Buying Crypto Under 18: A Youth’s Guide to Digital Currency

And let’s not forget, the crypto realm is like the Wild West—high risk and mostly unregulated. Therefore, if you’re a minor, you’ve got to tread extra carefully. The crypto world is tantalizing, especially for teens eager to invest. But before you dive in, let’s get real about the legal landscape.

Researching Cryptocurrencies

  1. Starting trading with as little as $1 with bitcoin exchange fees varying from 0.75% to 3% depending on the total exchange amount.
  2. Ethereum is a programmable blockchain that allows developers to build and deploy decentralized applications.
  3. If you are under 18, you may face challenges completing the KYC process since some exchanges require users to be of legal age to open an account.

Investing in cryptocurrencies like Bitcoin and Ethereum can be an exciting venture for minors, but it comes with its own set of risks and challenges. Although it might seem frustrating for younger enthusiasts that want to invest in this burgeoning market, there are still ways for minors to gain cryptocurrencies legally. These platforms require individuals to be at least 18 years old before they can create an account to buy and sell Bitcoin or Ethereum. Let’s get acquainted with the process of buying cryptocurrency at Guarda service. Depending on your skills, you may find opportunities to earn Bitcoin by taking on jobs or freelancing gigs that offer cryptocurrency as payment. While those opportunities are not exactly very common, getting paid in BTC for work on the side can be a great way to start stacking Bitcoins.

Can a 16-year-old have Bitcoin?

M1 Finance is one our top picks for investing apps and brokerages because they allow you to create a pie and invest and rebalance to that specific allocation. Bitstamp has a volume-based fee structure, allows you to buy crypto instantly with your credit or debit card, and has a solid mobile app. Going forward, we’ll use BTC, which is the symbol for Bitcoin on exchanges and trading platforms. If you are underage and would like to use bitcoin despite the Coinbaseage limit (or any other popular exchange), there are multiple options how to do it legally. It is a peer-to-peer marketplace where you can buy BTC from other holders online or in cash.

Tips for Investing in Crypto

It is considered a speculative investment, and you should never invest more than you are willing to lose. An attorney can provide you with more informed advice tailored to your specific circumstances and needs. This includes using two-factor authentication (2FA) when logging into your wallet or exchange account, avoiding sharing sensitive information online, and regularly changing passwords. One significant concern is the volatile nature of crypto market prices. These fields are always looking for young talents who can bring something new to the table. As a rule, such part-time jobs pay well and might even pay in cryptocurrency.

How do I get a Bitcoin wallet under 18?

The IRS is keen on your crypto earnings, and they’re taxed at your parents’ rate. If you’re under 19 (or 24 and a student), your unearned income up to $2,200 is safe. Hedge With Crypto is an independent publisher that provides objective and free content. However, our editorial content remains unbiased, reflecting our own opinions or the general information available. For more information on our company policies, read the Affiliate Disclosure, Privacy Policy, and Terms & Conditions.

Next, you will be prompted to enter your email address or phone number. You will receive a verification code, which you need to enter in the box. As an added benefit, Marketplace Fairness has arranged an exclusive welcome offer for our readers, allowing you to claim a substantial bonus of over $8,000 USDT with high exposure rock climbing this link. Some even go the extra mile by providing documentation as a formal nod for their kids to enter the crypto space. It’s like a legal safety net, ensuring you’re not stepping on any legal landmines. If your parents are unaware of your crypto moves, they could unintentionally file a false tax return.

EarlyBird also supports investing in exchange-traded funds (ETFs) and other traditional investment choices. When anyone of any age buys cryptocurrency, it needs to be stored somewhere. In most cases, if you buy a cryptocurrency on a public exchange, the crypto will be held for you in a built-in exchange wallet. If you are a teen who wants to invest in cryptocurrency, there are a few ways to go about it. Cryptocurrency is virtual money that can be bought and sold on an encrypted network called the blockchain or used to pay for a growing number of goods and services. It is not issued by any government and it has no physical existence.

Cryptocurrency is a type of digital asset that has become a popular investment opportunity in recent years. The cryptocurrency system relies on blockchain technology to transfer cryptocurrency between investors and record transactions. Although the term contains the word “currency,” cryptocurrency operates more like other investments than it does like an actual currency. Cryptocurrencies, unlike the U.S. dollar or euro, are not considered legal tender and are not as widely accepted.

