While cryptocurrencies are becoming more popular, using them for everyday purchases is still challenging. If, like me, you have crypto in your wallet but not an abundance of fiat currencies, you might be wondering how to utilize your crypto for buying Christmas presents, especially with Black Friday and Cyber Monday on the horizon.
Of course, you could sell some Bitcoin on an exchange and withdraw it to your bank, but what about the transaction fees and tax implications?
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Transaction fees on many exchanges can impact the savings youโd be making in the Black Friday sales, and the tax implications just make things more complicated and ruin the fun of snagging those bargains!
I have a workaround that will help you to avoid this hustle.
Amazon might not accept crypto, but they do accept gift cards. In this article, I will show you how to utilize your crypto to buy gift cards.
Youโre not going to miss out on that heavily discounted robo-vac or those new running shoes you want.
Table of Contents
Navigating the Crypto-Gift Card Landscape
Itโs not just as simple as: Where can I buy gift cards with crypto? there are many different platforms and several essential variables to consider.
I have chosen the platforms reviewed in this article based on how likely they are to appear in your Google search results rather than cherry-picking the best ones; this way, you get an informed choice of what is thrust into your eyeballs!
Weโre all aware of the seemingly vast amounts of scams related to both crypto and gift cards that have surfaced in the news. So, letโs just take a second to explain the two main variables you want to consider before diving in and spending your crypto on gift cards.
Security of the Platform
Making sure the website you are putting your personal data into isnโt a fake, phishing site should be the first thing you do, regardless of whether you are using crypto or not.
Fundamental Website Security Checks
As with any website you visit, doing some fundamental security checks is always a good idea. These easy checks allow you to get a good indication that the website is secure. They are as follows:
- Look at the URL of the website. A secure URL should begin with โhttpsโ rather than โhttp.โ The โsโ in โhttpsโ stands for secure, which indicates that the site is using a Secure Sockets Layer (SSL) Certificate. This lets you know all your communication and data is encrypted from your browser to the websiteโs server.
- Look for a lock icon near your browserโs location field. The lock symbol and related URL containing โhttpsโ simply mean that the connection between your web browser and the website server is encrypted, which is important. It prevents others from eavesdropping or intercepting your communication between your browser and the websiteโs server.
While these checks will help you identify a fraudulent site, as stated, they are only basic checks that you should be doing on any website you put your details into.
Scam Detector
If you plan to use one of the many platforms available to buy gift cards with crypto, you should also check them out on scam-detector.com. Scam Detector is the largest fraud-prevention resource in the world. It ranks a website from 1 to 100 (100 being the safest) and gives a short overview of the given rating, e.g., 58.4 (Active. Mediocre. Medium-Risk.)
In our reviews of each platform later in this article, we have provided the scam detector score, but you should always check them out for yourself for peace of mind.
Trustpilot
Another resource to check the validity of a website is Trustpilot. It is a great place to read reviews from other website users. A platform gets an out-of-5-star rating based on user reviews. We have provided the rating in each of our reviews below, but we urge you to read some reviews to ease your worries further.
Note: a low number of reviews may skew Trustpilot scores. I advise you to read all Trustpilot reviews and use your judgment.
Platform Fees
Any business has to make money, and platforms that allow you to buy gift cards with crypto are no different. Transaction fees are where these platforms make their money. This isnโt surprising; you find these fees in many scenarios, which shouldnโt put you off.
However, the fees that you are charged can vary substantially from platform to platform and even depending on what blockchain you are using and what type of gift car you are buying.
If I were to list all the different permutations of possible fees in this article, it would run to thousands of words. Seeing as I donโt know what crypto you have and what gift cards you intend to buy, I shall end this section with the caveat that you might want to check several platforms and see what you will be charged.
However, from my research, on most platforms, a like-for-like purchase (same gift card type, same crypto), the difference in fees is minimal compared to A. The savings you will make when bagging a Black Friday/Cyber Monday deal, and B. The value of the gift card itself.
Ok, now we have covered the main things to pay attention to before making a purchase, let’s dive into the platforms themselves.
Top 8 Platforms for Crypto-to-Gift Card Transactions
Youโve got this far; that tells me you have decided to buy gift cards with your crypto. All thatโs left is to decide which platform/s you will use.
Remember, Trustpilot scores are out of 5, and Scam-Detector are out of 100 (the higher the score, the better on both metrics)
(Scores correct at time of writing. Reviews are in no particular order).
1. Paxful
- Trustpilot Score: 4.6
- Scam-Detector Score: 100 (Safe. Secure.)
We are starting off with Paxful; as we can see from the scores above, itโs giving us green flags from the get-go.
Paxful has a user-friendly interface and several payment options. It allows users to purchase various gift cards, including Amazon and Walmart, using Bitcoin, USDT and USDC, with a minimum transaction limit of just $10.
As you will see later in this article, there are many more payment options on some of the other platforms.
When it comes to security, Paxful adheres to KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols. Transactions over US$1500 require ID verification. An escrow service further secures trades by holding your crypto until both parties are satisfied.
I found Paxful’s interface to be straightforward, with a simple order placement process. Transaction fees are reasonable, ranging from 0.1% to 5%.
Customer support is excellent, and they have an extensive FAQ page to support you further.
2. eGifter
- Trustpilot Score: 3.9
- Scam-Detector Score: 58.4 (Active. Mediocre. Medium-Risk.)
Not quite the scores Paxful has, but itโs not one to be discounted A pretty solid set of scores,. Letโs have a look.
eGifter allows you to buy gift cards from many different retailers and restaurants, including Apple, Google Play, Uber, and Airbnb (at the time of writing, no Amazon cards were available on the platform).
