Dec 11, 2025
They used to want things like sneakers, gadgets and gift cards. But this year, all that Gen Z seems to want for Christmas is crypto.
According to a recent survey, 45% of Gen Z say they would love to unwrap cryptocurrency gifts on Christmas morning, which is nearly double the rate of all Americans at 28% (1).
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With Bitcoin prices dipping to around $92,000 after peaking at more than $125,000 back in October 2025 (2), many young people seem to think this is the right time to buy into this asset class. Plus, the Trump administration’s pro-crypto attitude, with the president signing an executive order designed to support the U.S. crypto industry (3), seems to be alluring to young investors.
Meanwhile, many in Gen Z report tight budgets in today’s economy. In fact, a report from January 2025 found that 69% of Gen Z live paycheck to paycheck (4). With that in mind, getting crypto as a gift — as opposed to buying it themselves — may make a lot of sense for young investors.
But is buying cryptocurrency for the Gen Zers in your life really a good idea?
Pros and cons of crypto gifts
While receiving cryptocurrency as a gift could potentially offer large returns with no out-of-pocket costs, crypto may not be the best financial asset for young people who may still be learning how to invest and manage money.
Cryptocurrency is a highly volatile asset class, with a valuation that’s often subjected to massive swings up and down. With this in mind, giving the gift of crypto is basically akin to sticking a lottery ticket in a Christmas card. While it may seem like a nice gesture, the sheer amount of uncertainty and volatility surrounding crypto means it’s impossible to tell if your gift will skyrocket or plummet in value.
Beyond the potential for giving a gift that loses value, managing a crypto asset requires a certain amount of know-how. Of course, a Gen Z crypto gift recipient can always learn how to access and safely store their new asset, but some young investors may not be up for the task.
Unlike traditional banking — where the banks provide security that protects your money — the investor is responsible for their own security when investing in crypto. This responsibility is a very important part of owning digital assets, and if a young investor were to misplace or mismanage their crypto, recovery could be very difficult.
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Alternatives that could help Gen Z build wealth
The volatility of cryptocurrency has led many experts to caution investors against allocating too much of their portfolio to this asset class.
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While exact guidance can vary, many experts recommend capping crypto investments at somewhere between 2% to 5% of your portfolio (5). Conversely, financial experts believe the bulk of your portfolio should be allocated to more tried and true asset classes, like low-cost index funds or bonds.
For young people receiving crypto as a gift, this asset class could make up a large percentage of their investment portfolio; and in many cases, crypto might even represent their only investment. Gifting such a volatile asset to young investors may not be the best way for them to get a portfolio started.
Instead of gifting crypto to the Gen Z folks in your life, some experts advise setting young investors up with assets that will grow with them, like individual stocks or index funds through a custodial account. While some Gen Z investors may not appreciate the growth-over-time style of more traditional asset classes, setting them up with such investments could teach them a valuable lesson about the effects of compounding interest. With investing, slow and steady often wins the race, while chasing big wins with volatile assets could lead to dangerous outcomes.
While parents may want to give a gift that feels modern and aligns with Gen Z’s enthusiasm, the long-term reliability of diversified stocks and index funds may offer steadier growth and less stress. At the same time, ignoring crypto entirely may leave families missing a chance to teach their kids about emerging technology and investing trends.
With this in mind, you might consider a compromise; gifting a young investor with a small amount of crypto while also setting them up with a solid foundation of index funds and stocks. With this balanced approach, a Gen Z investor can get a little bit of the crypto that they crave, while also securing their portfolio with safer assets that can grow over time.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Visa (1); Yahoo Finance (2); Pillsbury Winthrop Shaw Pittman (3); PYMNTS (4); Public (5)
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
