How To Exchange Gift Cards For Bitcoin
Now that weve outlined the best way to get a hold of some cheap gift cards, its time to exchange them for some Bitcoin. The best way to trade your gift cards for Bitcoin is through the use of what is known as a peer to peer marketplace.
LocalBitcoins and Paxful are the two most popular peer to peer Bitcoin marketplaces. Both of these sites work in the same way, however LocalBitcoins seems to have a larger community, we recommend you check them out before using Paxful.
After making an account on your marketplace of choice, you will need to find someone willing to accept gift cards as a payment method. Finding a seller that accepts gift cards is easy, both LocalBitcoins and Paxful allow you to search by payment method. Simply select gift cards as a filter when making a search and you will be shown a list of sellers that are looking for gift cards in exchange for Bitcoin.
As this is a peer to peer platform each individual seller sets their own price. Its also important to note that sellers will have a reputation on the site, its important to read what other users have to say about each seller in order to help you find someone who is reliable.
Once you have found a reliable seller, you need to start a trade. As soon as a trade is initiated the sellers Bitcoin will immediately be debited and placed into escrow. After the sellers Bitcoin is with the escrow service, you need to provide them with your gift card information.
How Are Cryptocurrency Gifts Taxed
Giving cryptocurrency to loved ones is usually not a taxable event. Unless the transfer exceeds the gift tax allowance, the Internal Revenue Service only needs to be alerted when the asset is eventually sold by the recipient and a capital gain or loss is realized.
If the recipient sells the gift within one year at a profit, they will have made a “short-term capital gain,” which is taxed as ordinary income. Beyond that date, it becomes a long-term gain, which is taxedat lower capital gains rates.
The size of the gain is determined by how much you, the donor, paid. In other words, if a coin was bought for $100 and then sold five years later for $500, the recipient of the gift would be taxed on a $400 profit.
Make sure you record how much you paid for the gift as well as how much it was worth when you transferred it. Without this information, the recipient will have to recognize a $0 cost basis, increasing their tax expenses.
Losses, which can be used as deductions on the investor’s tax return, work slightly differently. A capital loss is only registered if the asset is sold for less than both what it was initially bought for and its fair market value when it was gifted. If a loss of that magnitude occurs, the IRS will take the lower of the two amounts into account.
Buy Bitcoin With Gift Card Instantly
If you have extra gift cards that you do not need them, you can turn them into bitcoin today simply buy BTC with a gift card instantly. Although there are many online providers where you can convert gift cards to bitcoin, only a few of them will give you a fair amount of crypto for your gift card. The problem is that you will get a meager amount of bitcoins for your dollar card value. It depends on which provider you choose, but quite often you will get only 50% of bitcoins of your gift card value. In order to sell your gift card, you will have to trade bitcoins on a person-to-person platform.
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How To Convert Your Amazon Gift Cards Into Bitcoin
If youre looking to trade your Amazon gift cards for bitcoin, then peer-to-peer marketplaces are the way to go. Its easier to trade on these platforms and there are platforms like Paxful that specialize in trading gift cards. Each platform has a different process when it comes to trading. As an example, lets use Paxfuls trading process.
Choosing The Best Offers
Selecting the proper offer is one of the easiest parts of trading gift cards for bitcoins, but its also one of the riskiest. There are two parts to choosing the best offer: being able to filter the scammers out and selecting the best deals concerning pricing.
The trick to minimizing risks depends on the platform you decide to trade on. The risks are something that every trader should be aware of. These risks include the code being ripped from your gift card and sellers being unresponsive. These can cause an incredible hassle on your trading experience, especially if youre new to cryptocurrency trading. Each platform has different tips and tricks when it comes to minimizing these risks. These tips and tricks can usually be found on the support pages of each platform .
For the actual deals themselves, you will ideally want to look for an offer where you can get more bitcoins with your currency. Along with that, youll want to look for a seller that is responsive so that theyll be able to release the bitcoins at once.
Read Also: How To Add Visa Gift Card To Amazon Account
How To Sell Gift Cards For Cryptocurrency
The first thing youve got to do is check on those old gift cards. What kind of balance do they have left? Have they expired?
Most gift cards have a very long expiration date. That said, weve all stumbled upon an ancient gift card of ours and wondered whether it could still be used. In a lot of cases, youve surpassed that 5-year expiration, and nothing can be done.
If youve still got some value on those things, though, you have a number of options to work with.
The first is a gift card exchange kiosk.
