside of your country, the transfer of money can be unfairly costly for both the sending and the receiving party.
One of the greatest downsides of traditional wire transfers is of course, the amount of money the bank takes away for completing the transaction. The greater the amount of assets, the higher fees. This makes it almost impossible to help out people living abroad financially.
Instead of relying on conventional third parties like banks, one can easily send financial help internationally through gift cards. You can invest as much crypto as you like on gift cards, accepted by businesses you know your friends and family shop from and thus make use of your digital currencies with minimal fees.
There are no tax obligations for buying and sending gift cards
Depending on the policies your local government has regarding crypto, there are different tax obligations. Even when you exchange your BTC or ETH for fiat money, you still have to pay taxes. But whenever you buy gift cards with the mentioned cryptocurrencies, there are no additional rules or taxes.
You simply purchase the desired voucher and send the gift card code via e-mail to the recipient. Both of those actions aren’t supervised or regulated by official authorities.
With that being said, you can freely purchase a gift card in any part of Europe and send it to Brazil without the hassle of currency conversion and unreasonable transaction fees. That way the recipients get a hold of the full value of the assets you sent them.
Purchasing gift cards with crypto is more private
One of the reasons why crypto has received so much attention and support is because it enables a higher level of privacy. Thanks to the nature of the blockchain, the information about crypto transactions and their perpetrators is encrypted.
Also, buying gift cards doesn’t require the provision of personal details such as ID number, which is mandatory for most crypto exchange platforms. All you need is a reliable e-mail address, which is where you’ll receive the gift card code.
Although full anonymity isn’t achieved, no important private data is exposed.
Purchasing gift cards with your crypto is a smart choice for anyone who wishes to take advantage of their assets without a traditional intermediary, which would impose fees and taxes. Our team is an avid supporter of this clever payment method but would still like to shed light on the importance of being well-informed about the proper way to conduct such an exchange of value. In our opinion, it’s best to first try with smaller amounts and, once you get the hang of it, gradually expand your experience.
What we really like about buying gift cards with crypto is that you don`t have to provide any personal information besides an email address, and you get the voucher within seconds.
How to buy gift cards with cryptocurrency?
If you’re interested in utilizing your crypto reasonably, you must know how to buy gift cards with crypto. First and most important is to actually own such digital currencies, which are stored either in your personal crypto wallet or in a reputable exchange platform. The next step is to carefully pick out the right platform that provides such services.
Platforms for buying gift cards with crypto
- Bitrefill – enables you to view all gift cards that can be used in your local area or country. Depending on your location, you’ll be provided with vouchers for different businesses, which could entail a vast array of products and services – from mainstream online marketplaces to indie coffee shops. The platform accepts BTC, ETH, Dogecoin, Tether and Dash.
- CryptoRefills – is available in a greater number of countries and provides gift cards for a myriad of businesses, including Uber, WholeFoods, and even major game development companies like Xbox. You can purchase vouchers with Litecoin, Dai, BTC, USD coin, and other cryptocurrencies. We at Coinlabz enjoyed using Cryptorefills the most compared to the rest. They have a great number of gift cards, the website is super user-friendly and easy to use, and their support was helpful enough to help us with some questions that we had related to redeeming the gift card that we purchased from them (Steam gift card). A nice touch is that you can change the marketplace to show you only merchants that are available in your country, which can help you avoid the unpleasant scenario of buying a gift card that you can`t claim.
- Coingate – this is one of the most popular crypto gift card merchants offering gift cards for pretty much everything – from Entertainment and Restaurants to Health, Music, and Fashion.
- Bitpay – is one of the most well-known applications for buying gift cards with crypto, and as of 2023, it provides vouchers for Google Play, Walmart, Uber, and Hotels.com. Theoretically, you can purchase both your groceries and book a hotel room through this app, which is a great convenience for all people who want to spend their Polygon, Bitcoin Cash, Shiba Inu coin, and other cryptocurrencies. Bitpay is the biggest company of all listed here, with a lot of merchants and organizations directly accepting crypto payments through integration with Bitpay, so we definitely felt in safe hands while testing their services. For example, Bitpay services are used by American Red Cross, Dallas Mavericks (for tickets and merchandise) and American Gold Exchange.
- Paxful – is a popular peer-to-peer exchange where users can sell and buy a variety of gift cards for dozens of different cryptocurrencies. You need to be extra careful since you are buying gift cards from another individual, not from Paxful, so make sure to trade only with verified and highly rated-traders.
What kind of gift cards can I buy with crypto?
The more brands start to offer gift cards, the easier it will be for crypto owners to obtain such vouchers.
One of the most convenient ways to spend your crypto is to purchase gift cards for services you and other people use daily, like subscriptions for streaming platforms (Hulu, Paramount+), premium versions of apps (Tinder, LinkedIn), and periodical magazines and newspapers (The New York Times, Harper’s Bazaar).
Target, Walmart, Kohl’s in the US, Lidl, Rewe, and Tesco in Europe are some of the major supermarket chains that offer their clients gift cards. Thanks to platforms like Coingate, you can now use your digital currencies to buy a shopping voucher for retail stores like Ikea, Barnes & Noble, Michael’s, and Shein.
Gamers will be very pleased to find out that they can also get a hold of gift cards for many of their favorite video games, for example, World of Warcraft, Minecraft, and Fortnite. Video gaming platforms and developers like Roblox, Riot Games, and Nexon offer vouchers, too, which could be obtained with crypto.
Read more on the topic here:
Attending sports games is now more attainable for crypto owners than ever. Going to a concert of your favorite artist or going to the movies is also possible with a gift card bought with a digital currency like Bitcoin.
You can buy a gift card with Bitcoin and order food from a variety of restaurants and delivery services. Burger King, Takeaway, and Menufy are just a few of them.
Coinsbee enables people to purchase credit card vouchers with their cryptocurrency (LTC, ETH, XPR, BTC). These prepaid cards can then be used for shopping both online and in physical stores. Currently, they provide their customers with the following cards: Mastercard, American Express, and Visa.
Prepaid phone cards
You directly buy airtime with cryptocurrency. Brands such as Paxful or Bitrefill are popular for that. The latter supports more than 900 operators in 170 countries and you can not only buy a prepaid phone gift card, but you can also buy eSIM, Data or even pay for Digital Television.
Read more here: https://coinlabz.com/how-to-buy-airtime-with-cryptocurrency/
In summary, purchasing gift cards with cryptocurrency provides crypto enthusiasts with a versatile and secure means to utilize their digital assets for a wide range of everyday expenses. From borderless money transfers to enjoying privacy and freedom from tax obligations, this innovative payment method offers numerous advantages. As the acceptance of cryptocurrencies like Bitcoin, Ethereum, and Dogecoin continues to grow, it underscores the evolving role of digital currencies in our daily lives. This bridge between the digital and physical worlds not only enhances convenience but also opens up new possibilities for making the most of crypto investments, transforming them from mere numbers on a screen into practical tools for everyday financial activities.
Zornitsa is the Editor-in-chief at Coinlabz. She is involved in researching the impact of blockchain technology and the way crypto is transforming peoples’ perceptions of finances.