Ethereum (its native token is called Ether, or ETH) is the second-most popular cryptocurrency today. It pioneered smart contract functionality on the blockchain, providing another practical use for the blockchain beyond verifying cryptocurrency transactions. Readers are encouraged to conduct their own research and consult with a professional financial and legal advisor before making any investment decisions. The owner of this website and the authors of its content will not be liable for any losses, injuries, or damages from the display or use of this information.

As a result, it does not directly regulate investments into bitcoin; however, it does have jurisdiction over investment products such as funds and ETFs that invest in cryptocurrencies. One of the most common risks of cryptocurrency is its price volatility. While any financial asset can experience price swings, these swings appear to be more dramatic for cryptocurrencies than they are for many other investments. Always prioritise legal compliance, seek assistance from a trustworthy adult, and follow security measures to protect your digital assets.

Research and choose an exchange that accommodates the requirements of underage users. Another important aspect to consider is the Know Your Customer (KYC) process. This is a standard procedure implemented by most cryptocurrency exchanges to verify the identity of their users and prevent fraudulent activities such as money laundering. KYC processes often require users to provide personal information, such as a government-issued identification document, proof of address, and in some cases, proof of income.

GOBankingRates works with many financial advertisers to showcase their products and services to our audiences. These brands compensate us to advertise their products in ads across our site. This compensation may impact how and where products appear on this site. We are not a comparison-tool and these offers do not represent all available deposit, investment, loan or credit products. Once you’ve deposited funds with the exchange of choice and purchased BTC, you’re ready to invest. Trading platforms on the exchanges look very similar to brokerage platforms.

Remember to carefully review and double-check all the information you provide during the account setup process. Any errors or inconsistencies in your personal information may lead to delays in verifying your account and potentially affect your ability to trade on the exchange. It’s important to remember that while the following information is provided as a guide, specific regulations and restrictions may vary depending on your country of residence. Always consult with legal and financial professionals to ensure compliance with local laws.

If you are a teenager, the best thing you can do is to continue learning about cryptocurrency and how it’s changing the financial world. If you want to invest a small amount of your money in this new asset, you can do so through a custodial account or approved crypto app. For example, EarlyBird is one of the first custodial accounts to offer crypto investing. You can deposit funds to your child’s EarlyBird account, and within the account, you can choose to invest in Bitcoin or Ethereum. Once you’ve set up your wallet and account, verified your age and identity, and added funds, it’s time to choose which cryptocurrency to purchase.

The platform simply finds people looking to sell their digital coins near you, and connects you to that person. You can then do an exchange with this person via Interac, e-transfer, PayPal, or cash deposit. However, LocalBitcoins is not responsible for handling customers’ funds directly, they will connect buyers and sellers in an online fashion. There are no [official] age requirements to use this service, although users have to be aware of regulatory measures in the country to make sure they act according to the law.

It gives you access to bitcoin and more than 100 other crypto assets. However, institutional clients can use expert insights, one-on-one consultations, account management support, and more. Here are the best cryptocurrency exchanges for low fees, human advisor access, and more as picked by Business Insider editors in 2024.

This is the most efficient way to avoid scams when trading in online communities without a centralised escrow system. Joining these platforms and groups is typically free and straightforward. You don’t have to be a crypto investor to take an interest in the space and how it all works. REITs offer an opportunity to invest directly in commercial and residential real estate projects, with some paying out regular dividends from rents collected.

Plus, Uphold is one of the few exchanges that allows you to trade XRP, DOGE, and more. All clients can use Kraken’s mobile app access and educational resources. Just remember, you’re going to be dealing with pretty well-advanced people on this type of exchange. You wanna make sure you come correct when it comes to business dealings.

Note, the payment method will vary depending on the cryptocurrency being purchased. Remember to check which payment methods are available for the crypto of interest. Solana (SOL) remains one of the best blockchain networks, allowing for greater scalability, which boosts the platform’s usability. Since its launch, Solana has witnessed massive growth, with tokens built on the platform witnessing high adoption. Having traded below $85 in January, Solana’s price jumped above $200 in early April for the first time since 2021. However, the exchange has redeemed itself and updated its services, focusing more on security and customer support.

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