The crypto you can use to purchase cards on eGifter differs depending on the sellerโs preference, but Bitcoin, Ethereum, and Dogecoin are common.
You can increase or decrease the value of your desired gift card in increments of five dollars, and the value limit varies with each card. Once you’ve bought a card, eGifter will email you a link for you to claim your gift card.
eGifter has a good FAQ page that will have the answers to most of your questions. They also score well on Trustpilot, but with a lower Scam-Detector score, I recommend exercising caution.
3. CoinGate
- Trustpilot Score: 4.1
- Scam-Detector Score: 58.3 (Active. Mediocre. Medium-Risk.)
Very similar scores to eGifter, but are they similar in use-case?
The range of gift cards available on the platform seems even greater than eGifter. Top picks include Amazon (take that eGifter!), eBay, PlayStation, Shopify, Nintendo, Nike, etc. The user interface is very similar to eGifter and, therefore, is super easy to use.
CoinGate accepts a wider variety of crypto for payments than most other platforms, giving it an edge for those holding altcoins, including, but not limited to Cardano (ADA), Tron (TRX), XRP (XRP), and Polygon (MATIC).
Like both of the previous platforms, CoinGate has a great FAQ section. They score better than eGifter on Trustpilot, but their Scam-Detector score isnโt the greatest.
4. CoinCola
- Trustpilot Score: 1.5
- Scam-Detector Score: 58.3 (Active. Mediocre. Medium-Risk.)
I will preface this review by saying the recent reviews I have read on Trustpilot are NOT very positive!
For fairness, I shall keep this as unbiased as I can. CoinCola offers gift cards from many online retailers with payment options of Bitcoin, Ethereum, and USDT only.
The user interface isnโt as intuitive as others, and takes a little while to get your head around how it works.
However, they do use KYC verification, which is a plus in their column, and they have a good FAQ section.
5. Coinsbee
- Trustpilot Score: 4.5
- Scam-Detector Score: 80.4 (Reliable. Legitimate. Secure.)
With very high Trustpilot and Scam-Detector scores, Coinsbee seems like a good option.
Like Coingate, Coinsbee accepts a huge range of crypto as payment for gift cards, which is great for us altcoin holders.
I found their user interface very easy to use and their blog was very helpful in explaining how to use the Bitcoin Lightenbing network as well as providing educational articles for those users new to crypto.
When it comes to which gift cards are available, itโs probably one of the widest ranges of the reviewed platforms. From online retailers to games platforms and everything in between, I was impressed.Coinsbee has a very extensive FAQ page and a support ticket feature.
Overall, it is a solid option to buy gift cards with your crypto!
6. Bitrefill
- Trustpilot Score: 4.8
- Scam-Detector Score: 100 (Safe. Secure.)
With scores like that, Bitrefill seems like a strong contender, but letโs take a little look behind the scenes and check it out.
Bitrefill is a hugely popular website for buying gift cards with crypto. The user interface design is slick and intuitive, allowing you to easily select your location so you are offered gift cards that are relevant to you, reducing the chance of making a mistake and buying the wrong card.
The accepted list of cryptocurrencies for payment is, however, limited. Bitcoin, Litecoin, Ethereum, Dogecoin, and stablecoins, USDC, and USDT, are your only choices.ย
Again, Bitrefill has a great FAQ section. Personally, I couldnโt find fault with the platform.
7. Bitpay
- Trustpilot Score: 1.3
- Scam-Detector Score: 0
I guess youโve seen those scores and are ready to move on already, but in the name of fairness, letโs give it a shot.
There are some recognizable gift card brands, but the selection was nowhere near what I have seen on other platforms.
My initial thoughts were that the user interface was a little confusing for my taste. I even struggled to find how to actually make a purchase. The platform seemed to want me to install a Google Chrome extension before making a purchaseโฆthis to me, raised a red flag and was the end of my journey on Bitpay.
If you are being directed off the platform to make a purchase, you are really opening yourself up to being scammed.
8. Gyft
- Trustpilot Score: 1.2
- Scam-Detector Score: 100 (Safe. Secure.)
Well, thatโs an interesting combination of scores. Letโs take a deeper look.
For starters, the websiteโs main color is red, not the color I would choose, given that red psychologically invokes a feeling of danger.
My journey on Gyft didnโt last much longer. In order to make a purchase, you have to create an account; when I attempted it, it wouldnโt let me go any furtherโฆPING..red flag!
There does seem to be a large range of gift cards available (if you can log in!), but the only crypto I could see referenced was Bitcoin.
Iโm going to leave this review hereโฆgiven the competition weโve already seen, I donโt think youโll mindโฆright?
Conclusion
I hope that now you not only have a good idea of what to look for when choosing a platform to buy gift cards with your crypto, but you also have a platform in mind.
If youโre going to twist my arm for a recommendation, Iโd have to say Bitrefill or Coinbee would be my platforms of choice. As an alternate choice, given the selection of Altcoins accepted, I would probably choose CoinGate.
However, as I said at the top of this article, always do your own research.
On the Flipside
- While buying gift cards with crypto is a great idea, it is important to remember that for every reputable site there is, there are probably many more that are more nefarious in nature.
- As the crypto market enters a new bull market, where crypto becomes more popular, the number of dodgy sites will increase.
- Paying for gift cards with crypto is a great idea, but if you are uncertain about what you are doing, it may be more sensible to trade your crypto and withdraw the fiat currency to pay for your gift cards.
Why This Matters
One of the main aims of crypto is to cut out the middlemen who, historically, have made lots of money for doing very little. Using crypto to buy gift cards still has an element of middlemen taking their slice, but it is a step in the right direction toward widespread crypto adoption.