Get Bitcoin At Paxful
This platform is very similar to Localbitcoins, described above. Buy a gift card with cash at your local drugstore and exchange it here for instant bitcoin. At Paxful you buy bitcoin directly from other people.
Browse the offers for gift cards and start a trade to begin. Compared to Localbitcoins rates for your gift card are lower here, but many more offers are listed.
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Why Gift Cards And What Is The Procedure For Using A Bitcoin Gift Card
Now the question you can have in mind is whether it is safe? Yes! You have the option of using payment systems that are well over risk-free. So, to buy gift card with bitcoin has become a hassle-free task nowadays!
After purchasing or getting a Cryptovoucher card, customers can quickly redeem the amount. You can go to the Crypto Voucher website. After selecting Redeem, then enter the card number and your email address.
They will now be given the card’s financial value and asked to choose which bitcoin they will want to receive. After that, all users have to do is type over their digital wallet and press Enter. That’s all there is to it.
How To Buy Gift Cards With Bitcoin
Time needed: 4 minutes.
Buying a gift card to shop with Bitcoin is secure and easy. Just follow these simple steps.
After selecting the country you will see the product categories that are available in this area.
Just select the brand you want to shop for, e.g. Amazon or Walmart. Then you will see the packages that are available for this product. Click on the amount you would like to purchase.
Select the cryptocurrency you wish to use to pay for your purchase. For example Bitcoin or Litecoin. Then check if the right package is selected.
Insert your email and tick the box to accept the Terms and Conditions. Click on proceed to payment. .
Send the exact amount of crypto to the address displayed and follow the instructions. It is important you send exactly the amount displayed.
You will receive the gift card in your mail. The email will contain the instructions on how to redeeem your giftcard.Attention: Please do not forget to check your spam folder in your email.
Also Check: How To Redeem Home Depot Gift Card Online
Can I Purchase Bitcoin Anonymously Using A Visa Gift Card
In most cases, when you purchase your VISA gift card, there is no requirement to provide the merchant with any identification. In this sense, you can purchase the card anonymously. However, when you try to convert that card into cryptocurrency, it gets tricky as LocalBitcoins and Paxful have very low limits an unverified user can trade on their platform before their mandatory KYC process triggers meaning that you can buy bitcoin anonymously using a VISA gift card but only in very small amounts.
How are regular people making returns of as much as 27,144% in a year?
Setting Up Your Visa Gift Card
Every VISA gift card has a number on the sticker on the front. To activate ones card using their phone, they must verify the cards account number and card verification number by entering it into their keypad.
If there is no sticker on the card, dial the number on the back of the card. That is the customer service number. On calling this number, users follow the necessary button prompts to activate their VISA gift card.
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Get Btc For Your Gift Card At Localcryptos
This platform is very similar to LocalBitcoins & Paxful, however, this is a non-custodial P2P marketplace, meaning people buy and sell crypto on their own terms, using various payment methods. LocalCryptos is a peer-to-peer marketplace where people exchange crypto with each other.
Unlike other P2P marketplaces, LocalCryptos keeps you in charge. They dont invade your privacy, and they dont touch your funds. Hackers have stolen several billion dollars from centralized crypto services. LocalCryptos takes a different approach. They cut a platform risk by putting you in control of your wallet. When trading on LocalCryptos, only you know your private key they never take custody of your coins. There are many gift cards accepted: Amazon, Vanilla, Zelle, iTunes, and others.
- If you just want to try bitcoin or want to buy bitcoin in a small quantity, buying it with a gift card is an easy way to do. For larger amounts this is a pricey option.
- If you want to stay anonymous while buying coins, buying bitcoins with a gift card is a great way to do as you can buy gift cards in any local shop keeping your identity safe.
How To Buy Bitcoin With Prepaid Card
If youre interested in how to buy Bitcoin with prepaid card, then you will be glad to know that many platforms who accept Visa and Mastercard offer this option. Bitcoin Revolution claims to help ordinary people to enter the crypto market through crypto automated trading.
Prepaid cards are different from debit cards, as they are not linked to your checking accounts. Prepaid cards allow you to buy goods or services with money that you loaded on the card beforehand.
Moreover, prepaid cards have recently been used as a method to buy Bitcoin. In this article, we will show you how and where you can buy Bitcoin with prepaid card.
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Convert Gift Card To Bitcoin At Localbitcoins
A popular platform to sell your gift card for bitcoin is LocalBitcoins. You need to find a trader that is going to accept your gift card and send you cryptocurrency. Currently, there are offers for Amazon gift cards, eBay, Target, Walmart, and Visa gift cards, from time to time also offers for Apple store gift cards, Starbucks, Amazon, and similar get listed.
It is not that easy to understand how much you will get for your gift card at LocalBitcoins. Check the nominated price in bitcoin, and you will see how much crypto you can get for your card. For example, the seller displays the price per bitcoin at 10.000$. It means that you will get 0.01 bitcoin for your 100$ gift card. But let say that the current bitcoin rate is 5.000$ and with 100$ in cash you could buy 0.02 bitcoin. It means you only got 50% of your card value in bitcoin.
Top 17 Firms That Let You Exchange Gift Cards For Bitcoin
The invention of cryptocurrency has completely simplified the way we buy and sell goods and services on online.
To crown it all, gift cards have made accessibility to funds easier from any part of the world.
These two means arent like the fiat currencies, theyve proven to be more effective and faster than traditional money.
For instance, the most valuable digital asset bitcoin is expected to reach an all-time high before the end of 2020 in cryptocurrency predictions released in June this year.
That said, here are the top 17 companies that let you buy cryptocurrency using gift card
- Crypto Voucher
Of all the platforms listed above, Gift Card Traders in Nigeria include Legitcards, Pamcoins, and Sandycards.
Ways To Turn Bitcoins Into Gift Cards
If only everything were available for purchase in Bitcoin. Oh, wait, it is.
If only everything were available for purchase in Bitcoin.
Oh, wait, it is.
The companies Gyft, eGifter, and newly-rebranded Gift Off stand out in the crypto-for-gift card space:
Fees Or Diminished Value
One thing to note is that you might not get the exact value of your gift card. Depending on the kiosk or company that you use, you might see that you get a particular percentage of the full value.
You can explore your options to see if theres an option that doesnt take any value out. Were going to look at a few of those options in the next section, so hold tight.
Its also important to recognize that companies who deal in these gift cards have to take only cards that theyll be able to sell again. If your gift card is from a very small store in your town, odds are that it wont be accepted by a bitcoin ATM or kiosk.
Websites that exchange gift cards wont have much interest either. Only gift cards from relatively large companies tend to be accepted.
Amazon gift cards, Walmart gift cards, and cards from other big names should only be used when trading gift cards for bitcoin. If you want to buy bitcoin with gift cards and you know youll be getting lots of gift cards as gifts, simply ask for Walmart or Amazon gift cards.
That way, the giver will feel like theyre getting you what you want and you can use the money however youd like to.
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Want To Learn More About Bitcoin
Apple, the Apple logo, iPhone, and iPad are trademarks of Apple Inc., registered in the U.S. and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.
The merchants represented are not sponsors of Gyft or otherwise affiliated with Gyft. The logos and other identifying marks attached are trademarks of and owned by each represented company and/or its affiliates. Please visit each companys website for additional terms and conditions.
Buy Bitcoins Instantly With Gift Cards Via Peer
Paxful removes the middleman, allowing potential buyers and sellers from all over the world to meet and trade directly with each other, easily, quickly and securely.
They offer over 300+ different payment methods, such as cash, Paypal, bank transfer and more. Gift cards are one of the most popular payment methods on Paxful because its easy and simple to trade.
You can start buying bitcoins with as low as $1 gift card credit. Gift cards like Google Play, Barnes & Nobles, iTunes, Target, Amazon, Hotels.com, Grouon, H& M, BestBuy, IKEA, Xbox and many more are accepted. Besides that, you can also use OneVanilla prepaid gift cards. Just buy one at a drug store or grocer and find a great Bitcoin deal on Paxful.
Whats more, youll be protected by their secure escrow system, you can be assured youll get your bitcoins directly in your wallet once payment is made.
Let see exactly how this works:
First of all, youll need to create a free account at Paxful.
2. Search for an offer
Login to your Paxful account. To search for an offer, click Buy Bitcoin at the top menu bar.
Then select your preferred payment method , type in how many bitcoins you want to buy in your own currency and clickSearch for an offer.
3. Choose your preferred seller
Paxful will immediately give you a list of real-time offers of sellers who are accepting your chosen gift card type for Bitcoin.
Pick a trustworthy seller that has a good reputation.
4. Accept Offer Terms
Bonus: Buying Gift Cards With Bitcoin Directly
For those of you that would like to purchase gift cards using bitcoin directly, you can go to eGifter which has over 300+ brands to choose from. There are no additional fees for making a purchase with bitcoin with eGifter and you can also earn extra points when you buy gift cards with bitcoin. The best part is you can use your accrued eGifter points to pay for future gift cards.
Digital currencies that eGifter accepts include: